THE MAKEOVER 2023

VIETNAM
ASIA’S RISING STAR

Incorporating Vietnam's Growth

Drivers in Business Innovation

18 OCTOBER 2023

HO CHI MINH CITY

Classified: Public
 Global challenges and Asia’s Rising Star

Global challenges
• Regional conflicts
• Climate change
• Impending recession

Asia’s Rising Star

• We are experiencing Vietnam’s
industrialization
• The emergence of a country
… from conflicts and poverty
to prosperity

Classified: Public
 Vietnam in 2023
(vs 8% in 2022)

• Foreign tourism recovery, ~70% of pre-COVID levels

• Government measures to support GDP growth

• Exports down 10% year-on-year (“yoy”)

Weak demand for ‘Made in Vietnam’ products

• Weak domestic demand

Weak local sentiment - consumption up 2-3% vs up 8-9% average

• Continued difficulties for real estate developers

• Modest infrastructure spending

3
Classified: Public
 The recent rise and fall of Vietnam’s
fortunes is based on foreign retailing
Excess inventories in the US and Europe resulted in declining exports
from Vietnam and lower manufacturing

25% 22% yoy

20%
US retailers’ inventories
15%

10% 4% yoy
End-2023F
5%

0%

-5%

4
Classified: Public
 Vietnam in 2024 forecast

• Strong rebound in Vietnam’s exports and manufacturing

• Manufacturing (27% GDP) will recover from to grow 8-9% in 2024

• Global economic slowdown

• Increasing energy and food prices
• Sustained high interest rates globally

• Continued difficulties for real estate developers

• Modest infrastructure spending

5
Classified: Public
 Vietnam in 2024 forecast

Inflation Exchange rate VN Index

Up 3-5% Down 2-3% Up 10%+

6
Classified: Public
 The long-term outlook …
where are we going from here (and why)?
Vietnam GDP per Capita 2001-2023
4,500

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

-
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Classified: Public
 The answers …

Classified: Public
 Thesis

‘Vietnam is the next Tiger Economy of

Asia, and it will grow and develop in a
manner similar to how Taiwan and South
Korea grew as Tiger Economies of Asia.’

Classified: Public
 Conclusion

‘Vietnam is a Tiger Economy, and it will

probably grow and develop to become a
rich country similar to how Taiwan and
South Korea grew as Tiger Economies
of Asia.’

Classified: Public
 Vietnam’s industrialization
Vietnam is industrializing
as many countries have
done over the last 150
years:

• UK late 19th century

• US early 20th century
• Japan 1960s
• Taiwan 1980s
• South Korea 1990s

But what makes Vietnam

very special in today’s
world of developing
nations?

Classified: Public
 The playbook for Vietnam’s economic
growth has already been written
Vietnam’s version of the East Asian Development Model

Demographics Capital
Foreign Direct State Owned
Population Private Sector
Investment Enterprises

Vietnam’s Development Model

Labor force Production Exports

Government
Household
Consumption revenue/
wealth
spending

Standard of living Macroeconomics

Poverty
Education Healthcare Total GDP GDP per capita
reduction

Classified: Public
 Vietnam’s economic growth is under
pinned by many growth drivers
What South Korea and Taiwan had The other cards it holds
• Priority of education ▪ China +1

• Investment in high tech ▪ Mass mobilization

• Postwar grit ▪ Demographics and urbanization

• 'Most Coveted Nation’ status ▪ The role of women

• Commitment to trade and ▪ Natural resources and

integration agricultural wealth
• Geography ▪ The Vietnamese diaspora

• Culture ▪ Digitalization and the internet

• Wealth disparity ▪ The new ‘Cold War’

• Political stability and intent

Classified: Public
 Growth themes
1: Trade 2: Consumption
▪ Commitment to trade and ▪ Wealth disparity
integration ▪ Political stability and intent
▪ China +1 ▪ Demographics and urbanization
▪ The new ‘Cold War’
▪ ‘Most Coveted Nation’ status

3: Socioeconomic development 4: Technology

▪ Demographics and urbanization ▪ Priority of education
▪ Priority of education ▪ Investment in high tech
▪ Culture ▪ Commitment to trade and
▪ Vietnamese diaspora integration
▪ Digitalization and the internet

Classified: Public
 Corporate innovation
Where corporations can gain a competitive
advantage on the market

Product and
service Operational
innovation innovation

Sell-side Organisational
innovation innovation

Core-
Supply side
competency
innovation
innovation

Source: Peter Fingar 2006. Extreme Competition: Innovation and the

Great 21st Century Business Reformation.

