Private Sector: Your growth opportunities
2nd VEF Alumni ConferenceLe Hong Minh
CEO, VNG Corp
Popular career path if you graduate in…
• 1990-2000: Government sector (some more studies) Government sector or Private companies
• 2000-now: Foreign companies (some experience) Foreign companies or Private companies
• Private companies are not first choices• …but are often the destination
Private companies are still small…
% of GDP 2000 2001 2002 2003 2004 2005 2006 2007 2008
Government sector 38% 38% 38% 39% 39% 38% 37% 36% 36%
Private companies 7% 8% 8% 8% 9% 9% 9% 10% 11%
Foreign companies 13% 14% 14% 15% 15% 16% 17% 18% 18%
But growing very fast
2000 2001 2002 2003 2004 2005 2006 2007 20080
2
4
6
8
10
12
14
16
18
Government sector Private companies Foreign companies
Growth rate of 3 major sectors (%) 2000-2008 (Source GSO)
And offer exciting opportunities
• 2009-2017 red numbers are assumptions• Private companies in 2017 is nearly as significant as foreign
companies now (% GDP)• 5% point in GDP but 2.5x growth in size (@11.9% average
growth)• Different sectors can have faster opportunities (Hot ones are
Finance, Real Estate, Retail, Tech)
2000-2008 Average Growth (%)
2009-2017 Average
Growth (%)2008 % GDP
(%)2017 % GDP
(%)
VN GDP 7.50 7.0 Private 12.70 11.9 11 16Government 6.80 6.3 36 34Foreign 10.70 10.0 18 23
Example: Internet industry
2004 2009 2004-2009 Growth (x)
2010-2015 Growth (X) 2015
Internet users (M) 6.3 20.9 3.3 2
41.8
% population (%) 7.7% 24.5%
45% International
bandwidth (Gbps) 1.9 54 28.4 5
270
.VN websites ('000) 9 95 10.6 10
950 Internet industry revenue (B VND) 75 2500 33.3 10
25,000
Comparisons between the 3 sectors
Pros Cons
Government Job stabilityPotentially high incomePower & (fame)
Very low salaryBureaucracyLong & slow career pathNepotism
Foreign High salaryProfessionalismTraining & learning opportunities
Limited earning growthOften not the decision makerHigh pressure job
Private Medium to high salaryPotentially high income (stock ownership)Growth opportunities Change the world
Less professionalismLess training (but more growth through the job)More risks
Risks with Private companies
• If you starting one:– Capital & resources– Regulatory environment– Heavy competition– (Lack of quality people)
• If you working with one:– Pick the right company (long-term growth capabilities)– Pick the right environment (meritocracy, share of
success, strive for professionalism)
Change the world
• Building a company is the best way to change the world:– Align the interests of a lot of smart people– Build something that’s great and that serves people (to
receive value)
• You can’t do that – if you’re an individual, because it’s just you (and no
one to align)– if you’re a non-profit, because you have no resources
and you’re constantly ask for money instead of generating it and being self-sufficient
THANK YOU