Representatives of Top 500 most profitable companies in Vietnam in 2020 at the award ceremony (Photo courtesy of Vietnam Report) Hanoi (VNS/VNA) - Through the two waves of the COVID-19 pandemic,confidence in the growth prospects in 2020 of enterprises has graduallydiminished.
Thisinformation was released by Vietnam Report (VNR) at the award ceremony of theTop 500 most profitable companies in Vietnam in 2020, so-called Profit500, heldin Hanoi late last week.
VNR’ssurvey results in 2020 show that only 54.1 percent of enterprises wereoptimistic about the revenue growth prospects and 49.1 percent of enterpriseswere confident about profit growth prospects, down by 27.9 percent and 29.9 percent,respectively, compared to the assessment of revenue and profit growthprospects surveyed by Vietnam Report in September 2019.
Thesurvey results show how the pandemic has seriously damaged the marketsentiment.
Speakingat the ceremony, Pham Anh Tuan, a representative from online newspaperVietNamNet, said that for the first time in economic history, there was aneconomic crisis on a global scale stemming from a pandemic. This is thefirst time the concept of a “new normal” has been introduced when talking aboutefforts to recover the economic, social and production environment of thebusiness community.
“Inthat context, for businesses, profit is not enough, but it must be sustainableprofits based on strong internal capabilities, flexibility to adapt to themarket and a reputable brand, trusted by many customers and investors,” Tuansaid.
Thehonoured businesses are those with effective and sustainable production andbusiness activities as well as good profitability in the face of manychallenges resulting from the pandemic. In addition, they have kept a firmposition in their industry and have the potential to become pillars for thefuture development of Vietnam’s economy.
Inthis year's Profit500 ranking, some industries continued to record morebusinesses than the average level, including construction, constructionmaterials and real estate (23.9 percent), finance (11.6 percent), food andbeverages (10.9 percent), and electricity (6.3 percent).
Returnon assets (ROA) of enterprises in Profit500 reached 11.4 percent, slightly downfrom 11.9 percent in 2019. However, the average return on equity (ROE)increased by 21.7 percent compared to 20.9 percent in 2019. This showed thatthe efficiency in using capital of enterprises has been improved.
Notably,the number of businesses in the food - beverage - retail - packaging industryin 2020 also dominated the ranking. In this event, Vietnam Report alsoannounced the Top 10 prestigious enterprises in the food - beverage - retail -packaging industry with the aim of recognising the achievements of reputablecompanies in the industry.
Ina quick survey of enterprises in the industry conducted by the company inAugust, about half of surveyed firms said that their operations hadbeen affected, of which, the group of alcoholic beverages was facing themost challenges because of Decree 100. Production capacity of the beveragegroup currently only operates at 80 percent compared to before the pandemic.
Alsounder the event, Vietnam Report published the Vietnam Earnings Insight 2020Bilingual Report with the theme “Restructuring - Recovering growth momentum ina new normal period”.
Accordingto the report, Vietnam's economy recorded a growth rate of 2.12 percent in the firstnine months of 2020 - the lowest compared to the same period of 2011-20.However, in the current difficult situation, maintaining a positive growth rateis still considered a positive and good sign.
Thechallenge for Vietnamese businesses is not only to maintain production andbusiness activities and ensure social safety regulations, but also to build asuitable operating system following market trends./.
VNA
