Banks dominate Top 10 most profitable enterprises in Vietnam in 2021

VCN - On October 15, 2021, the Vietnam Report and online newspaper VietNamNet announced the Profit 500 list, featuring the top 500 most profitable enterprises in Vietnam this year. Notably, there are a few banks in the top 10 rankings.
Banks' third quarter performance forecast: Only one bank's profit declines Banks' third quarter performance forecast: Only one bank's profit declines
Earning big, banks urged to further cut interest rates for affected borrowers Earning big, banks urged to further cut interest rates for affected borrowers
Pilot pre-authorized e-tax payment program at Vietnam National Coal-Mineral Industries Group Pilot pre-authorized e-tax payment program at Vietnam National Coal-Mineral Industries Group
Statistics from PROFIT500 Ranking, made by Vietnam Report in the 2017 – 2021 period. Source Vietnam Report
Statistics from PROFIT500 Ranking, made by Vietnam Report in the 2017 – 2021 period. Source Vietnam Report

Specifically, in the top 10 of the 500 most profitable enterprises in Vietnam in 2021, there are three banks, which are Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank); Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank); Vietnam Technological and Commercial Joint Stock Bank (Techcombank), and in the Top 10 of the Top 500 Most Profitable Private Enterprises in Vietnam in 2021, there are Techcombank; Vietnam Prosperity Joint Stock Commercial Bank (VPBank); Military Commercial Joint Stock Bank (MB); Asia Commercial Joint Stock Bank (ACB); Ho Chi Minh City Development Joint Stock Commercial Bank - HDBank (HDBank); and Vietnam International Commercial Joint Stock Bank (VIB).

This shows that bank profits have grown strongly. At the end of July 2021, many banks such as Vietcombank, VietinBank, Techcombank, VPBank, MB, HDBank and VIB all announced their profits in the first six months of the year increased sharply, some banks even increased 3 - 5 times compared to the same period last year.

Economic experts said that this is due to many credit institutions improving their financial health by increasing charter capital and ensuring the capital adequacy ratio (CAR) in accordance with the international risk management standards Basel II.

At the same time, many banks have reduced operating costs through digital banking and electronic payments. With the promotion of non-cash payments, the amount of cash in circulation mainly circulates between accounts at banks, helping to increase demand for deposits with low interest rates. As a result, credit institutions are able to reduce the cost of raising input capital.

Overall, the bank's performance during this period is a positive sign. For the first time, when there was a crisis, the health of the banking and financial sector was maintained, helping to stabilize the macro economy and making great contributions to the State budget.

For non-financial businesses, the business results of the first six months of 2021 of 281 companies listed in this year's PROFIT500 table showed an average increase of 144.3% in profit compared to the same period last year.

Not only keeping the "top position" in 2021, according to Vietnam Report's research, during the past five years, the Finance sector and the Real Estate - Construction sector, and the Food - Beverage industry, have always maintained their positions as the Top 3 industries with the largest number of enterprises in the PROFIT500 Ranking.

This year, in the top 10 of the Top 500 Most Profitable Enterprises in Vietnam, representatives of the Real Estate - Construction industry (Vingroup - Joint Stock Company) and Food - Beverage (Vietnam Dairy Products Joint Stock Company) were also named. And these two representatives were also named in the Top 10 Ranking of Top 500 Best Profitable Private Enterprises in Vietnam in 2021.

However, in the above three groups of industries, notably, the Finance sector and the Food - Beverage industry have always maintained a stable level in development, fluctuating around 11% and 10%, respectively. The Property – Construction sector had a big leap in 2019 when it increased sharply from 14.8% (in 2018) to 23.9%, accounting for nearly a quarter of the total number of businesses in the table.

Regarding the compound annual growth rate (CAGR), during the past five years, the average of all businesses in PROFIT500 is 10.12%. In which, the Finance sector (17.3%) ranked third in the Top 7 industries with the highest CAGR and made a great contribution to overall growth, just behind the Steel industry (34.5%) and Retail sector (17.5%); following is the Agriculture sector (16.0%); Food – Beverage industry (11.9%); Chemical industry (11.7%) and Real estate – Construction industry (10.8%).

These groups of industries are considered potential growth industries and contribute positively to the recovery momentum of the Vietnamese economy in the future.

By M. Dung/ Kieu Oanh

Related News

Build advantages - Secure the future with Vietnam ESG 2024 Initiative

Build advantages - Secure the future with Vietnam ESG 2024 Initiative

VCN - In the context of global economic integration, Vietnamese businesses are facing many challenges in meeting strict requirements for green and sustainable development from investors, partners, international market and consumers. Faced with this trend, Vietnamese businesses, especially those participating in global supply chains or exports, are facing increasing pressure to apply ESG practices to avoid falling behind or being eliminated from the "game".
Proactive in dealing with exchange rate pressure

Proactive in dealing with exchange rate pressure

VCN - Recently, the State of Bank (SBV) withdrew VND 30,000 billion through the T-bills channel, contributing to reducing exchange rate pressure. This is just one of the moves of the monetary policy management agency to stabilize the foreign exchange market, contributing to supporting the macro economy as well as import-export business activities of enterprises.
Meets standards to attract FDI into supporting industries

Meets standards to attract FDI into supporting industries

VCN - When choosing Vietnam as an attractive investment destination in the supporting industry, foreign investors not only expect a vibrant market but also desire a favorable investment environment and smooth administrative procedures.
Bright spots at the beginning of the year

Bright spots at the beginning of the year

VCN - Production and business activities of enterprises have been vibrant since the first days of the year, thanks to which, many economic indicators in the first 2 months of 2024 are positive and positive. This is the fulcrum of trust and motivation for businesses to continue to develop.

