Businesses need to stay persistent on their digital transformation journey
Digital transformation has become an irreversible trend for Vietnamese enterprises amid increasing competition and global integration. The adoption of digital technologies enables businesses to innovate their operating models, optimize costs, enhance efficiency, and strengthen adaptability in a rapidly changing market.
Most Vietnamese Enterprises Still in the Early Stages of Digitalization
According to Mr. Nguyen Tan Minh, Deputy CEO of GMO-Z.com RUNSYSTEM, although awareness of digital transformation has significantly improved among Vietnamese businesses, most enterprises remain in the initial stage, focusing mainly on digitizing documents and internal processes.
The “Vietnam Business Digital Transformation Report 2022” revealed that nearly 49% of enterprises that once adopted digital solutions have since discontinued them due to poor compatibility, while only 2.2% have successfully mastered technology and data analytics. This situation highlights a lack of strategic vision, clear roadmaps, and adequate resources, preventing many businesses from fully leveraging the benefits of digital transformation.
Why Many Businesses Give Up Midway
According to Mr. Nguyen Kim Hung, Acting Director of the Vietnam Institute of Business Management and Digital Economy and Mr. Tran Tuam Anh, Southern Regional Director of Digital Transformation Consulting at Base.vn, many small and medium-sized enterprises (SMEs) face challenges due to limited understanding, weak strategic direction, and resource constraints. Implementing new technologies sometimes makes operations more complex and increases costs, leading to skepticism about effectiveness. Additionally, internal misalignment, unrealistic expectations, and mismatched solutions often cause businesses to abandon their digital initiatives halfway.
Persistence and Strategy – The Keys to Successful Transformation
Experts emphasize that digital transformation is a long-term journey requiring a strong vision and unwavering commitment from business leaders. According to Mr. Nguyen Tan Minh, companies must establish a clear strategy and implementation roadmap, ensuring technology adoption happens continuously and aligns with each stage of business growth. With careful preparation and sustained determination, digital transformation will not only remain a trend but also become a driving force for growth and sustainable competitiveness among Vietnamese enterprises.
The article was published in the Vietnam Economic Review, Issue No. 17-2023, released on April 24, 2023. You can read the full version here.
