On March 9, 2022, Vietnam Report Joint Stock Company (Vietnam Report) cooperated with VietNamNet Newspaper to announce the FAST500 Ranking – Top 500 fastest growing enterprises in Vietnam in 2022.
Richy – Hoang Mai proudly reached Top 5 in FAST500 – Top 500 Fastest Growing Enterprises in Vietnam in 2022.
The FAST500 ranking has entered its 12th year on the way to finding, recognizing and honoring the worthy achievements of businesses with good business performance, based on the main criterion of compound growth rate (FAST500 ranking). CAGR) in terms of revenue. In addition, criteria such as total assets, equity, profit before tax and corporate reputation in the media… are also used as complementary factors to determine the size and position of the business. industry in the activity.
Top 10 of FAST500 Ranking 2022:
Also within the framework of announcing the FAST500 Ranking in 2022, Vietnam Report also conducted a survey of businesses to sketch out the overall growth picture of Vietnamese enterprises, the most important factors contributing to growth. of the enterprise in the past year and the orientations of the enterprise’s activities in the coming time.
Period 2017-2020: The revenue growth rate of FAST500 enterprises somewhat slows down due to the impact of the pandemic
Figure 1: Average CAGR by economic sector of the FAST500 chart
Source: Statistics from FAST500 Ranking from 2019 to present, made by Vietnam Report
In the period 2017-2020, the average compound revenue growth (CAGR) of the Top 500 Fastest Growing Enterprises in Vietnam (FAST500) reached 22.5%. Specifically, in terms of economic sectors, the FDI sector has an average CAGR of 24.1%; the private sector reached 23.2% and the state sector reached 16.6%. Thus, it can be seen that the revenue growth rate of FAST500 enterprises is significantly lower than in the previous period. A remarkable thing in this year’s ranking is that the FDI sector still maintained a stable growth and rose to take the leading position in terms of average revenue growth rate, although the number of enterprises accounted for only a small percentage of the total revenue. weight 6% in the table.
Preliminary business situation of FAST500 enterprises in 2021
Figure 2: Revenue and profit growth of FAST500 businesses in 2022
Source: Statistics from FAST500 Ranking in 2022, made by Vietnam Report – February 2022
Statistics from this year’s FAST500 Ranking of 186 survey respondents and listed companies show that 75.8% of businesses still maintain the growth momentum in revenue in 2021 and only 23.7% of businesses said their revenue was reduced compared to 2020. Along with that, 72.6% of businesses recorded an increase in profit before tax in 2021 compared to the previous year and nearly 1 Three of them achieved profit growth of over 75%. From the graph, it is easy to see that most businesses have a high concentration of growth in both revenue and pre-tax profit. The region with the largest size shows that FAST500 businesses assess their revenue and profit in 2021 to increase by less than 50% compared to the previous year, accounting for 40.3% of the total number of businesses. In addition, 14% of total enterprises recorded a decrease in both indicators in 2021 compared to 2020.
Good governance is the key to the growth of FAST500 businesses
Figure 3: Factors contributing to the growth of FAST500 businesses
Source: FAST500 business survey, conducted by Vietnam Report – February 2022
Good management performance, especially in timely introduction of measures to respond to the epidemic, is the leading factor contributing to the growth of FAST500 enterprises as assessed by 100% of enterprises. Next, with the advantage of having a team of qualified, experienced and highly disciplined personnel, it has contributed to the success of the business in the past year with the choice of 86.5% of enterprises. survey response. The third factor contributing to the growth of FAST500 businesses – accounting for 73.0% – is that businesses have focused on exploiting and developing the existing market. And at the same time, 54.1% of businesses recorded growth thanks to the development of new product lines and successful application of digital transformation in management and operation.
From the above survey results, it can be seen that compared to 2020 when the COVID-19 epidemic began to appear and businesses still had to rely heavily on supportive policies from the Government to overcome this period. In that difficulty, in 2021, businesses have been more proactive with timely, flexible and appropriate response measures to gradually adapt to the new context. At the same time, FAST500 businesses have continued to maintain core business strategies for many years, which are developing existing markets, developing new product lines and exploring potential market segments. power.
