Amid the global economic shift towards a knowledge-based model, intangible assets have become the main foundation in determining a company's value and competitiveness. While business success previously relied on physical capital such as machinery and factories, competitive advantage today is determined more by technological innovation, data, intellectual property, and brand strength.
Data shows a drastic change, where by 2025, the majority of company valuations in the S&P 500 index are projected to derive from intangible assets. Unfortunately, many companies in Vietnam remain trapped in a traditional mindset, ignoring the potential of these strategic elements, which results in their intrinsic value being suboptimally measured during investment opportunities or mergers and acquisitions.
Dr. David Nguyen, Chairman of the Vietnam Business Association in Singapore, emphasized that company valuation is not merely a reflection of current performance, but an accumulation of the past, present, and future potential. Modern investors now tend to look at scalability capacity and a business's ability to maintain a long-term advantage, rather than just momentary profit-and-loss statements.
To adapt, business leaders are advised to take systematic steps, starting from shifting management mindsets to conducting a more comprehensive asset inventory. Strengthening legal aspects related to intellectual property and standardizing asset valuation according to international standards are crucial for companies to demonstrate more tangible growth potential to prospective strategic partners.
Echoing this sentiment, Dr. Pham Trung Thanh from Vision Viet Holding revealed that brand reputation and management capacity are valuable assets built over a long period. Successful companies in the digital era are those capable of integrating physical assets with strategic management of data, corporate culture, and collaborative networks, enabling them to compete effectively in global value chains.
