Flaw detector

Brian Spence * Brian Spence The warrior Achilles is one of the great heroes of Greek mythology. According to legend, Achilles was extraordinarily strong, courageous and loyal, but he had one vulnerability: when his mother dunked him into the River Styx, whose waters conferred the invulnerability of the gods, she had to hold him by the heel and so left him with an area of weakness – one that eventually proved his undoing. Thus, when we speak of an otherwise indomitable person having a flaw that might not be easy to see, but can easily be their downfall, we talk of their “Achilles’ heel”. So, what has Greek mythology got to do with Việt Nam in the here and now? Well, it’s that I perceive a real Achilles’ heel evident in the business culture. One of the first things Westerners learn when trying to get to grips with Asian culture is the concept of “losing face”. While everyone loathes the pains of shame and embarrassment, avoiding any loss of face in business seems like an overriding principle here. As with Achilles and his mythological heel, that focus can become a weakness that negates many strengths. It can also lead to great harm. Strength in vulnerability In my experience in the Vietnamese M&A and consultancy arena, it is a sad fact that seven out of ten business owners will not admit to vulnerability or weakness, or indeed the need for support and external advice of any kind. Such is the loss of face they fear, concessions like this are actually anathema to many otherwise very incisive and wise people. My observation over several years in Việt Nam is that the owners of family businesses often do not share responsibility for their management because they view this as a weakness. This results in many family businesses being unable to reach the heights that other more internationalised ones can reach. They impose an artificial glass ceiling above which the owner will not allow their employees – or indeed themselves – to …

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Asian markets edge higher but inflation, virus fears cast shadow, illustration photo After a year-long surge, global equities have run out of steam with expectations of a strong growth rebound stoking fear that prices will soar, forcing central banks to wind in the ultra-low monetary policies that have supported the rally. And while the stock gains have been boosted by the rollout of inoculations -- particularly in Britain and the United States -- Europe's stuttering launch has been compounded by a jump in new cases that has led to lockdowns and containment measures being reimposed. That has many observers questioning whether its economy can recover as quickly as previously hoped. US markets sank again Wednesday, led by a two percent drop in the Nasdaq as technology firms took a further hit from expectations the Federal Reserve will have to lift interest rates earlier than forecast, despite repeated pledges by policymakers that they will not budge. Adding to the selling in New York were fears Joe Biden will look to hike corporate taxes to pay for his huge economic rescue packages, while a fractious meeting between US and Chinese officials last week indicating relations will not likely improve any time soon. "When the short term wobbles, investors naturally start to fret about those lingering longer-term concerns," said Axi strategist Stephen Innes. "They are also hurting sentiment with renewed worries about US tax policy and a realisation that any lingering hope of a reset in US-China trade relations is unwarranted. "The latter is quite a worrying proposition as the two economic behemoths draw battlegrounds, setting the stage for a real dust-up as the superpowers shift from vying for supply-chain domination to battling it out for global internet technology supremacy." - 'Oil on the water' - Still, Asian investors pushed tentative gains in early trade Thursday following recent losses. Tokyo, Shanghai, Seoul and Sydney were all up healthily, …

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Brian Spence * Brian Spence The warrior Achilles is one of the great heroes of Greek mythology. According to legend, Achilles was extraordinarily strong, courageous and loyal, but he had one vulnerability: when his mother dunked him into the River Styx, whose waters conferred the invulnerability of the gods, she had to hold him by the heel and so left him with an area of weakness – one that eventually proved his undoing. Thus, when we speak of an otherwise indomitable person having a flaw that might not be easy to see, but can easily be their downfall, we talk of their “Achilles’ heel”. So, what has Greek mythology got to do with Viet Nam in the here and now? Well, it’s that I perceive a real Achilles’ heel evident in the business culture. One of the first things Westerners learn when trying to get to grips with Asian culture is the concept of “losing face”. While everyone loathes the pains of shame and embarrassment, avoiding any loss of face in business seems like an overriding principle here. As with Achilles and his mythological heel, that focus can become a weakness that negates many strengths. It can also lead to great harm. Strength in vulnerability In my experience in the Vietnamese M&A and consultancy arena, it is a sad fact that seven out of ten business owners will not admit to vulnerability or weakness, or indeed the need for support and external advice of any kind. Such is the loss of face they fear, concessions like this are actually anathema to many otherwise very incisive and wise people. My observation over several years in Viet Nam is that the owners of family businesses often do not share responsibility for their management because they view this as a weakness. This results in many family businesses being unable to reach the heights that other more internationalised ones can reach. They impose an artificial glass ceiling above which the owner will not allow their employees – or indeed themselves – to go beyond in their …

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