Vietnamnet and Vietnam Report Company, for the first time, have announced the 2010 FAST500 ranking. The ranking honours the fastest growing businesses in all industries, sectors and geographical areas of operation.
In addition to the chart on top 500 fastest growing businesses in Vietnam (Chart 1), Vietnam Report has also announced top 500 fastest growing small and medium enterprises (SMEs) in Vietnam (Chart 2).
Regarding selection of SMEs for chart 2, Vietnam Report based on provisions in Decree 56/2009/ND-CP on supporting the development of SMEs, the ones with total assets to December 31, 2009 of less than 100 billion dong. To be ranked in chart 1, the Compound Annual Growth Rate (CARG) of the businesses in 2006-2009 period must be at least 30 percent.
Top 10 of the two charts of Vietnam Report are as follows:-
Chart 1 – Top 10
1. Nguyen Kim Trading Joint Stock Company
2. Sabeco Song Hau Joint Stock Company
3. Dong A Joint Stock Company
4. Mobile World Joint Stock Company
5. Thien Quang Joint Stock Corporation
6. Thai Hoa Manufacture and Trading Company
7. Mai Son Joint Stock Company
8. Furniture 190 Joint Stock Company
9. Viet Phap Paper Company Limited
10. Masan Industrial Corporation
Average CARG of this top 10 is 190.2 percent
Chart 2 – Top 10
1. Thanh Dat Steel Joint Stock Company
2. Viet Agricultural Commodities Trading and Service Company Limited
3. HoaDao Trading Joint Stock Company
4. System Technology Development Company Limited
5. Coneco Trading Joint Stock Company
6. Kim Tin Joint Stock Company
7. Ha My 1 Company Limited
8. Viet Tin Nutrition Joint Stock Company
9. C.P.P Company Limited
10. Vietnam Aroma Food Company Limited
Private enterprises account for an overwhelming proportion.
The research team has given some preliminary results as follows:
First, the 500 businesses in the FAST500 ranking had an average growth rate of 54 percent in 2006-2009 period, of that top 50 fastest growing businesses achieved very impressive average growth rate of 160 percent. The top 100 fastest growing businesses obtained average growth rate of 112 percent.
Particularly, leading the 2010 FAST500 ranking is Nguyen Kim Trading Joint Stock Company with growth rate of 675.3 percent.
Second, private enterprises account for an overwhelming proportion of 78 percent, far exceeding state-owned enterprises with modest proportion of 17 percent. These figures show good sign that the private sector has been increasingly showing its proactive and innovative role to become the most important dynamic of Vietnam’s economy in the near future.
Third, total number of employees working in businesses listed in the FAST500 ranking is 276,318, of that, processing and manufacturing sector has the largest number with 121,341 employees (accounting for 43.9 percent of total employees of the 500 businesses), followed by construction sector with 51,296 employees (accounting for 18.6 percent), and business and service sector with 26,125 employees (accounting for 9.5 percent).
It can be seen that the fastest growing businesses in Vietnam’s economy have not only shown considerable growth rates, but also contributed to the job creation for workers, thereby adding efficiency for the business growth.
Fourth, processing and manufacturing sector has the most number of businesses listed in 2010 FAST500 ranking with proportion of 41.8 percent. Total revenue in 2009 of these businesses was approximately over 107 trillion dong, average CARG was 49 percent in 2006-2009 period.
Construction sector ranks the second in number of listed businesses, with proportion of 16.6 percent, total revenue of about 27 trillion dong and average CARG in 2006-2009 period of 53.3 percent.
Business and service sector ranks the third in number of listed businesses with 16.8 percent, total revenue of about 140 trillion dong and average CARG in 2006-2009 period of 56.87 percent.
The large number of processing and manufacturing businesses in FAST500 ranking is a very encouraging signal for Vietnam’s economy in the process of industrialisation and modernisation.
However, business and service sector still shows high efficiency in industry structure in 2010 FAST500 ranking.
Although having less number of listed businesses, the sector has the highest amount of revenue generated and average CARG.
Fifth, regarding geographical areas of operation, businesses in FAST500 ranking mostly allocate in the north (45 percent), and the south (50.4 percent), mainly in the two business centres of the country, which are Hanoi (26.2 percent) and HCM City (26.8 percent).
Notably, businesses in northern mountainous area also contributed with an encouraging rate of five percent of the total 500 businesses having fastest revenue growth rate.
The purpose of FAST500 ranking is to find and honour the businesses with highest efficiency and fast growth – the rising stars of Vietnam’s economy. FAST500 ranking was based on scientific and independent principles and followed international standards (with reference to models of Inc500, Fortune500 and Deloitte500 rankings).
Businesses do not have to pay any fee to be in the ranking, and can be proud to be in the ranking by the principle of independent investigation and evaluation of the research.
In 2010, FAST500 was based on VNR Biz Database with over 200,000 businesses of Vietnam Report, data in VNR500-Top 500 largest enterprises of Vietnam in 2007-2010 period, data in V1000- Top 1000 Vietnamese businesses with largest corporate income tax paid in 2007-2009 period and other data sources.
The data was updated in four years from 2006 to 2009, and the ranks of businesses were rated based on CAGR of revenue in 2006-2009 period. Criteria on total assets, profits and number of employees were also calculated in the rating process.
Particularly, in the first year to publicise this ranking, the organisers have received positive cooperation from the businesses in publishing financial information and verifying the survey data. More than 2,000 records and documents as well as financial statements were actively sent to the organisers to be used as references when ranking. This good sign shows that the business environment of Vietnam is developing strongly in the direction of transparency and in line with international practice.
Although errors while investigating, collecting and processing statistical data are inevitable, hopefully, 2010 FAST500 ranking would provide a new perspective in order to improve the overall picture reflecting the current strength of Vietnamese businesses. The organisers expect that business rating and information sector of Vietnam would have strong growth to keep up with the development trend.