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VN STRATEGY UNDER THE THE

COMPREHENSIVE AND PROGRESSIVE

TRANS-PACIFIC PARTNERSHIP

(CPTPP)

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Vietnam’s exports by sector

• Machinery has come to dominate Vietnam’s

export portfolio, with the rise of broadcasting

equipment (i.e. cell phones, TVs and related

devices) being especially prominent.

• The role of traditional sectors like garments and

shoes remain important, while dependence on

natural resources has declined

Source: MIT economic complexity index 2016

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Vietnam’s exports by

destination

• Asia absorbs the largest share of

exports as a region, but the US

remain the largest single export

market.

Source: MIT economic complexity index 2016

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The age of unknown-unknown

• Unknown

So, your guess about the future of the world economy would be as good as mine.

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BUT BIGGEST THREAD IS COMING

FROM CHINA

• If Chinese exports to the USA decrease due to

trade war, China will likely dump their excess

production to Vietnam (and other countries)

• Thus, killing local industries

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A VN National Strategy

• The VN industry recognizes the need to

improve quality

• The VN government passed a Resolution No.

01/NQ-CP dated 1st January, 2018 • Continuing to reduce costs for businesses

• Solutions to link domestic enterprises and FDI

enterprises

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Successful Leadership in the

TUNG BUI | VEMBA | JULY 11, 2018 Matson Navigation Company Chair of Global Business

Chair and Professor of Information Technology Management

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The

INDUSTRIAL REVOLUTION 4.0

might be the opportunity for both

Europe and Vietnam to push their

mutually beneficial cooperation to

the next level

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HICSS downloads by country

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What is the

INDUSTRIAL REVOLUTION 4.0?

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Yeah, FAST, FAST, FAST, BUT…

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THERE IS MORE TO 4.0 THAN 5G…

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FULL DIGITIZATION

OF

A COMPANY’S OPERATIONS

IN

A WORLD WHERE THE

PHYSICAL WORLD &

THE CYBER WORLD CO-EXIST

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Gateway to the cyber-world

4

2

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Industrial Evolution

4. Industrial

revolution Based on cyber-physical-

systems

3. Industrial revolution Through the use of electronics

and IT further progression in

autonomous production

2. Industrial revolution Introducing mass production

lines powered by electric

energy 1. Industrial revolution Introducing mechanical

production machines powered

by water and steam

End of the

18th century. Beginning of the

20th century

Beginning of the

70th

Industry 1.0 Industry 3.0

Industry 2.0 Industry 4.0

Leve

l o

f c

om

ple

xit

y

Today

Source: DFKI/Bauer IAO

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Bu

ildin

g B

locks

Industry 4.0

Autonomous Robots

Simulation

Horizontal and

vertical system

integration

Industrial Internet of

Things

Cyber Security

Additive Manufactu

-ring

Augmented reality

Big data analytics

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THE WORLD WE LIVE

IN…

Every-day internet-connected objects with unique IP

identifiers able to receive/send data for a specific purpose.

1

8

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22

From Smarter Factories…

Sensors are

attached to

components,

forklifts,

employees and

other assets

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RFID sensors on cloud

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To on-demand 3D Printing…

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Planet MARS,

2020

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30

By geolocating

the sensors, one can see how people and products are moving

… to Streamlined Factories

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31

To Smart Inventory management

Sensors on containers can

determine when a product is

running low

Employees will be alerted to

proactively re-order the parts

when a certain level is reached

or orders can be automatically

placed with suppliers

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Industrial Revolution 4.0?

• A convergence of mature digital technologies that create (and soon force) business transformation

• Maturing technologies – Wireless technologies and IoT

– Data analytics, Machine learning and Actionable artificial Intelligence (integrated sensors and smart devices)

– IoTs

– Digital fabrication (robotics, 3D printing)

A NEW PLATFORM FOR YOUR BUSINESS CONSISTING OF CYBER-PHYSICAL SYSTEMS

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To Better Quality of Life for

Consumers

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Surprising Insights

Picture from The Human Face of Big Data (Rick Smolan/Peter Menzel)

DVR 13% Pool pump

30% Lighting

15%

Kitchen

appliances

combined < 5%

TVs 10%

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A digital assistant at your home… “Alexa, can you

order pizza for tonight

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Echo, who won the France-Belgium semi-final?

