Vietnam's most Profitable Enterprises in 2024: Many Indicators Significantly Improved

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Enterprises Transform with the Country's Economy

Top 10 Ranking of Top 500 Most Profitable Enterprises in Vietnam in 2024

Vietnam Report's report said that in the first eight months of 2024, the Vietnamese economy has clearly recovered with significant improvements in many indicators. The economic growth rate broke out beyond expectations with GDP in the first six months of the year reaching 6.42% over the same period (only lower than the growth rate of 6.58% in the first six months of 2022 in the past 5 years).

After nearly two years, the Industrial and Construction sector has restored its leading role in leading the growth of the entire economy alongside the Service sector when recording the highest growth rate of the three sectors at 7.51% in the total value added growth of the entire economy (the growth rate in the same period in 2023 was 1.13%).

Meanwhile, the Vietnam Manufacturing Purchasing Managers' Index (PMI) has now escaped the recession zone and remained above the 50-point threshold for 4 consecutive months with 54.7 points (the highest level recorded since May 2022) maintained in June-July this year, signaling a significant consolidation of business conditions in Vietnam's manufacturing sector.

In parallel, trade activities in the first seven months of 2024 have been bustling again with the total import and export turnover of goods growing by double digits, reaching US $ 439.88 billion; of which, goods exports reached US $ 226.98 billion, up 15.7%, imports reached 212.9 billion USD, up 18.5% over the same period last year.

Business situation in the first six months of the year compared to the same period of the enterprises

According to the survey results of Vietnam Report conducted in January and July-August this year, the majority of enterprises recorded a better business situation in the first half of the year than the same period last year (73.4% of enterprises increased in revenue and 60.3% of enterprises maintained profit growth).

On the contrary, the rate of enterprises with decreased revenue and profit has narrowed significantly compared to the survey results of the same period in 2023. The clearest evidence is that the enterprises in the top ten most profitable enterprises in Vietnam in 2023 continued to be named in the top 10 rankings this year, although their rankings have slightly shifted. This is something that has rarely been seen in previous years.

It is optimistic but not subjective

Although it is more optimistic trend has been recorded, there is a divergence in business forecasts due to uneven recovery in different sectors. In fact, in July, there were still 6,837 enterprises registering to temporarily suspend business, an increase of 26.2% compared to the previous month. The average return on assets (ROA) only increased in the FDI enterprise sector (+0.8% compared to 2023), while the average ROA of the private enterprise sector and the state-owned enterprise sector decreased by 1.1% and 1.5% respectively compared to the statistical results a year ago). Regarding the ability to generate return on equity (ROE), all three economic sectors recorded a decrease. This shows that risks and challenges still exist and can affect growth targets such as: geopolitical instability; changes in trade policies in some economies after the election; competition between major powers in trade and technology... In addition, there is pressure from exchange rates and inflation; Consumption growth has not made a breakthrough and trade fragmentation continues.

Vietnam's economic outlook in 2024 from the perspective of the business community

However, 58.3% of surveyed businesses expect profits in the second half of the year to be better than in the first half of 2024. The basis for this belief is based on the Government's strong efforts in solving the root causes of economic problems in the past time, creating a favorable and stable business environment.

There are three laws related to the real estate market, namely the Land Law, the Housing Law, and the amended Real Estate Business Law, were allowed by the National Assembly to take effect earlier than expected, along with the Law on Credit Institutions, which are expected to help restore economic demand as well as the real estate market, promoting positive psychological effects on the general market.

In addition, credit accelerated in the end of the second quarter and the credit growth target of 15% in 2024 will create conditions for businesses to expand their operations.

According to experts, the transition trend to the recovery and growth phase of Vietnam's economy is becoming increasingly clear. Although risk variables still exist, the recovery roadmap of businesses is forecast to be more positive, but whether to break through to growth again or fall behind depends entirely on how each business responds to changing market conditions during this transition period.

Businesses are constantly improving their competitiveness and maximizing the potential from internal resources and external linkages, harmoniously developing strategies to ensure sustainability in operations and stabilize profit growth, which are important tasks for businesses.

This is the time for businesses to rebuild, accelerate and affirm their position in the market.