Digital transformation is a trend in the context of the Covid-19 epidemic that has impacted all aspects of the economy. The Ministry of Planning and Investment has found that many Vietnamese businesses, especially small and medium enterprises (SMEs), could not withstand the impact of the pandemic. However, many businesses have been able to transform their business models to survive and make a breakthrough.

According to Ms. Bui Thu Thuy, Deputy Director of the Enterprise Development Department (Ministry of Planning and Investment), Vietnamese businesses have many favorable conditions to conduct digital transformation, including the broadband subscription rate and the development of digital infrastructure.

However, Vietnam's digital transaction rate is still low compared to other Southeast Asian countries such as Thailand and Indonesia. Vietnam's online payment rate is also not high, about 10% of total transactions compared to 49% of Indonesia and 52% of Malaysia.

The benefits of digital transformation can be clearly seen as it has helped many businesses develop sales channels and expanded customer range.

The Ministry of Planning and Investment has also taken support measures to help businesses offer their products on Amazon. This is a channel that enables Vietnamese goods to reach the US and European markets.

Through a survey on the digital transformation situation of Vietnamese businesses, the Ministry of Planning and Investment has found that Vietnamese businesses still face barriers and difficulties. Up to 60% of enterprises said that the cost of investment and technology application is a challenge.

In addition, the challenge for the digital transformation process also comes from how to change business habits and practices and where to find human resources to support digital transformation.

According to Ms. Bui Thu Thuy, many businesses believe that digital transformation is simply spending money to buy technology.

"Technology is the last stage. It is important to standardize the process, and prepare human resources before deciding to apply a certain technology," she said.

On the positive side, Vietnamese businesses have great opportunities for digital transformation. Statistics show that there are major changes in customer spending habits and the shift of the global supply chain. The impact of the pandemic has also partly helped accelerate the digital transformation process.

The readiness of digital platforms in Vietnam is quite high. Currently, there are 64,000 digital technology enterprises in the country. This is a foundation to help provide services and a platform for Vietnamese businesses.

However, in addition to investment costs, the challenge for Vietnamese businesses in the digital transformation process also comes from the ability to access information and find experts to support that process. Data management capacity of Vietnamese enterprises is still low, while internal processes have not been standardized in small and medium enterprises.

In addition, the ability to connect to digital transformation solutions in the market and access capital is still relatively limited. Vietnam's digital ecosystem is not really fully developed. Along with risks related to information security and data security are also challenges of the business digital transformation process.

In 2022, the Ministry of Planning and Investment will strongly implement measures to support digital transformation of local businesses. Under this plan, businesses are divided into three groups: small-scale businesses, which have just started digital transformation; growing businesses; and businesses that have export activities through digital platforms.

Trong Dat

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