VietNamNet Bridge – A Vietnam Chamber of Commerce and Industry’s (VCCI) survey has found that only 46 percent of enterprises use email in their work, more than 50 percent of enterprises do not use software in human resource, wage and sales management, and only 20 percent of enterprises have their own websites.

 


At the workshop on utilizing information technology (IT) to improve the competitiveness of small and medium enterprises (SMEs) held several days ago, Le Van Loi, Director of the Business Informatics Institute under VCCI said that by the end of October 2010, 520,000 enterprises had registered their business. This included 120,000 enterprises in HCM City, 90,000 in Hanoi and 17,000 in Hai Phong, accounting for 95 percent of the total enterprises in Vietnam.

 

VCCI, referring to the IT application index announced in 2010, has found out that only 46 percent of enterprises use email in their work, while more than 50 percent of enterprises say they do not have the demand for using software for labor force and wage management, and they do not need to use software for sales management. About 20 percent of enterprises have websites, but the websites have been used only to introduce images, products and services of the companies. Most of the enterprises remain unassertive in e-commerce because they do not think that it is now the right time to make transactions online.

 

Loi said that one of the biggest problems of SMEs which have hindered the application of IT in their works is the weak financial and labor force capabilities. In many other cases, managers of enterprises do not have necessary awareness about the need to utilize IT.

 

Agreeing with Loi, Christine Zhenwei Qiang, a senior official of the World Bank in Vietnam, said most SMEs in developing countries like Vietnam have been very slow in utilizing IT in their work. They have been mostly using telephones, fax machines or using simple software to communicate. Many owners of small enterprises are not familiar with using computers, and believe that IT is something which is only reserved for big companies, while their small businesses can be run in a traditional method.

 

However, the expert from the World Bank has also pointed out that SMEs still cannot access IT applications partially because of the unsuitable way of approaching clients by IT solution providers. In general, IT solution providers believe that they can only seek clients from big enterprises. Therefore, they only have been targeting big enterprises, which are believed to be affordable complicated IT solutions. Meanwhile, they have not been focusing on developing products that fit SMEs.

 

She said that the most popular way for the government to encourage SMEs to utilize IT in their works is through workshops and training courses.  The government should emphasize the benefits enterprises can obtain when utilizing IT so that businesses’ managers can define overall development strategies for their companies. Besides, IT solution providers should also pay close attention to SMEs – the very potential clients – when marketing their products. The service providers should launch promotion campaigns in order to encourage SMEs to familiarize themselves with using IT. Once SMEs utilize IT, the solution providers will have a wide range of clients who can bring profits to them.

 

“Enterprises should consider IT system a part of the infrastructure. They need to choose suitable application models for computers, office software, Internet connection or set up websites to popularize their brands. In the near future, they need to think of applying IT at higher levels, such us using customer service administration software, e-certificates, or establishing online retail websites,” Loi from VCCI said. “Besides, in order to ensure continued operations, enterprises also should use the applications that ensure information security”.

 

Meanwhile, Vietnam has made a big leap in the path towards the establishment of an e-government. The Prime Minister in late 2010 released a decision approving the national program on utilizing IT in the operation of state agencies in the period of 2011-2015. The decision affirms that pushing up the IT development is a big policy of the Communist Party and the State, a very important factor in the process of building up an e-government in Vietnam.

 

The three biggest goals of the program are 1/ building up and perfecting the information infrastructure to create a foundation for the development of the e-government 2/ utilizing IT widely in the operation of state management agencies and 3/ providing information and public services online to people and businesses.

 

Tuyet Ngan