Fifty companies have been chosen out of 700 firms listed on Viet Nam's stock market as having the most effective business performance.

The ratings were carried out by Nhip Cau Dau Tu magazine with consultancy from Thien Viet Securities, VIG Fund Management Company and McKinsey & Company Vietnam.

The top 10 of the 50 listed, announced yesterday, include: CNG Vietnam JSC (in the energy sector), Vinamilk (listed under VNM), Japan-Vietnam Medical Instrument JSC (VJC), PV Gas South (PGS), Phuoc Hoa Rubber JSC (PHR) Dong Phu Rubber JSC (DPR), Tay Ninh Rubber JSC (TRC), PV Fertiliser and Chemicals Company (DPM), Bien Hoa Vinacafe JSC (VCF), and Dinh Vu Port JSC (DVP).

The ratings were based on criteria that included market capitalisation of at least VND500 billion (US$24 million), annual turnover of VND200 billion and net profit of VND20 billion from 2010 to 2012, and effectiveness, according to magazine's editor-in-chief Dang Nhat Minh.

The effectiveness of companies was calculated by the compounded annual growth rate (CAGR), return of equity (ROE) and return on capital (ROC) for 2010, 2011 and 2012. For example, CNG's CAGR was 120, ROE, 55, and ROC 43.

The 50 companies accounted for 74 per cent of the market's net profit and 68 per cent of total market capitalisation.

Vo Tri Thanh, deputy head of the Central Institute of Economic Management, praised the top companies for their performance, especially in a tough economy when many businesses had failed.

Successful companies have a common philosophy of focusing on trust, product quality and mutual benefits among the companies, customers, employees, partners and shareholders, he said.

Pham Thi Viet Nga, chairwoman Hau Giang Pharmaceutical Company (DHG), said she had focused on her core business, saying that she had not expanded into the property market, even when it was hot.

Vu Thi Thuan, chairwoman of the drug company Traphaco (TRA), said she gave importance to a sound development strategy.

Both Thuan and Nguyen Quoc Khanh, managing director for Vinamilk, said they valued sustainable growth.

Traphaco, for example, has developed a clean farming sector to provide materials for this leading oriental medicine producer.

The Vinamilk managing director highlighted corporate social responsibility activities.

Business leaders of the selected companies agreed that they should not be satisfied with their achievements, but should prepare for challenges in the future so they can maintain their leading positions.

Source: VNA