VN firms show growing capability readiness, but dogged by execution gaps: report

VN firms show growing capability readiness, but dogged by execution gaps: report

Vietnamese businesses are pursuing ambitious growth plans, but many may lack the workforce capabilities needed to translate them into results, according to the Vietnam Enterprise Workforce Capability Readiness report.

Nguyễn Minh Tâm, head of Talentnet Academy, presents findings from the Vietnam Enterprise Workforce Capability Readiness Report at the “Where Capability Becomes Capital” event held in HCM City on June 8. — Photo courtesy of the organiser

The report by Talentnet, released at an event in HCM City on June 8, is the first comprehensive workforce capability assessment done in Việt Nam.

It examines how prepared enterprises are to navigate disruptions stemming from labour market shifts, technological advances, and evolving business models.

It found that Vietnamese enterprises achieved an average capability readiness score of 65.8 out of 100, placing them in the "Developing" category and suggesting that most have established a solid operational foundation and are progressing towards a more integrated capability system.

But despite the encouraging score, many companies face challenges in converting growth ambitions into long-term business performance, Nguyễn Minh Tâm, head of the newly launched Talentnet Academy, said.

“Vietnamese enterprises do not lack growth ambition, but their workforce capability operating systems are not yet ready to sustain that pace of growth.”

According to the report, many organisations are midway through their capability development journey, creating a risk of gaps between strategy and execution.

Middle managers have some of the most visible capability gaps, reflecting the growing pressure on those responsible for translating strategy into action.

There are several trends that can strengthen business competitiveness in the years ahead.

More than 71 per cent of surveyed organisations rank revenue growth and market expansion among their top priorities, creating strong incentives to build more structured capability frameworks.

Rising interest in AI

While more than 31 per cent of businesses identify AI deployment as a strategic priority, practical AI capability remains relatively modest, with an average score of 57.8 out of 100.

This highlights significant opportunities for workforce upskilling and productivity gains.

The study also underscores the benefits of organisational agility. Mid-sized enterprises with between 500 and 1,000 employees achieved the highest capability readiness score of 68.7, outperforming larger firms.

Nguyễn Minh Tâm, head of Talentnet Academy, presents findings from the Vietnam Enterprise Workforce Capability Readiness Report at the “Where Capability Becomes Capital” event held in HCM City on June 8. — Photo courtesy of the organiser

The finding suggests that leaner operating structures can provide advantages before organisations scale further.

Meanwhile, management development is becoming a strategic priority, with nearly 76 per cent planning to increase investment in leadership capabilities.

Rather than focusing solely on performance oversight, managers are being repositioned as "capability coaches" who directly guide, support, and unlock workforce potential on a daily basis.

The release event featured a panel discussion on "The New Equation of Growth" between senior executives at leading corporations, who explored how businesses can achieve sustainable growth amid growing uncertainty.

Nguyễn Thị Bích Vân, country head at Unilever Vietnam, said leaders must focus not only on responding to market trends but also on shaping them.

“The greatest mission of a leader is not to catch up with market trends, but to stay ahead of and drive them.”

To achieve this, organisations need to foster a culture of continuous learning and innovation while modernising and automating their operating systems, she added.

Kim Lê Huy, general director of DKSH Vietnam, said market opportunities could only be converted into business value when employees are empowered and equipped with cross-functional capabilities.

“The opportunities in the Vietnamese market are abundant, but whether they can be transformed into real value depends on a leader’s belief in their workforce.”

Dr Lê Mai Lan, vice chairwoman of Vingroup and president of the University Council of VinUni, highlighted the growing importance of critical thinking and problem-solving skills. 

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