The compounded annual growth rate of the country’s 500 largest private businesses over the last few years (Source: VNR)
 
Hanoi (VNA) – The list of top 500 largest enterprises in Vietnam (VNR500) has been unveiled, showing that Vietnam’s private sector continued to post strong growth with the compounded annual growth rate (CAGR) among private firms rising significantly, reaching 21.8 percent in the 2014-2017 period.

This information was included in the recently released VNR500 Ranking for 2018, which ranked the top 500 largest businesses in the country and is compiled by Vietnam Report JSC in cooperation with VietNamNet newspaper.

This is the 12th consecutive year that the VNR500 has been announced to honour the achievements of the most successful enterprises in Vietnam. Vietnam Report also announced the top 500 largest private enterprises.

According to the VNR500, the top 10 largest enterprises in Vietnam by revenue in 2018 included Samsung Electronics Vietnam Co Ltd., Electricity of Vietnam (EVN), Vietnam National Oil and Gas Group (PetroVietnam), Viettel Military Industry and Telecoms Group, Vietnam National Petroleum Group (Petrolimex), Vingroup JSC, Vietnam Bank for Agriculture and Rural Development (Agribank), Joint Stock Bank for Investment and Development of Vietnam (BIDV), Honda Vietnam Company and Vietnam Airlines Corporation.

Meanwhile, the top 10 largest private enterprises in Vietnam by revenue in 2018 are Vingroup JSC, Mobile World Investment Corporation, Vietnam Dairy Product JSC, DOJI Gold and Gems Group, Truong Hai Auto Corporation, Hoa Phat Group JSC, FPT Corporation, Vietjet Aviation JSC, Vietnam Prosperity Joint Stock Commercial Bank and Masan Group Corp.

The five sectors that contributed the most revenue to the 500 largest companies were finance (15.1 percent); food, beverages and cigarettes (14.3 percent); construction, building materials and real estate (13.9 percent); steel (11.7 percent) and telecommunications and information technology (9.2 percent). These five sectors accounted for 64.2 percent of total revenue and 75.5 percent of the net profit of the 500 enterprises on the list.

A recent statistic from the General Statistics Office also showed a significant contribution by the private sector. The figures calculated at the end of 2016 showed that private sector enterprises generated 9,760 trillion VND (420 billion USD) in revenue, accounting for 56 percent of the economy’s total revenue in 2016, while State-owned enterprises (SOEs) generated only 2,880 trillion VND (123.9 billion USD), accounting for 16 percent of the total. 

In terms of profit, the private sector generated more than 188 trillion VND (8 billion USD), accounting for 26.4 percent of the total profit of all enterprises, while SOEs generated more than 197 trillion VND (8.47 billion USD), accounting for 27.7 percent. The remaining 45.9 percent of profit was generated by other economic sectors.

The ranking also saw a positive change in the economic structure. Over the past few years, the proportion of revenue from large enterprises in the service and industrial sectors has increased significantly. 

There were also positive changes within the sectors. For the industrial sector, product structures are changing to better meet market needs. The processing industry increased its revenue proportion while the mining industry decreased. In 2018, the processing industry accounted for 43.7 percent of the industrial sector’s revenue in the VNR500 ranking while the mining industry accounted for 12 percent.

A ceremony to officially announce the rankings is scheduled to be held on January 16, 2019 at Rex Hotel in Ho Chi Minh City.-VNA