Latest News

Central bank urges card issuers to review procedures

Central bank urges card issuers to review procedures

The State Bank of Vietnam (SBV) has issued a directive, demanding commercial banks to review their procedures in issuing and managing bank cards.
Warning about impersonating tax authorities to commit fraud during  tax finalization month

Warning about impersonating tax authorities to commit fraud during tax finalization month

VCN - The Tax industry has continuously provided information and issued warnings about impersonating tax officials and tax authorities to commit fraud against taxpayers, but there are still people who fall into the trap of these fraudsters, especially during the peak month of tax settlement.
“3 priorities, 3 breakthroughs” in task deployment of State Treasury

“3 priorities, 3 breakthroughs” in task deployment of State Treasury

VCN - To complete the task from now until the end of 2024 and successfully implement the State Treasury Development Strategy as planned, Deputy Minister of Finance Bui Van Khang stated "3 priorities, 3 breakthroughs" " and 7 notes in task performance.
Effectively apply M&A to go long distance

Effectively apply M&A to go long distance

VCN - With advantages such as being cheaper than domestic capital, and accompanied by many factors such as technology, skills, management, market... foreign capital is a popular trend among businesses. Domestic enterprises seek through M&A activities to ensure sustainable development for the future.

More News

Hanoi State Treasury proactively digitizes and transforms operating methods

Hanoi State Treasury proactively digitizes and transforms operating methods

VCN - Hanoi State Treasury always proactively transforms and reforms its operating methods with the motto of “taking customers as the center” and taking the satisfaction of organizations and individuals as a measured level of task completion by civil servants.
The Ministry of Finance continues to strongly improve the business environment, reducing the rate of businesses temporarily suspending operations

The Ministry of Finance continues to strongly improve the business environment, reducing the rate of businesses temporarily suspending operations

VCN - The Ministry of Finance aims to continue to strongly improve the business environment, create a healthy competitive environment, rapidly increase the number of newly established businesses, and reduce the rate of businesses temporarily suspending operations; reduce input costs and legal compliance costs in investment and business activities, reduce policy risks, strengthen trust, create a fulcrum for recovery and improve business resilience.
Vietnam tackles obstacles to stock market upgrade

Vietnam tackles obstacles to stock market upgrade

Vietnam's ambition to elevate its stock market from "frontier" to "emerging" status by 2025 faces two key hurdles, including pre-trade margin requirements for foreign investors and foreign ownership ratios in certain sectors, said Deputy Director of the Securities Market Development Department under the State Securities Commission (SSC) Pham Thi Thuy Linh.
Looking forward clear instructions in tax finalization in 2023

Looking forward clear instructions in tax finalization in 2023

VCN - Mr. Hoang Quang Phong (photo), Vice Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) discussed supporting taxpayers in tax finalization in 2023.
Tax sector accompanies and supports tax finalization

Tax sector accompanies and supports tax finalization

VCN - In the first months of 2024, the Tax sector has deployed peak months to support tax finalization in many different forms, thereby solving many problems in settlement of corporate income tax and personal income tax for taxpayers.
Minister of Finance: Fairness and transparency for the insurance market

Minister of Finance: Fairness and transparency for the insurance market

VCN - According to Minister of Finance Ho Duc Phoc, the Ministry has strengthened inspections to correct violations in the insurance sector, demonstrating fairness and transparency in the market.
Vietnamese securities companies race to boost capital amid high market demand

Vietnamese securities companies race to boost capital amid high market demand

These companies understand the importance of boosting their capital to remain competitive and avoid falling behind their peers.
Central bank required to take urgent measures to stabilise gold market

Central bank required to take urgent measures to stabilise gold market

The Government has directed the State Bank of Vietnam (SBV) to urgently inspect and supervise to stabilise the gold market.
Revenue from casino contributes about VND9,000 billion to the State budget

Revenue from casino contributes about VND9,000 billion to the State budget

VCN - The management of lottery and casino business activities is one of contents asked by National Assembly delegates to Minister of Finance at the question and answer session took place on the morning of March 18, within the framework of the 31st session of the National Assembly Standing Committee.
Read More

Your care

Latest Most read
Central bank urges card issuers to review procedures

Central bank urges card issuers to review procedures

The State Bank of Vietnam (SBV) has issued a directive, demanding commercial banks to review their procedures in issuing and managing bank cards.
Warning about impersonating tax authorities to commit fraud during  tax finalization month

Warning about impersonating tax authorities to commit fraud during tax finalization month

VCN - The Tax industry has continuously provided information and issued warnings about impersonating tax officials and tax authorities to commit fraud against taxpayers, but there are still people who fall into the trap of these fraudsters, especially dur
“3 priorities, 3 breakthroughs” in task deployment of State Treasury

“3 priorities, 3 breakthroughs” in task deployment of State Treasury

To successfully implement the State Treasury Development Strategy as planned, Deputy Minister of Finance Bui Van Khang stated "3 priorities, 3 breakthroughs" " and 7 notes in task performance.
Effectively apply M&A to go long distance

Effectively apply M&A to go long distance

VCN - Sharing at the conference "Consumer goods and distribution industry: M&A trends and investment strategies to raise capital for Vietnamese enterprises", organized by the Business Association of High Quality Vietnamese Goods and the Leading Business C
Hanoi State Treasury proactively digitizes and transforms operating methods

Hanoi State Treasury proactively digitizes and transforms operating methods

Hanoi State Treasury always proactively transforms and reforms its operating methods with the motto of “taking customers as the center” and taking the satisfaction of organizations and individuals as a measured level of task completion by civil servants.
Mobile Version