Increasing input prices, rise of competitors and administrative procedures will be the three biggest barriers affecting the growth of businesses this year.

This was revealed in the FAST 500 Ranking Lists 2018, drawn up annually since 2011, which was announced by the Viet Nam Report and online newspaper VietnamNet on March 8.

The surveyed firms in the ranking paid special attention to the input price (60.5 per cent) and fierce competition (52.6 per cent).

Experts said, this year, companies would face fierce competition due to the expansion of preferential policies for foreign companies.

Companies in the FAST500 said their two biggest rivals in 2018 would be leading local firms and multinational groups that are active in joining the market.

To overcome the challenges, the surveyed companies said they would improve productivity and expand to new markets.

They believed that clean agriculture, information and technology, clean technologies, retail, and tourism and hotels would be the five sectors with the potential for higher growth in the next three years.

FAST500 companies said improvement of the legal environment should be given priority in 2018 to support production and businesses for sustainable development.

The compound annual growth rate (CAGR) of FAST500 firms in 2013-2017 saw stability, as the index rose by 46.4 per cent.

The average CAGR of the three business sectors was high and stable. Especially, the CAGR of State-owned companies reached 38.7 per cent, increasing 5 per cent from the 2012-2016 period, showing improvement in their businesses and positive signs of the privatisation process.

The list is based on independent research and assessment of Viet Nam Report JSC. It complies with international standards and was drawn up in consultation with domestic and foreign experts.

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

This is the eighth consecutive year of the FAST 500 list in Viet Nam. The performance of the companies was calculated by the CAGR on revenue in the 2009-12 period and also based on criteria such as total assets, the number of workers, after-tax profits and prestige in the media.

The award ceremony will be organised on April 18 at Viet Nam National Convention Centre in Ha Noi. — VNS