On December 11 2012, Vietnam Report and VietnamNet Newspaper jointly announced the VNR500 – Top 500 largest enterprise 2012. This is the 6^th consecutive year the VNR500 has been announced to honor the achievements of Vietnamese enterprises in fiscal year 2011.

The VNR500 has been constructed scientifically, independently and internationally standardized by Vietnam Report. The VNR500 aims at honoring Vietnamese’s business achievements in last fiscal year. Compiled according to the Fortune500, VNR500 enterprises have been ranked mainly basing on revenue while other criteria including profits, growth rates, number of employees, and assets are also used to compare enterprises.

Besides the Top 500 largest enterprise, Vietnam Report also announced the Top 500 largest private enterprise. Private enterprises selected are those with private capital larger than or equal to 51%. Minimum revenue to be ranked for the list regardless of ownership is VND1400 billion and for the private list is VND660 billion.

Details are published on the website: www.vnr500.com.vn.

Below are some findings from the VNR500:

First, SOEs dominate the Top 10 largest enterprises 2012, as usually seen in the VNR500. However, this year Samsung Electronics Vietnam made its surprising presence in the Top 5. For the private list, the familiar names include Doji Gold & Gems Group, FPT and ACB.

List 1: VNR500- Top 500 largest enterprises in Vietnam 2012

(Source: www.vnr500.com.vn)

List 2: VNR500 – Top 500 private enterprises in Vietnam 2012

(Source: www.vnr500.com.vn)

Second, private enterprises are growing strong despite the prevailing presence of State-owned companies

Private enterprises in the list 1 has increased in the past six years from only 103 in 2007 to 225 in 2012, rising more than 2 times.

However, the State-owned section still takes up 63% of total revenue in the VNR500, asserting its importance in the economy.

Third, regarding localities, Bac Ninh has made its breakthrough in the VNR500

Hanoi and HCM City, the 2 national centers of economy – culture, always lead by the presence in the VNR500 as well as companies’ scale, revenue and profits. With more than 57% of VNR500 enterprises headquartering in Hanoi and HCM City, revenue in 2011 accounting for 46,5% and 27,7% respectively, the two cities affirmed their first places in the VNR500.

Strikingly, Bac Ninh takes a position in the Top 5 localities by companies’ revenue all of which comes from the FDI section with main contribution from the Samsung Electronics Vietnam – the company getting much governmental preferences and having large investment strategy. Export turnover is the main reason for Samsung to reach such high rank in the VNR500.

Fourth, VNR500’s enterprises – especially banks – are having difficulties to make good business results

Within the survey for the VNR500, 50% of VNR500’s leaders responded that their businesses were worse than in 2011. Only 19% answered that 2012 is better than 2011. Nearly 100% of banks’ representatives’ indicated that their business results were not as good in 2012 as in 2011. 60% of steel – construction enterprises shared the view. The proportion is lower in other fields.

Figure 1: Result forecast for 2012 compared with that in 2011

Source: Survey by Vietnam Report

Fifth, VNR500 enterprises feel gloomy about the economic prospect for 2013. 55% of enterprises forecast that the economy will not become much better in 2013. The enterprises believing that 2013 is worse than in 2012 outnumber those believing the contrast.

Figure 2: Enterprises’ forecast about business in 2013 compared with that in 2012

Source: Survey by Vietnam Report

Most enterprises indicated that the economy would not recover in 2013, accounting for two thirds of enterprises. Only 33% thought the economy would recover in the latter half of 2013 while only 1% believed in recovery in the next 6 months. This shows a fall in recovery time forecast when in August up to 60% of enterprises responded that the economy would start to recovered in 2013 or earlier.

Figure 3: Enterprises’ forecast about economic recovery

Source: Survey by Vietnam Report

In economic recession, VNR500 enterprises will confront obstacles in 2013, though there may be chances for enterprises to conduct restructuring and get ready for returning growth./.

On January 18 2013, Vietnam Report coordinately with VietnamNet Newspaper will organize the Awards Ceremony for top 500 largest enterprises in Vietnam 2012. This is the 6^th consecutive year the VNR500 has been announced to honor the achievements by the Vietnamese enterprises.