return icon

Challenges for Vietnam’s businesses when going digital

Data administration capacity; access to capital, information and documents; access to experts; and costs are the major barriers to Vietnam's digital transformation.




The Ministry of Planning and Investment (MPI) found that many small and medium enterprises (SMEs) could not survive the pandemic but those which changed their business models adapted to new circumstances and survived well.

But Thu Thuy from MPI said Vietnam’s businesses have favorable conditions to carry out digital transformation, including a high proportion of broadband subscribers and digital infrastructure.

However, the proportion of digital transactions in Vietnam remains low compared with other regional countries such as Thailand and Indonesia. The online payment ratio is also not high, just 10 percent of total transactions, much lower than the 49 percent of Indonesia and 52 percent of Malaysia.

The benefits from digital transformation are clear. It helps enterprises develop more sale channels, expand custom and distribute better to potential markets.

MPI has recently taken a lot of measures to help enterprises put their products on sale on Amazon, the sale channel that helps businesses access the US and European market.

When surveying the digital transformation at enterprises, MPI found that Vietnam’s enterprises still face difficulties and barriers. Up to 60 percent of businesses said investment costs and technology application are the barriers.

Another challenge for digital transformation is changing habits and business practices, and seeking human resources supporting digital transformation.

According to Thuy, many enterprises think that digital transformation is just spending money to buy technology.

“Technology is the final step. Prior to that, they need to take the important steps of standardizing the process and preparing human resources before applying a certain technology,” she said.

Vietnam’s businesses have great opportunities now to go digital. Statistics show that there have been big changes in customers’ spending habits and the movement of the global supply chain. The pandemic also helped speed up digital transformation.

The readiness of the platforms in Vietnam is at a relatively high level. There are 64,000 digital technology firms which can provide services and platforms to serve digital transformation.

Besides the investment costs, the challenges for digital transformation are also from the capability of accessing information, documents and seeking experts to support. Businesses’ data administration capability remains low and the internal process still has not been standardized at SMEs.

In addition, the ability to connect digital transformation solutions in the market and access to capital is still relatively limited. Vietnam's digital ecosystem is not really fully developed. This, plus the risks related to information and data security, is also challenging the digital transformation process.

Trong Dat

Stories about digital transformation shared on portal

Stories about digital transformation shared on portal

The T63 information portal – the digital stories of 63 cities and provinces – has been launched by MIC at This is the place for localities to share their experiences during the digital transformation process.


Foreign investors arrive, industrial real estate benefits

Industrial Zone (IZ) developers are pocketing big money as Vietnam is welcoming new foreign investors.

American EDM band wants to 'bring Vietnamese music to the world'

Hotel Lobby - the famous EDM band in the US - has selected Vietnam as a destination in the near future.

Localizing construction of high-speed railways contributes to growth

Building a high-speed railway (250km/h) will facilitate the development of the entire railway industry, experts said.

A majestic pagoda in Tra Vinh Province

Phno Don is one of the biggest and most majestic of the 143 pagodas in Tra Vinh Province. It is a splendid example of Khmer architecture.

Vietnamese ICT enterprises more deeply involved in global value chain

Over 10 years ago, Vietnamese software companies performed only a few stages under orders from foreign partners but the work has now expanded.

China proposes re-signing protocol for seven kinds of Vietnamese fruit

China has proposed signing protocol for seven types of local fruit exported to the northern neighbour via official channels for stricter management, as is currently applied to durian and star apples.

10-year-old translator brings scientific knowledge closer to young readers

Children’s history book series, Unstoppable Us, by best-selling author Yuval Noah Harari, has been translated from English into Vietnamese by a 10-year-old translator and published by Omega Plus.

Floods kill five in central region

Heavy downpours and floods in the central region in the past few days claimed the lives of five people as of 5pm on December 6.


Vietnam spends nearly 190 million USD on importing pork in ten months

Vinfast faces challenges in North America

North America is a promising market, but it is not easy to be successful because there are many rivals there.

Festivities celebrate holiday season in HCM City

HCM City is preparing to launch a series of festivities to celebrate the New Year and Tet holidays (Lunar New Year).

Young driver offers thousands of free rides for poor patients

Dang Xuan Hieu, 24, has for four years given free trips to thousands of poor patients in Ha Giang Province.

Policies take effect in December 2022

Below are among new policies on import and export nomenclature, electricity generation price bracket, and licenses to manufacture tobacco products taking effect from December.

Finance Ministry to raise taxes on land and housing

Taxes on land and housing in Vietnam are far lower than those in other countries, exposing the need for higher tax rates to improve fiscal revenues.