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 1. Home
 2. Business & Economy
 3. FDI firms post positive growth despite pandemic: survey


FDI FIRMS POST POSITIVE GROWTH DESPITE PANDEMIC: SURVEY


 * March 13, 2022
 * 





12-Mar-2022 Intellasia |
The Saigon Times |
5:02 AM



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The Covid-19 pandemic has left tremendous impact on many businesses, but foreign
direct investment (FDI) companies have maintained positive growth, according to
Vietnam Report JSC.

Vietnam Report JSC and Vietnamnet news site yesterday, March 9, released a list
of the 500 fastest-growing companies in Vietnam (FAST500) this year.

There were 186 businesses participating in this year’s survey. Of them, 75.8
percent said they maintained their revenue growth in 2021 and only 23.7 percent
reported lower revenue than in 2020.

Besides, 72.6 percent saw their pre-tax profits up from 2020, and nearly one
third said their revenue grew over 75%.

Given the impact of the pandemic, in the 2017-2020 period, the compound annual
growth rate (CAGR) of the FAST500 companies reached 22.5 percent only, down 5.7
percent against the previous period. However, the FDI sector stole the limelight
as it still enjoyed stable growth and rose to take the lead in CAGR at 24.1%,
even though the number of FDI firms accounted for 6 percent in the list. The
private and State sectors reported their CAGR lower, at 23.2 percent and 26.6%,
respectively.

In 2022, with Vietnam’s high Covid vaccination rates, most of the FAST500
companies are pinning high hopes on positive growth this year. Specifically,
83.3 percent of the interviewed firms say they are optimistic about their
economic growth prospects in the local market this year. Therefore, when asked
about their business plans for this year, up to 89.2 percent revealed they would
expand their business scale and 10.8 percent said they would maintain the
current scale.

To maintain good growth, the FAST500 companies expected the government this year
would take measures to stabilise the macroeconomy and control inflation, ramp up
trade promotion events, continue to offer relief aid and step up administrative
reforms in order to create optimal conditions for businesses to maintain more
stable and effective operations.

https://english.thesaigontimes.vn/fdi-firms-post-positive-growth-despite-pandemic-survey/

 

Category: Business, Vietnam





Article source:
https://www.intellasia.net/fdi-firms-post-positive-growth-despite-pandemic-survey-1028024


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