Experts and businesses gathered at the Việt Nam CEO Forum 2024. — VNAVNS Photo

They offered up strategies to promote business development following the rapid acceleration of the economic growth rate on the back of cheap labour and resources.

The forum, the twelfth of its kind held on August 22, was organised by the HCM City Young Business Association (YBA) with the theme 'Renovation or Innovation: What truly drives sustainable growth'.

CEOs, experts and policymakers discussed ways to promote business development in the new era.

Lê Trí Thông, chairman of YBA and CEO of Phú Nhuận Jewelry JSC (PNJ), said that after a period of rapid development driven by the advantages of cheap labour, resources and investment attraction policies, developing countries are facing a "middle-income trap."

Faced with this challenge, Vietnamese businesses must seek out new, sustainable growth models that create added value based on innovation. Following the “old tracks,” renovation will only help businesses extend the tracks and increase speed to a limited extent.

With the development of technology and AI, Lê Trí Thông believes it will enable businesses to achieve greater breakthroughs.

He said many CEOs perceived that the emergence of multiple promising growth models has marked the economic "turning point" this year.

The development of technology and AI is also significantly changing how businesses operate, leading to changes in cost structures and competitiveness among businesses.

Another “turning point” is the generational shift in business management. At PNJ, for example he said, there are young managers born in the 2000s, which are bringing about changes in their mindset, with new perspectives on life and the way they engage with and commit to the company.

Moreover, the customers of businesses today are much more sophisticated compared to the past, receiving updates and information every day, even every hour. These challenges require businesses to renovate or innovate.

He emphasised that businesses need to take action in this new era of constant change. At this point, businesses must weigh the decision between renovation and innovation to plan for breakthrough growth.

Sharing his experience, Vinamilk's Marketing Executive Director Nguyễn Quang Trí said that for Vinamilk, changing the brand identity and packaging in 2023 was a big innovation that set the stage for future growth.

Meanwhile, ​​Nguyễn Thị Kim Ngọc, deputy director of the HCM City Department of Industry and Trade, said that the city expects business leaders, through their practical management experiences, to come up with effective and breakthrough solutions and initiatives. It will contribute to building and promoting the development of the business community and the city's economy.

"After the Việt Nam CEO Forum, we request the organising unit to summarise the feedback and proposals of the business leaders fully. This will help the department advise the city on mechanisms and policies for developing the innovation startup ecosystem, promoting smart urban development and the city's socio-economic development," she said.

Việt Nam CEO Forum 2024 continues to work with InnoEx – an annual international event promoting innovation and growth for the Vietnamese business community and the ASEAN region. — VNS