Vietnam lacks world-class private enterprises

This is the analysis indicated in the assessment results of the 500 largest private enterprises in Vietnam (VPE500) conducted by the National Center for Socio-Economic Information and Forecast (Ministry of Planning and Investment).

Dr. Tran Toan Thang, Head of Industry and Enterprise Economic Forecasting Department, National Center for Socio-Economic Information and Forecasting, said that the VPE 500 group was selected based on the ranking of 3 labor criteria, total assets and revenue.

According to the research results, on average in the period 2016-2019, the average labor size and total assets of VPE500 enterprises are more than 83 times and 132 times higher than that of domestic private enterprises in general, net revenue is about 123 times. The proportion of enterprises with export is up to 58% compared to 7.73% of the remaining private enterprises.

Thanks to its size and outstanding operating results, although it accounts for a small proportion of the number of businesses, VPE500 makes a great contribution to the operation of domestic private enterprises. On average, in the period 2016-2019, VPE500 only accounted for 0.089% of the total number of enterprises but created jobs for about 10.4% of employees, accounting for 13% of total assets and generating 15.8% of net revenue.

“It can be said that VPE500 can be considered as a leading and influential force in the market and the performance of this group of businesses can be considered as a benchmark of the business sector” – the VPE500 report emphasized.

However, the research team said that VPE500 has not become a strong force as expected, not many large private enterprises have achieved world-class stature. Some large private enterprises have appeared but the number is not much and Vietnamese brands are still of lower value than brands of many Southeast Asian countries. Small and medium-sized private enterprises face many obstacles in the development process.

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On that basis, the research team and many economic experts believe that it is necessary to have more specific policies to build a force of large private enterprises, develop stably, and withstand shocks. from outside and increase the efficiency of the economy.

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Policies with private enterprises in the coming time need to continue to be perfected, in the direction of not only creating favorable conditions for enterprises to enter the market, but also helping enterprises to survive and grow. In particular, it is necessary to encourage large enterprises to invest to improve productivity and gradually shift to in-depth growth.

@ Cafef

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