Classified: Public
 Theme 1

Trade 12,000
Factory Workers’ Salaries

10,000
8,000
Drivers 6,000
4,000
▪ Commitment to trade and 2,000
0
integration
▪ China +1
▪ The new Cold War Educational Attainment
570 (2015 PISA Science Score)
550
530
510
490
470
450

Classified: Public
 Theme 1 Product and
Operational

Trade
service
innovation innovation

Sell-side Organisational
innovation innovation

Innovation strategies Core-

competency
Supply side
innovation
innovation

Considerations
• New export opportunities • Access to new technologies
• Increased domestic competition • Higher manufacturing standards

Strategies
Operational innovation Core-competency innovation
• Cross boarder manufacturing • Exploit local competitive advantages

Organisational innovation Sell-side innovation

• Multinational organisations • New distribution partnerships
• New distribution channels
Supply side innovation
• Access new (cheaper) supply chains Product and service innovation
• Develop new products for new markets
• Improve existing products

Classified: Public
 Theme 2

Consumption
Drivers
▪ Wealth disparity
▪ Political stability and intent
▪ Demographics and urbanization
▪ The role of women

Classified: Public
 Theme 2 Product and
Operational

Consumption
service
innovation innovation

Sell-side Organisational
innovation innovation

Innovation strategies Core-

competency
Supply side
innovation
innovation

Considerations
• Already highly competitive
• Quest for higher quality domestic products

Strategies
Organisational innovation Sell-side innovation
• Mergers and acquisitions – horizonal and • New distribution channels
vertical • Brand development

Supply side innovation Product and service innovation

• Localization • Identify and exploit niche markets
• Increased ‘Economies of Scale’ • Preimmunization
• ‘Blue Ocean’ strategies

Classified: Public
 Theme 3

Socioeconomic development
Drivers
▪ Demographics and urbanization
▪ Culture
▪ Priority of education
▪ Vietnamese diaspora

Classified: Public
 Theme 3 Product and
Operational

Socioeconomic development
service
innovation innovation

Sell-side Organisational
innovation innovation

Innovation strategies Core-

competency
Supply side
innovation
innovation

Considerations
• Changing consumer preferences • Increased urbanisation
• Higher standards of living • Emergence of civil societies
• Better laws, courts, and policing • Global engagement

Strategies
Operational innovation Sell-side innovation
• Access to higher skilled workers • New market opportunities
• Improved logistics through better • Brand ‘Vietnam’
infrastructure • Promote social impact

Organisational innovation Product and service innovation

Supply side innovation • Changing consumer preferences
• Government support for policy focused
initiatives

Classified: Public
 Theme 4

Technology
Drivers
▪ Priority of education
▪ Investment in high tech
▪ Commitment to trade and
integration
▪ Digitalization and the internet

Classified: Public
 Theme 4 Product and
Operational

Technology
service
innovation innovation

Sell-side Organisational
innovation innovation

Innovation strategies Core-

competency
Supply side
innovation
innovation

Considerations
• Changing technology is the greatest source • Technology changes go beyond IT into
of innovation today many (all) other fields – energy, healthcare,
• New technologies can quickly transform communications, etc.
industries or make them obsolete • Vietnam applies ‘leapfrog technologies’ to
be more efficient than other countries
Strategies
Operational innovation Core-competency innovation
• SAAS applications • Application of Artificial Intelligence (AI) tools
• Cloud computing • Increased data and analytics
• Remote working
• More sustainable operations Sell-side innovation
• New market opportunities
Organisational innovation • E-commerce channels
• Flattened management structures
Product and service innovation
Supply side innovation • Online to offline and offline to online
• Automated stock control, warehousing and strategies
ordering. • Outsourcing
Classified: Public
 The risks impacting economic growth
are also opportunities for innovation

State
capacity

Geo- Free trade

political reversal

Economic
growth

Environ-
Cultural
mental
shifts
factors

Classified: Public
 RISKS

The environment
15 Biggest Environmental Problems
of 2023:
• Global Warming From Fossil Fuels
• Poor Governance
• Food Waste
• Biodiversity Loss
• Plastic Pollution
• Air Pollution
• Water Pollution
• Overfishing
• Deforestation
• Coral Bleaching
• Ocean Acidification
• Soil Degradation
• Chemical Pollution
• Natural Resource Depletion
• Climate Change
• Extreme Weather Events
• Ozone Depletion

