State-owned sector dominates Vietnam's top 500 firms

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The ranking of 500 largest enterprises in Vietnam in 2010 released by the Vietnam Report Company and online newspaper VietNamNet on Thursday shows that state firms account for 46 percent of the list.

PetroVietnam tops the list, known as VNR500, followed by Petrolimex, EVN, and VNPT.

Saigon Gold and Silver ACB-SJC Joint Stock Company, FPT Corporation, ACB, and Vinamilk are the top private enterprises.

The private sector has strengthened its position in the national economy with their proportion in the ranking increasing steadily every year, from 24 percent in 2008 to 30 percent in 2009 and 31.2 percent in 2010.

Foreign-invested companies account for 23.8 percent this year.

The 2010 VNR500 list shows that the key economic sectors have maintained their roles, especially finance and banking, gold and gemstones, telecommunication, power, oil and gas.

Foreign-invested enterprises are the most effective with the Return on Assets (ROA) standing at 13 percent, double that of state-owned companies (5.2 percent) and much higher than private firms (2.5 percent).

State-owned enterprises lead in contributing to the state budget, paying taxes four times higher than foreign-invested firms and 10 times higher than private companies.

VNR500 is based on the model of Fortune 500, an annual list compiled by Fortune magazine that ranks the top 500 US firms by their gross revenue.

Details of the Vietnamese ranking can be found at www.vnr500.com.vn.

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