While large corporations actively adopt AI to optimize operations and gain competitive advantages, the question is whether small and medium enterprises (SMEs) can keep up in this race.

In Vietnam, the government has set an ambitious goal for the digital economy to reach 30 percent of GDP by 2030, but the gap between ambition and reality remains significant. While large enterprises have resources to invest in advanced technology, over 600,000 SMEs, accounting for 97 percent of Vietnam’s businesses, face substantial challenges in their digital transformation journey.

A recent survey by the Vietnam Association of Small and Medium Enterprises revealed concerning figures: 68 percent of SMEs cite cost as the biggest barrier to adopting modern technology solutions. Many business owners noted that traditional management software packages cost VND50-200 million annually, a significant burden for businesses with revenues of a few billion VND.

In an era where people are a company’s most valuable asset, the lack of modern talent management systems causes many businesses to miss growth opportunities. Studies show that businesses with effective competency evaluation and talent development systems often have the employee retention rate higher by 40 percent and the productivity higher by 25 percent than the enterprises solely relying on traditional methods.

Nguyen Tien Dung, owner of a retail store in HCMC with 20 employees, said he once struggled with tracking performance and training, leading to high turnover. After implementing an AI-powered HR tool, his revenue increased 30 percent in six months, thanks to better-trained, more motivated staff.

Recognizing these challenges, Vietnamese tech firms are working to narrow the gap. Some have restructured business models to suit SMEs’ financial capabilities, shifting from annual subscription models to one-time, lower-cost investments.

Tanca, a pioneer in this space, has announced a program supporting 1,000 businesses with digital transformation for a one-time investment of VND2.8 million for lifetime use. The program offers an AI-integrated HR system and a platform with thousands of professional training courses.

Lan, owner of a garment business in Hanoi, said: “Tanca completely changed how we manage our team. With low cost, easy to use, and results exceeded expectations, my staff are now more dynamic than ever.” The initiative aims to democratize technology access, enabling SMEs to use tools previously reserved for large corporations.

In the booming digital economy, experts predict that SMEs adopting AI early will gain long-term competitive advantages, such as reducing operating costs by up to 20 percent and rapidly expanding markets through data analytics.

Thai Khang