On August 10, the Center for Economic Information and Forecasting (NCIF), the Ministry of Planning and Investment in collaboration with the Konrad-Adenauer-Stiftung Institute of Vietnam (KAS) announced the list of 500 largest private enterprises in Vietnam (VPE500).
Domestic private enterprises are asserting an increasingly important position in the economy. According to the Report, in 2019, Vietnam has 668.5 thousand enterprises (enterprises), of which domestic private enterprises are 647.6 thousand enterprises, accounting for 96.88% of the total, contributing VND 15.12 million billion (57%) of total net revenue, attracting 9,075 thousand employees, accounting for 59.9% of total employees in the enterprise sector in Vietnam.
On the basis of an overview of the ranking methods that have been widely used today, the Report identifies the VPE500 list based on three criteria: labor size, total assets and net revenue. The index used for the rating is the average of the rankings according to the three criteria above.
Data from the 2019 enterprise survey of the General Statistics Office (the 2020 census) is used to make the VPE500 list. The research team did not use the data of 2020 (the survey in 2021) because enterprises are affected by COVID-19 at different levels and locations, which will distort the stable picture of enterprises for a long time before there.
An overview of a number of current policies shows that from orientations and guidelines to mechanisms and policies, Vietnam does not discriminate, or has its own policies specific to large enterprises, even with many policies. support small and medium enterprises (SMEs). However, large enterprises still have advantages in accessing resources such as land, investment opportunities, markets, finance, and opportunities to supply goods and services… through investment attraction incentives, or regulations on bidding conditions, as well as potential for export customers.
Although appearing in 57/63 provinces and cities, VPE500 is concentrated in two major economic centers, namely Ho Chi Minh City and Hanoi (accounting for nearly 50% of the total) and some localities have many industrial parks such as Binh Duong, Dong Nai, Hung Yen and Ninh Binh. In general, VPE500 is being formed based on the advantages of infrastructure, resources and markets of localities.
VPE500 is distributed in almost all economic sectors (18/21 primary industries). In which, the most concentrated in the manufacturing and processing industry (CBCT), commerce (wholesale and retail) and construction.
The VPE500 group outperforms domestic private enterprises in general in terms of size and average business results, as well as participating in import-export activities and business linkages. On average, in the period 2016-2019, the average labor size and total assets of a VPE500 enterprise are more than 83 times and more than 132 times higher than that of domestic private enterprises in general, net revenue is about 123 times higher. The proportion of enterprises exporting up to 58.0% compared to 7.73% of the remaining private enterprises.
The report gives a list of 500 largest private enterprises in the country in 2019. The top 3 enterprises are all in the field of commercial activities.
Accordingly, the company holding the first position is Mobile World Joint Stock Company in the field of commerce with an average score of 3 points. In terms of revenue, this enterprise ranked first in the country, labor and assets were ranked second and seventh, respectively.
The next position belongs to Vincommerce General Services-TM Joint Stock Company with an average score of 7 points. This enterprise ranked first in terms of labor indicators, in terms of assets, ranked 6th and ranked 10th in terms of revenue.
Truong Hai Automobile JSC holds the 3rd place with 13 points. Assets and revenue of the enterprise are in the top 4, however, in terms of labor, this enterprise is in the 26th position.
Source: VPE500 Report
Vinapearl JSC is the only company in the field of hotels and restaurants in the top 10 of VPE500 with 20 points and holds the 5th position. Hoa Binh Construction and Real Estate Trading Joint Stock Company is also the only enterprise in the field of construction to reach the top 10 with 22 points.
In addition, the manufacturing and processing industry accounts for 50% of the top 10 of the VPE500 list. Specifically, Vietnam Dairy Products Joint Stock Company is in the 4th position, Hoa Phat Steel Joint Stock Company in the 7th position, Suntory Pepsico Vietnam Beverage Company Limited in the 8th position, Thai Binh Investment JSC in the 9th position, and Thai Binh Investment Joint Stock Company in the 9th position. Hoa Phat Dung Quat Steel Joint Stock Company is in 10th place.