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How to use data to improve quality of life?

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New

Energy

Bills

Courtesy of

Belkin,Inc.

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Put HUMANITY above

technologies

• Many humans’ jobs at risk from automation

• Businesses unable to join the digital

transformation trend

• More inequalities than less

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An (Overstretched) Classification of Vietnam

Business Leaders after DoiMoi

1.0 State-owned-enterprises Government officials

2.0 Private SMEs & Foreign

companies

Private citizens with good business

networking & language skills & overseas

graduates

3.0 Firms with global orientation Equipped with (specialized) business

expertise

4.0 Firms geared up for digital

revolution WHAT LEADERSHIP DO

WE NEED?

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Strategy 1 | Recognize that the

industrial revolution 4.0 has begun

Embrace digital platforms in your

business

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• Restaurants – from paper order to cloud-based process (along supply/value chain)

• Schools – from classroom settings to online, distributed flip-the-class instruction

• Banks – from retail, physical banking to 100% e-banking

• Small Large Extra large economies of scale

• MANY VIETNAMESE ARE ON THE WAY TO ACHIEVING THIS

• (USING TABLETS FOR TAKING ORDER, JUST EXTENDE IT TO SUPPLY CHAIN)

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Strategy 2 | Innovate business

models

Willingness to let go outdated products

and services

& Use IT to transform your business

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• Focus on purpose, and not products

• Making a better world, with customer centricity

– IBM ICU project

– University – not curricula, but career planner

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TRANSPORTATION

FORD

Phasing out

manufacturing of cars,

to focus on

transportation services

(6/2018)

RENAULT

Announcing car

sharing plan (7/2018)

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HEALTHCARE

IBM

Humanizing the

Intensive Care Unit at

Hospital (on-going

research)

ADIDAS

Embedding healthy

living style in

sportwear

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An Intensive Care Unit

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Machine Learning as an Assistant

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When there is a fine line

between reality and virtuality…

• Hopelab.org project

• Pediatric oncology

• The making of re-mission

• where Virtual world helps

Real world

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UTILITY

Electricity Companies

should disrupt their

own

Large scale disruption

TESLA

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What’s special about this house?

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AGRICULTURE

Environmental

concern and

productivity go hand in

hand

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SAVING WATER

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Retailing: Augmented Reality

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IKEA Real-world product integration

• The smallest Ikea store in the world

• Volunteers to live in Ikea and to have their

lives taped to provide feedback

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THE SHARING ECONOMY

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REALITY 7. THE “WE” ECONOMY

THE SHARING ECONOMY IS HERE

TO STAY

3

5

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Now comes the UBER Phenomenon –

Displacing Current Distribution Channels

• “UBER-ification”: There is an UBER for everything

• For someone to: – Do your laundry: WASHIO.COM

– Cook your dinner: sSPRIG AND SPPONROCKET

– Mail your package: SHYP

– Get you a message therapist: ZEEL

– Send a doctor to your house: HEAL.com

– Pack your suitcase: DUFL

– Rush you achohol: EAZE

– Have a valet park your car: LUXE

– Walk your dog: WAG!

– Clean your house: HANDY

– Get your grocery delivery services: URBERY

– Get a tailor to your house to fix your wardrobe: zTAILORS

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3

3

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THE ‘WE’ ECONOMY + THE

INTERNET OF ‘ME’

OUR WORLD, PERSONALIZED

=

5

1

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A STRATEGIC MODEL FOR

DIGITAL TRANSFORMATION How do I uses I.T. to drive my company’s

business value?

5

5

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Digital Strategies – NEW frontiers

Product and Service Approach

Mass Customization

Continuous Improvement

Operational

Excellence

SINGLE BUNDLE THEME SOCIAL ENGAGEMENT

This is

where

you

should

be!