Entering the third year since the COVID-19 pandemic appeared, the digital transformation process has been viewed as a topical choice, deciding the survival of businesses, not the time to be “conservative”. ” test. Thereby, businesses can maintain operations, supply goods and services, survive and adapt in the context of the epidemic that is unknown when it will end. One of the clearest examples is the explosion of e-commerce channels on major exchanges such as Shopee, Lazada, Tiki… in the past period. At the same time, when Vietnam changes its stance on epidemic prevention, digital transformation becomes more and more a mandatory condition for businesses to be able to manage and operate their work smoothly, helping to save significant savings. operating time and costs.
A remarkable point from the survey results is that the rate of enterprises assessing factors related to the business investment environment contributing to growth is very low. This shows that efforts to improve the business investment environment seem to have stalled and received less attention since the COVID-19 pandemic appeared. The objective reason is that State management agencies pay more attention to epidemic prevention and implementation of policy packages to support businesses. Therefore, solutions to remove business barriers tend to slow down, reducing the competitiveness score of Vietnam’s economy, the country’s sustainable development index and the global innovation index. in the past two years. Entering 2022, the business community is placing expectations on the Government’s Resolution 02/2022 on promoting the improvement of the business environment, enhancing national competitiveness, so that businesses can invest with peace of mind. production and business, and at the same time implement safe epidemic prevention and control measures.
The unpredictable epidemic situation is still the biggest concern of FAST500 businesses this year
Figure 4: Difficulties of FAST500 enterprises in 2021 and 2022
Source: FAST500 business survey, conducted by Vietnam Report – February 2022
The epidemic situation is complicated and unpredictable, leading to interruption of production and business activities due to the regulations on distance (94.6%); Cost of input materials increased sharply (75.7%); Market demand fluctuates (70.3%); Supply chain disruption (62.2%); Personnel issues: Recruitment and retention, salary, insurance,… (38.7%); Political and economic instability in the world (37.8%) were the six biggest challenges and barriers of FAST500 enterprises in the past year.
According to the survey results of Vietnam Report, the difficulties that businesses face in 2021 continue to be considered as challenges affecting business growth in 2022, which are: Raw material prices increased input data and changes in the energy market (78.4%); Natural disasters, unpredictable impacts of Omicron and other diseases (78.4%); Labor costs increase and it is difficult to recruit talents suitable to the labor requirements of enterprises (59.5%) and the ability to promote trade and expand markets due to the “congestion” of the supply chain ( 54.1%).
Prospects and growth opportunities of enterprises in 2022
Figure 5: Revenue growth prospects in 2022 of FAST500 businesses
Source: FAST500 business survey, conducted by Vietnam Report – February 2022
In the first three waves of the epidemic, Vietnam is considered to be a relatively successful country in controlling the epidemic with the goal of “Zero COVID”. Strict measures to “threat banks and dams” have contributed to Vietnam’s economic growth of 2.9% in 2020, although this figure is low, it is still considered a “star” in the context of a severe recession. base of the world economy. However, we have not acted “right and won” right from the beginning of the fourth wave of the epidemic, leading to a reversal. In addition, the strict social distancing policy that has been going on for too long, and the inconsistent and synchronous coordination among localities, has caused severe consequences for the economy, seriously affecting the health and safety of the economy. business activities, especially in Ho Chi Minh City and the Southeast region. With the strategic shift to “living together safely with the epidemic”, by the end of 2021, Vietnam will achieve a GDP growth rate of 2.58%. Particularly in the fourth quarter of 2021, the number of newly registered enterprises reached 31.4 thousand enterprises with a registered capital of 415.3 trillion VND and the number of registered employees was 205.1 thousand employees, an increase of 70. 4% in number of enterprises, 64.1% in registered capital and 24.7% in number of employees compared to the third quarter of 2021. Thus, just over two months after the implementation of Resolution No. 128/NQ-CP promulgating the temporary regulation “Safely adapting, flexibly, effectively controlling the COVID-19 epidemic”, the business registration status of enterprises Business in the last months of 2021 has clearly prospered.
