Samsung Electronics Vietnam has been ranked first place among the top 500 fastest growing companies in the country in 2014.

The FAST 500 rankings' list was released by the Vietnam Report yesterday and showed that Samsung was followed by the Electricity of Vietnam (EVN), the Vietnam National Coal and Mineral Industries Holding Corporation Limited (VINACOMIN) and the Vung Ang Oil and Gas Petroleum JSC (VungAng PV Oil).

According to the Vietnam Report, the compound annual growth rate (CAGR) of the ten leading firms in the FAST500 was 102.18 percent. More than three-fourth of the enterprises included in the survey said they would expand their business activities to boost turnover and their presence in the market, while 19.2 percent said they would continue with the same operations as in 2014.

In addition to the list of the 500 fastest-growing firms, the Vietnam Report also published a list of 500 small and medium-sized enterprises (SMEs) with the fastest growth rates in Vietnam.

The Son Trang Construction JSC was ranked first in that list, while the Kien Khe Quarry Material Co Ltd came in second and the Noi Thuong Bac Transportation Car Co Ltd bagged the third spot.

The CAGR of the ten leading SMEs was pegged at 82.29 percent.

The top ten in the list are Samsung Electronics Vietnam Co Ltd, Vinacomin Power Corporation-a one member limited liability company, Vung Ang Petroleum Jsc, Long Son Co Ltd, European Plastic Jsc, Thanh Long Jsc, Eco Phamar Jsc, Dai Huu Jsc, Sigma Engineering Jsc and Vina Food Breeding Jsc.

The report revealed that during the 2014 to 2015 period, enterprises' operations saw some improvement. Most of the surveyed firms said the number of orders, turnover, machine utility rates, after-tax profit and money flow in 2014 were better than previous years, with increases of 82.2 percent; 79.5 percent; 78.9 percent; 78.7 percent and 77.6 percent, respectively.

This is a positive sign that shows the economy's recovery and indicates businesses' expectation of entering a new growth period.

During the 2015 to 2018 period, companies will maintain their growth rate target. The increase in productivity, improved management and development of new products and services will be given priority going forward.

However, Vietnamese businesses have not paid much attention to mergers and acquisitions as nearly 77 percent of the firms did not choose M&A as their key strategy during the past four years and the next four years.

More than 60 percent of the enterprises said the emergence of rivals in the same sectors would present the biggest challenge. This is why transparency in information will be vital for them and will help map out a feasible and suitable growth plan in the longer term, thus reducing losses.

Around 78 percent of the FAST500 businesses suggested that the Government should maintain low interest rates and create favourable conditions for accessing loans needed for expansion.

The State Bank of Vietnam has also paid attention to the issue. In addition, the Government can extend support to businesses by reducing the corporate income tax, invest in infrastructure and train human resources.

This is the fifth consecutive year that FAST500 was announced, pointing towards the maturity of Vietnamese businesses amidst economic fluctuations at home and abroad.

The FAST 500 rankings are also based on international standards, including the models of the Inc. 500, Fortune 500 and Deloitte 500 companies.

The performance of the companies is calculated, based on CAGR of revenue for the 2011 to 2015 period and is also based on other criteria, such as total assets, the number of workers, after-tax profits and prestige in the media.

The ceremony to announce the FAST 500 Ranking List 2015 will be held at the National Convention Centre in Hanoi on April 22.-VNA