Exchange rates, tax worry Vietnam’s most profitable firms
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Exchange rate fluctuations and high taxes are the main concerns of Vietnam’s most profitable businesses, a recent report has found. The survey of the 500 most profitable companies this year, which include 41 foreign invested ones, by consultancy and market research firm Vietnam Report, said 51.4 percent of businesses considered exchange rate volatility as the biggest challenge this year.
For 42.9 percent of respondents the tax burden was the biggest concern.
Other factors that affect their profitability are red tape (37.1 percent), global economic instability (31.4 percent) and environmental disasters (25.7 percent).
However, 90 percent expected their revenues to rise this year.
Eighty percent said their profit had already exceeded last year’s, with another 8.6 percent saying it had drawn level.
Almost all (97.1 percent) said the government has stewarded the economy well by curbing inflation and managing the exchange rate adroitly.
But they wanted improvements to administrative procedures, infrastructure and access to land.
The survey found the telecommunications-information technology sector having the highest return on equity, 30 percent, followed by transportation with 24 percent and pharmaceuticals with 21 percent.
The Vietnam Oil and Gas Group or PetroVietnam is the most profitable company this year followed by telecomunications firm Viettel and Samsung Electronics Vietnam Co. Ltd.
Questions & Answers
Q.Which factors are causing the most concern for Vietnam's top businesses this year?
Which factors are causing the most concern for Vietnam's top businesses this year?
Exchange rate fluctuations are the biggest challenge for 51.4 percent of companies. Also, 42.9 percent of respondents view the tax burden as their primary concern. Other significant factors include red tape, global economic instability, and environmental disasters.
Q.What is the overall financial outlook for Vietnam's most profitable companies?
What is the overall financial outlook for Vietnam's most profitable companies?
Despite their concerns, 90 percent of these companies anticipate a rise in their revenues this year. 80 percent reported that their profits have already surpassed last year's figures, with 8.6 percent achieving similar profit levels.
Q.Which sectors demonstrate the highest return on equity in Vietnam?
Which sectors demonstrate the highest return on equity in Vietnam?
The telecommunications-information technology sector leads with a 30 percent return on equity. This is closely followed by the transportation sector at 24 percent, and pharmaceuticals, which reported a 21 percent return on equity according to the survey findings.
Q.Which specific companies were identified as the most profitable in the recent report?
Which specific companies were identified as the most profitable in the recent report?
The Vietnam Oil and Gas Group, also known as PetroVietnam, was named the most profitable company this year. It was followed by the telecommunications firm Viettel, and then Samsung Electronics Vietnam Co. Ltd. In the rankings.