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Vietnamese businesses need to strengthen ‘soft power’
Vietnamese business intelligence has improved considerably, but they still lack “soft power.” Without it, they will find it hard to persuade Vietnamese consumers to use their products. VNR500 is making it easier for businesses to expand their knowledge.
A brainpower breakthrough
At the ceremony to name the 500 top Vietnamese enterprises (VNR500) for 2008, held earlier in 2009, 79 percent of big businesses predicted that the national economy would face a lot of difficulties in 2009. They agreed that Vietnam would not fall into crisis and that the GDP growth rate would be between five and six percent.
57 percent of businesses said that the inflation rate would be nearly 10 percent for 2009.
These forecasts contrasted greatly with those offered by many well known economists. In late 2008, international institutions as well as leading domestic and foreign researchers all gave much more pessimistic predictions.
One prestigious organization even predicted a zero percent growth rate for Vietnam in 2009 and a galloping inflation rate of 15 percent. The word “crisis” was used many times to describe Vietnam’s economy in 2009.
It is now clear who was right. No crisis occurred, the GDP growth rate is expected to reach 5-6 percent, and there has been no rampant inflation. Experienced leaders of Vietnamese enterprises made more accurate forecasts.
This demonstrates improvement in Vietnamese enterprise leaders’ business acumen. They are all successful businessmen who respect the laws, have a responsibility to their communities, and seek to bring made-in-Vietnam products to the world.
According to the Vietnam Chamber of Commerce and Industry (VCCI), Vietnam now has nearly 300,000 businesses, 96.5 percent of which are small and medium businesses making up 40 percent of the total GDP and creating jobs for 50 percent of workers. Big enterprises account for three percent of the total, but create jobs for the other 50 percent of labourers. The 50 leading businesses produce 36.2 percent of the total state budget collection.
Lacking “soft power”
Vietnamese business leaders have held a strategic role in Vietnam’s industrialization, modernization and global economic integration. Yet they still lack “soft power.”
“Soft power,” a concept developed by Professor Joseph Nye of Harvard University, refers to a strategic vision based on knowledge and good communication activities that can help create consumer confidence.
The VNR500 ranking, based on the model of Fortune 500, together with the Club of 500 Vietnamese top businesses and the VNR 500 Business Forum, serves as the best way for Vietnamese big businesses to strengthen their soft power and create confidence.
“VNR500 is a wonderful ideal,” commented Professor Thomas Patterson. He noted that VNR500 provides important information to reference in investment decisions, especially for foreign investors, as long as the VNR500 maintains transparency in business valuation.
After two years of operation, VNR500 has helped Vietnam’s big businesses gradually access worldwide knowledge by giving them the opportunities to meet with the world’s leading “business brains,” including Professor John Quelch, the branding expert, or the father of “balanced scorecard,” Professor Kaplan, who came to Vietnam to give lectures and talk with business leaders.
The 2009 VNR500 announcement ceremony is expected to take place in January 2010, where businesses will also have the opportunity to work directly with the father of soft power, Professor Nye.
Ha Thang
vietnamnet
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