Vietnam Academy Of Social Sciences

Seminar “Vietnamese enterprises stand on the threshold of digital transformation”

25/07/2019

On July 18th, the Vietnam Economic Institute held a seminar in Hanoi titled “Vietnamese enterprises stand on the threshold of digital transformation” with the sponsorship of PetroVietnam Gas Joint Stock Corporation (PV Gas). The seminar aims to help enterprises capture opportunities and overcome barriers in the process of participating in the digital economy.

Assoc.Prof.Dr. Bui Quang Tuan, Director of Vietnam Institute of Economics spoke at the seminar

In the opening speech, Assoc.Prof.Dr. Bui Quang Tuan, Director of Vietnam Institute of Economics, said that digital transformation creates ground-breaking innovations in production and interaction with all stakeholders for enterprises. The trend of digital transformation has become objective as a rule in the market where no enterprise can stand outside.

According to the World Bank report, by 2019 the number of internet users was 4.3 billion, accounting for 57% of the global population, and 5.1 billion mobile phone users, accounting for 67% of the population. Of which, 42% of the population use social networks on mobile devices. This was an objective trend, also a large data warehouse that has set the stage for digital transformation, creating an opportunity to grow for enterprises.

As a result, the digital transformation will help enterprises grow faster in business. Assoc.Prof.Dr. Tran Dinh Thien, an economic expert, former Director of the Vietnam Institute of Economics, commented that in the past 3-4 years, the spirit of entering the Fourth Industrial Revolution (IR 4.0) was very high. Currently, there are nearly 700,000 private enterprises in operation. The number of innovative startups has more than doubled from 1,800 in 2016 to around 4,000 in 2018. The goal of achieving one million businesses by 2020 is less important than ensuring that enterprises grow up and become the main driving force for the country's economic development. However, this trend faces many difficulties and obstacles because of the deficiencies in institutions, policies, infrastructure and human resources of the enterprises themselves.

Concurrent view with Mr. Tran Dinh Thien, Dr. Nguyen Manh Hai, Central Institute for Economic Management, said that in order to effective implementation the digital transformation in Vietnamese enterprises, the government needs to have mechanisms and policies to help enterprises reduce risks in economic activities. At the same time, improve the capability to understand and use digital economic services, the law for users; ensuring safety in labour and payment of digital contracts.

Prof. Ho Tu Bao presented the presentation at the Conference
Prof. Ho Tu Bao from the Institute of Advanced Studies in Mathematics also said that digital transformation was vital; thus, enterprises needed to change in both perception and action: “We need to understand, learn more about digital transformation; every enterprise, every organization had to rethink how they operated, towards new technology business models with strong insight and will; because digital transformation is a long journey with countless challenges of many small transition steps. Enterprises are forced to adapt to digital transformation because it is an objective fact, and also an indispensable development stage of the production process and life.

Recommendations for small and medium enterprises about opportunities and challenges of digital transformation, Ms Nguyen Thi Bich Huong - Deputy Editor-in-Chief of Vietnam Enterprise Digital Journal shared: “Nowadays, the number of people using social networking sites is very large, leading to marketing, advertising and sales services through digital marketing channels with high efficiency. Enterprises, if do not optimal management by new applications, don't convert technology to develop artificial intelligence applications for automatic transmission lines, don't use chatbox to take care of customers, build automated sales system, don't do branding on the internet, don't research and organize effective online marketing methods… will most certainly lose its customers.

Thus, it can be seen that, in the current context, the requirement for private enterprises is to have careful preparation and must start from infrastructure to information technology applications that are suitable for conditions of the company. Besides, focusing on digitizing significant production and business activities,  creating a connected, secure and safe environment. At the same time, it is essential to recognize the vital role of technological innovation in improving productivity, quality of goods and services as well as the ability of enterprises.

Assoc. Prof.Dr. Bui Quang Tuan (left) and Assoc.Prof.Dr. Tran Dinh Thien (right) co-chaired the seminar
The seminar's opinions believe that taking advantage of opportunities and overcoming challenges in the revolutionary era 4.0 and digital transformation is a difficult transition with no small conversion costs, but there is a determination that Vietnam will not be able to miss the golden opportunity that the "Industrial Revolution 4.0 and digital transformation" ship brings. Obstacles related to institutions, policies, infrastructure, human resources and deficiencies of enterprises themselves, Vietnam can absolutely find ways to overcome, reduce, which requires enterprises, government and the state needs to "devote" synchronously, drastically; not only in awareness but also in strategy formulation; especially, in action to successful implementation of the digital transformation process to create momentum for sustainable development of Vietnamese enterprises stand on the current impact of The Fourth Industrial Revolution 4.0.

Pham Vinh Ha



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