The Hanoitimes - On December 5, Vietnam Report has released the VNR500 – Top 500 largest enterprises in Vietnam in 2017, as well as Top 500 largest private enterprises in Vietnam 2017.
This is the 11th consecutive year the VNR500 has been announced to honor the achievements of Vietnamese enterprises in fiscal year 2017. On January 19, 2018, the Awards Ceremony will be organized for Top 500 largest enterprises in Vietnam 2017 at Grand Plaza Hotel in Hanoi.
In the first year the VNR500 was announced in 2007, private enterprises only contributed to 20% of total enterprises in the list, but at present, this number has increased 2.5 times, contributing to 50% of total enterprises in the list.
Top 10 Vietnamese largest enterprises in 2017.
With regard to revenue, the state owned enterprises (SOEs) still have the largest revenue among 3 economic sectors in the VNR500 of 2017. However, the revenue contribution of SOEs in this year has reduced to 52% from 59% in 2016. Meanwhile, contribution of private sector has increased from 27% in 2016 to 32.3% in 2017.
The increasing trend in number of private enterprises and high percentage in revenue contribution in VNR500 2017 have reflected the government’s effort in creating favorable business environment for economic components and speeding up the equitization process, restructuring SOEs in recent years.
The VNR500 2017 also showed the main driving forces of the economy, such as electricity, crude oil – minerals, finance, food & beverage, telecommunication – IT are the top 5 sectors with high percentage of revenue contribution in the VNR500. In period 2015 – 2017, electricity has been on top with the highest revenue contribution.
Top 10 Vietnamese largest private enterprises in 2017.
Within the framework of VNR500 2017, Vietnam Report has conducted survey on the largest Vietnamese enterprises community to have an overall look on the business condition in 2017, challenges and barriers they are facing, capabilities to access new technologies in digital era, and the business prospects in 2018.
If 2016 is a difficult year for Vietnam’s economy, in 2017, the economy and business condition of leading enterprises have been positive. According to responses from leading enterprises, 75% enterprises have increased in revenue compared to 2016. At the same time, 62.5% reported business conditions had improved, while only 4.7% enterprises stated otherwise. Meanwhile, nearly 70% enterprises reported a higher productivity; factors such as equipment & facilities, fixed assets, and customers have been growing for 60% enterprises.
Leading enterprises also give positive review on the improved business environment in 2017. As such, more than 50% enterprises stated from good to very good with regard to legal procedures, accessing capital, land and infrastructure. The highlight in 2017 are policies creating a transparent business environment, resulting in an investment wave from local and foreign investors, which is reflected in a strong improvement in the Doing Business Report of the World Bank on Vietnam’s business environment.
However, administrative procedures and taxes are the most concerning issues of enterprises in this period. More than 50% enterprises considered administrative procedures in Vietnam to be at moderate level, while 5% enterprises said this issue to be under moderate level.
It is expected that by 2018, most of enterprises will have an increase in revenue, while the business conditions will improve and become more stable than in 2017. 6.6% enterprises will cut expenses for future business activities.