From a macro perspective, the positive news is that the world economy forecast in 2022 will continue to recover, but the speed will decrease somewhat, as some countries will gradually narrow their support policies and monetary easing. In Vietnam, under the impact of the Socio-economic Development and Recovery Program, economic growth is forecast to reach 6-6.5% in 2022. This is not too high an increase, but it is also possible. considered a good starting point, creating momentum for the next step of Vietnam’s economy. The program has a long enough duration (2022-2023), a large enough scale and a wide enough support area (epidemic prevention and health capacity improvement; worker support and social security; business support). and infrastructure development). The program takes into account institutional reform and possible risks (increasing budget deficit, public debt, inflation, risk of cash flow deviation, etc.) macroeconomic stability.
With vaccine coverage among the highest in the world, from the perspective of FAST500 businesses, most believe that the growth prospect in 2022 is quite positive. Specifically, 83.3% of businesses are optimistic about growth prospects in 2022 in the domestic market. Therefore, when asked about their expected plan this year, up to 89.2% of businesses said they would expand their business and 10.8% would keep their current business scale.
Figure 6: Top 6 opportunities to contribute to the growth of FAST500 businesses in 2022
Source: FAST500 business survey, conducted by Vietnam Report – February 2022
In addition to the difficulties that may be faced, businesses still see opportunities to contribute to growth in 2022. As assessed by 86.5% of FAST500 businesses, Trends in living with the pandemic bringing the economy back to the “new normal”. This means that when the economy is reopened, production and business activities will gradually be restored as before the pandemic. Along with that, 86.5% of enterprises confirmed that they hold a team of highly qualified, experienced and disciplined personnel. 67.6% of businesses are confident with their competitive advantage when they have good relationships with partners and customers and have high quality products with competitive prices. And received the choice of 62.2% of businesses, the trend of digital transformation took place strongly and comprehensively and the vision and business strategy of the company was clear, grasping market trends as well. are considered as two opportunities to contribute to the growth of the business this year.
Figure 7: Top 6 business strategy priorities in 2022
Source: FAST500 business survey, conducted by Vietnam Report – February 2022
In general, FAST500 businesses believe that they will focus on 6 strategic priorities to overcome growth challenges during this time, which are: Strengthening training and improving human resource quality (91.9%) ); Sales promotion (83.8%); Application of digital transformation in production and business (67.6%); Job security, salary and benefits for employees (56.8%); Strengthen the risk management system (48.6%); Strengthen investment cooperation (37.8%).
Strengthening the risk management system is still a strategy implemented by FAST500 businesses this year, but it is no longer a top priority as it was a year ago. Instead, increasing training and improving the quality of human resources is the first strategy that businesses focus on implementing, according to the choice of 91.9% of enterprises. A highlight in this year’s Top Priority Strategies is that the application of digital transformation has risen to third place in this year’s top strategies of enterprises.
Digital technology is being increasingly integrated into all areas and activities of businesses. This has fundamentally changed the way we operate, the way we operate, the way we approach markets, provide new value to customers, and accelerate business activities. In particular, digital transformation also helps businesses to quickly increase customer satisfaction through big data analysis to better understand consumption habits, discover hidden needs and improve customer satisfaction. thereby providing a variety of products to better meet the shopping needs.
In addition to maximizing resources during business operations, automation also allows many businesses to cut input material costs but increase output output, thereby, day-to-day product costs. decreased and competition increased. Digital transformation also has a significant impact on the cultural change of organizations, requiring an agile operating system, proactively searching for new things, ready to test potential initiatives, more comfortable accepting failure and seeing it as part of the process of making the system smarter. The digital transformation is taking place in the world at an increasing speed, “opening up” the doors for countries to accelerate the race to increase productivity, promote innovation and improve competitiveness. national painting.
Figure 8: Top 6 industries with good growth potential in the next 2-3 years
Source: FAST500 business survey, conducted by Vietnam Report – February 2022
Information Technology/Telecommunications has always been an industry with great growth potential for many years, especially when the application of digital transformation is increasingly widely deployed in all areas of socio-economic life. and was selected by 67.6% of enterprises as the industry with the most growth potential in the next three years. After that, with the economy being reopened, 59.5% of enterprises rated the Transport/Logistics industry as carrying positive signals about a bright picture in the near future, when this is still the case. The field is attracting strong investment in Vietnam and is expected to grow strongly thanks to supporting industries, investment policies of the State in key economic regions and Free Trade Agreements. Vietnam – European Union (EVFTA).
