Digital transformation and the future of Vietnamese enterprises

Digital transformation has a failure rate of 70% but without digital transformation, failure is 100%.

Digital transformation and the future of Vietnamese enterprises

Performing digital transformation has probably been the most difficult decision for Mr. Nguyen Doan Thang, 77, and CEO of Rang Dong, a large joint stock company. Thang said if Rang Dong maintains the old model, its annual growth rate will be about 5-10% per year. Only with digital transformation can the company obtain a two-digit growth rate. In fact, Rang Dong has recorded a high growth rate thanks to digital transformation, with over 40% in the first quarter of 2021.

Nguyen Hoang Ngan, Vice Chairman and General Director of Binh Minh Plastic Joint Stock Company, said that the Covid-19 pandemic has negatively affected Vietnamese enterprises in general but it has helped accelerate digital transformation.

In his company, all activities related to customers have been conducted online and managed by software. Remote working is also popular among the company employees. Thanks to digital transformation, Binh Minh Plastics’ revenue increased by 8%, profit by 24%, and market share by 2% last year.

Overcoming fear

According to the United Nations Development Program (UNDP)’s survey of nearly 2,700 businesses related to digital transformation, up to 82% of them have taken their first steps in this field. Meanwhile, a survey by the Hanoi Association of Small and Medium Enterprises shows that about one-third of businesses are slow in digital transformation.

Digital transformation is not a road paved with roses. General Director of Rang Dong Nguyen Doan Thang said that the difficulty with digital transformation is incalculable. Meanwhile, the models of digital transformation are also very diverse so businesses have to struggle to find the right thing for them. If they choose the wrong one, the consequences will be dire.

"The first you need to overcome is the fear of failure," Thang said. Another difficulty is choosing between partial or full transformation. It is a decision that requires great determination, according to Thang.

Vu Anh Tu, FPT Technology Director, said that the priority of digital transformation of businesses during the pandemic is to ensure that employees are safe and business activities are not interrupted. To implement digital transformation, it takes great effort and determination from business leaders.
New digital race

Along with the trend of digital transformation among local businesses, the market for services in this field is thriving. There are many platforms for businesses to deploy applications within a month. The most important issue is the determination of businesses to find the right solutions.

Recently, the FPT Group announced its investment in Base.vn, synergizing the power to accelerate digital transformation for 800,000 businesses. FPT IS (FPS) has implemented a VND0 support package to assist businesses to operate digital transactions with solutions including e-invoices, e-contracts, data extraction, input invoice management and digital signatures.

Another local company, FastWork, has launched a digital transformation application, which focuses on in-depth technology solutions, solving specific problems for each business with the "all in one" model that will provide the comprehensive digital transformation. Meanwhile, NextPay of NextTech Group has introduced the Next360 digital transformation ecosystem for small, medium and micro enterprises.

From the perspective of a technology company, Nguyen Van Khoa, General Director of FPT, said that digital transformation applications would help businesses manage cash flow, and maintain communication with customers in the context of the Covid-19 epidemic.

Ms. Lam Thi Kieu Oanh, founder of TBC, said: "For small and medium-sized enterprises like us, the first thing we need to do is clarify the goals of the business. What is the management problem that we want to solve? The next is the human factor when using these platforms because they have to know what benefits the applications will bring to the employees."

During the Covid-19 pandemic, digital transformation is an effective way to help businesses increase their resistance to overcome immediate difficulties and develop sustainably and effectively. This is no longer an option but the only way for businesses to overcome difficulties in the current period.

Duy Khanh

 
Vietnam's growth potential lies in the digital economy

Vietnam's growth potential lies in the digital economy

The digital economy in Vietnam accounts for about 8.2% of GDP. The development potential of the Internet and digital economy components is still quite large. 

 
 

Other News

.
Highly contagious Delta variant lengthens outbreak in Vietnam
Highly contagious Delta variant lengthens outbreak in Vietnam
FEATUREicon  20/08/2021 

The Delta variant of the SARS-CoV-2 virus, with its rapid and strong spread in a very short time, has put huge pressure on the health system.

A midnight call from a pregnant woman, and return trips to hometowns
A midnight call from a pregnant woman, and return trips to hometowns
FEATUREicon  20/08/2021 

On the evening of August 15, Pham Thi Minh Hien, deputy director of the Phu Yen Department of Labor, War Invalids and Social Affairs, received a call for help from a young couple.

Joining forces with VietNamNet to stamp out the pandemic
Joining forces with VietNamNet to stamp out the pandemic
FEATUREicon  19/08/2021 

In order to make a contribution to the country’s fight against Covid-19, VietNamNet has launched the "Joining forces with VietNamNet to stamp out the pandemic" program.

After restructuring, banks gear up, ready for big deals
After restructuring, banks gear up, ready for big deals
FEATUREicon  19/08/2021 

After many years of undergoing restructuring, joint stock banks have expanded operation scale and profits.

