Innovation is the only path to the future, particularly in regard to new technology.

Research from Innosight in 2023 found that the average lifespan of companies
on the SP 500 had plunged from 61 years in 1958 to just 18, and is expected
to fall below 15 by 2030. In today’s data-and-AI era, speed has become the ultimate
competitive edge. But for Vietnamese businesses, innovation is seen as the “only
ticket” to a new cycle of growth.

A McKinsey report in 2024 estimated that companies embracing AI at scale could
boost efficiency by up to 40 per cent and cut costs by around 30 per cent within
three years.

Innovation as survival

At InnoEx 2025’s Business Innovation Forum, technology leaders and traditional
enterprises came together to reframe the challenge: innovation is not just about
survival, it’s about generating real profits.

Mr. Sudeepto Roy, Vice President of Engineering at Qualcomm Inc., highlighted
the power of Edge AI in processing data instantly, enabling businesses to harness
“real time” as a new source of competitive advantage.

Meanwhile, with more than 20 years of advising nearly 40 financial institutions
and major corporations across ten countries and territories, Mr. Il-Dong Kwon, Managing
Director Partner at Boston Consulting Group (BCG) underscored that data is
no longer the “new oil” in a figurative sense; it has become a strategic asset on
par with land and brand value.

In practice, many executives demonstrated a “dual front”: safeguarding core
industries while expanding through technology. And in this race, AI is no luxury,
it is the “competitive weapon” that can determine a company’s survival.

The world is undergoing unprecedented change: AI has become the backbone of
operations, data has emerged as a new strategic asset, and brands once thought untouchable
can disappear within a decade. That is why InnoEx 2025 put forward a direct question:
How can Vietnamese enterprises not only survive but thrive in the era of data and
AI – by moving innovation beyond slogans into real strategy?

According to organizers, while its Business Innovation Forums focused on strategic
positioning, the series of Innovation Sector Forums served as a proving ground where
theory met practice. Vietnam’s economic pillars, from retail and fast-moving
consumer goods (FMCG) to logistics and energy, were re-examined through the lens
of innovation. The consistent message: innovation is not just about transforming
products but about reshaping how businesses operate and serve customers.

For decades, retail and FMCG thrived on the power of brand equity alone. Those
days are over. Bizplanr’s 2024 report shows that 87 per cent of global retailers
have already deployed AI in at least one business function, and more than 80 per
cent of executives expect to achieve full automation by the end of this year. In
other words, innovation is no longer a competitive advantage, it is a condition
for survival.

Speaking at InnoEx 2025, Ms. Tran Phuong Nga, CEO of the Thien Long Group,
reflected on the journey of a company once celebrated as a “Golden Brand”. But for
Thien Long, legacy is only a foundation. To win over the younger generation, the
company must innovate across both products and distribution models.

Similarly, KIDO CEO Tran Le Nguyen emphasized that in FMCG, research and
development (RD) data and market analytics have become the “nervous system”
that keeps companies agile in the face of disruption.

The dairy and nutrition sector is also undergoing major transformation. Nutifood
has invested heavily in consumer data, analyzing the dietary habits of different
groups and optimizing its raw material supply chain. In today’s context, nutrition
products are judged not just by their nutritional value but by their ability to
be personalized, designed through data and health science.

These stories make one thing clear: past accolades are no guarantee of future
success. Innovation is the only ticket for Vietnamese brands to continue leading
the market in the era of data and AI.

Fuel for transformation

According to experts, few sectors illustrate the urgency of innovation as clearly
as logistics. Valued at $45-50 billion, accounting for nearly 5 per cent of GDP
and growing at 14-16 per cent annually, Vietnam currently ranks 43rd out of 155
countries and territories on the Logistics Performance Index (LPI), placing it among
the Top 5 in ASEAN, according to the Ministry of Industry and Trade in 2024. Yet
these numbers alone are not enough to secure an edge in global competition.

Mr. Le Duy Hiep, CEO of the Transimex Corporation, emphasized that the future
of logistics lies not in expanding warehouses but in automation, green logistics,
and data. Evidence already shows that applying AI, the Internet of Things (IoT),
and 5G can reduce cargo losses by 90 per cent and cut transport costs by more than
15 per cent. This makes clear that green logistics is no longer an ethical choice
but a mandatory competitive infrastructure for Vietnam to sustain trade growth.

At the same time, smart energy is taking shape, with AI serving as the foundation
for efficiency and sustainability. If logistics are the lifeblood of an economy,
then energy is the “blood supply” that sustains it. Ho Chi Minh City alone consumes
more than 16 per cent of Vietnam’s electricity, making energy security an increasingly
urgent issue in the context of climate change.

Mr. Pham Quoc Bao, Chairman of the Board of Members at the Ho Chi Minh City
Power Corporation (EVN HCHC), pointed to data underscoring this shift. By deploying
the SCADA/DMS smart operations system, installing electronic meters, and building
a big-data analytics platform, EVN HCMC has cut its electricity loss rate to below
3.5 per cent; one of the lowest levels in the region.

Beyond this, stories from Base.vn, Nutifood, Taipy from Singapore, and Home
Credit International further illustrated how AI is not just changing products but
redesigning entire operations. From SaaS (Software-as-a-service) platforms streamlining
internal processes to AI that personalizes consumer finance services and smart agri-tech
from RYNAN Technology, the common denominator is clear: data is the fuel of innovation.

Unlike many events that stop at experience sharing, InnoEx 2025 built an ecosystem
where large corporations, startups, research institutes, investors, and regulators
could all take part in the innovation process. It became a place where ideas were
tested, technologies were connected, and new business models were born.

“Innovation cannot be a solo effort,” said Ms. Truong Ly Hoang Phi, Vice President
of the Young Business Association of Ho Chi Minh City (YBA) and founder of InnoEx.
“We need an ecosystem where every business, from established corporations to tech
startups, can find opportunities to collaborate. InnoEx 2025 was designed as a catalyst
for that synergy, so that every step forward for a company is also a step forward
for the economy.”

VET-Hong Vinh