What does the report evaluating the 500 largest private enterprises in Vietnam show?

VCN - According to the report assessing the 500 largest private enterprises in Vietnam (VPE 500), the COVID-19 pandemic has greatly fluctuated the number of businesses entering and leaving the list of 500 largest enterprises in Vietnam. Most businesses in the banking and insurance sectors still maintain their position in the rankings and have few changes in rank. The same is true for the top 50 businesses.
Legal risks make private enterprises invest less in large projects Legal risks make private enterprises invest less in large projects
Assessment of top 500 private enterprises released Assessment of top 500 private enterprises released
Assessment of top 500 private enterprises released Assessment of top 500 private enterprises released

Vietnam still lacks leading businesses

Speaking at the conference announcing the report on Evaluation of the 500 largest private enterprises in Vietnam (VPE500-Report 2023) taking place on August 31, Dr. Tran Toan Thang, Head of the International Department of the Institute of Development Strategy, said that as of December 31, 2021, Vietnam had 694,200 domestic private enterprises (VPE), accounting for 96.6% of the total number of active working enterprises; attracts 58.1% of employees, accounts for 59.3% of assets and generates 57.8% of net revenue of the business sector.

VPEs are mostly small and medium-sized enterprises established after innovation. At the end of 2021, only 0.22% of enterprises had 500 or more employees, lower than the general rate of 0.52%, 8.29% of enterprises with foreign direct investment (FDI) and 19.52% of state-owned enterprises.

Although appearing in 53/63 provinces/cities, VPE500 is concentrated in the Red River Delta and Southeast (accounting for about 75%) and has a slight increasing trend. Ho Chi Minh City and Hanoi are two major economic centres, and some localities with high business density such as Binh Duong, Dong Nai, and Hung Yen, account for about 50-52% of the total. In general, VPE500 is being formed based on the infrastructure, resources and market advantages of localities. VPE500 is distributed in 21/21 level 1 industries, with the highest concentration in the manufacturing, processing, trade and construction industries.

Service businesses dominate in number in the VPE500, especially in the group of 11 largest enterprises. The finance, banking, and insurance industries dominate, followed by the commerce industry. Enterprises in the manufacturing and processing industry on the VPE500 list have fluctuated quite a bit, at one point accounting for 49% of the VPE500 list (in 2000), but their ranking in the list is not high.

On the contrary, the group of businesses operating in the real estate and construction industry accounts for a high proportion in the VPE500 list but is rapidly decreasing in both number and position due to many difficulties during the Covid-19 period.

"Although private enterprises in Vietnam have continuously grown, Vietnam still does not have many large private enterprises that have achieved world-class. Vietnamese brands are still worth less than brands from many Southeast Asian countries. To grow, small and medium-sized private enterprises encounter many obstacles (both objective and subjective) in the development process", Dr. Tran Toan Thang emphasized.

Comparing the two years of Covid-19 and the previous year, there were quite large fluctuations in the number of businesses entering and leaving the VPE500 list. Illustration photo: H.D
Comparing the two years of Covid-19 and the previous year, there were quite large fluctuations in the number of businesses entering and leaving the VPE500 list. Illustration photo: H.D

158 businesses were excluded from VPE500 because of Covid -19

Regarding the performance results of Vietnam's largest private enterprises, Dr. Tran Toan Thang said that the COVID-19 pandemic had reduced the labor size of businesses, and the impact on small businesses is greater than that of large businesses. During the 2 years of the pandemic outbreak, the businesses with a large decrease in scale belonged to the entertainment, construction, accommodation and food service groups. Meanwhile, the industry groups with quite good growth are electricity, healthcare, transportation, and warehousing.

Comparing the two years of Covid-19 and the previous year, there were quite large fluctuations in the number of businesses entering and leaving the VPE500 list. In 2020, up to 97/500 businesses (19.4%) were no longer in the VPE500 ranking of 2019. These businesses focus on industry groups heavily affected by COVID-19, such as real estate and construction (23/89), trade (15/73), textile and garment (7/32), and food processing (9/70). Only a few industries still retain the VPE500, which are considered to benefit from COVID-19, such as information and communication, postal, electricity production and distribution.

By 2021, up to 61 more businesses will leave the list, bringing the total number of departures after 2 years to 158, equivalent to 31.6%, and still focusing on the heavily affected industry groups above. Besides, even for businesses that are still maintained in the rankings, the rankings of these businesses also decrease rapidly. The rate of reduction over 50 places is over 60%. The exit rate from the general category of the manufacturing and processing industry is 25.3%, lower than the general rate of 28.0%.

Most businesses in the banking and insurance sectors still maintain high positions in the rankings and have few changes in rankings. Similarly, businesses in the TOP50 still retain their rankings, and their rankings also change less.

Obviously, during the COVID-19 period, the stability level of VPE500 is higher; this shows that large enterprises still maintain their position in the market compared to small and medium-sized enterprises.

To build a force of large private enterprises, develop stably, withstand major external shocks, and increase the efficiency of the entire economy, Mr Nguyen Tu Anh, Director of the General Department of (Central Economic Committee) said that to build private enterprises to lead the market, the Government must introduce policies to support business development.

"However, we need to filter these 500 businesses and continue surveying to see their needs so our report will be more meaningful. Whether a business wants to expand its market or scale or how to have a solution, even though this depends on the business's resources," Mr. Nguyen Tu Anh said.

