Vietnam’s Top 500 optimistic for 2010

Optimism was in the air at a ceremony to name Vietnam’s Top 500 business.

VNR500, organized by Vietnam Report Company and VietNamNet newspaper and took place on January 13, 2010.

The special guest was Professor Joseph Nye, one of the US’s top minds, he handed out certificates to businesses as well as presenting a talk on “soft power”.

Before an audience of representatives from the 500 top Vietnamese businesses as well as scholars and economists, Professor Nye said that Vietnam could be an international success story and create what’s being called ‘soft power’ for itself.

The participants at the forum also listened to the presentation by Dr Mary Lyndon Haviland, advisory expert of the United Nations Development Programme on corporate social responsibility. Chaovalit Ekabut, Chairman of SCG, the Thai leading industrial group, shared his experiences in applying corporate social responsibility. Dr Haviland stressed that social responsibility is also a contributor to ‘soft power’

A picture of Vietnam’s biggest 500 businesses

Outlining the most outstanding characteristics of the top 500 businesses, Vu Dang Vinh, director of the Vietnam Report, said private businesses have shown strong development. This is reflected in higher numbers of private businesses in top 500. Meanwhile, the 2009 VNR 500 witnessed a decrease in the number of foreign invested enterprises.

In the last two consecutive VNR 500 reports, big state owned economic conglomerates and general corporations have always lead the top 500.

“Industrial enterprises are still dominating, while agriculture and service sectors do not have many representatives in top 500,” Vinh noted.

In classifying the top 500 businesses in accordance with geographical positions, VInh said that 75 percent of the biggest businesses are operating in Hanoi and HCM City, and satellite triangles such as Hanoi-Hai Phong-Quang Ninh in the north, and Dong Nai-HCM City-Binh Duong in the south.

Regarding business fields, the rise of petroleum, gold, silver and gemstone companies and steel producers were evident, while there were fewer securities companies than the previous year.

Vietnamese businesses remain optimistic about 2010

Vinh from Vietnam Report released optimistic figures and forecasts about business performance in 2010.

Answering questions about how high Vietnam’s economic growth rate would be in 2010, 46 percent of polled businesses said that the GDP growth rate would be 6-7 percent while 34 percent of businesses said 5-6 percent. Seventeen percent of businesses believe that the national economy would obtain a seven percent growth rate, the same level for the pre-crisis period. The remaining 14 percent gave a forecast figure of less than five percent.

On the question: “Which scenario may occur with Vietnam’s economy in the first half of 2010?”, 51 percent of businesses believe that the situation will improve a little, while 29 percent think the situation will be much better.

The thoughts of Vietnamese businesses coincide with forecasts by the International Monetary Fund and the Government of Vietnam.

Most of businesses believe the national economy will return to a high-growth pace in the first half of 2011, or sooner, in the fourth quarter of 2010.

While small and medium enterprises are still worried about difficulties, 80 percent of big businesses believe that turnover and profita will increase in 2010. Nine percent of businesses say turnover will be the same, and 14 percent think the turnover may decrease.

Businesses priorities in 2010 are as follows (in priority order): restructuring businesses to cut down expenses (37 percent), seeking new markets (34 percent), rearranging the distribution chain (17 percent), seeking M&A opportunities (9 percent), developing new products and services and restructuring key staff (6 percent).

Tags: Vietnam enterprise