Overview of the 2014’s top 50 effective businesses

VietNamNet Bridge – The list of Vietnam’s 50 most effective businesses for 2014 is now out, and perhaps its most outstanding revelation is the decline in the number of state-owned enterprises in its ranks.

Top 50 most effective businesses’ profits up despite economic downturn

113 businesses shortlisted for ranking

There are 660 businesses listedin the Vietnamese stock market, with chartered capital spanning a wide range: VND10 billion to VND54 trillion.

Nhip Cau Dau Tu Journal and Thien Viet Securities Company, which have jointly conducted the annual rankings since 2012, apply three criteria when shortlisting the listed companies. First, a minimum market capitalization of VND500 billion; second, annual revenue of at least VND200 billion over the past three years; and third, post-tax annual profits of over VND20 billion over the same period.

The good news is that 113 companies met the requirements for the shortlist this year, ten more than last year.

However, 40 companies, though meeting the requirement on capitalization value, could not satisfy the requirements on revenue and profit because of the bad 2011 and 2012 fiscal years.

New faces in the list

Sixteen companies that were not present in last year’s list of 50 most effective businesses made it to this year’s. Of these, four had turned up in the 2012 list, then fell out of the rankings in 2013 and made their comebacks this year. They are HCM City Securities Company, Vinh Hoan Seafood Company, Coteccons Civil Engineering and Binh Duong Investment and Development (TDC).

Fewer state-owned companies in the list

Sixty two percent of the top 50 businesses in this year’s list are ones in which the state holds stakes. This represents a decrease from the 70 percent figure in 2013, an indication of the strong ascent of privately run businesses, which have seen both their assets and business performances improve significantly.

The state still holds high proportions of stakes in 62 percent of businesses on the top 50 list, of which 14/50 businesses where the state holds 51-97 percent operate in the fields of oil and gas, seaports, power and rubber.

All 50 companies have foreign shareholders

All of the 50 companies on the list, with their significant capitalization values, have foreign shareholders. Foreigners hold 25 percent or more of 24 of the 50 companies. Meanwhile, foreign shareholders hold up to 49 percent in nine companies.

Three new companies turn up, three get higher grades

The three companies which get higher grades include Vingroup, a major player in the real estate sector, Traphaco and Hau Giang Pharmacy.

Two years ago, when the world rubber market was hot, three positions in the top 10 list were occupied by rubber companies. However, they have been weeded out of this year’s rankings and replaced by Fecon, an engineering company, Viet Thang, a feed manufacturer, and Ninh Hoa Sugar.

The presence of Vingroup and the three new faces have helped increase the number of non-state owned businesses to four from one previously.

Twenty three companies have been present in all the 2012, 2013 and 2014 top 50 lists.


top 50 effective businesses