VPE500_English

500 largest Vietnamese private
enterprises (VPE500)
10/08/2022

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Why need to
investigate Vietnam's
500 largest private
enterprises (VPE500)?
Vietnam’s 500
largest private
enterprises
(VPE500) report

2


Vietnamese enterprises
2010
1000
firms %
3.28 1.17
1.8
54.9
1.48 45.1
269.2 96.2
48.1 17.9
163.9 61.0

State-owned
100%
>50%
Non-state
Private
LTDs
JSC(with state
share)
1.7
JSCs
55.5
FDI
7.1
100%
5.9
Joint venture 1.2
Total
279.3

2019
Annual
1000
change
firms %
(%)
2.2 0.32 -4.8
1.1 48.1 -6.2
1.1 51.9 -3.3
219.3 96.9 10.3
41.2 6.4 -1.7

47.6 73.5 12.6 550

112,44 ;
29,8%

1.2
129.3
18.8
16.1
2.7
668.5

0.2
20.0
2.8
85.7
14.3
100

-3.9
10.0
11.1
11.6
8.8
10.2

Large, 17,36
, 2,6%

2016, 239,88

, 63,5%
Microenterprise,
449,03 , 67,2%

35

11,91 ; 3,2%

Firm size (labour)

450

0.6
20.5
2.6
82.6
17.4
100

13,64 ; 3,6%
Medium,
22,78 , 3,4%

Small, 179,31 ,
26,8%

29

28

350

26

24

23

250
150
50
-50

2010

2015
SOE

2016
FDI

2017

2018

Trung bình

2019

40

35
30
25
20
15
10
5
0

Vietnam’s 500
largest private
enterprises (VPE500)
report

10/08/2022

VPE

3


Vietnamese enterprises (cont.)
17,00
16,00

14,00

Employment (mill. people)
SOE
FDI

Income (VND Mill./month

VPE

12,00

12,00

4,15

4,51

4,71

4,97
=32.7%
7,00

6,50

3,77

4,00
3,98
3,30

10,00
2,00
2,16

2010

8,00
10
6,00

4,00

5,98
=61.4%

7,71

8,57

8,81

8,98

9,08=
60.0%

9,59
7,24
6,72
5,95

2015

11,48

12,01

8,17

8,69
8,04

7,19

7,17
6,06
Average
2016

14,25

12,66
9,55
8,68

9,83
9,15

7,72

8,16

SOE

VPE

FDI

2017

2018

2019

Margin (%)

8

Average

SOE

VPE

FDI

6

Vietnam’s 500
largest private

4

enterprises (VPE500)

2,00

report

2
1,60

1,37

1,29

1,20

1,13

1,11
=7.3%

2017

2018

2019

0,00
2010

2015

2016

10/08/2022
0
2010

2015

2016

2017

2018

2019

4


Share of Private sector in
Manufacturing(2019)
Average

2,2

Average

61,3

36,5

Other manufact.
Furniture
Other transport. Vehicle
Vehicle with engines
Machinaries
Electric Equipment
Electronics, computers
Metal products
Metal
Construction materials
Rubber and Plastics
Phamacy
Chemical products
Oil products
Papers and products
Wood processing
Leather and products
Garment
Textile
Beverage
Food processing

Labor share

Other manufact.
Furniture
Other transport. Vehicle
Vehicle with engines

Machinaries
Electric Equipment
Electronics, computers
Metal products
Metal
Construction materials
Rubber and Plastics
Phamacy
Chemical products
Oil products
Papers and products
Wood processing
Leather and products
Garment
Textile
Beverage
Food processing

0%

20%

SOE

40%

VPE

60%

FDI

80%

100%

Báo cáo 500 doanh
nghiệp tư nhân lớn
nhất ở Việt Nam
(VPE500)

0%

Revenue share

20%

40%
SOE

60%
VPE

80%
FDI

100%

5

Import and export of FDI

Vietnam’s 500
largest private
enterprises (VPE500)
report

10/08/2020
6


Roles of large enterprises
Central role in the development policies implementation
Return of scale and return of scope
Potentials to going international markets

Large proportion and engines of growth

Vietnam’s 500
largest private

Spillovers effects

enterprises (VPE500)
report

10/08/2022
7

International experience
Support and promote the
formation of large enterprises

Taiwan
- Issue industrial policies
- Encourage the growth of large enterprises from
dynamic SMEs; and prioritises technology enterprises.
- Create a technology and industrial park development
programs to boost innovation and technological
development of large enterprises; subsidy R&D costs;
establish some large R&D institutes.
- Support switching to computer industry.