By Xuan Thao/Bui Diep

Related News

Hai Phong Customs’ revenue rises about VND 1,000 billion

Hai Phong Customs’ revenue rises about VND 1,000 billion

VCN- In the first month of the year, Hai Phong Customs' revenue increased by nearly VND1,000 billion.
Import and export turnover reaches about US$29 billion in the second half of January 2025

Import and export turnover reaches about US$29 billion in the second half of January 2025

VCN - Vietnam's total import and export turnover in the second half of January 2025 (January 16-31, 2025) reached US$28.9 billion, the latest preliminary statistics of the General Department of Vietnam Customs reported.
State revenue in first month of the year equal to 14% of the estimate

State revenue in first month of the year equal to 14% of the estimate

VCN - According to the Ministry of Finance, in January - the first month of 2025, the total state budget revenue is estimated at VND275.9 trillion, equal to 14% of the estimate; meanwhile, the total state budget expenditure is estimated at VND134.4 trillion.
Hai Phong Customs processes more than 1,500 declarations during 2025 Lunar New Year holiday

Hai Phong Customs processes more than 1,500 declarations during 2025 Lunar New Year holiday

VCN - During the 2025 Lunar New Year holiday, Hai Phong Customs Department processed 1,547 declarations.

Latest News

Exchange rate risks need attention in near future

Exchange rate risks need attention in near future

VCN - Exchange rate developments in 2025 are considered to be quite complicated due to US policies related to trade and investment.
Vietnam kicked off the year with a strong start in trade, exceeding US$63 billion in the first month

Vietnam kicked off the year with a strong start in trade, exceeding US$63 billion in the first month

VCN - Data from the General Department of Vietnam Customs indicates a softening of both exports and imports in January 2025, relative to the same month in 2024.
Market edges up slightly as liquidity remains low

Market edges up slightly as liquidity remains low

Market breadth remained positive, with 161 gainers outnumbering 144 decliners.
Business regulations must be trimmed for development of enterprises: Experts

Business regulations must be trimmed for development of enterprises: Experts

The General Statistics Office (GSO)'s socio-economic report for January 2025 reveals that while over 33,400 newly established or resumed businesses entered the market - marking a 15% increase compared to January 2024 - more than 58,300 businesses withdrew from the market, representing a growth of 8.1% on year.

More News

Vietnam's agricultural product exports shine in 2024

Vietnam's agricultural product exports shine in 2024

The agricultural sector wrapped up 2024 with 62.4 billion USD in export turnover, marking an 18.5% increase against 2023, while achieving a record trade surplus of 18.6 billion USD, surging 53.1%.
Aiming for 16% credit growth and removing credit room allocation

Aiming for 16% credit growth and removing credit room allocation

VCN - A representative of the State Bank of Vietnam (SBV) said that the SBV is gradually innovating its credit management methods, aiming to remove the mechanism of allocating credit room to each credit institution.
Malaysia initiates anti-dumping investigation on galvanised sheets from Việt Nam

Malaysia initiates anti-dumping investigation on galvanised sheets from Việt Nam

Malaysia has announced it will initiate an anti-dumping duty investigation on the imports of galvanised iron coils/sheets or galvanised steel coils/sheets originating from or imported from Việt Nam, China and South Korea.
Coffee prices hit record highs, heightening speculation risks

Coffee prices hit record highs, heightening speculation risks

Phan Minh Thông, Chairman of Phúc Sinh JSC, called the price surge "insane," warning of continued increases as businesses are compelled to trade at elevated prices instead of following pre-set contracts.
Exports witness a rise of US$1 billion in the first 15 days of 2025

Exports witness a rise of US$1 billion in the first 15 days of 2025

VCN - Compared to the same period in 2024, exports in the first half of January 2025 increased by more than 6%, equivalent to nearly USS$1 billion.
Central industrial hub sets ambitious growth target in 2025

Central industrial hub sets ambitious growth target in 2025

The central province has targeted ambitious growth of up to 10 per cent with some key strategic industrial investment projects in 2025, contributing VNĐ25 trillion (US$1 billion) to the State budget.
Demand for dragon fruit in Tiền Giang Province continues to increase

Demand for dragon fruit in Tiền Giang Province continues to increase

Dragon fruit prices in Tiền Giang Province remain high after the Lunar New Year due to increased demand from China and domestic consumption.
Data centres are attracting investors in Asia

Data centres are attracting investors in Asia

The global data centre market reached new heights in 2024, driven by the growing demand for generative AI, which has triggered a new wave of investment.
US or China: Who will lead in Vietnamese Tra fish imports?

US or China: Who will lead in Vietnamese Tra fish imports?

VCN - Given that tra fish is a key export commodity for Vietnam's seafood industry, the question arises whether the United States will surpass China as the leading importer of this product in 2025.
Read More

Your care

Latest Most read
Exchange rate risks need attention in near future

Exchange rate risks need attention in near future

VCN - Exchange rate developments in 2025 are considered to be quite complicated due to US policies related to trade and investment.
Vietnam kicked off the year with a strong start in trade, exceeding US$63 billion in the first month

Vietnam kicked off the year with a strong start in trade, exceeding US$63 billion in the first month

Data from the General Department of Vietnam Customs indicates a softening of both exports and imports in January 2025, relative to the same month in 2024.
Import and export turnover reaches about US$29 billion in the second half of January 2025

Import and export turnover reaches about US$29 billion in the second half of January 2025

VCN - The figure decreased by 15.6% (equivalent to a decrease of US$5.33 billion) compared to the figure in the first half of January 2025.
Market edges up slightly as liquidity remains low

Market edges up slightly as liquidity remains low

Market breadth remained positive, with 161 gainers outnumbering 144 decliners.
Business regulations must be trimmed for development of enterprises: Experts

Business regulations must be trimmed for development of enterprises: Experts

The General Statistics Office (GSO)'s socio-economic report for January 2025 reveals that while over 33,400 newly established or resumed businesses entered the market - marking a 15% increase compared to January 2024 - more than 58,300 businesses withdrew from the market, representing a growth of 8.1% on year.
Mobile Version