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Ho Chi Minh City has launched a plan to support small and medium-sized enterprises (SMEs) in their digital transformation journey, aiming to create a new growth engine while boosting socio-economic development. The initiative was announced at a conference held in Phu Nhuan district on September 13, 2024, organised by the city’s Department of Information and Communications and the district administration.
The event, titled “Implementing the Digital Transformation Support Programme and the Pilot Programme for Surveying, Measuring, and Assessing the Current Status and Readiness for E-commerce and Digital Transformation of Enterprises, Household Businesses, Wholesale, and Retail Stores in Phu Nhuan district”, marked the beginning of a focused effort to transform the digital landscape for local businesses.
Tran Minh Tuan, Director of the Ministry of Information and Communications’ Department of Digital Economy and Digital, highlighted that Vietnam’s e-commerce retail market grew by 16-25% between 2018 and 2023, making it the third-largest in Southeast Asia, following Malaysia and the Philippines. However, the country’s e-commerce penetration in total retail sales is still low, at just 8%, compared to the global average of 19.4% and significantly lower than countries like China (43%), the UK (35%), and the US (26%). This indicates significant room for growth, especially through digital transformation initiatives.
Despite the opportunities, Tuan noted challenges, including the dominance of foreign companies in the e-commerce sector. To address these, the Ministry of Information and Communications has approved a programme designed to assist retailers in embracing digital technologies, with Phu Nhuan district chosen as the pilot location.
Over the next month, a comprehensive survey will be conducted to assess the digital transformation readiness of 2,000 wholesale and retail businesses in Phu Nhuan. The survey aims to identify their specific needs, challenges, and barriers to adopting digital solutions. This assessment will help connect businesses with technology solution providers and offer tailored support to facilitate their digital transformation.
Deputy Minister of Information and Communications Pham Duc Long emphasised the importance of supporting Vietnam’s retail sector in its digital transformation efforts. He pointed out that the country has over 1.4 million grocery stores and 9,000 traditional markets, with the wholesale and retail sector contributing 9.83% to the nation’s GDP in 2023. Given the sector’s pivotal role in driving economic development and job creation, it is essential to help these businesses adopt digital technologies to remain competitive.
Do Dang Ai, Vice Chairman of the Phu Nhuan People’s Committee, highlighted the benefits of the programme for local businesses, particularly the small and micro enterprises that comprise 95% of the district’s businesses. He acknowledged the challenges they face in going digital but expressed optimism that the programme would create favourable conditions for these enterprises to embrace digital transformation.
Lam Dinh Thang, Director of the Department of Information and Communications for Ho Chi Minh City, stated that the survey data collected during the pilot programme would inform the city’s broader strategy for digital economic development. The city aims to increase the digital economy’s contribution to 22% of its overall economy by 2024 and 40% by 2030.
Ho Chi Minh City has identified digital technology as a key driver of economic growth and is prioritising sectors like education, healthcare, tourism, and social security in its digital transformation agenda. The government plans to offer financial support, consultancy, and digital transformation solutions to businesses, cooperatives, and household enterprises that meet the necessary criteria, ensuring that all enterprises can benefit from these advancements.
Through these initiatives, the city aims to foster a more digitally integrated and competitive business environment, positioning itself as a leader in digital transformation across various sectors.
