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The strength of a business lies in its ability to create value chains, spread benefits, and build trust to develop a sustainable ecosystem, according to Nguyen Duy Hung, a member of the Board of Directors of Tan Hiep Phat.
His remarks were made at the conference “40 years of renewal: The leading role of economic corporations,” organized by Investor Magazine on April 13 in Hanoi.
Hung said the focus is no longer only on building large-scale enterprises, but on companies that can “spread value.” He argued that a conglomerate has real meaning when it is tightly linked to national interests and capable of disseminating value across the entire supply chain—from raw materials through suppliers to the distribution system.
He described Tan Hiep Phat’s development model as extending beyond expanding production or markets. It is built from tea farmers, raw material collectors, suppliers, logistics partners, and the distribution network.
Hung said about 60%–70% of the company’s revenue is spent domestically, supporting stable jobs for nearly 4,000 direct workers and tens of thousands of indirect workers.
Hung said the core factor in building a sustainable chain is not technology or scale, but how value is shared. He emphasized that farmers, suppliers, logistics providers, and distributors need to stay engaged over the long term, and that the business must ensure win-win outcomes and loyalty to partners.
He noted, however, that many current linkages remain short-term—often tied to a year or a batch—making it difficult for firms to design long-term strategies for the entire chain. He said the challenge is driven not only by market volatility, but also by a lack of trust among parties.
Tan Hiep Phat links with tea farmers and cooperatives in Thai Nguyen to build a chain from origin to product. Hung said this approach contributes to increasing the value of tea and improving the quality of Tra Xanh Khong Do tea.
From the private-sector perspective, he said what matters is not being told what to do, but not being constrained and having enough trust to invest over the long term.
For many years, Tan Hiep Phat has pursued a continuous reinvestment strategy using retained earnings to upgrade production capacity and boost competitiveness. Hung said the company needs a stable, predictable environment to reinvest, upgrade the value chain, and expand into international markets.
Agreeing with the business community, experts at the conference said the state’s role in the new phase should shift from “doing for” to “leading.” They highlighted the need for designing transparent rules, ensuring consistency in implementation, and creating conditions for enterprises to maximize their capabilities.
They said ensuring contract enforceability and property rights is a foundation for building market trust. Only when commitments are respected and enforced, experts argued, can enterprises form long-term cooperative relationships and develop supply chains strong enough to compete globally.
Representatives from ministries, central agencies, associations, economists and financial-legal experts, leaders of commercial banks, state-owned enterprises and domestic corporations attended the conference.
Experts said that amid a volatile global economy, it is necessary to form strong corporations to lead the economy—not only through scale, but through the ability to build ecosystems and upgrade the value chain. They added that developing conglomerates should be tied to strengthening internal capacity.
Going forward, they said competition will shift from individual firms to supply chains and ecosystems. They also emphasized that the institutional framework remains a key foundation, requiring stability, transparency, and predictability, while safeguarding property rights and contract discipline to strengthen trust and enable long-term linkages.
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