VietNamNet Bridge – The list of the 500 fastest growing enterprises of 2010 in Vietnam shows that the top 50 enterprises have a very high growth rate of 160 percent. Especially, Nguyen Kim Trading Joint Stock Company, which tops the ranking, had an impressive growth rate of 675.3 percent.

The ranking recognizes businesses that have the highest growth rates and operate in all business fields and all localities in Vietnam. In order to be named on the list, enterprises must have a minimum CAGR (compound annual growth rate) of 30 percent.

Besides, VietNamNet and Vietnam Report have also released the list of the 500 small and medium enterprises (SMEs) that have the highest growth rates in 2010. SMEs are defined as businesses whose total assets were less than 100 billion dong by December 31, 2009 as stipulated in the Decree 56 on supporting SME development.

Private enterprises overwhelm FAST500

The ranking shows many noteworthy things.

First, the 500 fastest growing enterprises had an average growth rate in 2006-2009 of 54 percent, while the 50 fastest growing enterprises had an average growth rate of 160 percent in the same period, and the top 100 enterprises 112 percent.

Especially, Nguyen Kim Trade Joint Stock Company, which tops the 2010 ranking, had an impressive growth rate of 675.3 percent.

Second, private enterprises account for a overwhelming proportion of FAST500, 78 percent, far exceeding state-owned enterprises (17 percent)

The figures show a good sign that the private economic sector in Vietnam has become more dynamic and it can renovate itself to become the most important driving force of the national economy in the near future.

Third, the total number of laborers working in the enterprises in FAST500 is 276,318. Especially, the processing, manufacturing and production sectors have the highest number of laborers at 121,341 people, accounting for 43.9 percent of total laborers of top 500 enterprises. Meanwhile, 51,296 laborers work in the construction sector (18.6 percent), and the trading-service sector has 26,125 laborers (9.5 percent).

The figures show that the fastest growing enterprises in Vietnam’s economy not only can grow well, but they can also create many jobs.

Fourth, the processing, manufacturing and production sectors have the highest number of enterprises in FAST500, 41.8 percent of total enterprises. The total turnover of the enterprises in 2009 was 107 trillion dong, while the average growth rate of the enterprises in 2006-2009 was 49 percent.

The construction sector has enterprises that account for 16.6 percent, with a total turnover of 27 trillion dong and a CAGR in 2006-2009 at 53.3 percent. The figures for the trading and service sector are 16.8 percent of enterprises, 140 trillion dong and 56.87 percent.

The appearance of many enterprises in the manufacturing-production sector in FAST500 should be seen a good sign that Vietnam’s economy is in the process of industrialization and modernization. However, the trade-service sector still shows that it is high efficient.  Despite the lower number of enterprises, the turnover the sector can create and the average growth rate are still the highest.

Fifth, if considering distribution of enterprises by locality , 45 percent of enterprises in FAST500 are located in the north, and 50.4 percent in the south. Especially, the enterprises are mostly located in the two biggest economic centers – Hanoi (26.2 percent) and HCM City (26.8 percent).

An interesting fact is that the enterprises in northern mountainous areas account for five percent of the 500 enterprises with the highest growth rates in turnover.

List 1: 500 enterprises with highest growth rates

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 Ltd

10. Masan Industrial Corporation

VNR500