Top 500 Vietnamese businesses in 2010 released

Today Vietnam Report, in cooperation with VietNamNet newspaper, releases the 2010 VNR500, the ranking of 500 biggest Vietnamese enterprises in 2010. This is for the fourth consecutive year VNR500 is released to recognize the achievements of the Vietnamese business.

VNR500 is the result of the research conducted by Vietnam Report with the consultation of domestic and foreign experts headed by Professor John Quelch, Associate Dean of the Harvard Business School.

The 2010 ranking revealed some interesting trends.

The flare-up of private enterprises

Firstly, the enterprises in the state economic sectors, including economic groups, general corporations and enterprises where the state is holding controlling stakes, continue holding high positions in the 2010 VNR500 (46 percent)

The state owned economic groups and general corporations rank high not only in the 2010 VNR500, but are also among the 10 Vietnamese biggest enterprises (4 state owned economic groups and 3 general corporations). Meanwhile, private businesses and foreign invested enterprises (FIEs) account for 31.2 and 23.8 percent, respectively, in the ranking.

The noteworthy thing is that the private sector has been gradually cementing its position in the national economy with the proportions of private enterprises in the ranking increasing steadily year on year, from 24 percent in 2008 to 30 percent in 2009 and then to 31.2 percent in 2010.

Secondly, the 2010 VNR500 shows that the key economic sectors maintain their important roles, especially the finance and banking, gold and gemstone, telecommunication, power, oil and gas.

two telecom companies have listed their names among top 10 enterprises. Besides, a rice processing and export company has, for the first time, appeared in this year’s top 10 ranking.

Vietnamese enterprises are becoming global

Thirdly, among the top 20 enterprises in the 2010 VNR500 The average turnover is 2.7 billion dollar.

Importantly, the gap between Vietnamese enterprises and global enterprises has gradually narrowed, as the top 50 enterprises in the 2010 VNR500 and in terms of turnover can be listed in the Fobres 2000 (the 2000 biggest enterprises worldwide),

Fourthly, in terms of business efficiency, the ROA of FIEs stands at 13 percentwhich is double that of the state economic sector (5.2 percent) and is much higher than the private sector (2.5 percent).

Fifthly, regarding the contribution to the state budget, enterprises in the state owned economic sector are still the leading tax payers paying taxes four times higher than FIEs and 10 times higher than private enterprises.

Sixthly, the 2010 VNR500 shows that in state owned enterprises, most of the chief executive officers (CEO) are over 50 years old (26.4 percent), while young CEOs (aged 31-40) only account for 1.2 percent.

Meanwhile, the percentages of young CEP are much higher in FIEs and private enterprises, accounting for 4.2 and 2.1 percent, respectively.

Seventhly, most of the enterprises in the 2010 VNR500 are located in either of the two big economic centres, Hanoi and HCM City (23.6 percent in HCM City and 21 percent in Hanoi), while the number of enterprises in other localities remains modest (less than six percent).

Eighthly, the 2010 VNR500 shows the changes in Vietnam’s national economy in general and big enterprises in particular, as 20 percent of enterprises in the 2009 VNR500 are not present in the 2010 VNR500.

VNR500 is constructed in line with international standards and is based on the Fortune 500 model.

Enterprises do not have to pay any fees to be ranked. Details of the ranking are at www.vnr500.com.vn.

VNR500

Tags: 2010 VNR500