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To become a high-middle-income country by 2030 and a developed nation with high income by 2045, innovation will be the decisive factor driving Vietnam's development in the coming years.
Innovation is the "survival" path for Vietnamese businesses
Despite ambitious goals, innovation in Vietnam has been progressing relatively slowly in recent years, hampering the overall economic development of the country. Particularly in leading cities like Ho Chi Minh City, labor productivity growth is below the national average.
Experts suggest that as the economy recovers and businesses aspire to move up the global value chain, they must innovate and be creative to survive and compete successfully. This establishes a solid foundation for business operations, enhances value, and stimulates growth while gradually shaping a culture of innovation within enterprises.
Innovation not only helps businesses adapt to new business environments and promote growth but also showcases the leadership's position and changes the dynamics of the market.
To promote innovation, both the government and businesses need to focus on three fundamental factors: efficiency, effectiveness, and performance. Profitability and revenue efficiency are crucial considerations for businesses when innovating. Effectiveness involves how business activities impact customers, fostering customer trust and respect. Lastly, performance signifies the ability to adapt and respond to contingencies. Businesses must be conscious of these three pillars when engaging in innovation.
Innovation is a long-term path that requires time, effort, and financial resources. Therefore, evaluating the success of innovative activities should not solely rely on profit efficiency.
Common Traits of Leading Innovative Businesses in Vietnam
A quick survey of businesses in the VIE50 (Top 50 Innovative and Efficient Businesses in Vietnam) and VIE10 (Top 10 Innovative and Efficient Businesses in Vietnam in 2023 across various industries) by Viet Research reveals that 84% of businesses recognize innovation as crucial keys to future growth.
Among these, a majority of businesses focus on innovating and improving products, services, and processes. Furthermore, 70% of surveyed businesses plan to increase their budget for innovation in the next two years.
While the VIE50 businesses are mostly of medium to large scale, with an average revenue of around VND 45 trillion, the list also acknowledges a few smaller businesses for their outstanding achievements in innovation, product, and service innovation, indicating potential for future growth.
Five notable characteristics of these top businesses in 2023 are prioritizing innovation and modernization as a top strategy, developing both internal and external human resources, standardizing processes for optimal innovation efficiency, promoting innovation through products/services and process innovation to compete globally and establish new markets, and focusing extensively on customer experience.
In summary, innovation is the inevitable trend of the era. To achieve sustainable development, businesses need to intensify innovation, enhance labor productivity, and create added value for both the business and society.
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