Innovating growth model a requirement for Vietnam: forum

HCM City (VNA) – In the current economic context, innovating the growth model is an urgent requirement from both micro and macro angles, heard a business forum held in Ho Chi Minh City on August 17.

Participants in the event, organised by Forbes Vietnam and some other organisations, pointed out the need for the Vietnamese economy to switch from capital, cheap labour and natural resource-based growth to knowledge-based one.

In particular, enterprises need to convert their growth model based on the effective use of resources and sustainable business strategies to keep up with changes amid the technological revolution. They should adapt their production to sustainable development standards as well as fluctuations in the domestic and global markets.  

The year 2023 witnesses a boom of artificial intelligence (AI), and impacts of technologies will change many business models, they said.

On the part of the Government, the creation of mechanisms for facilitating green production and improving competitiveness will not only meet consumer tastes in key export markets but also help boost green growth in accordance with the global trend.

Aside from opportunities of the green production and export wave, Vietnam can seize chances by capitalising on free trade agreements, especially new-generation ones, to diversify export products and markets, participants noted. 

Talking about the Fourth Industrial Revolution, Nguyen An Nguyen, founder and CEO of Trusting Social, said it is the “dawn” of the era of AI, which affects both social life and economic activities.

Therefore, enterprises should carry out digital transformation step by step but in a methodological manner to practically benefit their operations and improve partners and customers’ experience, he noted.

Nguyen Anh Duc, Director General of the Ho Chi Minh City Union of Trading Cooperatives (Saigon Co.op) and Chairman of the Association of Vietnam Retailers, recommended enterprises proactively make changes, with a focus on restructuring their governance and business operations, while keeping updated with the Government and localities’ mechanisms and policies to capitalise on them and generate more values.

Amid headwinds, they should be persistent in resolving the question of growth, he opined, adding that slower economic growth not only poses challenges but also provides opportunities for companies to make self-review, be more open in investment and business, and innovate their risk governance models.

Also at the forum, Forbes Vietnam honoured the 50 best listed companies in 2023. These firms recorded total revenue of over 1.49 quadrillion VND (62.5 billion USD) and post-tax profits of over 228 trillion VND, up 24.9% and 18% from the 2022 list, respectively. This was the 11th year the magazine had compiled the list./.