As environmental, social, and governance (ESG) practices become a guideline, can companies in Vietnam strike an effective balance between profitability and social impact? The profit report of Vietnam’s 500 most profitable companies in 2024 shows a decline, indicating that small and medium-sized enterprises (SMEs)—which make up 98% of the country’s businesses—are facing increasing challenges. Profit: The “survival” target The board chairwoman of a leading Vietnamese jewelry company was recently taken aback when her trusted CEO dismissed long-serving foremen and senior staff who had helped build the company’s reputation. These employees were deemed outdated in the digital and consumer-driven era. Despite her initial shock, the chairwoman and the board ultimately supported the CEO’s decision. Under his leadership, the company expanded its retail store network and saw significant growth in both sales and profits, even during the Covid-19 pandemic and the current economic downturn. At the same time, the CEO of a major dairy company is grappling with succession planning. While she hopes her daughter will take over, the board of directors has not yet agreed, considering another candidate who may be better suited to lead the company and ensure continued profitability. During a conversation among entrepreneurs last week, the name “veteran” […]
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