Source: Earth.Org
Classified: Public
 Risk Product and
Operational

The environment
service
innovation innovation

Sell-side Organisational
innovation innovation

Innovation strategies Core-

competency
Supply side
innovation
innovation

Considerations
• Addressing ESG issues must be a core • Responding to ESG issues can create a
issue for all businesses today competitive advantage
• Climate change is a key ESG issue

Strategies
Operational innovation Sell-side innovation
• Recycle – reuse waste products • Carbon neutral logistics

Supply side innovation Product and service innovation

• Accessing renewable energy sources • Green/carbon neutral products and services
• Use of recyclable or environmentally safe • Generating carbon offset credits
materials
• Reduce energy consumption
• Buy carbon offset credits

Classified: Public
 Final thoughts
Vietnam is poised to become a high-income nation
within 20 years
Vietnam GDP per Capita 2001-2050
30,000

25,000

20,000

15,000

10,000

5,000

-
2014

2022

2030

2038

2046
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013

2015
2016
2017
2018
2019
2020
2021

2023
2024
2025
2026
2027
2028
2029

2031
2032
2033
2034
2035
2036
2037

2039
2040
2041
2042
2043
2044
2045

2047
2048
2049
2050
2051
Base Case Conservative Aggressive High Income Status

Classified: Public
 Available soon

Classified: Public
BUSINESS
INNOVATION
MADE EASY:
A PERSPECTIVE
FROM
NEW ZEALAND
Business innovation we have all
experienced and witnessed
often looks easy…
“NUMBER 8
FENCING WIRE
MENTALITY”
 REMARKABLE ACHIEVEMENTS

Sir William Hamilton – Sir Peter Jackson – Rocket Lab –

Hamilton Jet Digital visual effects Space company

High-speed Commercial
Retractable
amphibian bungy jump
skis
vehicle operation
 LEADERSHIP AND INCLUSION

New Zealand was the first New Zealand has had 3 New Zealand has seen
country in the world to sign women Prime Ministers – women appointments on
into law the right for women Jenny Shipley in 1997, Helen public sector boards and
to vote in parliamentary Clark in 1999, and Jacinda committees top 50% for the
elections. Ardern in 2017. first time in 2021.
DIGITAL
INCLUSION
BLUEPRINT
In 2021, this saw 74% of revenues from New
Zealand top 200 tech businesses coming
from global markets along with $15billion of
live NZ investment opportunities.
DIGITAL
TRANSFORMATION
AND INNOVATION
IN NEW ZEALAND
EDUCATION
NEW ZEALAND
INTERNATIONAL
EDUCATION
STRATEGY
IN 2022
Digital transformation doesn’t just
mean taking an existing product
and delivering it online – it’s much
more than that.
Real world financial literacy skills
Medical simulation software
Think Netflix for English learners
Thank you
How Human Resources
Can Drive Innovation
in the Modern Learning Alan Malcolm
Organization
Head of Partnerships
 Alan Malcolm
- Head of Partnerships -
● 25+ years in Learning & Development
● 25+ years in Asia
● 15+ years Executive Leadership
● A passion for helping people make
progress in their lives

2
 Why Human Resources Lead
Learning Is Crucial

3 Confidential
 Human Resources is more critical now than ever

With today’s fast pace of change,

87% 40% 85M

of CEOs report of workers will require jobs could be impacted by
noticing skill gaps in upskilling in 6 months a shift in the division of
their employees or less labor between humans
and machines by 2025

McKinsey, 2020 World Economic Forum, 2020 World Economic Forum, 2020

4
 1. Bridging skill gaps with fewer resources

Despite global economic

concerns,
It costs 1.5x to the2xInternational
the
What employers need today is Labor
employee’s Organization
annual salary to reports
replace a skilled employee
a way to address skill gaps there are 32% more vacant
at a time when they also may
be experiencing hiring
32% roles
Gallup, 2022

pandemic.
than before the

freezes or layoffs Many organizations are still

Loyal employees plan to stay
facing
6-10 a talent
more and skills
years than
shortage
other employees

IDC, 2021

5
2. Keeping employees engaged & productive through learning

Companies with a strong learning culture and a high

level of L&D maturity are:

