Vietnamese businesses are accelerating.

Fortune magazine (USA) has just published its ranking of the Top 500 largest companies in Southeast Asia (Southeast Asia 500, also known as Fortune SEA 500). This is the first year Fortune has ranked the 500 largest companies in Southeast Asia, following other globally renowned rankings such as Fortune 500, Fortune Global 500, and the list of the world's most admired companies. The ranking is based on total revenue and financial indicators of companies from seven countries in the region, including Vietnam, Indonesia, Thailand, Malaysia, Singapore, the Philippines, and Cambodia.

It's no coincidence that Fortune pays attention to Southeast Asia. The region is proving increasingly important in the global economy thanks to shifting supply chains and the rapid development of its economies. This ranking is based on the 2023 business results of the companies. However, Fortune also noted that the revenue and profits of the 500 companies in the Fortune SEA 500 ranking declined over the past year. This shift stems from a weak energy market, overshadowing impressive growth in many other sectors.

In the first-ever ranking dedicated to this region, Vietnam has 70 companies honored in the Fortune SEA 500 and 13 in the Top 100. Notable examples include large corporations and businesses such as Petrolimex, Vingroup, Hoa Phat, Mobile World, Vietnam Airlines , VietjetAir, Vinamilk, Agribank, BIDV, VietinBank, etc.

VinFast electric car factory in Hai Phong

Excluding state-owned enterprises, the private sector has seen the emergence of many major players, led by Vingroup. This group is ranked number 1 among domestic private enterprises by Fortune and 45th out of 7 countries in the Fortune SEA 500 ranking. Besides asset size, Vingroup is highly regarded for its financial performance and business efficiency. In 2023, the Group achieved revenue of over $6.77 billion and profit of $86.3 million, with total assets reaching $27,521 million. Currently, Vingroup operates in multiple sectors, ranging from industry and technology, trade and services to social philanthropy. VinFast, Vingroup's all-electric car brand, has successfully listed its shares on the NASDAQ stock exchange (USA) and is rapidly expanding its presence in North America, Europe, Africa, the Middle East, and Asian countries such as India, Indonesia, the Philippines, and Thailand. Recently, VinFast was also honored by Time magazine (USA) as one of the top 100 most influential companies in the world in 2024.

For example, Hoa Phat Group was recognized by Fortune with revenue of US$4.99 billion, after-tax profit of US$287 million, and total assets of US$7.74 billion in 2023. Hoa Phat is the largest steel producer in Vietnam and a leading producer in the ASEAN region. In the near future, when the Hoa Phat Dung Quat 2 project, which will develop high-quality hot-rolled steel (HRC) products for automobile manufacturing; low-carbon steel for products such as canning, household goods, and steel structures; and HRC for high-strength, weather-resistant container shells, is completed in Q1 2025, Hoa Phat will become the largest steel producer in Southeast Asia and among the top 30 largest steel companies in the world. Hoa Phat's growth also propelled Vietnam to 12th place in the world for crude steel production in 2023. Similarly, in the IT services sector, FPT ranked first and 160th in the Fortune SEA 500 list…

VinFast factory

Not only are Vietnamese businesses growing stronger and increasingly appearing in global rankings, but the number of entrepreneurs recognized as USD billionaires worldwide is also increasing. In 2022, Forbes magazine (USA) recognized seven Vietnamese USD billionaires for the first time. In 2024, this number decreased to six, including Mr. Pham Nhat Vuong, Chairman of Vingroup; Ms. Nguyen Thi Phuong Thao, CEO of VietJet Air; Mr. Tran Dinh Long, Chairman of Hoa Phat Group; Mr. Ho Hung Anh, Chairman of Techcombank; Mr. Nguyen Dang Quang, Chairman of Masan Group; and Mr. Tran Ba ​​Duong, Chairman of Truong Hai Automobile Group (Thaco Group). Although still modest, the number of USD billionaire entrepreneurs is higher than in previous years.

In particular, in early May, the Government issued Resolution No. 66 to implement Resolution No. 41-NQ/TW of the Politburo on building and promoting the role of Vietnamese entrepreneurs in the new era. Accordingly, the program aims to have at least 2 million businesses by 2030, with the formation and development of many entrepreneurs leading strong economic groups with potential and competitiveness in both domestic and international markets. By 2030, at least 10 Vietnamese entrepreneurs will be included in the list of the world's USD billionaires, and 5 of the most powerful entrepreneurs in Asia as selected by prestigious international organizations. The number of businesses ranked among the top-valued companies by prestigious international ranking organizations will increase by 10% annually… This further demonstrates the crucial role of Vietnamese businesses and entrepreneurs in the overall socio-economic development.

In the consumer goods and retail sector in Vietnam, Masan Group is the top-ranked company according to Fortune's list.

Dr. Vu Tien Loc, a member of the National Assembly's Economic Committee, stated that looking back at the past few decades, we have created a miraculous story of the remarkable development of Vietnamese businesses and entrepreneurs. From being virtually unknown on the national economic map, thanks to the reforms initiated and led by the Party, which ignited the aspirations and the first wave of entrepreneurship in the economy, we now have over 6 million business entities, including nearly 1 million enterprises; 5.2 million business households; and tens of millions of entrepreneurs steering the economic ship. The private sector alone contributes approximately 45% of GDP.

