Research shows that trustful workplaces result in higher job satisfaction, motivation, and productivity. Some Vietnamese startups such as MoMo and Tiki have embraced cross-functional teams and agile project management. Workers are free to work independently with little supervision, and success is measured by performance rather than by the amount of time an individual spends in front of their desk.
Trust is at the centre of effective digital transformation too. New technologies need to be rapidly tried out, tested, and learned from failure. These are not cultures that can be maintained where failure is not rewarded or where every choice must flow upwards. Rather, companies with psychological safety, where workers can speak freely, experiment, and confess when they mess up, will be more successful at digital tools and systems.
Vietnam's competitive advantage: human capital, not hierarchy
Vietnam's sustainable competitive edge will be its people. It possesses a young, ambitious, and increasingly educated talent pool primed to propel growth and innovation.
Forward-thinking companies, particularly foreign-invested companies in Vietnam, have realised this. They are transforming their organisational structure, work arrangements, and decision-making responsibilities. These practices not only attract superior talent but also enhance performance. Multinational high-tech companies like Samsung and Intel, invested significant resources in leadership development and autonomy in their Vietnamese subsidiaries, empowering middle managers and engineers rather than waiting for directions from above.
Small businesses must catch up. Many are still mired in ancient values of respect for age and hierarchy, where young staff cannot make a contribution. This generates a one-way information culture, where feedback is repressed and innovative ideas go unheard. A movement towards a trust model can turn things around.
The way forward: letting go of control
Micromanagement is usually fear-driven – fear that things will not be done right, that power will be lost, or that results will be compromised if they are not closely managed. But the facts indicate otherwise. When managers let go of authoritarian control and focus on definite objectives, open communication, and respect, team performance improves.
This transformation requires training, psychological adaptation, and sometimes re-engineering of the organisation. Managers will have to master the skill of coaching. Employees will have to be empowered with tools and confidence to sponsor initiatives, make choices, and take responsibility. Organisational systems, ranging from appraisals to decision-making processes, will have to establish trust, not destroy it.
Organisations that can learn will thrive in an ambiguous world, be able to draw and keep talented people better, respond to new technology, and build more aligned and engaged workforces. Those who may find themselves stuck – unable to innovate, unable to keep talent, and ultimately, unable to compete.
In a knowledge economy, trust is not a luxury – it's a requirement. Vietnamese companies that accept this change will not just improve inner culture but also set themselves up for long-term success in the global economy.
True leadership is about making space for others to flourish. And that begins with trust.
Story: Dr Erhan Atay, Senior Lecturer in Human Resource Management, RMIT Vietnam
Thumbnail image: Mart Production – pexels.com
