Switching from performance to resilience
Speaking at the opening of the international conference with the theme "Sustainable transformation of Vietnamese businesses in the uncertain era: ESG, digitization and resilience", Assoc. Prof. Dr. Phan Chi Anh - Director of the Institute of Business Administration, University of Economics, Vietnam National University, Hanoi said that currently, businesses no longer operate in a world with individual risks but are operating in a world of continuous disruption.
According to Mr. Chi Anh, fluctuations not only disrupt production activities but also affect the market, finance, labor and the entire supply chain. And in the future, businesses may face disruptions caused by Artificial Intelligence (AI).
The above challenges put businesses before the requirement to better prepare for unpredictable fluctuations instead of just focusing on cost optimization.
Starting from efficiency, businesses need to add adaptation and recovery capacity. Efficiency creates value, but adaptation and recovery ability is what protects that value" - Assoc. Prof. Dr. Phan Chi Anh said.
Core driving force
Sharing at the Conference, Mr. Yap Kwong Weng - General Director of Vietnam SuperPort®, Director of Strategy, Sustainable Development & Communications - said that living and working in Hanoi in the past 2 years has given him the opportunity to witness strong changes in politics and society...
According to Mr. Weng, global supply chains are undergoing a fundamental shift.
The world is shifting from two poles to a multipolar world. We are also witnessing global diversification taking place right now. Companies are currently looking for better costs and optimizing efficiency. However, we also face many structural changes and continuous breakdowns" - Mr. Weng said.
Discussing the foundational factors that help build a supply chain ready for the future, Mr. Weng gave the core drivers:
The first key driving force is the resilience of people and the self-reliance of organizations.
Regarding human endurance, representatives of Vietnam SuperPort® affirmed that this is a story about professional development, leadership capacity development and adaptability.
The second driving force comes from logistics. For Vietnam, waterways contribute an important part, especially the route from the Red River Delta to the Mekong Delta. From there, not only taking advantage of Vietnam's geographical advantages but also promoting common cooperation capabilities.
Third, AI and digital systems. Mr. Weng acknowledged that AI is a costly game. Large companies can maintain it, but smaller businesses will face many difficulties. Therefore, businesses must be flexible enough to find the most optimal solution, the best cost factors and the most suitable support points.
Repositioning the growth model
Talking to Lao Dong Newspaper on the sidelines of the Conference, Dr. Nguyen Quang - former Director of the United Nations Human Settlements Program - affirmed: "A low-productivity production model, based only on cheap labor and scale expansion, is no longer suitable. We need to reposition the growth model towards innovation, meeting ESG standards (environment, society and governance), promoting green transformation, improving labor productivity and governance capacity".
In the new model, according to Mr. Quang, businesses need to promote the transformation process in many aspects.
First, improve governance quality through the application of digital technology, use resources more effectively, and meet green and ESG standards.
Mr. Quang said that the current market context has changed a lot. To export, businesses must prove the origin of raw materials, production processes, production locations, emissions levels as well as compliance with labor standards. If these requirements are not met, businesses will face difficulties when participating in the global value chain.
However, the innovation process cannot only rely on the efforts of businesses. The prerequisite is the companionship of the State through institutional reform, building a transparent, stable, and competitive business environment, thereby creating conditions for businesses to boldly invest, innovate and develop sustainably.
