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Banks dominate list of top profitable companies in Vietnam

The Saigon Times

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HCMC – Banks make up a significant proportion in the overall and private enterprise categories, according to the PROFIT500 rankings released on September 8.

PROFIT500, jointly published by Vietnam Report JSC and VietnamNet news website, features the country’s list of the 500 most profitable companies of 2023.

In the 10 most profitable companies in Vietnam, banks held a commanding presence. Leading the pack were key players such as the Vietnam Oil and Gas Group, Samsung Electronics Vietnam Thai Nguyen Company, Viettel Group, Vietcombank, Techcombank, the PetroVietnam Exploration Production Corporation (PVEP), BIDV, MBBank, Agribank, and VPBank.

This trend was mirrored in the 10 most profitable private companies in Vietnam, where banks featured prominently. Among them were Techcombank, VPBank, ACB, Vingroup Company, VIB, Vietnam Dairy Products JSC (Vinamilk), HDBank, Hoa Phat Group, SHB, and TPBank.

In total, six banks secured their positions among the 10 most profitable companies, while seven appeared in the top 10 private enterprises. This overwhelming presence underscores the financial sector’s dominance in Vietnam’s corporate landscape.

Despite the ongoing global difficulties induced by the pandemic and the Russia-Ukraine military conflict, the PROFIT500 report displayed encouraging signs of improvement. The Return on Assets (ROA), a key profitability metric, demonstrated consistent and equitable growth among the PROFIT500 companies in 2023 across all economic sectors.

Foreign direct investment (FDI) companies continued to lead with an impressive ROA of 13.7%, a robust 2.7% increase from the previous year. This growth reflects stability in their business operations and profit-generating capabilities.

Private sector companies and state-owned enterprises also showed notable ROA improvements, with average rates of 11.2% and 9.2%, respectively, solidifying their positions as the second and third best-performing sectors.

Moreover, there were significant shifts in the Return on Equity (ROE) metric in 2023. FDI and private sector companies exhibited strong financial growth, with ROE gains of 4.6% and 5.5% compared to 2022, reaching the highest levels in five years.

In contrast, state-owned enterprises made a more modest ROE increase, rising from 16.5% in the previous year to 17.2% in 2023, trailing behind their counterparts for the second consecutive year.

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