CEO Nestlé Vietnam: Building a better future by empowering youth | Binu Jacob | EP 360

Key Concepts:

• Sustainable Growth: Balancing profitability with environmental and social responsibility.
• Youth Development: Focusing on employability, entrepreneurship, agrepreneurship, and alliances to empower young people.
• Nestle Needs Youth: An initiative to support youth development through various programs and opportunities.
• Gen Z: The generation born between the late 1990s and early 2010s, known for their digital fluency and different perspectives.
• Hackathon: An event where people come together to engage in problem solving, collaboration, and innovation.
• Employability: Skills and training to prepare youth for the workforce.
• Entrepreneurship: Cultivating a business-oriented mindset in young people.
• Agreneurship: Training young farmers to use digital tools and sustainable farming practices.
• Alliances: Partnerships with universities and other companies to support youth development.
• Digital Fluency: The ability to use digital technologies effectively.

1. Nestle's Commitment to Sustainable Development and Youth Empowerment

• Nestle aims to be Vietnam's leading sustainable global company, emphasizing innovation, digitalization, and efficiency while addressing local consumer needs.
• Nestle believes corporates have a responsibility beyond profits, focusing on the planet and communities.
• Binu was awarded a special commemorative medal from the government of Vietnam for Nestle's contribution to sustainable development. He is reportedly the first corporate leader to receive this medal.
• Nestle focuses on sustainable growth, intentionally and deliberately, rather than rapid, unsustainable growth.
• Nestle's ethos is about balancing profit and purpose, embracing sustainable development while driving profitable growth.

2. The Importance of Youth in Vietnam's Future

• Vietnam aims to be a developed country by 2045, with the youth forming the backbone of this new era.
• Nestle launched the "Nestle Needs Youth" initiative in Vietnam to support youth development.
• The youth shape the destiny of both Vietnam and Nestle in Vietnam.

3. Core Pillars of Youth Development at Nestle

• Employability: Training programs and skill development to prepare young people for the workforce. Many university graduates are not ready to hit the ground running.
• Entrepreneurship: Building an entrepreneurial mindset through competitions at universities. Vietnamese youth are smart but often lack an entrepreneurial mindset.
• Agreneurship: Training young farmers to adopt digital tools for effective and sustainable farming.
• Alliances: Partnerships with universities (e.g., Vietnam National University), organizations, and companies to attract and develop youth. Nestle has alliances with 32 universities.

4. Nestle's Recruitment and Development of Youth

• Nestle aims to continuously increase the percentage of youth in its workforce, currently at 20%.
• Nestle has a strong program to recruit youth straight out of university, with 70% of recruitment from within.
• Nestle invests in developing global leaders, encouraging international careers.
• Nestle provides international exposure through mission assignments and training programs at its center in Switzerland.

5. Challenges and Opportunities for Vietnamese Youth

• Vietnamese youth are smart, hardworking, and creative, but face challenges:
  • Lack of readiness for the corporate sector due to gaps in university education.
  • Insufficient entrepreneurial mindset.
  • Need for improved English language skills for international competition.
• Corporates in Vietnam have a responsibility to fill these gaps.

6. Case Study: Intern's 3D Printing Project

• An intern from Vietnam Science and Technology University, fascinated with 3D printing, developed over 60 prototypes of parts that Nestle was importing.
• This saved costs and time by enabling in-house production of these parts.
• This example highlights the potential of young talent when given the right environment and framework.

7. Case Study: Nguyen Wuanthian, the "Flying Technician"

• A maintenance engineer who initially proposed doing in-house preventive maintenance.
• Nestle supported his development, including English language training.
• He became a global expert, training factories worldwide and improving his knowledge.
• He has been with Nestle for 9 years and travels the world training factories.

8. The Nest Up Hackathon

• A two-day event created in partnership with Vitetra and Onboarding to recruit the next generation of talent.
• It is a digital campaign culminating in a two-day event.
• The hackathon received 14,500 applicants, a record.
• 100 participants engaged in competitions and challenges, with about 40 selected for internships.
• The hackathon aims to assess skills in a more informal and fun setting, reflecting the true nature of the participants.

9. Rationale Behind the Hackathon Approach

• Traditional interviews and CVs are insufficient to capture the true spirit of Gen Z.
• The hackathon provides a gamified experience where participants work in teams to address challenges.
• This allows observation of communication, leadership, collaboration, and thinking skills in a natural setting.
• The hackathon assesses future-based skill sets like digital fluency, creativity, resilience, and adaptability, along with traditional skills.

10. Key Skills Assessed During the Hackathon

• Digital fluency
• Creativity
• Resilience
• Adaptability
• Leadership
• Teamwork
• Communication
• Collaboration
• Creative thinking

11. Milo's Iconic Status in Vietnam

• Milo is the most iconic brand in Vietnam.
• Vietnam is the largest Milo ready-to-drink market in the world.

12. Vitetra's Interest in Youth Development

• Gen Z makes up the largest audience on Vitetra (60%).
• Vitetra aims to offer value to young people by helping them level up and achieve their goals.
• Vitetra sees a long-term journey ahead, with a million new 18-year-olds every year making significant life decisions.

13. Conclusion

Nestle's commitment to sustainable development and youth empowerment is evident through its various initiatives and programs. The "Nestle Needs Youth" initiative, exemplified by the Nest Up hackathon, aims to identify and develop the next generation of leaders by assessing key skills in an innovative and engaging environment. By addressing the challenges faced by Vietnamese youth and providing opportunities for growth, Nestle is contributing to the future of both the company and the country. The partnership with Vitetra further amplifies this impact, leveraging their reach and engagement with Gen Z to support their development and success.