Does your company have a strategy for profitable growth and if so, what role does innovation play in it?Many Vietnam based enterprises seem not to take a long term planning perspective and lack a clear growth strategy and supporting business plan. On top of this, enterprises are influenced by the current challenging economic environment which in itself does not stimulate them to think proactively about how to create profitable growth in the long term.

It is our view that many enterprises in Vietnam may be missing out on significant growth opportunities. Within many sectors there are large sized pockets of growth and attractive profit pools that remain untapped. Demographic factors such as increased urbanization and the growth of the emerging middle class drives changes in spending patterns and customer behavior creating numerous opportunities across a variety of sectors in Vietnam. For the financially healthy and strategically capable enterprises, this downturn can be turned into an opportunity to win market share and position the company for the future. In fact, this may be the right time to take a structured and integrated look at your business and to define the future growth strategy – and innovation should be a key lever for achieving profitable growth.

A recent PwC study“ Breakthrough Innovation and Growth” shows that innovative companies will grow significantly faster than their competitors and that innovation should not be restricted to products and services but also should cut across functions, and tackle innovation with regards to both the revenue and the cost side of the business. The study found that the top 20% of innovators worldwide predicted their growth rate over the next five years would be double the global average and three times higher than that of the least innovative companies.

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