As usual, The list this year included top performing companies that are listed on the Ho Chi Minh stock exchanges (HSX) and the Hanoi stock exchanges (HNX).
According to Forbes Vietnam’s seventh list of the country's top companies, the group of leading companies has shown impressive growth. The companies have recorded a combined total post-tax profit of nearly 127.53 trillion VND (5.45 billion USD), a year-on-year increase of 19.2 percent. Total capitilisation of these 50 top companies reached 94 billion USD, accounting for 63 percent of total market capitalisation on the Ho Chi Minh and Hanoi stock exchanges in mid-May.
Forbes Vietnam applies company ranking methods from Forbes (an American business magazine), taking into consideration the characteristics of the listed businesses. The assessment is based on financial statements audited over five consecutive years from 2014 to 2018 and firms’ mid-May market capitalisation figures.
Forbes studied all stocks listed on the HSX and HNX and arranged in industry groups. In the preliminary round, companies that are at loss, or in the process of delisting, whose market capitalization and turnover are under 500 billion VND, the subsidiaries have their business activities dependent on parent companies (have been reviewed) are disqualified. In the round of quantitative calculations,
Forbes graded the companies according to the following criteria: double growth rate of revenue, profit, ROE, ROC and EPS growth in the period of 2014 - 2018. Quantitative Calculation followed the method of Forbes supported by Ban Viet Securities Company (VCSC).
In the qualitative round, Forbes Vietnam independently deliberated the level of sustainable development of the companies: brand, quality of corporate governance, origin of past profit and prospects for sustainable development. Companies that repeatedly violated the obligation to disclose information to the two stock exchanges, suspected of manipulating stock prices or lack of transparency, were taken out of the list.
The companies on the final list are mostly leading companies or corporates that have established competitive advantages in its industry, grouped by sections. The largest proportion in the list were real estate, construction, logistics, financial services, raw materials, and retail section.
