Reform to resilience How Vietnamese businesses build long term strength

Reform does not magically boost competitiveness, but it can instill the confidence businesses require for long-term investments. Over three decades of Vietnamese private enterprise development demonstrate that a transparent business environment enables the private sector to develop its internal capabilities, make long-term investments, and enhance competitiveness.

When rules are fair, athletes are motivated to surpass their limits; similarly, a robust business environment empowers companies to invest in technology, innovation, and long-term strategies. Vietnam's private business community has consistently emphasized that the nation needs a transparent, stable, and consistent business environment, rather than preferential treatment or privileges.

"Businesses do not need preferential treatment; they need a stable, predictable, transparent, and fair environment; they need their business and property rights to be protected; they need streamlined administrative procedures and a consistent policy implementation system from the central to local levels," stated Nguyen Duy Hung, member of the Board of Directors at Tan Hiep Phat Beverage Group, a leading fast-moving consumer goods (FMCG) company in Vietnam.

Tan Hiep Phat, established in 1994 amidst the country's reform push, has grown to become one of Vietnam's top five beverage companies. This journey illustrates the correlation between the business environment and the development of internal capabilities within the private sector. Nguyen Duy Hung uses the analogy of "where the soil is fertile, birds will come to nest": when confidence grows, "flows of knowledge, talent, technology, and prosperity-seeking aspirations will naturally converge."