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Vietnam Supplies Support Packages to Promote Digitalisation in Firms

Image credit: Vietnam Plus

The Ministry of Planning and Investment and the USAID-funded Linkages for Small and Medium Enterprises (LinkSME) project have announced a support package to help enterprises promote digital transformation. The support package is provided as a part of the project’s programme to assist businesses in digital transformation for the 2021-2025 period, according to a news report.

The support aims to help at least 100 businesses successfully conduct their digital transformation process by 2025. It aims to enhance Vietnamese businesses’ awareness of digital transformation and set up an expert network comprising 100 organisations and individuals. This network will provide consultancy and solutions related to digitalising operations. It will aid the development of digital platforms. The firms will receive support from the Ministry of Planning and Investment and USAID LinkSME in connecting with leading companies in domestic and foreign supply chains. They will have better opportunities to join global supply chains.

In the first phase spanning from August to December this year, the programme will send independent and experienced experts to 15 enterprises to support them in building suitable strategies and roadmaps for digital transformation. Eligible companies should have at least five-year operations in one of the prioritised sectors such as mechanical engineering, electronics, agriculture and agricultural product processing, wood processing, furniture production, garment and textiles, pharmaceuticals, and packaging. They must have their own orientations in digital transformation and restructuring.

Enterprises that engage in supply chains related to export activities or those that are owned or run by women will be prioritised. Do Hoang Hai, a digital transformation expert of the programme said that it may take several years to transform a company depending fully digitally on its scale and level of readiness. Costs for the work may amount to millions of Vietnamese Dong for a medium-sized enterprise, he added. Hai advised businesses to design clear strategies and detailed roadmaps in the work while preparing for difficulties and challenges during the process.

According to the General Statistic Office, in the first six months of 2021, total retail sales of goods and services went up 4.9% compared to the same period in 2020 to VND 2,463.8 trillion (over US$ 107 billion), of which goods retail revenue went up 6.2%. As OpenGov Asia had reported, the results could be attributed to the fact that the people, household businesses, and firms have actively applied technological solutions in trading and payment. This means digital transformation has played an important role in promoting the growth of the retail sector in particular and maintaining stability for the business community in general.

The application of new technology such as the Internet of Things (IoT), big data, artificial intelligence, and machine learning have allowed businesses to provide customer services with unique and valuable experiences, optimising management strategies as well as supply chains, hence improving revenue.

In a global survey of 800 business executives, respondents in the retail industry said that improving customer experience was the top factor driving their digital transformation in the past time (49% compared to the survey average of 36%). This showed that the COVID-19 pandemic has made digital transformation more important than ever, especially for the retail industry. The survey also showed that retailers that deploy online shopping channels and have a deep understanding of customers managed to better survive the impacts of the pandemic.


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