Most local companies have shown optimism about business results in 2016, providing momentum for further growth in 2017.

This was revealed in the FAST 500 Ranking List 2017, drawn up annually since 2011, and announced by the Viet Nam Report (VNR) on Tuesday.

Nearly 77 per cent of surveyed firms were optimistic about their business results last year, while over 82 per cent expected this year’s profits would be higher.

The survey also revealed that market demand and trends have been the two most important factors for growth in the past five years.

FAST 500 firms said that this year would open new opportunities for development.

They would prioritise growth of turnover and profit in the current market, introducing new products and services as well as increasing productivity in their business strategies.

However, the enterprises also forecast that there would be difficulties for growth in 2017, including increasing input material prices, higher labour costs and rivals in the same sector.

They said they would build suitable strategies to reduce negative pressure and enhance internal resources toward sustainable growth targets.

The survey showed that the FAST 500’s compounded annual growth rate (CAGR) on revenue in the 2011-2014 period slightly increased by 34 per cent in comparison with 31.1 per cent in the 2010-13 period. It meant that Vietnamese firms have largely escaped the impact of economic crises.

CAGR of private and FDI sectors saw the highest growth, while State-owned firms have also gradually improved at an average rate of 33 per cent together with their privatization process.

The FAST 500 businesses expected that top three policies of corporate income tax reduction, promoting administrative reform and improving the legal environment would better support their development.

VNR also announced the list of the top 500 small- and medium-sized enterprises which with an aim to recognise their achievements.

Experts said this year would see many challenges for businesses due to continuing climate change, environment pollution and difficulties in trade co-operation.

The list is based on VNR’s independent research and assessment. It complies with international standards and was drawn up in consultation with domestic and foreign experts.

The FAST 500 award ceremony will be held on April 12^th. — VNS