The steel pipe factory of Hoa Phat Group JSC, which is among the top 10 most profitable companies in Vietnam (Photo: VNA) Hanoi (VNS/VNA) - A Vietnam Report survey on the 500 most profitablecompanies in the country, which was announced this week, said most businessinsiders expect technology to remain the leader in attracting investment.
Technologywas the most common answer among enterprises (51.4 percent of respondents),construction and real estate (40 percent) and retail (34.3 percent).
In theProfit500 Ranking, the companies with the highest average pre-tax profits arein telecommunications, information and technology. The enterprises have thepotential to show stable growth profit indicators.
Whilethe world is moving towards the Fourth Industrial Revolution, the applicationof technology in Vietnamese businesses is still in its early stages due to lackof capital, infrastructure and a skilled workforce.
Thereport said many Vietnamese businesses have strong demand but not enoughstrategic orientation in the investment process. 57 percent of surveyedbusinesses reported they are speeding up investment in technology. 37.1 percentare investing gradually and 8.6 percent are still in preparatory stages.
Businessesexpect the Fourth Industrial Revolution to help cut their costs, optimiseefficiency and increase market share.
In the2018 Profit500, the number of firms in construction, building materials, realestate (14.8 percent), electricity (12.8 percent), finance (11.2 percent), andfood, beverages and cigarettes (10.4 percent) accounted for a majority ofbusinesses on the list.
Theaverage pre-tax profit of the top 500 most profitable companies in 2017 grewmore than 65 percent from 2016. The sectors with the highest return on asset(ROA) and return on equity (REO) were telecommunications, informationtechnology, pharmaceuticals, healthcare, transportation, food, beverages andcigarettes.
Thesurvey also revealed that, despite positive trends, enterprises face a longlist of potential risks and challenges. The escalating US-China trade war andincreasing US import duties on some key commodities are raising concerns, asare volatile exchange rates and tax burdens. 51.4 percent of respondents citedexchange rates as the biggest difficulty affecting their performance over thepast year, followed by taxation at 42.9 percent.
In theface of economic fluctuations, it is noteworthy that most of the firms approvedof the State’s macro-economic management to curb inflation, adjust exchangerates and access information and legal documents.
Morethan 97.1 percent of enterprises rated efforts to maintain economic stabilityand improve the business climate as “good” or “excellent” in the first ninemonths of the year. Enterprises expressed discontent in the effectiveness ofadministrative services, infrastructure and access to land.
However,enterprises are still optimistic about their performance this year. 90 percentexpect their profits will be higher than last year and only 8.6 percent expectprofits to stay the same.
Theranking aimed to honour enterprises that are profitable and have the potentialto become the backbone of the Vietnamese economy and contribute to theintroduction of Vietnamese brands to the international business community.
Theaward ceremony for the ranking will be held on November 29 at the VietnamNational Convention Centre.-VNS/VNA
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