Vietnam’s 500
largest private
enterprises (VPE500)
report

10/08/2022
8


Kinh nghiệm của quốc tế
China
- The corporate group model has been piloted since 1991
- Provide large corporate group with incentives to access
resources

- Support in going beyond to global market (market,
technological acquires)
- Amend and supplement relevant legal institutions like
regulations for the M&A market.

Vietnam’s 500
largest private
enterprises (VPE500)
report

10/08/2022
9


Kinh nghiệm của quốc tế
South Korea
• Supports existing companies rather than starting new ones;
• Encourages large enterprises to export; provides them with subsidies
to transit to export-oriented processing and manufacturing activities
• Involving chaebols to industrialization strategy implementation.
Chaebol were also encouraged to collaborate with government to
develop industrial strategies; the government provides capital
support and market information to chaebols
• Support chaebols to access the electronics industry in 1980s and
acquiring foreign loan from international organizations.
• Issuing corporate group reform, directing them to concentrate core
sector instead of multi-sectors business strategies. Reduce economic
concentration by encouraging large firms to collaborate with smaller
ones

Vietnam’s 500
largest private
enterprises (VPE500)
report

10/08/2022
10


Identifying
VPE500
Vietnam’s 500
largest private
enterprises (VPE500)
report

10/08/2022
11


Ranking methods
•S&P 500: since
1957, ranking
based on market
capitalisationweighted

•Fortune 500: since
1955, ranking based
on revenue

•Forbes Global 2000:
since 2004, ranking
based on four criteria:
•Russell 3000: since
1984, ranking based on revenue, profit,
assets, market value
total market
capitalisation
TOP500: Chinese
• since 1984, ranking based
ranking method,
on market value.
based on revenue

Vietnam’s 500
largest private
enterprises (VPE500)
report

10/08/2022
12


Ranking methods
Vietnam:
› VNR500: similar to Fortune500,
ranking based on revenue
while taking into account the
factors of assets, labour, profit,
and media reputation; VNR500,

PROFIT500 and FAST500.
UNDP’s Top 200 (2007):
• It is an examination of the manufacturing sectors;
• Identifying top 200 largest firms and conducted in-depth survey
them to analyse the performance and export
• Does not covers the connection of the Top 200 and the remains.

Vietnam’s 500
largest private
enterprises (VPE500)
report

10/08/2022
13


VPE500 Ranking
1. Gather data from 2016 to 2020

2. Cleaning and filtering VPEs from the master database

3. Individually ranking
Employment; Total assets; Revenue
4. Calculate the average value of the ranking of the
three criteria for each enterprise

Vietnam’s 500
largest private
enterprises (VPE500)

5. Ranking based on the average score in step 4.
Forming the list of VPE500 and analyse

report

10/08/2022
14


Analytical Process

Forming
VPE500 for
each year
in 20162020
Focus in
2019

Distribution
of VPE500,
changing
over time,
localities,
sectors

Contribution of
VPE500
(employment,
revenue
asset)

Performa
nce and
efficiency
of VPE500
comparin
g to the
remains

Linkages
and
spillovers
of VPE500
to other
private
enterprises

Vietnam’s 500
largest private
enterprises (VPE500)
report

10/08/2022
15


The
distribution
of the VPE500
Vietnam’s 500

largest private
enterprises (VPE500)
report

10/08/2022
16


Survival of VPE500
2016
Existed for 5 years

•
•
•

2016-2020:
823
enterprises enter/exit
the portfolio
237
enterprises
maintain
their
positions (47,4%)
About 18-20% of the
previous year’s VPE500
companies are not on
the current year’s list;
for Fortune500 is

12.2% the during
1955-2014.

Existed for 4
years

Since 2016
Since 2017
Discrete
Since 2016

Existed for 3
years

2017

2018

2019

2020

237

237

237

237

237

40

40
40
7
15

40
40

40
40
7

7
15
8
40

Since 2017
Since 2018
3
6
Descrete

15
8

40

40

11

11
57

3
6
2

Existed for 2
years

Since 2016
Since 2017
Since 2018
Since 2019

Discrete

47

7
3
3

11

57
3

8
9

10
1

9
49

49

74
500

enterprises (VPE500)

3

38
500

8
18
500

Vietnam’s 500
largest private

7

5
One year only
Total

57
6
2
10
1

2

10
1
47
8

8

40
7
15
8

25
500

3
5
8
52
500

report

10/08/2022
17


Changes in the VPE500
› The agriculture sector: has 05 enterprises in 2019, ranked at relatively low
› The service sector: highly fluctuates, much more than manufacturing due to
intense competition and a high fluctuation rate of companies’ sizes.
› The exit rate of the service sector from the VPE500 portfolio is 38.4%
o Bank and Insurance (19/22 enterprises in 2016 or 86.4% were not on the
2019 VPE500 list)
o Hotels, restaurants, construction, and real estate: more than 50%.
› The exit rate of the processing and manufacturing industries is 32.8%.
o More stable and has a longer investment cycle than the service sector.
o The “foot-loose” of firms in machineries, paper products are is greater
than other industries.
› Although the VPE500 is concentrated in manufacturing, it tends to decline.
› More VPE500 firms in transportation and warehousing (from 8 goes to 16),
trade (from 80 to 90 enterprises), accommodation and catering (form 10 to
12 firms).