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LEADERSHIP 4.0

CURRENT TENDENCY:

• Resist destruction

– Subsidies to save factory in

difficulty

• Save current jobs, focus

on efficiency

• Focus on competition

• Skeptical of technology

FUTURE

LEADERSHIP:

• Let outdated firm go out of business

• Train employees to do new jobs, focus more on effectiveness

• Creativity, change management

• Focus on collaboration to solve customer problem faster and more friendlier

• Negotiation

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LEADERSHIP 4.0:

CUSTOMER CENTRICITY

• Solving customer’s problem faster, friendlier,

and realtime in an interactive world

• Apparel industry – Virtual showroom, online

order, pick up at store

• Garment industry – Predictive analytics of

weather and tourism to produce right design

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• Automobile manufacturers from production to

becoming on-demand transportation companies

• Utility (Electricity) Providers of household

renewable energy power generators

• Hospitals from curative care at hospital to

preventive care at people’s home through IoT

• Banking from passive loan applications to

proactive loan on the go

LEADERSHIP 4.0:

CREATIVE DESTRUCTION

73 © 2018-TBUI

A VN National Strategy

• The VN industry recognizes the need to

improve quality

• The VN government passed a Resolution No.

01/NQ-CP dated 1st January, 2018 • Continuing to reduce costs for businesses

• Solutions to link domestic enterprises and FDI

enterprises

74 © 2018-TBUI

EUROPE-VIETNAM NEXT

LEVEL OF COOPERATION

TUNG BUI | VEMBA | JULY 11, 2018 Matson Navigation Company Chair of Global Business

Chair and Professor of Information Technology Management

75 © 2018-TBUI

SIXTEEN YEARS IN HANOI

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History

• 1997: USAID Grant – Training the trainers, 60 instructors to be trained in market-economy business education

• 1999: Roger Ford, a retired prof. & missionary, went to Hanoi and lobbied for Shidler to work on the first EMBA in Hanoi

• 2000: Ha Trung, advisor to HSB, invited TB at his villa in HCMC to implement the logistics of VEMBA

• 2001: VEMBA 1-HAN started with 29 students at Hanoi School of Business at VNU

• 2007: VEMBA opened in HCMC thanks to IU

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Vietnamese Academic Partners

• Hanoi School of Business (2001-2007)

• International University (2007-present)

• Foreign Trade University (2008-present)

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The 2-year VEMBA Curriculum

Core-Edge-Transition

CORE: 8 COURSES

EDGE: 7 ELECTIVES

TRANSITION:

A PRACTICUM PROJECT

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Where are our students from? 286 co.

80

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Since 2001, 21 VEMBA Cohorts

682 entered the

program

2001-2007:

HANOI Every other

year

2007-to date:

HANOI

& HCMC Every year

559 graduated

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Where are our students from?

82

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2001: Vemba1-HANOI

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

IEDP 1-8

Vietnam Exec MBA Vemba

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HCMC:

390

HANOI:

292

VEMBA students/Location

41% 59%

AGE:

31.5

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1 VEMBA

2 locations

16 countries

87 expats

Participating

Countries

Number

Australia 1

Canada 2

China 2

Egypt 1

Finland 1

France 1

Germany 2

Holland 1

Korea 4

Malaysia 1

Mexico 2

Russia 5

Singapore 2

Tunisia 1

USA 60

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Hanoi HCMC VN

Total 292 390 682

Vietnamese 268 327 595

Expats 24 63 87

Expats/VN 8% 16% 13%

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C-level positions

of Hanoi VEMBA graduates

181 / 280

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Percent of HCMC VEMBA

graduates promoted after graduations

50%

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Percent of HCMC VEMBA graduates

who created a new business after

graduations

28%

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VEMBA has become

more than just a remote MBA program

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A vast & trusting business network

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A now-or-never lifestyle

Annual golf championships Year-end

Parties

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A life-long experience

6 couples attending

programs in subsequent cohorts

Hanoi classmates agree that

they would be in-laws once their children get older

3 couples tied their knots

while attending schools

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A CSR Movement

Charitable work Education outreach

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VEMBA Mentioned by Sec. John Kerry at the 20th

Anniversary of VN-US relations

....The

University of

Hawaii offers an

Executive MBA

program that is

accredited in the

United States

and in

Vietnam....”