Entrepreneurs are the driving force behind a great poverty alleviation effort, lifting tens of millions of our compatriots out of poverty, transforming the country into a middle-income nation, and steadily advancing on the path to prosperity. However, we still have too few large and medium-sized enterprises. Labor productivity and the competitiveness of Vietnamese businesses are generally still low. We do not yet have many businesses and brands on par with the world. Our economy is large, but the informal sector still accounts for a high proportion, up to 30% of the economy's GDP.

"I believe that Vietnamese businesses will succeed in their startup and reconstruction efforts as the global economy is being restructured, global supply chains are shifting, and Vietnam, with its favorable geopolitical and geoeconomic position, is being chosen as a destination for global supply chains. With political and social stability, strong energy and entrepreneurial spirit, Vietnam is being chosen as a destination for global supply chains, especially in the fields of digital technology, high technology (including semiconductor chip technology), clean energy, and the circular economy...", said Dr. Vu Tien Loc.

Economist Le Dang Doanh commented that the list of the 500 largest companies in the region is based only on revenue from the 2023 fiscal year, which may not represent a complete picture, but it helps us to take a more serious look at the development of a strong team of Vietnamese entrepreneurs and businesses in the spirit of Government Resolution 41.

Considering its potential, Vietnam, with its abundant labor market, a young population of over 100 million, high consumer demand, strong job opportunities, and a great desire for entrepreneurship and wealth creation, still has a modest number of businesses on the list of the top 500 strongest businesses in Southeast Asia. Given Vietnam's current population, the number of businesses is still less than 1 million. Because of this small number of businesses, Vietnamese labor – considered a national asset – is always in surplus, forcing people to seek work abroad. In recent years, many young Vietnamese have gone to Japan, Taiwan, and South Korea for work. Even in recent years, the export of Vietnamese labor to other Southeast Asian countries such as Malaysia, Thailand, and Indonesia has become very common; these are markets that are competing with Vietnam for investment due to their abundant unskilled labor resources.

HRC steel production at Hoa Phat Group - HPG

Mr. Le Dang Doanh emphasized: If Vietnam had more large and well-known enterprises, it would create better competitiveness, thereby generating more jobs, and significantly improving the number of Vietnamese enterprises with a strong position in Southeast Asia. In particular, participation in global supply chains is what truly strengthens businesses. Therefore, Mr. Doanh argued that for businesses to be strong, have a voice, and a certain position in the region and globally, there must first be a sufficient number of large enterprises capable of competing, and it is necessary to promote the upgrading of household businesses. Because of their small-scale, household-based operations, business owners themselves do not strive to improve quality to international standards or innovate to participate in the import and export market.

"While the Vietnamese economy has a significant advantage in the international market, having signed 17 free trade agreements (FTAs) and establishing friendly relations with five continents, goods produced here, made in Vietnam under Vietnamese brands, should ideally have global reach and be recognized internationally. However, the majority of export profits go to foreign businesses. The reason is that we lack a strong Vietnamese business sector and internationally-sized enterprises. To achieve this, we need to revise policies for businesses, aiming to create fairness and elevate their status. In addition, we need a legal framework to support businesses in enhancing their competitiveness and competing on equal terms with other partners in the regional market," emphasized economist Le Dang Doanh.

Overview of the ceremony announcing FPT's achievement of $1 billion in IT service revenue for overseas markets.

Concurring, Associate Professor Dr. Nguyen Manh Quan, Director of the Institute for Business Research and Development, expressed his impatience that Vietnamese businesses have not yet grown as strong as expected. He noted that 2023 was a bleak year for the global economy. Many businesses failed, while many others persevered and continued to develop. In reality, Vietnam was somewhat fortunate to have a more stable response to global economic fluctuations due to its agricultural economy and the fact that many businesses thrive based on natural resources. "In the value chain, Vietnamese agricultural products are at the forefront from cultivation to harvesting and export to other countries, thereby significantly increasing revenue. The unique characteristic of food products is that even during wars and conflicts, people still need to eat. Therefore, the export of Vietnamese agricultural products is growing well, and consequently, businesses operating in the export sector and related services are developing well – that's an advantage. So, when the global economy returns to normal, do we have the strength to continue growing stronger?", Mr. Quan questioned.

Furthermore, according to Mr. Nguyen Manh Quan, sales and revenue are only one indicator among 26 groups of indicators used to evaluate a business. Building and developing large-scale, influential businesses in the region requires many factors, including financial management, operational capabilities, and efficient resource utilization. Therefore, more supportive policies are needed to encourage the business community to grow stronger, rather than leaving them alone on this journey. For example, Vietnam's greatest advantage is its human resources, yet investment in human resources by businesses is quite weak. To date, policies to develop Vietnamese human resources to participate in global supply chains and serve the semiconductor industry have been extensively implemented. However, the participation of the technology business community in developing human resources to seize this opportunity remains very low, perhaps only excelling in a few large companies that can be counted on one's fingers. Therefore, supportive and encouraging policies are needed to help businesses utilize all available resources, preventing them from having to invest abroad or hire foreign workers simply because of a weak workforce.

Source: https://thanhnien.vn/doanh-nghiep-viet-tang-toc-185240622214228268.htm