The Vietnamese government will continue to cooperate with the US Agency for International Development (USAID) to support at least 100,000 enterprises in digital transformation process by 2025.

The cooperation will be conducted under the “Linkages for Small and Medium Enterprises” (USAID LinkSME) project financed by the US government.

Digital transformation to help Vietnamese firms ensure growth in a Covid-19 world. Photo: An Hieu.

Vice Minister of Planning and Investment Tran Duy Dong made the statement in a workshop discussing opportunities and challenges for SMEs in digital transformation held on January 21 in Ho Chi Minh City.

In addition to this target, 100% of enterprises will have better understandings on digital transformation, said Mr. Dong.

“The program aims to set up a network of experts that will provide solutions and consultations for enterprises to expand their operations in digital platforms,” stated Mr. Dong.

Digitalization expert Nguyen Viet Long from the LinkSME noted few local enterprises have been embarking on the digitalization process.

“In some cases, only top leaders are responsible for such process, so the lack of involvement from others make the task impossible,” Mr. Long stated.

Mr. Long also pointed to other issues, including high investment cost, limited IT infrastructure system and skilled workforce.

As nearly 90% of local enterprises are of small and medium size with limitation in financial capabilities, corporate governance and technologies, enterprises may not opt for digital transformation which would need considerable resources at the beginning, he continued.

Vice General Director of Misa Company Ho Duc Hung said it requires determination and drastic measures for successful digital transformation.

“This process must come from the actual needs of enterprises and a long-term vision for development,” Mr. Hung suggested.

On this issue, Mr. Long from LinkSME urged local firms to speed up the digital transformation to grasp new opportunities for growth.

“Customer behavior is changing fast given the current circumstance, while technologies are supportive for enterprises moving their operation online,” Mr. Long asserted.

“In a Covid-19 world, digital transformation l wilensure growth for enterprises, helping them to further integrate into global value and production chain,” he continued.

Nevertheless, Mr. Long warned digitalization is not a “magic wand”, but requires efforts and objectives of each enterprises.

“From the top leader to every staff, all have to be on the same wavelength in pursuing the digitalization process,” he stressed.