Local firms expected modest growth due to COVID-19

Through the two waves of the COVID-19 pandemic, confidence in the growth prospects in 2020 of enterprises has gradually diminished.

This information was released by Vietnam Report (VNR) at the award ceremony of the Top 500 most profitable companies in Vietnam in 2020, so-called Profit500, held in Hanoi on Friday.

Local firms expected modest growth due to COVID-19

VNR’s survey results in 2020 show that only 54.1 per cent of enterprises were optimistic about the revenue growth prospects and 49.1 per cent of enterprises were confident about profit growth prospects, down by 27.9 per cent and 29.9 per cent, respectively, compared to the assessment of revenue and profit growth prospects surveyed by Vietnam Report in September 2019.

The survey results show how the pandemic has seriously damaged the market sentiment.

Speaking at the ceremony, Pham Anh Tuan, a representative from online newspaper VietNamNet, said that for the first time in economic history, there was an economic crisis on a global scale stemming from a pandemic. This is the first time the concept of a “new normal” has been introduced when talking about efforts to recover the economic, social and production environment of the business community.

“In that context, for businesses, profit is not enough, but it must be sustainable profits based on strong internal capabilities, flexibility to adapt to the market and a reputable brand, trusted by many customers and investors,” Tuấn said.

The honoured businesses are those with effective and sustainable production and business activities as well as good profitability in the face of many challenges resulting from the pandemic. In addition, they have kept a firm position in their industry and have the potential to become pillars for the future development of Vietnam’s economy.

In this year's Profit500 ranking, some industries continued to record more businesses than the average level, including construction, construction materials and real estate (23.9 per cent), finance (11.6 per cent), food and beverages (10.9 per cent), and electricity (6.3 per cent).

 

Return on assets (ROA) of enterprises in Profit500 reached 11.4 per cent, slightly down from 11.9 per cent in 2019. However, the average return on equity (ROE) increased by 21.7 per cent compared to 20.9 per cent in 2019. This showed that the efficiency in using capital of enterprises has been improved.

Notably, the number of businesses in the food - beverage - retail - packaging industry in 2020 also dominated the ranking. In this event, Vietnam Report also announced the Top 10 prestigious enterprises in the food - beverage - retail - packaging industry with the aim of recognising the achievements of reputable companies in the industry.

In a quick survey of enterprises in the industry conducted by the company in August, about half of surveyed firms said that their operations had been affected, of which, the group of alcoholic beverages was facing the most challenges because of Decree 100. Production capacity of the beverage group currently only operates at 80 per cent compared to before the pandemic.

Also under the event, Vietnam Report published the Vietnam Earnings Insight 2020 Bilingual Report with the theme “Restructuring - Recovering growth momentum in a new normal period”.

According to the report, Vietnam's economy recorded a growth rate of 2.12 per cent in the first nine months of 2020 - the lowest compared to the same period of 2011-20. However, in the current difficult situation, maintaining a positive growth rate is still considered a positive and good sign.

The challenge for Vietnamese businesses is not only to maintain production and business activities and ensure social safety regulations, but also to build a suitable operating system following market trends.

VNS

Vietnamese businesses told to export to US through Amazon during pandemic

Vietnamese businesses told to export to US through Amazon during pandemic

Vietnamese exporters should boost exports to the US through the Amazon e-commerce platform during the COVID-19 pandemic, speakers told a seminar in HCM City yesterday. 

 
 

Other News

.
Recovery continues
Recovery continues
BUSINESSicon  15/11/2020 

As opposed to that of supply, the recovery of demand remains weaker, which means that the recovery of growth in the coming time will depend largely upon whether consumers can bolster their purchasing power

Gov’t orders solutions to support rice exporters to EU
Gov’t orders solutions to support rice exporters to EU
BUSINESSicon  15/11/2020 

The Government has directed the Ministry of Industry and Trade to coordinate with other relevant agencies to support local enterprises exporting rice to the European Union (EU) to make the most of EVFTA,

Retail spaces left empty as shops go online
Retail spaces left empty as shops go online
BUSINESSicon  15/11/2020 

Although Vietnam has managed to effectively contain the Covid-19 outbreak, many unsuccessful shops have shut down, as retailers have opted to go online to reduce operation costs, with the trend expected to grow further in the coming time.

Amid global uncertainty, even traditional markets may be vulnerable: experts
Amid global uncertainty, even traditional markets may be vulnerable: experts
BUSINESSicon  15/11/2020 

It has been nearly a year since the first coronavirus-infected case was reported in China. There are now nearly 52.5 million infection cases worldwide and more than 1.29 million people have died of the disease.

