The Nha Trang Import and Export Coffee Joint Stock Company (Intimex Nha Trang) tops the FAST 500 Ranking 2013 (500 fastest growing companies in Vietnam).The FAST 500, conducted by the Vietnam Report Joint Stock Company (Vietnam Report) in coordination with the VietnamNet online newspaper, was recently released in Hanoi.
The FAST 500 Rankings is released annually to honour dynamic businesses with high growth rates in the period of 4 years from 2009 to 2012. The ranking is seen as a driving force for growing businesses who make great efforts to overcome difficulties and aim for sustainable growth in the long term. This is the fourth consecutive year the FAST 500 Rankings is officially made in Vietnam. The ranking of enterprises in the FAST 500 is based on the Compound Annual Growth Rate (CAGR) which considers their total assets, labour and post-tax profit, turnover, as well as reputation in the media in the 2009-2012 period.
Private sector is the most dynamic
According to the FAST 500, the CAGR of the 500 fastest growing companies in Vietnam in the period 2009-2012 is 44.7 percent, much lower than 62.2 percent recorded in FAST500 in the period 2008-2011. The average CAGR of enterprises in the FAST 500 is at the lowest level for the past 4 years. The average CAGR of the 5 fastest growing companies is just over 158 percent this year, while last year it was 374 percent, which shows “long-term” impacts of the crisis of the global economy starting from 2009 on most countries, including Vietnam.
Among the 500 fastest growing companies in Vietnam in 2013, more than 65 percent with the fastest CAGR are from the private sector, twice as many as state-owned companies. Besides, the average CAGR of the private sector is higher than that of the FDI sector and the state-owned sector (private sector: 50.3 percent; FDI: 43.8 percent; state-owned sector: 38.9 percent). Such figures indicate clearly the dynamism of the private sector and their roles as pioneers of the economy.
According to the Rankings, businesses in the food and beverage sector (18 percent) have fastest growing rates, followed by those in construction, building materials and real estate (16 percent), mineral and petroleum (9 percent), finance (8 percent), and chemical industry (7 percent). However, the average CAGR of the businesses in the seafood industry is the highest. Businesses in real estate also mark their imprint in the FAST 500 Rankings this year.
Tough period ends up in 2014
In the making of the FAST 500, Vietnam Report conducted a survey on the economic and business outlook in 2014, with the main survey participants being large enterprises in Vietnam. The results of the survey show that business performance in 2013 is better than in 2012; approximately 86 percent of the survey participants said that their revenue in 2013 is higher than 2012 and the majority of the Vietnamese enterprises expect that 2014 will mark the end of the business downturns and open a new growth period. Nearly 88 percent of the survey participants forecast that the business performance in 2014 will be better or equal to that of 2013.
The forecast is partly based on the positive business forecast by the International Monetary Fund (IMF) and World Bank (WB) as well as the stable domestic economy during the recent time. According to the General Statistics Office, the year 2013 has the lowest inflation rate in the last 10 years, reaching 6.04 percent and the GDP growth rate is estimated to be 5.42 percent, higher than 5.25 percent in 2012. The positive signals have fuelled business confidence for the challenges ahead.
65.5 percent of the survey participants expect that the government will provide more favourable policies to ensure macro-economic stability and 64.9 percent of the participants expect that the government will simplify and reduce the burden of administrative procedures on businesses. These incentives are more necessary and supportive than supports such as credit packages, investment incentives or tax incentives to support businesses in the process of building a fair competitive environment and equality in the process of global economic integration. Perhaps, the recent difficult period has brought experience and valuable lessons for Vietnamese businesses because they are aware that self-advocacy and self-change are best ways to overcome difficulties and lead them to success.
Quynh Anh
Đăng ký: VietNam News
