Hanoi (VNS/VNA) - Nearly 70 percent of 500 surveyed firmsin Vietnam planned to expand their businesses in the near future as most ofthem were optimistic about business results in 2018.

This was revealed in the FAST 500 Ranking Lists 2019, drawn up annuallysince 2011, which was recently announced by the Vietnam Report and onlinenewspaper VietnamNet.

The survey showed 86 percent of firms reported higher revenue in 2018than that of previous year while 64 percent said their after-tax profits hadincreased.

They said the growth in the country and the region was the biggest factorcontributing to their high growth rate in the past five years, followed by theexpansion of markets and improved infrastructure.

The average compound annual growth rate (CAGR) in 2014-18 of theFAST 500 enterprises reached 38 per cent.

Notably, the private sector played a key role as momentum for the economy’sgrowth with the highest CAGR of 40 per cent and made up 81.4 percent of thebusinesses in the list.

The ranking also revealed that the retail sector saw strong growth inrecent years with average CAGR of 63 percent. Agriculture, steel, mechanics,telecommunications and information maintained high CAGR of more than 44 percent.

The construction and real estate sectors had the highest number ofbusinesses in the FAST500.

Businesses in the FAST 500 believed that new opportunities would open in2019, bringing higher revenue. However, they also said that increasing inputand labour costs and the emergence of new rivals have been the biggest barriersfor development.

In particular they paid attention to input costs which have beenchallenges for years. In addition, administrative procedures are now smallerbarriers, though human resources are an issue.

To overcome the difficulties, firms in the FAST500 planned to priotitiseincreasing their revenue and profit in their current markets, reducing costsand improving productivity. In addition, they hope to expand their markets andintroduce new products and services.

The list is based on independent research and assessment of Vietnam ReportJSC. It complies with international standards and was drawn up in consultationwith domestic and foreign experts.

The FAST 500 rankings are also based on international standards, includingthe models of the Inc 500, Fortune 500 and Deloitte 500.

This is the ninth consecutive year for the FAST 500 list in Vietnam. Theperformance of the companies was calculated by the CAGR on revenue and alsobased on criteria such as total assets, the number of workers, after-taxprofits and prestige in the media.

The awards ceremony will be held on April 19 at Park Hyatt Hotel in HCMCity.-VNS/VNA