New decree to prevent transfer pricing, limit thin capitalisation
New decree to prevent transfer pricing, limit thin capitalisation
BUSINESSicon  14/11/2020 

The Government’s recently-issued Decree 132/2020/NĐ-CP would help prevent transfer pricing and limit thin capitalisation to develop a healthy investment market, Deputy Director of the General Department of Taxation Dang Ngoc Minh said.

Proper mechanism needed to attract investors to PPP projects
Proper mechanism needed to attract investors to PPP projects
BUSINESSicon  14/11/2020 

A proper mechanism is needed to attract investors to infrastructure projects implemented following the public-private partnership (PPP) model, experts have said.

Oil fields becoming depleted, difficulties lie ahead
Oil fields becoming depleted, difficulties lie ahead
FEATUREicon  14/11/2020 

Oil and gas companies are struggling to cope with falling prices, oil field depletion, and difficulties in seeking new fields.

Business support packages in the frame for maximum impact
Business support packages in the frame for maximum impact
BUSINESSicon  14/11/2020 

With many businesses becoming gradually exhausted and in critical need of state support, many National Assembly members have asked the government to apply feasible solutions to lift them out of woes.

Curbed inflation eases concerns
Curbed inflation eases concerns
BUSINESSicon  13/11/2020 

The big rise in public investment disbursement will not cause high inflation this year due to a decline in public and business demand and oil price, as well as government efforts to stabilise prices.

Focus on efficiency for new incentives
Focus on efficiency for new incentives
BUSINESSicon  13/11/2020 

A list of sectors that could benefit from special tax incentives in Vietnam would be utilised to grow enthusiasm for overseas investors and, as a result, help to contribute towards luring more high-quality foreign direct investment.

Pressure on the Finance Minister
Pressure on the Finance Minister
FEATUREicon  13/11/2020 

As the holder of the keys of the national treasury, Finance Minister Dinh Tien Dung is facing great pressure.

Demographics, rising income, geopolitical shifts to drive ASEAN’s growth
Demographics, rising income, geopolitical shifts to drive ASEAN’s growth
BUSINESSicon  13/11/2020 

10 ASEAN member states are on the cusp of a tremendous leap forward in socio-economic progress and their growth will be propelled by four mega-forces, including favourable demographics, rising income levels, geopolitical shifts and digital tailwinds.

Local firms told to prepare for RCEP export opportunities
Local firms told to prepare for RCEP export opportunities
BUSINESSicon  13/11/2020 

Vietnamese businesses should prepare to export their products to other ASEAN countries ahead of the possible signing of the Regional Comprehensive Economic Partnership (RCEP) this week. 

Pork prices drop after country flooded with imports
Pork prices drop after country flooded with imports
BUSINESSicon  14/11/2020 

Vietnam spent VND5 trillion ($214.78 million) to import pork in the first nine months of the year, leading to a drop in prices.

Hanoi authorities to inspect farmstay projects, land violations
Hanoi authorities to inspect farmstay projects, land violations
BUSINESSicon  13/11/2020 

The Hanoi People’s Committee has assigned the Department of Natural Resources and the Environment to set up a taskforce to inspect farmstay projects and deal with land law violations.

Daily visits to local e-commerce sites top 3.5 million: VECOM
Daily visits to local e-commerce sites top 3.5 million: VECOM
BUSINESSicon  12/11/2020 

Online shopping traffic in Vietnam so far this year rocketed over 150 percent against a year earlier, with daily visits to e-commerce sites growing to 3.5 million, 

RCEP - A new boost for regional enterprises
RCEP - A new boost for regional enterprises
BUSINESSicon  12/11/2020 

The Regional Comprehensive Economic Partnership (RCEP) agreement, expected to be signed on November 15 within the framework of the 37th ASEAN Summit in Hanoi, 

Enterprises need to be pro-active during the pandemic
Enterprises need to be pro-active during the pandemic
BUSINESSicon  13/11/2020 

Nguyen Bich Lam, former director general of the General Statistics of Vietnam, talks on what Vietnamese enterprises need to do to maintain their business production during the COVID-19 pandemic.

New regulations on cap on loan interest deductions released
New regulations on cap on loan interest deductions released
BUSINESSicon  14/11/2020 

The regulations on the cap on loan interest deductions will cause enterprises to face difficulty as they have small capital and operate mostly with borrowed money.

Black credit leading people to dead end, with no escape from debt
Black credit leading people to dead end, with no escape from debt
BUSINESSicon  12/11/2020 

Covid-19 has caused many people to lose jobs and has paved the way for black credit to emerge.

 
 
 
Leave your comment on an article

OR QUICK LOGIN