On March 07, 2018, Vietnam Report in conjunction with VietNamNet Newspaper published the FAST500 Ranking – Top 500 fastest growing enterprises in Vietnam in 2018.
The FAST500 ranking is based on the results of independent research and evaluation of Vietnam Report, which was officially announced in 2011. The rankings of companies in the ranking are based on the double-digit growth (CAGR) of sales and business performance. Besides, criteria like total assets, total labor, after-tax profits and corporate credibility in the media … are also used as supporting factors to determine the size and position of enterprises in the industry.
After 8 consecutive years of publication, the ranking marks the endless efforts of FAST500 – businesses like “rising stars” are the driving force behind the growth of the economy. Enrolled in the FAST500 Ranking are companies that are always hard-working, innovative and flexible in business, taking advantage of growth opportunities, contributing a large part to the development of the economy of the country.
In addition to the Top 500 Fastest Growing Enterprises in Vietnam, Vietnam Report also announced the Top 500 Fastest Growing Small and Medium Enterprises (SMEs) in Vietnam in 2018 with the purpose of recognizing the performance of the majority of enterprises.
The 2018 FAST500 Ranking Ceremony will be officially held on April 18, 2015 at the Vietnam National Convention Center, Hanoi.
Detailed information on the list and ranking of businesses is posted on the website: www.fast500.vn
Top 10 of FAST500 Ranking 2018:
List 1: FAST500 Ranking – Top 500 Fastest Growing Enterprises in Vietnam:
List 2: FAST500 Ranking – Top 500 Fastest Growing Small and Medium Enterprises in Vietnam
Within the framework of FAST500 Ranking 2018, Vietnam Report also conducted a survey of growth companies for 8 years of publication to illustrate the picture of the overall growth of Vietnamese enterprises, the most important factors contributing to the success and orientation of business activities in 2018.
List 2: FAST500 Ranking – Top 500 Fastest Growing Small and Medium Enterprises in Vietnam
In the period of 2013 – 2017: FAST500’s business grew steadily
For the period of 2013 – 2017, the average CAGR of the Top 500 fastest growing enterprises in Vietnam (FAST500 growing enterprises) reached 46.4%, increased from 42.4% of the previous period shows that the business growth is quite stable and stable. This is a good signal, bringing the expectation of higher growth in the next period.
In terms of the type of business, the highlight of this period’s growth is that the average CAGR growth rate of all three business units has been rising at a high and stable level, in particular, state-owned enterprises showed an average CAGR growth of 38.7%, a 5% increase over the 2012 – 2016 period, indicating significant improvements in business performance, which are positive indications for the equitization process.
Figure 1: Average CAGR by type of business of the FAST500 Ranking in 2018 (business period of 2013 – 2016), 2017 (period 2012-2015) and 2016 (period 2011 – 2014) (Unit:%)
Source: Vietnam Report
Figure 2: Average FAST500 by industry of FAST500 Ranking in 2018 (2013 – 2016) (Unit:%)
In terms of industry, in recent years, the Vietnamese market witnessed a strong rise of the retail sector. In this year’s FAST500 Ranking, this is also the industry that has grown significantly over the three-year period from 2013 to 2016 with an increase of nearly 30% over 2012-2015, ranked among the top three industries with the highest double-digit revenue growth. In addition, the sectors of agriculture, telecommunications, informatics, information technology and mechanics remained strong with a CAGR of over 50%. Continuing to lead the market with the largest number of enterprises in the whole ranking this year is construction, materials and real estate – accounting for 29% of the total. Thus, it can be said that these figures outline some of the current market picture with potential growth from prominent sectors such as Real Estate and Retail, which are expected to become “promising land” to attract strong investment for the national economy.
Source: Vietnam Report
Source: Vietnam Report, FAST500 Business Survey, February 2018
In 2018, enterprises identify that the three biggest external barriers to growth are the increase in input costs, the rise of the competition and the problem of administrative procedures. In particular, enterprises pay special attention to input costs, mainly due to rising raw material prices and increasing competition in the business sectors (with 60.5% and 52.6% respectively). Many experts said in 2018 that the year will be fierce competition for a variety of industries due to the attractive market, many preferential policies in the country attracting foreign businesses. At the same time, the trend in the coming time will be the link between large enterprises to create resonance value. Therefore, the FAST500 businesses said that the two groups of the biggest competitors which need to be taken precautions this year are the biggest domestic firms (50%) and multinational corporations from developed countries which are actively entering the Vietnamese market (41.2%).
Competitive market: FAST500 is ready for growth
Figure 4: External barriers to business growth in 2018 (Unit:%)
Source: Vietnam Report, FAST500 Business Survey, February 2018
Evaluating the sectors with good growth potential in the next 3 years, the enterprises assess the top 5 most promising industries are clean agriculture, information technology, clean technology, retail and tourism – hotels. This also shows the development trend in the future when enterprises gradually promote investment in clean technology which is friendly with the environment, integrated in the processing, manufacturing industry with the same direction to develop tourism into the spearhead industry of the country. Facing the challenge and competition, 83.8% of businesses said they would prioritize revenue/profit growth in current markets; next is to increase productivity and expand to new markets with 59.5% and 51.4% respectively. For the purpose of improving the growth prospects, 73% of businesses determine the quality of products and services that need to focus first in the future.
Figure 5: Industries with good growth potential in the next 3 years (Unit:%)
Source: Vietnam Report, FAST500 Business Survey, February 2018
Policy Recommendation: Improving the regulatory environment is the driving force for growth in 2018
If in the feedback of enterprises in the previous years, Tax reduction and Speeding up the reform of administrative procedures are the solutions expected by enterprises first then by 2018, the majority of businesses have identified Improved legal environment is a priority issue to support production and business. For the Vietnamese business community at the moment, improving the business investment climate will help businesses move towards growth, promoting rapid growth associated with sustainable development.
Figure 6: Policy recommendations from enterprises to better support production and business performance and business growth targets (Unit: Priority on scale from 1 to 10)
Source: Vietnam Report, FAST500 Business Survey, February 2018
Accompanying with the growing business, FAST500 Organization Committee hope that the Top 500 fastest growing enterprises in Vietnam will have more and more promising names, role models for the success of the Vietnamese business community, contributing to the overall development of the economy of the country. 2017 has left many imprints for the economy of Vietnam with high economic growth rate and gradually improved macroeconomic fundamentals. This is the basis for supporting businesses to continue to grow and maintain growth for 2018. The economic indicators and feedback from the business also show that the economy is growing at a more stable level. However, the pressure will still come from many sides for Vietnamese enterprises when the value added is low and the competitiveness of many enterprises has not kept up with the current market trend. To create outstanding breakthroughs, growth comes from the internal resources of the business is a prerequisite, but can not lack the support from the Government. In 2018, many policies in place and many new laws in force will be expected to create more favorable conditions for all types of businesses, especially small and medium enterprises.
According to Vietnamnet.vn
