To enable small and medium enterprises (SMEs) in the food processing and distribution industry to digitalise effectively, a handbook on digital transformation was unveiled recently at a press conference in Hanoi.
The handbook was developed and released by the Enterprise Development Agency under the Ministry of Plans and Investment (MPI), in collaboration with the Centre for Digital Transformation and Agricultural Statistics under the Ministry of Agriculture and Rural Development, and the US Agency for International Development (USAID). It will assist enterprises in their digital transformation efforts from 2021 to 2025.
The handbook offers SMEs an overview and guidelines on how to implement digital technology in the sector. It proposes an effective roadmap to apply technology at different levels, which aligns with production and business objectives, considering the resources available to the enterprises.
It also provides technical solutions that are effectively applied to different stages in the value chain of firms based on the characteristics of the food processing and distribution sectors. Based on the potential of the business, technological solutions can be implemented either sequentially or concurrently. Two such solutions are multi-channel sales solutions and traceability. By implementing multi-channel sales solutions, businesses can expand their sales reach and tap into various channels to increase income and establish stronger connections within the supply chain. Implementing traceability solutions allows businesses to enhance transparency and accountability, which can build trust among stakeholders.
Furthermore, when formulating a digital transformation plan, businesses should consider factors like complying with state regulations and export market standards, market expansion and customer attraction, and cost optimisation.
Experts have said that SMEs must undergo digital transformation to enhance their production and management efficiency. This is particularly crucial considering the role played by the food processing and distribution sectors in connecting input and output sources of the supply chain.
According to the General Statistics Office of Vietnam, the country’s food processing industry is driving overall industrial growth, and the Index of Industrial Production (IPP) has been growing consistently at an average rate of 7% per year from 2016 to 2020.
From 2023-2028, the global processed food market is projected to experience a compound growth rate of 3.8%. This growth trend is anticipated to extend to the Vietnamese market as well, as the government recognises it as a priority industry for development. The aim is to increase the output and export value of domestic agricultural products and processed foods. Applying new technology is a crucial strategic plan to strengthen the food processing sector’s position and increase competitive advantages over other markets.
While launching the handbook, Nguyen Duc Trung, Deputy Director of the Department of Business Development, emphasised the significance of innovation and digital transformation in the current digital era. As the digital economy and the Fourth Industrial Revolution are rapidly advancing, adopting innovative practices and undergoing digital transformations is essential for generating fresh momentum and value for the nation’s economic growth and enhancing competitiveness among businesses.
Trung underscored the need for digital transformation, especially in the aftermath of the COVID-19 pandemic. He noted that the impacts of the pandemic significantly altered people’s behaviours and society, necessitating organisations, individuals, and businesses to swiftly adapt and adjust accordingly.
Amid the present business environment, enterprises that carry out digital transformation can capitalise on the heightened opportunities available. For SMEs, it is crucial to identify pivotal aspects within the digital transformation process that can generate value for products within a closed chain.
