Last updated: Thursday, March 23, 2017
500 Fastest-growing Companies in Vietnam NamedPosted: Thursday, March 09, 2017
Vietnam Report Joint Stock Company in combination with online newspaper VietNamNet has officially announced the list of 500 fastest-growing companies in Vietnam in 2017, FAST500.
FAST500 rankings were built on objective, independent and scientific principles and comply with current international standards. The rankings were based on the compound annual growth rate (CAGR) of revenue and business performance. Besides, such criteria as total assets, employment, profit after tax and corporate reputation in the media were used as secondary elements to determine the size and position of candidates in their industries.
FPT Tops FAST500
FPT Corporation, a regular appearance, topped the list. Top 10 companies included budget airline Vietjet or well-reputed property developer Him Lam.
In addition to FAST500, Vietnam Report also released the list of 500 fastest-growing small and medium-sized enterprises (SMEs) in Vietnam in 2017, with the purpose of recognising their worthy achievements among the most populous business community.
In the 2011 - 2014 phase, the average CAGR growth of FAST500 climbed to 34 per cent from 31.1 per cent in the 2010 - 2013 period. In 2012 - 2015, the rate jumped to 42.4 per cent, showing the remarkable maturity of Vietnamese enterprises notwithstanding external negative influences caused by global political and economic instability.
The survey into FAST500 companies showed that most were optimistic about business performance in 2016 (with nearly 77 per cent citing revenue growth in 2016 and more than 82 per cent stating net profit growth). This optimism will help to boost growth opportunities in 2017 for Vietnamese companies.
The survey noted that market demands and trends were the factors with the most impact on business growth in the past five years, with 66.7 per cent of respondents - the highest - saying “very influential”.
Opportunities and challenges in 2017
However, they also predicted that more difficulties will stand in their way to growth in 2017. Typical hardships are expected to include higher input prices, higher labour costs, difficult talent employment and the rise of competitors in the same industry.
In previous FAST500 surveys, enterprises expected that lower corporate income tax, stronger administrative procedure reform and lower interest rate - three eagerly awaited policies - would be improved in 2016. Things changed slightly in 2017. Apart from administrative procedures and corporate income tax - two challenging issues to enterprises and policymakers, improving the legal environment is stronger-drawing issue than interest rate, expected to better support companies to growth objectives.
Top 10 FAST500 companies in 2017 includes FPT Software Co., Ltd; Hanoi Southern City Development Joint Stock Company; Nguyen Minh Steel JSC; Him Lam Land Trading Corporation; Vietnam Livestock Corporation - Joint Stock Company; The Pan Group; Vietjet Aviation Joint Stock Company; Hai Dang Joint Stock Company; Truong Long Engineering And Auto Joint Stock Company; Duc Giang Chemicals and Detergent Powder Joint Stock Company.