Vietnam makes digital transformation leap

Accelerated digitalization

According to a Microsoft study conducted in the Asia-Pacific region, 98 percent of innovative enterprises believe innovation is the key to quick response to market challenges and opportunities, and 56 percent of CEOs of large enterprises confirm that digital transformation helps increase revenues. In general, companies that conducted successful digital transformation yielded 23 percent higher profits than those that did not.

The banking industry conducted fast digital transformation to adapt to the pandemic

For large-scale enterprises this means a unified management system through mobile applications, helping customers integrate and manage information when using different services, whether paying electricity bills, shopping or buying leisure services.

According to Nguyen Hoang Ngan, General Director of the Binh Minh Plastic Joint Stock Company, the only positive outcome of the COVID-19 pandemic was acceleration of the digital transformation process. Businesses were forced into rapid digitalization if only so that employees could work from home or conduct online meetings.

Other studies show that startups using digital technology have increased revenues by 34 percent. The obvious benefit of digital transformation is that it saves having to store paper records and thus warehousing and rental costs. Data digitization combined with effective security tools can also enhance storage safety.

According to the Vietnam Banks Association, COVID-19 has accelerated digital transformation awareness of this industry by three to five years, creating a leap for digital payments. The latest State Bank of Vietnam data show that the volume and value of non-cash payment transactions grew strongly during the pandemic, especially those conducted via mobile phones.

Overcoming barriers

Digital transformation has helped many businesses reap its first fruits amid the pandemic, but it needs to be associated with changing mindsets and production and business methods to ensure sustainable development.

According to Phuong Tram, FPT head consultant on digital transformation, businesses need to prepare for this process in terms of leadership, organizational and technological readiness.

According to Dinh Thi Thuy, General Director of the MISA Company that specializes in deploying digital technology applications at enterprises, the biggest barrier in switching to digital transformation lies in the awareness, the will and determination of business leaders.

Tran Van Vien, Co-Founder and Southern Regional Director at Base.vn, which currently provides management software for nearly 5,000 businesses, believes digital transformation should originate from the internal needs of the businesses instead of external pressure.

Enterprises, especially small and medium-sized ones, must first clarify their goals and management problems, after which they can decide on the appropriate platform to use. The human factor is also crucial when putting the platform into use in order to understand the benefits of its application. At the national level, digital transformation is a shift to digital government, digital economy and national digital society.

The pandemic gave the process a significant push, but to sustain it requires a joint effort by businesses, government and society.