According to the latest Global Economic Prospects report from Oxford Economics, Vietnam is expected to be the only Southeast Asian country to reach positive growth this year. At the same time, the report stated that the prospect of Vietnam’s economic recovery is "brightest" in the region.
According to a survey in the publication "The SEA CFO Agenda" by Deloitte with CFOs from a variety of industries across Southeast Asia (SEA CFO) in Q.2 2020, the SEA CFOs have made the conclusions about 5 imperatives for the new normal
1. Reimagine and adapt business models
As SEA CFOs look ahead to the future, they recognise that agility - the ability to respond quickly to market needs with new business models - is key to enabling them to gain a competitive edge and emerge as a leader of the pack.
- Investing in product innovation
- Repurposing existing inventory
- Market and product diversification
- Enhancing distribution channels
- Supply chain resilience
2. Invest in digital transformation
While digital transformation is not new for many SEA CFOs, the COVID-19 pandemic has made many of them acutely aware of its critical importance in ensuring business continuity and driving growth.
- Accelerating the digital mind-set
- Reaping the benefits organisation-wide
- Increased reporting and scenario planning
- Increasing emphasis on analytical tools
3. Rethink the future of work
To ensure that the workforce is able to perform amidst increased digitalisation and the emergence of new ways of working, SEA CFOs will also need to re-examine their existing notions of the workplace, workforce – and even work itself.
- Re-examining the workplace
- Re-evaluating the workforce
- Rethinking work
- Upskilling and integration
4. Increase risk and cyber resilience
In addition to new financial reporting considerations, SEA CFOs also need to watch out for the emergence of interdependent risks. In a volatile environment, the trigger of a single risk could lead to a series of cascading risks with unknown consequences or impacts.
- Financial reporting
- Financial and credit risks
- Fraud and cyber security
5.Restructure to stay relevant and seize M&A opportunities
As SEA CFOs look towards the future, a combination of restructuring and M&A strategies should emerge as companies strive to safeguard existing markets, accelerate recovery, and position themselves to capture unassailable market leadership.
- Restructuring
- M&A
*Source: Cafef.vn