Digital transformation essential for Vietnam enterprises’ viability

HANOI: Without digital platforms in place, Vietnam will not be able to step-up digital transformation in small and medium enterprises (SMES), according to Nguyen Huy Deng, Deputy Minister of Information and Communications (MOIC).

Dung made the comments at the seminar “Accompanying SMES in Digital Transformation”.

The deputy minister asserted that digital platforms must make technologies accessible to SMES as basic utilities to the public.

Once the platforms are used, digital technologies can be easily distributed to SMES on a pay-as-you-use basis without the need for advanced technological systems established in the enterprises.

“The Information and Communications Ministry has been assisting SMES in digital transformation in recent years using digital platforms,” Dung said.

He also revealed that over 500,000 SMES have begun to take an interest in digital platforms, and 70,000 SMES have used them. In addition, many platform users have been met with success, including a coffee chain in Tay Nguyen.

Tran Duy Dong, Deputy Minister of Planning and Investment, underscored digital transformation as the key to national competitive advantages.

For that reason, the Planning and Investment Ministry has introduced many favourable policies to encourage the process among SMES.

“The ministry has launched the Digital Transformation Support Programme for Enterprises between 2021 and 2025 to make 100% of enterprises well aware of digital transformation,” Dong said.

The deputy minister also highlighted several obstacles facing enterprises on their digital path. Specifically, about 60% of enterprises mention high transformation costs as a major obstacle to the process, whereas 52.3% point to an inadequate labour force.

Bui Trung Nghia, vice-president of the Vietnam Chamber of Commerce and Industry, underscored Vietnam as a country with a good pace of digital economy growth in Asean.

The country’s digital economy hit Us$21bil (Rm99bil) in 2021 and is expected to reach Us$57bil (Rm268bil) by 2025, second in the region in absolute terms with an annual growth rate of 29%.

He said digital transformation, against such a backdrop, is essential for the viability and growth of enterprises, as the process enables them to cut costs, enhance management and boost revenue.

“Those enterprises that can turn digital transformation to their advantage would find themselves on the front foot,” Nghia said.