Vietnam - Private firms grow fastest in Vietnam

The local private sector dominates the latest ranking of Vietnam's fastest growing companies, many of whom plan to expand despite the tough economic conditions.

Private companies make up 71.6 percent of the FAST 500 list announced by the Vietnam Report Joint Stock Company Tuesday, and the state sector, 22.2 percent.

It ranks companies based on their compounded annual growth rate.

Together, the top 500 achieved a growth rate of 57 percent between 2007 and 2010. The top 10 grew at 205 percent in the period.

“The FAST 500 companies have coped quite well with troubles caused by both local and global economies,” Vietnam Report said in a statement released at an awards ceremony in Ho Chi Minh City.

“Even though the growth rates of the top 50 and top 100 slowed a little this year, the overall growth rate... is still very impressive.”

More than 70 percent of private companies in the top 500 list said they would continue to increase investment and expand this year, according to the statement. “Many FAST 500 firms remain optimistic that the growth rate in 2012 and 2013 will stay at a high level,” it said.

But disappointing economic data in the first quarter has caused concern about a serious slowdown in Vietnam. At least 11,900 companies shut down or suspended operations, 6 percent more than in the same period last year, government data shows. The economy grew at 4 percent, the slowest first quarter growth since 2009.

Trading companies Thai Hoa Manufacture and Trading Company and Vinh Long Import-Export JSC,top the FAST 500 list this year.

Though the real estate market has been in a slump for the last three years, the top 10 includes two property companies – Saigon Real Estate Corporation and Vincom JSC. The latter is the country’s largest listed property company.

Matthew McGarvey, a business consultant from McGarvey & Affiliates, said at the ceremony that Vietnamese companies should try more to go from being “good” to “great,” pointing out that their performance would decide the quality of the economy as a whole.

Companies in Vietnam are now in the same place as those in China were five years ago, and they need to think long-term to move up to the next level, he added.

Thanh Nien

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