Vietnam’s 500

largest private
enterprises (VPE500)
report

10/08/2022
18


VPE500’s distribution in the processing
and manufacturing industries in 2019
▪ The processing and
manufacturing industries:
262 companies (52%),
▪ Concentrate in some
capital-intensive
industries such as steel,
metal (30 firms), nonmetallic minerals (29
firms).
▪ The labour intensive
sectors like garments has
up to 23 enterprises.
▪ Food processing and
beverage groups: 90 firms

Vietnam’s 500
largest private
enterprises (VPE500)
report

10/08/2022

19


Spatial distribution
100%

▪70% concentrated in Red River
Delta and Southeast, which
have much more
manufacturing.
▪Some ones in remote areas,
connected to local advantages
(Central Highlands: coffee,
timber; Mekong Delta: seafood
processing). Some grow and
operate in national wide (Dien
Bien: Muong Thanh Group). In
general, mainly in sectors with

local advantages (seafood,
construction materials), and
has low rankings.

90%

14,4

13,2

12,2

12,8

37

38,6

41,4

39,8

38,8

10

9

9,4

9,8

9,2

30,6

33

31,6

33,4

34,2

17,2

80%
70%
60%
50%
40%
30%
20%
10%

Vietnam’s 500

0%

largest private

2016

2017

ĐBSH
Duyên Hải MT
Đông Nam Bộ

2018

2019
MNPB
Tây nguyên
ĐBSCL

2020

enterprises (VPE500)
report

10/08/2022
20


Year of establishment

Vietnam’s 500
largest private
enterprises (VPE500)
report

10/08/2022
21


Differences in the
performance in VPE500
compared to other
private enterprises
Vietnam’s 500

largest private
enterprises (VPE500)
report

10/08/2022
22


Private enterprises’ average indicators

VPE500 is
overwhelm
ing in size
and exportimport
rate.

Employment

VPE
VPE500

(People)

VPE500/VPE

Assets

2016
2017
2018

2019
Avg
22
26
20
21
22
1654
2007
1790
1889
1835
75.2

77.2

89.5

90.0

83.4

VPE
VPE500

0.021
3.28

0.026
3.25

0.022
2.84

0.028
3.33

0.024
3.18

VPE500/VPE

156.2

125.0

129.1

118.9

132.5

VPE
VPE500

0.018
2.21

0.025
2.69

0.021
2.73

0.024
2.97

0.021
2.65

VPE500/VPE

122.8

107.6

130.0

123.8

126.2

Ratio of firms
having export
(%)

VPE
VPE500

0.85

16.89

1.86
47.4

1.44
53.4

7.73
58.4

2.09
48.3

VPE500/VPE

19.9

25.5

37.1

7.6

23.1

Ratio of firms
having import
(%)

VPE
VPE500

10.5
73.0

2.6
56.8

2.0
59.8

11.1
70.9

4.5
64.5

7.0

21.7

29.9

6.4

14.4

(VND 1,000
bill.)

Net revenue

(VND 1,000
bill.)

VPE500/VPE

Vietnam’s 500
largest private
enterprises (VPE500)
report

10/08/2022
23


Contribution of VPE500 over the years (%)
18,0
16,0
14,0
12,0
10,0
8,0

6,0
4,0
2,0
Vietnam’s 500

0,0

2016

2017
Lao động

2018
Tổng tài sản

2019
Doanh thu

Trung bình

largest private
enterprises (VPE500)
report

10/08/2022
24


Contribution of VPE500 by sector (2019)
Enterprise
proportion

Labour

Asset

Revenue

Agriculture, forestry, and
fisheries
Mining

0.19

4.5

17.4

20.8

0.05

4.9

16.2

23.4

Processing and
Manufacturing
Electricity and gas generation
and distribution
Water supply; waste
treatment
Construction

0.49

23.0

33.4

35.2

0.23

7.4

5.8

9.5

0.07

3.0

7.6

6.8

0.13

6.8

13.2

16.4

Vietnam’s 500
largest private
enterprises (VPE500)
report

10/08/2022
25