Digital transformation unavoidable, expands business reach

 Digital transformation is both a need and an inevitable trend that will help businesses survive and develop in the Industry 4.0 era, experts said.

This also holds true for the post COVID-19 new normal period, according to the Vietnam Chamber of Commerce and Industry (VCCI).

Tran Ngoc Liem, Deputy Director of VCCI’s HCM City Branch, said: “In a competition to retain and expand the market, those businesses that go for digital transformation quickly will be able to capitalise on development opportunities and reap more success than those following traditional production and trading methods.”

Liem said that in Vietnam, digital transformation was taking place in almost every type of business at different levels.

A recent VCCI survey on developments in the context of the COVID-19 pandemic found that a majority of more than 400 businesses polled had great expectations from digital transformation.

Digital transformation unavoidable, expands business reach -0
Digital transformation is both a need and an inevitable trend that will help businesses expand business reach. (Photo: VNA)

Up to 98 percent of the respondents expect digital transformation to create great changes in their production and trading activities; 71 percent and 61.4 percent, respectively, expect it to help reduce production costs as well as paper work; and 45.3 percent expect it to help add value to products and improve product and service quality.

But the reality is that there is a big gap in digital transformation at large enterprises and small and medium enterprises (SMEs), Liem said at a seminar held by the VCCI and Mediastep Software Vietnam Co., Ltd in Ho Chi Minh City last week.

Large-scale enterprises have quickly embraced digital transformation and believe in its positive results, while SMEs, which account for nearly 98 percent of total Vietnamese businesses, have faced difficulties in making the far-reaching change.

According to experts, in the context of the current pandemic, digital applications and tools play an important role in supporting and promoting the transformation process, promoting sales and helping them develop more sustainably.

Tom Peng, CEO of Mediastep Software Vietnam, said more and more global buyers were using online platforms to source products instead of making on-site visits, so local businesses must transform and join e-commerce platforms to approach customers around the world and expand opportunities to access the global market.

Nguyen Thanh Lam, GOEXPORT business director, said according to data from Alibaba.com, during the pandemic period, the number of customers buying products on the platform increased by 100 percent, the number of orders jumped by over 170 percent, and the total transaction value rose by 125 percent.

But the supply of products on the platform increased by only 5 percent, offering opportunities for suppliers, he said.

The B2B e-commerce platform Alibaba.com is supporting Vietnamese firms in acquiring knowledge and skills to conduct international trade activities, he added.

Vietnam has gained a strong reputation among global buyers for its manufacturing capabilities, high quality products and competitive prices.

In addition to promoting export via e-commerce platforms, local businesses should not forget the lucrative home market of 97 million consumers with high internet usage and rising income, speakers said at the seminar.

Nguyen Thi My Xuan, business director of Gosell, suggested that local businesses adopt omni-channel retailing strategies to adjust to consumer behaviour changes in the new normal period. 

Xuan also said promotional policies must be implemented synchronously across sales channels in order to attract and increase the rate of brand recognition and loyalty among customers.

VNA

Other News

Hanoi approves controlled pilot of two technology projects

Hanoi approves controlled pilot of two technology projects

The two projects involve an intelligent autonomous transportation system developed by Phenikaa-X JSC and a technology for producing mixed rare-earth oxides with a purity of over 95% on a semi-industrial scale developed by the Mining Technology and Construction Consultancy JSC.

Banking industry in AI era: When data becomes competitive advantage

Banking industry in AI era: When data becomes competitive advantage

In just a few years, AI has evolved from an experimental technology into an “assistant” for many banks, supporting everything from customer service, credit approval, and fraud detection to risk management. However, as the technological gap between institutions narrows, a new question is emerging: What will determine banks' competitive advantage in the AI era?

Bac Ninh considers establishing AI centre of excellence

Bac Ninh considers establishing AI centre of excellence

A meeting has been held in Bac Ninh to discuss potential cooperation with Plug and Play in developing the northern province’s innovation ecosystem and establishing an artificial intelligence (AI) centre of excellence, with Standing Vice Chairman of the provincial People’s Committee Mai Son receiving a delegation from the global innovation platform.

Hanoi allows 24-month trial of autonomous vehicles at Hoa Lac

Hanoi allows 24-month trial of autonomous vehicles at Hoa Lac

The project aims to assess the safety, reliability and readiness of autonomous vehicles under real traffic conditions, as well as the effectiveness of autonomous public transport and compatibility with existing systems. Its results will contribute to developing technical standards, operating procedures and management models suited to Hanoi’s traffic conditions.

Singapore's experience suggests solutions to Vietnam's human resources challenge in AI era

Singapore's experience suggests solutions to Vietnam's human resources challenge in AI era

As Vietnam accelerates digital transformation and high-tech development, Singapore’s experience and the engagement of global technology companies demonstrate that human resources preparation must stay ahead of the curve. The ability to filter knowledge, collaborate, innovate and effectively use AI will increasingly become essential to helping workers adapt to a changing labour market and strengthening the competitiveness of Vietnam’s economy in the new era.

Protecting national security amid digital transformation, cyberspace

Protecting national security amid digital transformation, cyberspace

Cybersecurity, information security and data security risks must be identified and addressed early and from afar, with appropriate defensive measures ready to neutralise threats and protect national interests in cyberspace, said Lieutenant General Le Xuan Minh, Director of the Ministry of Public Security’s Department of Cybersecurity and Hi-tech Crime Prevention (A05).

Mekong Delta launches first robotics, AI research institute

Mekong Delta launches first robotics, AI research institute

Dr. Nguyen Van Quang, Rector of Nam Can Tho University, said the university is developing a value chain covering training, research, technology development, testing, technology transfer and commercialisation. The model is designed to link research more closely with practical needs, ensuring that technologies generate products and products create value for society.

Vietnam positioned to harness AI wave, World Bank report says

Vietnam positioned to harness AI wave, World Bank report says

The WB report identifies Vietnam as one of the few economies outside the European Union (EU) to have adopted a comprehensive AI regulatory framework as early as 2025. Vietnam applies a risk-tiered approach similar to that of the EU AI Act, imposing different obligations depending on whether an AI system poses “unacceptable,” “high,” “low” or “minimal” risks. The approach is viewed as a strategic step towards ensuring safe and transparent AI governance.

AI offers both opportunities, challenges for Vietnam's growth

AI offers both opportunities, challenges for Vietnam's growth

Dr. Ho Duc Thang, a full-time member of the National Assembly’s Committee for Cultural and Educational, said productivity is the key to sustaining double-digit economic growth, and AI has greater potential to improve productivity than any previous technology.

Top leader unveils people-centred vision for new development model

Top leader unveils people-centred vision for new development model

Vietnam's growth model, long fueled by low-cost labour, resource extraction, contract manufacturing, expanded investment, and capital accumulation, has run out of road. The country now needs a sweeping reform agenda to shift from extensive growth to a model driven by productivity, knowledge, science and technology, innovation, and digital transformation.