SMEs face challenges in digital transformation

Vietnamese small- and medium-sized enterprises (SMEs) are facing barriers in digital transformation and have a passive response to market changes, said Hoang Minh Chien, deputy head of the Vietnam Trade Promotion Agency (Viettrade).
SMEs face challenges in digital transformation ảnh 1SMEs do not have enough awareness about digital transformation, lack of commitment and perseverance from leaders as well as information about digital technology. (Photo: congthuong.vn)
Hanoi (VNA) - Vietnamese small- and medium-sized enterprises (SMEs)are facing barriers in digital transformation and have a passive response tomarket changes, said Hoang Minh Chien, deputy head of the Vietnam TradePromotion Agency (Vietrade).

Chien told an online conference on digital transformation for sales andmarketing held in Hanoi on August 7 that Vietnam targets to become a digitalcountry by 2025 under the national digital transformation programme. Of which,digital transformation for businesses would play a crucial role.

However, the SMEs did not have enough awareness about digital transformation.In addition, they lacked commitment and perseverance from leaders as well asinformation about digital technology. They also faced limited human andfinancial resources.

“Vietrade is gradually implementing training, consulting and events applyinginformation technology and digital transformation to support enterprises toovercome difficulties in the COVID-19 pandemic,” he added.

Bui Hoang Anh, Director of the SME Centre under CMC Telecom Vietnam, said thereare three clear trends in digital transformation in Vietnam this year,including data analysis, online payment/transactions and data security in thedigital environment.

Digital transformation is strongly taking place around the world. But in Vietnam,the speed is still modest. A survey by the Vietnam Chamber of Commerce andIndustry (VCCI) in 2020 at more than 400 businesses showed that 51 percent ofbusinesses actively transformed digitally before the COVID-19 pandemicoccurred. Meanwhile 25.7 percent of businesses were not interested but whenCOVID-19 happened, they started to catch up and find digital technologysolutions; 17.5 percent of enterprises started to pay attention but they hadnot yet started to apply technology.

Nearly half of Vietnamese businesses have not actively converted to digital.But when the pandemic occurred with unpredictable developments, if enterprisesdo not adapt and catch up with trends, their business and development willcertainly be affected, Anh said.

The COVID-19 pandemic is a driving force for businesses and people to changetheir habits and apply more technology in production, business and consumption.For businesses that do not keep pace with digital transformation, they willvery quickly see their business results affected, and in the long run, theywill be easily eliminated from the market.

Many businesses acknowledged the importance of digital transformation, butstill faced challenges.

Chu Truong An, deputy head of the Ton Vinh Technology Development and TradingCompany Limited, said: “We do not know where to start to digitalise while weare still applying information technology in production, business and export.”

“When implementing digital transformation, enterprises' resources will beassessed for Viettrade and experts to support according to a roadmap.Enterprises could completely convert digitally and start from availableresources. The most important factor is business owners’ commitment andpersistence in digital transformation,” said Nguyen Thi Minh Thuy, Director ofVietrade’s Information Technology Application Centre.

She said Vietrade was completing the VECOBIZ ecosystem which is a platformthat integrates trade promotion activities to serve businesses, such asexhibitions, promotions and trade connections. In the future, businesses coulduse this platform to find customers and exchange information. VECOBIZ alsoprovided factors related to the business environment such as free tradeagreements, non-tariff barriers and standards for export markets.

The online conference saw the participation of some 1,200 delegates from manyprovinces and cities nationwide to raise awareness and build capacity forindividuals and enterprises in information technology application and digitaltransformation. This training focuses on sales and marketing skills forbusinesses. These are two important activities, contributing to improving salesand the image of businesses./.

VNA

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