HCMC – The Covid-19 pandemic has left tremendous impact on many businesses, but foreign direct investment (FDI) companies have maintained positive growth, according to Vietnam Report JSC.
Vietnam Report JSC and Vietnamnet news site yesterday, March 9, released a list of the 500 fastest-growing companies in Vietnam (FAST500) this year.
There were 186 businesses participating in this year’s survey. Of them, 75.8% said they maintained their revenue growth in 2021 and only 23.7% reported lower revenue than in 2020.
Besides, 72.6% saw their pre-tax profits up from 2020, and nearly one third said their revenue grew over 75%.
Given the impact of the pandemic, in the 2017-2020 period, the compound annual growth rate (CAGR) of the FAST500 companies reached 22.5% only, down 5.7% against the previous period. However, the FDI sector stole the limelight as it still enjoyed stable growth and rose to take the lead in CAGR at 24.1%, even though the number of FDI firms accounted for 6% in the list. The private and State sectors reported their CAGR lower, at 23.2% and 26.6%, respectively.
In 2022, with Vietnam’s high Covid vaccination rates, most of the FAST500 companies are pinning high hopes on positive growth this year. Specifically, 83.3% of the interviewed firms say they are optimistic about their economic growth prospects in the local market this year. Therefore, when asked about their business plans for this year, up to 89.2% revealed they would expand their business scale and 10.8% said they would maintain the current scale.
To maintain good growth, the FAST500 companies expected the Government this year would take measures to stabilize the macroeconomy and control inflation, ramp up trade promotion events, continue to offer relief aid and step up administrative reforms in order to create optimal conditions for businesses to maintain more stable and effective operations.