Vietnam should strengthen land and copyright laws to give enterprises more flexibility and to enhance asset security experts said at an award ceremony in Hanoi on November 23 for the country s 500 most profitable firms.
According to the announcement of the Vietnam Earnings Insight 2017 report at the ceremony, Vietnam’s business environment has been favourable, with access to capital, tax system and inflation control improving in the first three quarters of the year.
The research conducted by Vietnam Report Company on the Profit 500 Ranking List showed that more than 90% of firms rated the business environment as good or very good.
The research conducted by Vietnam Report Company on the Profit 500 Ranking List showed that more than 90% of firms rated the business environment as good or very good. (Photo: vietq.vn)
The issues that businesses still face are land access, skilled labour supply and infrastructure.
“The great challenges for Vietnamese businesses are asset security, property rights and anti-trust,” the report said.
Besides, under the circumstance that the increasing number of new entrants and foreign competitors has entered the domestic market, the market share of large firms could decline unless they reach new customers on the world market.
The Vietnam Earnings Insight 2017 report also collected opinions from experts saying that the country’s securities market experienced better performance than ever, with a growth rate of 26.4% in the first 10 months of the year. It helped the overall portfolio value of investors expand at the most significant rate in the past six years.
Therefore, the performance in the Vietnamese market is more attractive than that of the Philippines at a similar level of capitalisation and turnover, and significantly more attractive than Thailand as Thailand’s economic growth has been gloomy recently, the report said.
The country’s stable macro-economy, better monetary policies and favourable investment environment, together with the growth of the middle-class, would enhance return on investment (ROI) and return on equity (ROE), which would be pre-conditions for further growth.
The Profit 500 ranking aims to honour Vietnamese firms with high profitability and potential to become key pillars for the country’s future development. These firms have also contributed to promoting Vietnam’s brand name in the international business community.
Viettel Group topped the list of Vietnam’s most profitable firms, followed by Samsung Electronics Vietnam Co Ltd, Vietnam Oil and Gas Group (PetroVietnam), Vietnam Dairy Products Joint Stock Company (Vinamilk), and PetroVietnam Gas Joint Stock Corporation.
Also on the list are Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank), Truong Hai Auto Corporation, Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) and Hoa Phat Group.
The Vietnam Report Company conducted independent assessments based on the criteria of return on total assets, return on equity, return on revenue, pre-tax profit and revenue. In addition, it also determined businesses’ reputation in the media.