At the Vietnam CEO Forum held on August 8, experts discussed strategies for Vietnamese businesses to achieve sustainable growth. Nguyễn Mạnh Hùng, the former Minister of Science and Technology and founding Chairman of the Vietnam Institute of Leadership and Management, raised an important question: "Why do many startups succeed, yet so few companies grow to a substantial size?" He pointed out that while Vietnam has hundreds of thousands of small enterprises and tens of thousands of medium-sized ones, there are still relatively few companies with revenues exceeding 1 trillion VND.

Hùng noted that many businesses struggle to scale from 100 billion to 1 trillion VND or from 1 trillion to 10 trillion VND. He described these phases as critical for a company’s breakthrough but also the most vulnerable periods. Many businesses may experience rapid revenue growth without a corresponding increase in profit, leading to negative cash flow and deteriorating service quality as they expand.

He explained that when a company is small, the founder can manage most tasks directly, allowing for quick decision-making and simple organizational structures. However, as the company grows five to ten times larger, this management style becomes inadequate, exposing weaknesses in the organization.

Hùng emphasized the distinction between fast growth and the capability for rapid growth. Fast growth can arise from a good product, favorable market conditions, or a business opportunity, while the capability for rapid growth is the ability to expand significantly while maintaining effective operations.

In the phase of rapid growth, a CEO's role shifts from merely managing to building an organization. To grow quickly without breaking, businesses need appropriate strategies, operational systems that do not rely solely on the CEO, a succession plan for leadership, and a strong risk management capability along with a growth-oriented culture. "The primary role of a CEO is not just to generate revenue or maximize profits annually but to build an organization that can sustain growth across generations," he noted.

Agreeing with Hùng, Professor Vũ Minh Khương from the Lee Kuan Yew School of Public Policy stated that rapid growth and success are not the same. Businesses aiming for growth must also build a governance foundation to prevent disruptions caused by their own expansion speed. He identified three common issues during rapid growth: leadership capacity not keeping pace, increasing complexity of the organization, and a lack of corresponding upgrades in staff capabilities and technology.

Sharing his perspective, Khương argued that "rapid growth is not just about improving operations in the existing framework"; businesses must create higher value, develop technology, train personnel, and change management approaches. Meanwhile, Lê Quang Đạm, CEO of Marvell Vietnam, illustrated the management changes necessary for scaling by recounting his company's journey from five employees at its founding in 2013 to over 650 today, making it the third-largest R&D center of the group.

According to Đạm, the challenge is not just expanding the team but also enhancing efficiency and productivity while establishing robust processes that allow the organization to grow without losing speed. He emphasized that growth should not change the business but rather reveal its true nature, highlighting strengths while also exposing weaknesses. As teams expand from a few individuals to hundreds, more stringent processes are needed, not to control people but to help them manage their work effectively.

"Good processes enable greater freedom and foster better creativity," Đạm concluded.