Vietnam’s economy is entering a challenging phase: markets are volatile, input costs are rising, consumer behavior is shifting, skilled labor is scarce, and customers are becoming increasingly demanding.

In this context, small and medium-sized enterprises (SMEs) — which make up more than 97% of all Vietnamese businesses — are struggling between the pressure to survive and the desire to grow. The reality is: not every company has the resources to expand, but every business can “streamline to become stronger.”

And that’s why Lean – Kaizen – Agile have become three “lifesaving” management methodologies for Vietnamese SMEs today.

Lean – Streamlining to Eliminate Waste and Preserve Value

“Lean” isn’t about cutting people; it’s about eliminating every form of waste that doesn’t create value for the customer. For small businesses, waste often hides in the details: duplicated reports, cumbersome processes, excess inventory, or employees wasting time waiting on each other.

When a company applies Lean:

• Work becomes simpler – clearer – more effective.
• Employees focus on core value, not just staying busy without producing results.
• Leaders gain transparent data to make faster, more accurate decisions.

A small manufacturing company in Binh Duong that we worked with reduced operating costs by nearly 30% in just six months by standardizing production, delivery, and accounting processes under the Lean model.

Kaizen – Continuous Improvement Through Small Daily Changes

In Japanese, Kaizen means “change for the better.” For SMEs, Kaizen doesn’t require major investment or complex systems. What matters is the mindset of proactive improvement from every employee: each person finds one better, faster, or more efficient way to do their job — and shares it with the team.

Small improvements, repeated every day, lead to big leaps in productivity. Companies that cultivate a Kaizen culture build teams that are always learning and innovating — instead of waiting passively for instructions.

We once observed a logistics company in Da Nang increase productivity by 20% thanks to a frontline employee’s simple initiative: repositioning barcode scanners and reorganizing warehouse aisles. No high tech, no cost — just true Kaizen.

Agile – Flexibility to Adapt and Grow

If Lean helps businesses operate efficiently, and Kaizen promotes step-by-step improvement, then Agile is the “glue” that enables organizations to adapt quickly and act flexibly in a VUCA world.

Rather than waiting for complete information before acting, Agile encourages fast testing – fast learning – fast adjustment. Companies that adopt Agile shorten decision-making cycles and reduce the gap between ideas and execution.

For SMEs, Agile helps to:

• Build a culture of constant feedback, where employees are empowered to act.
• Accelerate innovation, releasing new products and services in sync with market changes.
• Strengthen team spirit, as everyone runs short “sprints” toward a shared goal.

A small tech company in Hanoi applied Agile and reduced its product launch time from six months to just two, by running biweekly sprints and daily quick meetings to adjust progress in real time.

Lean and Agile – Not a Choice, But a Survival Capability

In today’s world, “moving fast” is no longer enough — you must move right, and stay flexible to survive.

For Vietnamese SMEs, sustainable growth can’t rely on capital alone; it must come from operational efficiency, continuous improvement, and adaptive speed.

Lean cuts waste. Kaizen drives daily improvement. Agile enables flexibility and rapid decision-making. When combined, these three approaches empower SMEs to unlock internal strength — without massive investment, only with innovative thinking and consistent action.

Vietnamese businesses don’t lack ambition — they often lack methodology and perseverance to see things through. And Lean – Kaizen – Agile aren’t management slogans; they are essential survival capabilities for organizations in times of disruption.

Start small — but follow through to the end. Because sometimes, changing one step in your process today can change the entire future of your business tomorrow.

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