$7.8T 2.6x
more likely to
exceed financial
7.2x
more likely to
engage and retain
20x
more likely to help their
employees build the skills
Estimated yearly cost targets employees needed for career growth

of disengaged
employees, a figure Organizations with the most engaged employees are:
that’s equal to 11% of
the world’s GDP
23% 18%
more profitable more productive
Gallop, 2022 based on sales

6
 3. Upskilling & reskilling your employees delivers a high ROI

An economic downturn is an opportunity to It costs 1.5x to 2x the

invest in learning programs to help employee’s annual salary
to replace a skilled
employee
Increase employee retention
Gallup, 2022

Improve employee engagement and satisfaction

Reduce skills gaps

Loyal employees plan to stay
Help companies stay competitive, agile, and 6-10 more years than
profitable
other employees

IDC, 2021

7
 Pressure
is mounting
to improve
Innovation in
organizations

8
 Udemy
Embedding Innovation
- Internal

9
 Udemy fosters a culture of continuous
learning and encourages employees to
How Udemy take courses on our platform.
This constant learning environment
Ignites
promotes innovative thinking.
Innovation
We also host regular hackathons and
innovation days, allowing employees to
work on passion projects.
 From its inception, Udemy has been
about democratizing learning. This
Innovation as ethos extends to their internal
processes and product development.
Udemy's DNA
We prioritize feedback, both from
users and employees, ensuring that
innovation is a continuous process.
 1. Diverse Course Offerings: By
having a wide range of courses, we
ensure diverse thinking.
Key Drivers for
Udemy's 2. Employee Empowerment:
Innovation Employees are encouraged to pitch
ideas and take ownership.

3. User Feedback: Direct insights

from users drive product
enhancements.
 One notable story is the creation of
'Udemy for Business'. Recognizing
Udemy grows the need for corporate training, an
employee pitched the idea.
via Innovation
Today, it's a significant part of
Udemy's offerings, serving leading
organisations globally
 Company Vision:
Changing Lives Through Learning
Our Udemy
People Strategy:
How do we insert
HR Strategy

Innovative DNA HR Operating Model

everywhere?
HR Organization HR Process HR Infrastructure

INNOVATION Employees Motivation-Skills-Know-How

HR Performance Management and Controlling

14
Udemy
Embedding Innovation
- External

Confidential
 Udemy is often first to market as transformative
skills appear

16
 AI is having a moment — and it's here to stay

17
 Udemy now has 1,200+ generative-AI courses on our platform

18
 How AI is fixing work at Udemy ●First GPT-powered feature on Udemy!
○In 7 of our top coding languages, ~50% of
instructors who created coding exercises built
it with AI
○Instructors created more coding exercises in
the last 6 months compared to all of 2022

19
Recap:
HR Leads Organizational Innovation

20 Confidential
 How to Lead
● Redefine culture to include learning at

its core

● Build the right behaviors into

processes & practices

● Identify ways to reinforce and practice

Innovation through skills development

for your entire organization
Thank You!
Get This Presentation
Here
Dr. Son Do Lenh
Innovation = 1
“It doesn't make sense to hire smart people and then tell them what to do.
We hire smart people so they can tell us what to do.”
Steve Jobs
INNOVATION
N IDEAS N EXPERIMENTS N ASPECTS
INNOVATION = n ideas
INNOVATION
= n ideas
INNOVATION = n ideas
INNOVATION
N IDEAS N EXPERIMENTS N ASPECTS
 BAKING
POWDER

SOAP CHEWING
GUM

INNOVATION = N EXPERIMENTS
INNOVATION
N IDEAS N EXPERIMENTS N ASPECTS
INNOVATION = n aspects
INNOVATION How?
What?
Why?

Why not?
v
[writing] “Learners would not use their memories!”
Socrates

“Printed newspapers would socially isolate readers.”

1700s, Guillaume-Chretien Malesherbes

“Schools exhaust the childrens’s brains and nervous system.”

1883, Sanitarian medical journal

“Radio distracts children from reading and performance in school.”

1936, Gramophone

“Is Google making us stupid? What the Internet is doing to our brains!”
2008, Nicolas Carr
Any tree has the right to
G R O W
Psychological safety.Trust.
Destabilization. Constraints.
Innovation Culture Readiness
Organiza-
Leadership Innovative
tional
Support Practice
Design

Strategic Legitimacy Innovation

Guidance and Power Tools

Resource Bridge to the Process

Allocation Core Management

Portfolio Rewards and Innovation

Management Incentives Skills
A leader is also a tree
INNOVATION

&
RAINFOREST