Vietnamese enterprises embrace value creation model
Vietnamese enterprises embrace value creation model
Value-creating enterprises play a crucial role in job creation, driving economic growth, and improving quality of life by pursuing sustainable development values, from governance to social responsibility and workplace environment, to deliver exceptional value.
On December 12, Vietnam Investment Review, in collaboration with Viet Research, hosted the VALUE500 Rankings, recognising the Top 500 Value-Creating Enterprises in Vietnam for 2024.
The rankings are based on various criteria, including assessments of scale and growth rate, profitability and contributions to the state budget, job creation and income generation, as well as environmental, social, and governance (ESG) practices and innovation.
In today's global business environment characterised by volatility, uncertainty, complexity, and ambiguity, successful enterprises in Vietnam and worldwide are undergoing profound strategic transformations towards sustainable business and development practices.
These transformations involve shifting from a value extraction model to a value creation model to deliver sustainable, long-term benefits to businesses, shareholders, employees, and society at large.
Representatives of the Top 500 Value Creators in Vietnam 2024. Photo: Dung Minh |
The VALUE500 companies, collectively generating over $375 billion in revenue in 2023, achieved an average growth rate of 84.2 per cent between 2021 and 2023. Leading the rankings in 2024 in terms of revenue are the energy and oil and gas sectors, with a total revenue of over $80.79 billion, followed by industries such as electronics, banking and finance, and food and beverages.
Survey results for the VALUE500 and VALUE10 companies in 2024 reveal optimism regarding revenue growth, with 93.1 per cent of businesses projecting an increase compared to the previous year. Among them, 34.5 per cent expect revenue growth between 15 per cent and 30 per cent.
These companies contributed a total of $22.96 billion to the state budget in 2023, accounting for 32.1 per cent of total state revenue, according to the General Statistics Office. The energy and oil and gas sectors made the most significant contributions, followed by logistics, banking and finance, and IT and telecommunications.
Value-creating enterprises play a vital role in job creation, economic development, and improving quality of life. In 2023, VALUE500 companies employed nearly 1.9 million workers, with an average monthly salary of $846.
A survey of VALUE500 and VALUE10 enterprises highlighted their key contributions to employment through four primary channels, including direct job creation, skill development and human resource promotion, spillover impacts, and contributions to social welfare.
On ESG commitments and innovation, the survey conducted by Viet Research shows that nearly 97 per cent of companies have contributed to social programmes, ranging from local community job creation to charitable activities. Over 96 per cent of businesses have clearly integrated ESG criteria into their operational strategies, reflecting a commitment to sustainability and transparent governance. More than 90 per cent aim to fully implement ESG principles within the next three to five years.
“Looking ahead, 75.9 per cent of enterprises predict that environmental and sustainability policies will significantly influence work methodologies in the next three years. These businesses recognise that integrating sustainability practices not only mitigates environmental impacts but also enhances their reputation as responsible and community-oriented organisations,” stated Viet Research’s report.