Hanoi's anti-epidemic path
Hanoi's anti-epidemic path
FEATUREicon  18/08/2021 

Hanoi’s people and businesses will continue to live under social distancing because that is the "best way to live" with the virus when the vaccination rate is low to effectively contain the disease.

Ministry urges 'green' waterway passage for rice from Mekong Delta
Ministry urges 'green' waterway passage for rice from Mekong Delta
FEATUREicon  18/08/2021 

Most rice production and processing plants are located on riversides, and as a result, about 95 percent of rice produced in the Delta is carried by water.

The room that is always lit at field hospitals
The room that is always lit at field hospitals
FEATUREicon  19/08/2021 

At field hospitals, medical staff are not only constantly busy treating Covid-19 patients but are also overwhelmed with administrative papers.

Infrastructure ready for digital economy, society: Minister
Infrastructure ready for digital economy, society: Minister
FEATUREicon  18/08/2021 

Green and digital development is the main development trend in the first half of the 21st century.

Farmers face sharp drop in prices for fruit amid pandemic
Farmers face sharp drop in prices for fruit amid pandemic
FEATUREicon  20/08/2021 

Nearly all kinds of fruits, from custard apple to dragon fruit to durian, have seen prices plummet on low demand.

Online wholesale markets: solution for goods circulation
Online wholesale markets: solution for goods circulation
FEATUREicon  17/08/2021 

If there is a nationwide B2B wholesale trading floor for domestic agricultural products, the supply chain of agricultural products will not be disrupted, even in the time of an epidemic.

Unprecedented decisions made by of National Assembly, Government to fight Covid-19
Unprecedented decisions made by of National Assembly, Government to fight Covid-19
FEATUREicon  17/08/2021 

The urgent measures to fight the pandemic, if delayed even by one day only, could cause serious consequences, affecting people’s health and lives, Deputy Chair of the National Assembly’s Legal Committee Nguyen Phuong Thuy said.

How are Hanoians living during social distancing days?
How are Hanoians living during social distancing days?
FEATUREicon  18/08/2021 

Organizing birthday parties online, practicing exercise at home, and ordering food delivery are some of the ways Hanoians are adapting to new circumstances under social distancing.

Car sales drop, prices plummet
Car sales drop, prices plummet
FEATUREicon  17/08/2021 

Automobile manufacturers are facing sharp drop in sales and increased inventories as social distancing has been imposed in many cities and provinces, vehicle registration has been halted, and sale agents have had to close the doors.

Vietnam’s anti-corruption fight enters new stage
Vietnam’s anti-corruption fight enters new stage
FEATUREicon  14/08/2021 

However, fighting corruption is both an urgent and regular task throughout the development process. This is a non-stop struggle, demonstrating the bravery and determination of the Party and State against the vices of power.

Foreign music works are ‘Thach Sanh rice pot’ for Vietnamese singers
Foreign music works are ‘Thach Sanh rice pot’ for Vietnamese singers
FEATUREicon  16/08/2021 

Vietnamese singers may face copyright problems if they sing exclusive songs belonging to other singers, but it appears to be ‘safer’ when they sing international songs.

Foreign music works are ‘Thach Sanh rice pot’ for Vietnamese singers
Foreign music works are ‘Thach Sanh rice pot’ for Vietnamese singers
FEATUREicon  16/08/2021 

Vietnamese singers may face copyright problems if they sing exclusive songs belonging to other singers, but it appears to be ‘safer’ when they sing international songs.

Public administration learns to be cautious before making decisions
Public administration learns to be cautious before making decisions
FEATUREicon  15/08/2021 

The Hanoi People’s Committee has amended the regulation on travel permits during social distancing, and now people no longer have to get certification from ward or commune authorities.

Hanoi takes action to expand ‘green zones’
Hanoi takes action to expand ‘green zones’
FEATUREicon  14/08/2021 

Hanoi is determined to separate F0 cases from the community, thoroughly trace F1 (F0 contacts), localize and scale down ‘red zones’, and protect and expand ‘green zones’, gradually stopping the Covid-19 outbreak.

Doctors spend sleepless nights reassuring anxious people
Doctors spend sleepless nights reassuring anxious people
FEATUREicon  13/08/2021 

HCM City is experiencing extremely difficult days as the number of Covid-19 infections continues to remain steady day by day. 

Nationally shared digital platforms will create a unified Vietnam: Minister
Nationally shared digital platforms will create a unified Vietnam: Minister
FEATUREicon  14/08/2021 

This is the message the Minister of Information and Communications Nguyen Manh Hung conveyed when delivering a speech at a ceremony launching Telehealth, the platform that allows medical examinations to be conducted from a distance.

 
 
 
Leave your comment on an article

OR QUICK LOGIN