State enterprises dominate Vietnam’s top 500 list

This year\'s list of Vietnam’s top 500 (VNR500) companies was dominated by state-owned enterprises.

This year Vinashin has been removed from the VNR500

The VNR 500 was released on November 25 and excluding Vinashin, state enterprises showed strength in the report.

PetroVietnam topped the VNR500 while Saigon Gold and Silver ACB-SJC Joint Stock Company was the top private enterprise.

The VNR500 2010 was based on a database of information collected by Vietnam Report with the reference to the latest statistics about enterprises nationwide announced by GSO (the updates by December 31, 2009). The ranking of the top 500 companies was made based on their 2009 revenue.

This year, state-owned companies or corporations still accounted for a dominant percentage (46%), holding a key role in the Vietnamese economy that is undergoing deregulation, particularly in upstream industrial sectors or in import replacement sectors. Meanwhile, private companies accounted for 31.2% and FDI companies 23.8%.

Vietnam Report’s survey results are announced on two lists: The top 500 companies that have biggest revenue and The top 500 Vietnamese private owned companies that have biggest revenue. To be included in the first list, state owned, foreign invested and private owned companies must have revenue from VND1.2 trillion (USD60 million) up. To enter the second list, private companies must have revenue upwards of VND 500 billion (USD25 million).

Among the top ten of VNR500, state-owned enterprises included PetroVietnam, Petrolimex and Electricity of Vietnam, VNPT, Vinacomin, Viettel group, Agribank, Vinafood2 and PVEP.

Ranking Companies:

Authorities now recognise the private sector’s importance in the country’s competitiveness and they are striving to gradually reduce state participation in the economy. Vietnam Report also made another list of the first 500 private which included Saigon Gold and Silver ACB-SJC joint stock company, Financing Promoting Technology (FPT), ACB bank, Vinamilk, DoJi Gold and Gem group.

Ranking Companies:

As for the sector structure, VNR500 showed that key factors still hold their position including banking, financial, gold and gem, telecommunication, electricity, and petroleum. It is noteworthy that 2 telecommunication companies and first time rice exporters appeared on the top 10 list.

Top Vietnamese companies are narrowing the gap between them with global companies and top 50 companies in 2010 that are qualified to join the Forbes 2000 for top 2000 global companies.

FDI enterprises are the most effective with ROA of over 13%, doubling that of state-ownd companies of 5.2% and 4 times higher than that of private sector companies at 2.5%. State-owned enterprises lead in contributing to state budget, 4 times higher than FDI enterprises and 10 times higher than that of the private sector.