Fertiliser products of Petro Viet Nam Ca Mau Fertilizer JSC (DCM) being processed. DPM is among the Top 50 prestigious and effective public companies of 2023 (VIX50). — Photo DPM

This list in 2023 has seen an amazing change with the spectacular performance of the banking industry. The Vinhomes Joint Stock Company, topping the list in 2022, has been plunged to the bottom of the ranking to make room for the Joint Stock Commercial Bank for Foreign Trade of Viet Nam (Vietcombank).

A series of popular enterprises such as Hoa Phat, Masan, The Gioi Di Dong had to leave the Top 10 list to make room for PetroVietnam Fertiliser and Chemicals Corporation (DPM); FPT Joint Stock Company and a series of banks such as Vietnam Technological and Commercial Joint Stock Bank (Techcombank); Military Commercial Joint Stock Bank (Military Bank); Vietnam International Commercial Joint Stock Bank (VIB); Ho Chi Minh City Development Commercial Joint Stock Bank (HDBank); and Asia Commercial Joint Stock Bank (ACB). Most of these banks still performed well and were honoured through the tumultuous years because of the COVID-19 pandemic.

This is a remarkable effort in the context that in 2022, Viet Nam's stock market was going through strong volatile due to geopolitic crisis, unstable macro-economics, tight monetary policies of many central banks, high interest rates, exchange rate pressure, along with a decrease in investor confidence after a series of cases of economic corruption and stock market manipulation.

The VN-Index plunged from an all-time high of over 1,500 points set on January 6, 2022 to a bottom of 874 points in mid-November 2022. Total capital mobilisation on the stock market in 2022 reached VND351.8 trillion, down 22 per cent compared to the previous year.

Factors that create value

Amid the constant fluctuations of the economy and the stock market, especially when market confidence is at a low level after recent violations, reputation and efficiency play a key role in the success of listed companies because it improves access to capital, boosts market valuations, and provides competitive advantages.

According to a survey by Viet Nam Report, corporate liquidity and valuation are among the top seven factors that most affect the reputation and efficiency of public enterprises this year. Notably, dividend policy has risen from the 8th position last year to the 6th most influential factor in 2023. This is a factor associated with corporate governance. Consistency in dividend payouts and dividend growth rates can help investors assess the financial performance and stability of a business over time.

Factors related to communication are also recognised to have a strong impact on the prestige and effectiveness of the business.

Vietnam Report's research still shows the top six potential industries with the best growth stocks including: Banking, Food Production, Power Production and Distribution, Oil and Gas Production, Tourism and Recreation, Pharmaceuticals, Construction and Materials. — VNS