Growing Productivity: Top of Corporate Growth Strategy

The data used in this report come from two main sources: more than 500 questionnaires sent to enterprises for the FAST500 report 2015, and a data source of fastest growing companies in Vietnam from 2009 to 2014 by Vietnam Report.

 

According to the survey results, the issues of productivity increase, improvement of quality of the management team and development of product lines and services are considered three top growth strategies that have been conducted during 4 years (2011-2014), as well as main directions in the next 4 years (2015-2018).

 

In the telecommunications industry, revenues have increased over the years but there are differences among smaller groups, of which computer and services have much lower revenue than communications industry. Due to the business nature, the computer repair industry has low turnover. Besides, the communications industry over the years has increased profits more than services and business computer repair industries.

 

According to the Vietnam Report, the telecommunications industry in 2015 will continue to witness fierce competition as well as new trends that require authorities and companies to adapt to meet the actual needs. The level of competition in the telecommunications market is forecast to be more intense when the market enters a saturation stage and more new service providers will penetrate to the market during Vietnam's WTO commitment process.

 

The food and beverage industry has rapidly growing revenues over five years with high growth rates. The food manufacturing and processing industry has higher turnover that exceeds the beverage industry.

 

According to the forecast, the growth prospects of the beverage industry of Vietnam are quite positive because more and more businesses have invested in this industry. Total sales of the industry is forecast to rise 7.5 percent in 2015-2016, while the revenue will increase by 10.5 percent when consumers start purchasing higher beverages, of which beer dominate the market in terms of sales and revenue. It is forecast that by 2016, beer and liquor revenue will have increased by 32.8 percent. However, as per capita income increases, customers will change consumption habits and switch to alcoholic beverage with higher value.

 

In terms of agriculture, more and more investors are targeting the Vietnamese market. The agricultural export products in Vietnam are estimated at US$30 billion per year, accounting for about 20 percent of total exports of Vietnam. More and more foreign investors are looking for business opportunities in Vietnam. The Trans-Pacific Partnership (TTP) agreement that is being negotiated between the United States and 10 other countries will increase export opportunities for agricultural products of Vietnam.

 

According to recent studies, agriculture in Vietnam attracts more FDI as the economy becomes more globalised and the European and US markets are open for exporters. The equitisation of the state-owned enterprises, trade liberalisation, and policies reformed in accordance with policies of Western countries will be implemented to create more investment opportunities for Western investors in the next 5 years. TPP agreement between 11 countries including the United States can bring a lot of new and valuable opportunities for the development of the export-oriented agricultural sector of Vietnam.

 

However, the agricultural industry is facing many challenges, including less competitive technology, poor infrastructure, lack of workforce skills and low quality exports, besides environmental challenges like climate change, rising sea levels, deforestation and soil erosion.