In addition, criteria such as total assets, total employees, profit after tax and corporate reputation in the media, etc. are also used as additional factors to determine the size and position of the company within their industry.
In the period of 2015-2019, the CAGR of these businesses was about 28%. In terms of economic sector, this period witnessed the strong rise of the private sector which played an increasingly important role in the country's economic growth, with the largest average CAGR of 30.1%. The number of enterprises in this sector also accounts for the largest proportion, at 74.2%. For an economic sector generating about 42% of GDP, contributing 30% to the State Budget and attracting about 85% of the labor force, the stable growth rate is a clear testament to the potential development of this sector in Vietnam's economic structure.
In terms of industries, in recent years, Vietnam's economy has stabilized and had a good GDP growth rate, paving the way for the development and rise of service and technology sectors such as Food - Beverage; Retail; Telecommunications - Information Technology, etc.
The factors that contributed most to the growth rate of enterprises over the past 5 years (2015-2019) include:
Growth of domestic and regional markets (52,1%),
Launch of new product lines (47,9%)
Expansion of existing market (45,8%)
Development new market segments (35,4%)
Availability of skilled labor at competitive costs (25%).
For three consecutive years, many businesses have believed that the growth of the domestic and regional markets is the main reason for the momentum of enterprise growth, in addition to their efforts to expand the market and develop new product lines.
Market fluctuations due to the impact of COVID-19 epidemic, Rise of competitors, High input costs, Complicated administrative procedures, and Concerns about the uncertainties in the business environment are considered the 5 biggest challenges and barriers for Vietnam’s business community in the current context.
The disruption in both global supply and demand will maintain until the anti-COVID-19 vaccine is widely used (mid-2021, if possible), but the economic consequences will persist in the medium to long term. The risk of a global crisis which is similar to the 1930's recession is probable. The global economy and society will never return to its "normal" status like it was before the pandemic due to the emergence of new development perspectives, new trends and new economic rules.
Vietnam's economy is likely to be seriously affected by the epidemic. This is reflected in the sharp decrease in economic growth, stagnant production, closed service sector, sharp increase in unemployment rate, difficulties faced by large-scale businesses, etc. In addition, income of vulnerable people has dropped sharply, causing potential social instability, especially if prices are not well controlled. In the case of a prolonged COVID-19 outbreak, which does not end seasonally, these difficulties will be multiplied.
In general, these companies stated that they would focus on four strategic priorities to overcome the growth challenge during this time, which are: to increase revenue / profit in current markets (79,2%); to improve product quality and increase productivity (66.7%); to introduce and develop new products / services (41.7%); to cut costs (39.6%).
Regarding human resource, due to the great influence of the COVID19 epidemic, many businesses are choosing a strategic solution - Automating certain functions in operation and General training for the labor force on how to use data to streamline the adaptive workforce in the new context.
Telecommunications - Information Technology, Clean Agriculture, Clean Technology, Retail and Medicine – Pharmaceutical are believed to have potential growth in the next three years.
This is also reflected in the current trend and development orientation of domestic enterprises, which are promoting technology development associated with environmental protection, promoting clean agriculture - clean technology; information technology application in automation, machine learning and data exchange; reducing time as well as saving costs in the delivery process and enhancing the connection between countries. At the same time, the demand for health care has always been a top priority, especially in the period of pandemic outbreak with increasingly complicated developments.
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