As the Head of Business Transformation and Head of Clients & Markets at KPMG in Vietnam, Hao Lam is at the forefront of the firm's mission to support fast growing businesses and facilitate their ability to overcome challenges through meticulous planning and effective growth management. She gives [C] Vietnam readers a nuanced analysis of what to expect in 2024, reflecting on KPMG's approach and the critical role of versatility in business strategy.
Hao Lam’s trajectory from joining KPMG in Vietnam as an audit assistant straight out of university—when the firm had around 50 people—to witnessing its impressive growth to over 60 partners and 2000 employees has spanned 25 years of KPMG’s 30 in Vietnam - a corporate time commitment that has become increasingly rare in modern society.
“People spend many years in the organization,” Hao said. “I get the feeling that people enjoy working here, being part of the organization. Because at KPMG, we provide people with opportunities to grow, to learn and to be themselves,” she said.
This fostering of growth is both individual and company-wide. During her quarter-century journey with the renowned consultancy firm, Hao’s professional development has mirrored the impressive arc of KPMG in Vietnam. Few people understand the business landscape in Vietnam like Hao. In her capacity as a consulting partner in the Ho Chi Minh City office, she has been intricately involved in diverse external audit assignments. These assignments span statutory audits under local regulations and annual audits of financial statements for both local and multinational clients, demanding a nuanced understanding of Vietnamese accounting standards, international financial reporting standards, and intricate corporate systems. She has been instrumental in leading some of the largest and most complex transformation programs for clients, including strategy facilitation, operations excellence, supply chain improvement, IT implementation, corporate and organizational restructuring, and financial management. Her multifaceted expertise has earned her a reputation as a reliable guide for businesses navigating the complex terrain of transformation.
We spoke with Hao about KPMG culture and industry trends just as the firm prepared to wrap up the year and enter into 2024 with what she describes as “confidence” while making preparations for a “slow recovery.”
Navigating Global and Local Dynamics
Mitigating both fears and misplaced optimism about the future of business is something that KPMG has excelled at in its advisory role globally. Yet, the last four years have seen unprecedented shifts in geopolitics and organizational structure as the world reels from a daisy chain of calamities. The firm’s annual CEO Outlook survey amassed insights from 1,325 CEOs across 11 major economies. These CEOs, primarily from Fortune 500-sized companies with revenues exceeding $500 million, expressed their concerns about geopolitical and political risks emerging as the highest threats to business growth. The survey also highlighted the CEOs' anticipation of prolonged challenges, emphasizing the need for strategic planning to assuage supply chain disruptions and maintain agility.
Hao offered a comparative analysis between the international CEOs surveyed and her interactions with CEOs in Vietnam. While acknowledging the uncertainties faced globally, she pointed out that Vietnam still projects positive GDP growth of around 5%, with manageable interest rates and inflation. However, she noted sector- specific challenges, such as changes in foreign direct investments and uncertainties in real estate and related industries due to global and local economic shifts.
“[In Vietnam], many economists believe the recovery will begin in Q3/Q4 of next year,” she said. “The macro index in Vietnam is better than in other countries. There's a lot more confidence here than there is interna-tionally. It helps that the government has an awareness and quick reaction to protecting the economy. But I think it will be a slow recovery. I anticipate that the companies who have better scenario planning and better governance will remain resilient.”
The survey findings and Hao’s on-the-ground experiences converge on the importance of adaptability, cost management, and strategic planning for businesses worldwide. This planning extends to the future of work and the impact of the pandemic on workplace dynamics. She emphasized the flexibility many companies have adopted regarding remote work and the balancing act between employer preferences and employee needs. A good example of this is KPMG, which has taken a different approach to many multinational corporations by being willing to trust its employees and relinquish control. The firm allows employees the freedom to come and go as they see fit, as long as their duties are fulfilled in accordance with the firm's policies and quality standards. This technique maximizes responsibility while acknowledging the inherent restructuring of priorities in modern corporations.
Strategic planning for ESG policies and new technology will also be crucial for navigating the complexities of the post-pandemic business landscape. Despite a polarizing debate surrounding the term ESG, CEOs recognize the importance it has for their customers and their brands. Nearly a quarter (24 percent) believe that over the next three years, ESG will have the greatest impact on their customer relationships, and a further 16 percent believe it will help build their brand reputations.
The use of AI in particular will have a strong impact on the way that businesses and consumers function in the future. As tools like Bard and ChatGPT have gained prominence, global CEOs increasingly recognize generative AI’s seemingly limitless potential. Global CEOs are making generative AI a top investment priority. The survey shows that 70 percent are investing heavily in generative AI as their competitive edge for the future. Clearly, they are keeping their foot on the gas in terms of their investment in and exploration of the technology.
In light of this, KPMG Global has aligned with Microsoft on a five-year agreement to find ways to apply AI in the workplace to create a better experience for their employees as well as better service for their clients. “AI policy and regulations will not be able to follow at the speed of the technology development, which may cause risk,” Hao said. “But it will be a game changer.” She believes that Vietnam’s young and innovative population will help this tech transition, as long as companies prioritize these developments and focus on long-term goals to ensure resilience as they capitalize on emerging opportunities.
As businesses enter 2024, Hao advises planning for a shorter period and prioritizing cash flow management. Yet, it’s also important to not stagnate growth when the time is right. She suggests CEOs spend time planning for when the economy recovers.
“Now, it’s time to cool down,” she said. “It's time to take another look at strategy; rethink the operating models and the structures. Then, companies need to do some exercises to prepare to cash in on the opportunities when they come. When the economy comes back, companies may not be the same as they were in the past because of geopolitics, ESG, AI, tax grievances, etc. That will totally change the behavior of the consumers. We may need to reshape strategies and operating models to prepare companies to adapt to the future.”
Overall, Hao is optimistic. Even though the coming years will continue to be challenging, she feels that CEOs in Vietnam are “agile and very smart, so I think they will be able to navigate towards a better future.”
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