The third place receiving 45.9% of businesses selected is the Pharmaceutical/Medical industry. It can be seen very clearly that people’s demand for medicines and medical equipment for home use is increasing sharply when the number of new infections is constantly peaking, especially in Hanoi. On the other hand, in the long term, Vietnam’s young population structure is rapidly aging, people are increasingly interested in health care and the events of environmental pollution, natural disasters and epidemics. , leading to an increase in spending on health. Benefiting from public investment, the Real Estate/Construction industry, after a period of temporary silence due to the general difficulties of the economy, has begun to return with hope, according to 45.7%. business number.
What do FAST500 businesses expect from the Government?
FAST500 businesses hope that this year the Government will continue to stabilize the macro-economy, control inflation (75.7%); Promote trade promotion activities (70.3%); Strengthening support packages (67.6%); Continue to promote administrative procedure reform (51.4%) to create conditions for businesses to stabilize and operate better. In addition, two issues that continue to be mentioned in the Top 6 recommendations of FAST500 businesses and are expected to have positive progress in 2022 are Improving the legal environment (48.6%) and Improving the legal environment. improving infrastructure (45.9%), thereby building an open business investment environment, helping to free up resources to create momentum for future development, towards realizing the growth target according to the plan. sustainable direction.
Thus, this year, the FAST500 business community wants the Government to prioritize the following tasks:
Firstly, coordinate more smoothly between policies, especially monetary policy, fiscal policy and other macroeconomic policies to ensure the effectiveness of the programs included in the support package. does not create unwanted side effects (such as inflation, asset bubbles, etc.).
Secondly, focus on improving the efficiency and timeliness in the implementation of socio-economic recovery and development programs; Avoid the situation where the script is good but the execution is not efficient. Specifically: Opening the economy in a flexible and safe manner; Business recovery under support packages, helping businesses overcome difficulties in liquidity, cash flow, labor market recovery, increased access to capital, support for digital promotion, digital transformation and innovation , creation; Promote investment in infrastructure and housing; in which public investment disbursement must be faster and more efficient; Finally, there is a strong and substantive reform of administrative procedures, thereby improving the business and investment environment.
Thirdly, it is necessary to integrate and closely link the Recovery Program with the Epidemic Prevention Program. It can be said that these are two sides of an equation, a necessary and sufficient condition for Vietnam to successfully complete its socio-economic development plan in the coming years.
Fourthly, focus on simultaneously implementing tasks and solutions that have been issued in previous programs and plans such as digital transformation program, green growth strategy, new rural program, anti-change program. climate … in addition to other programs that have been and are being promoted over the past time.
At the same time, this is also a golden time for us to further accelerate the process of economic restructuring and pay special attention to the development of new economic and business models such as the green economy, the digital economy, and the digital economy. circular economy. Economic experts believe that, in order to promote economic restructuring in the coming time, it is necessary to promote the future economic model towards green, sustainable and digital economy development. Vietnamese enterprises that want to develop sustainably must adhere to the policy of green development. The Government of Vietnam is also making efforts to promote a green and inclusive economic recovery, focusing on perfecting institutions and policies, adjusting the economic structure as well as relevant national goals and strategies according to the law. towards green growth, low greenhouse gas emissions and good resilience to the negative impacts of climate change and external shocks. This is also an opportunity to switch from fossil energy to clean, green energy sources; reduce gas emissions; at the same time promoting digital transformation to respond to climate change.
The keywords businesses need to pay the most attention to to create growth are: Opportunity, Advantage, Connection, Creativity, Risk Management. The foundation of strategic management of enterprises is culture and technology. The brand value of the business is not only the product quality, profit, market share, but also closely linked with the vision, social responsibility and “green” responsibility in oneself, in interacting with the world. outside. Only then, new businesses can completely overcome dangers, take advantage of opportunities and develop really sustainably. The development journey will always face many unpredictable challenges and obstacles, so Vietnam needs constant efforts, fast action, breakthroughs, creativity, determination and the ability to skillfully handle situations. difficulties and manage different types of risks. Of course, then, we will be rewarded with worthy development achievements.
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