(Mr): Phung Xuan Minh. [Chairman of the Board of Directors of PT Group & Saigon Ratings]
1. Lessons from Japan’s Success: Business Development Strategy Based on High Productivity, Industrialization, and High-Quality Labor Discipline
The first lesson is the historical lesson from Japan, a post-war nation that has become one of the exemplary models of development based on industrialization, productivity, and quality. The most important lesson from Japan is that the State does not replace businesses, but creates an environment, provides strategic direction, and builds institutions to support businesses in upgrading their operational capabilities.
Japan has been particularly successful in developing a network of small and medium-sized enterprises (SMEs) linked to large corporations. These satellite businesses not only supply simple components but gradually become specialized suppliers with advanced technology, high quality standards, and the capacity for continuous improvement. This is a crucial area for Vietnam to learn from. If domestic SMEs remain fragmented and lack connections with large corporations and FDI, they will struggle to upgrade their technology.
The second lesson is that Japan has placed great emphasis on investing in people and management. Management methods such as Kaizen, total quality management, lean manufacturing, and continuous improvement have helped Japanese businesses increase productivity from within. For Vietnam, this means supporting businesses not only with capital or tax incentives, but also with management consulting, engineering training, middle management training, support for digital transformation, and the establishment of quality standards.
However, Japan also gave Vietnam a cautionary lesson: if Vietnam is slow to adapt to new technological waves, especially the digital economy, artificial intelligence, big data, and intangible assets, the economy may lose momentum. Therefore, Vietnam needs to move faster in investing in intangible assets, digital capabilities, and new human resources.
2. Lessons from South Korea’s Success: Cultivating and developing large economic conglomerates while focusing on controlling the risks of concentrated power.
South Korea is a prime example of developing large, globally competitive private conglomerates. Companies like Samsung, Hyundai, and LG have helped transform South Korea from a post-war impoverished nation into a developed industrial economy. This success stems from a combination of a clear industrial strategy, conditional government support, export pressure, and the need for businesses to compete in the international market.
The lesson for Vietnam is the need for more large, internationally-sized economic groups and enterprises. To participate in sectors such as semiconductors, the automotive industry, renewable energy, digital infrastructure, high-speed rail, global logistics, or high technology, Vietnam cannot rely solely on small and medium-sized enterprises (SMEs). Instead, Vietnam needs private corporations with sufficient capital, management capabilities, long-term vision, and the ability to collaborate with the government on strategic projects.
However, the South Korean experience also shows the need to avoid the negative aspects and limitations of the business model of overly large corporations, such as monopolies, complex cross-ownership, policy influence, skewed resource allocation, and the risk of “too big to fail.” Therefore, Vietnam needs to support large enterprises, but this must be linked to transparency, competition, investment efficiency, responsible spillover effects, and modern governance. Preferential policies should not be permanent privileges, but rather conditional development contracts: support should be provided when creating technology, quality jobs, exports, domestic business linkages, and contributing to national goals.
3. Lessons from Singapore’s Success: Transparent Institutions, Efficient Public Services, and Human Resource Development
Singapore, despite its small land area, limited domestic market, and lack of abundant natural resources, has become a regional hub for finance, logistics, technology, and high-quality services.
The most important lesson learned from Singapore’s success is that the government has built and planned high-quality institutions, making them a very strong national competitive advantage.
For the private sector, Singapore has built a transparent business environment, streamlined procedures, a reliable legal system, efficient public service agencies, and very practical business support policies. Businesses can access consulting programs, digital transformation, human resource training, technological innovation, and international market expansion. This is something Vietnam needs to learn from, especially in administrative procedure reform, logistics, customs, vehicle registration, licensing, business data, and online public services.
The second lesson is that workforce training should be aligned with business needs. Singapore doesn’t train based on trends, but rather links skills policies to industry development strategies. When the economy needs high-quality engineers, digital experts, logistics personnel, finance professionals, semiconductor specialists, or healthcare professionals, the training system is designed to meet those needs. If Vietnam wants its private sector to thrive, it must build a mechanism for businesses to order training, encourage businesses to participate in curriculum design, and support the costs of retraining their workforce.
4. Lessons from Taiwan’s Success: National Strategy for Small and Medium-Sized Enterprise Development by Sector and Industry Cluster
Taiwan is a notable case because its success is based not only on large corporations, but also on a highly dynamic network of small and medium-sized enterprises (SMEs). Industrial clusters, supplier networks, applied research institutes, and supportive technology policies have enabled Taiwanese businesses to participate deeply in global value chains, particularly in electronics, semiconductors, precision engineering, and supporting industries.
A valuable lesson for Vietnam is that it’s impossible to develop small and medium-sized enterprises (SMEs) through scattered support programs. We need to build clear clusters of economic sectors: Automotive supporting industry, Semiconductor industry, Agricultural product processing industry, Logistics system, Software technology, Medical equipment industry, and Green industrial park system. Based on this, within each key economic cluster, businesses will receive government support policies regarding land, technical standards, shared laboratories, management consulting, customer connections, and access to capital, tailored to each stage of development.
Forming clusters of key economic sectors helps small and medium-sized enterprises (SMEs) avoid isolation and fragmentation in their production and business activities. Conversely, when SMEs participate together in an ecosystem, they can share information, learn technology, access human resources, collaborate with universities, and become part of a larger value chain. This is a very suitable direction for Vietnam, where the majority of businesses are small and have limited management capacity.
5. General lessons for Vietnam
Based on international experience, five important lessons can be drawn for Vietnam’s private sector development strategy in the medium and long term:
Firstly, a proactive state must be strong in its capacity to design and implement policies. While excessive intervention isn’t necessarily good, the state needs to know how to prioritize areas, design conditional policies, effectively monitor progress, and make timely adjustments.
Secondly, private enterprises must be placed under international competitive pressure. Prolonged protectionism will weaken businesses, but time-limited, targeted support linked to exports, technological innovation, and productivity will help them mature.
Thirdly, the development of large enterprises must go hand in hand with the development of small and medium-sized enterprises. If there are only a few large corporations without a domestic supplier ecosystem, the economy will lack depth.
Fourth, human resources and technology are the foundation of productivity. Vietnam needs to shift its focus from resource, land, and credit incentives to incentives for innovation, human resource training, R&D, digital transformation, and green transformation.
Fifth, trust is a development asset. When businesses believe that property rights are protected, policies are stable, procedures are transparent, and competition is fair, they will confidently invest long-term. When the State trusts and supports businesses instead of being suspicious, social resources will be unleashed.
6. Conclusion
Developing Vietnam’s private economy in the era of national progress must focus on strengthening national competitiveness. Growth should shift from capital, cheap labor, and outsourcing toward productivity, technology, innovation, modern management, and Vietnamese brands.
The private sector should be empowered to become a leading force in industrialization, digital transformation, green transition, global market expansion, and economic self-reliance.
International experiences from Japan, South Korea, Singapore, and Taiwan show that a strong private sector is essential for national prosperity. However, it can only thrive within a transparent institutional framework, fair competition, a skilled workforce, and long-term development policies.
When Vietnamese enterprises become stronger, more innovative, ethical, and globally competitive, Vietnam will have a solid foundation to become a developed, prosperous, and internationally respected nation.
