Dual transformation boosts business competitiveness

Many businesses are ready to participate in digital transformation and green transformation. Photo: provided by business

Major Benefits

According to experts, the current trend involves not just digital transformation but also green transformation. "Dual transformation" revolves around three main pillars: sustainably increasing productivity and economic efficiency, enhancing resilience and adaptability to climate change, and reducing or eliminating greenhouse gas emissions.

Tran Phu Lu, Director of the HCMC Trade and Investment Promotion Center, emphasized that global issues like climate change and declining environmental resources have created significant challenges for businesses in Vietnam and worldwide. These challenges have strongly motivated businesses to shift towards sustainable business models. In this context, Vietnamese businesses risk losing their competitiveness and becoming more vulnerable if they do not keep pace.

In fact, some companies have already recognized the importance of this trend and are ready to undertake "dual transformation" to achieve sustainable development and enhance market competitiveness. Pham Hoai Anh, Commercial Director of 1C Vietnam, stated that digital transformation served as a means to realize green transformation goals. Digital transformation offers numerous benefits to business operations, helping to increase efficiency, reduce costs, enhance product competitiveness, and introduce new business models.

Nguyen Duc Thuan, Chairman of TBS Group and Chairman of the Vietnam Leather, Footwear, and Handbag Association, asserted that green transformation for sustainable development was not just a general trend but a mandatory requirement for the business community. Companies cannot stay out of the Industry 4.0 revolution, which involves applying automated production lines, artificial intelligence (AI), and green development, if they do not want to be excluded from the global supply chain.

From the perspective of a business in mechanical machinery and equipment manufacturing, Tran Hoai Nam, vice president of the HCM City Association of Mechanical - Electrical Enterprises (HAMEE), confirmed that transitioning to green production and increasing digital technology application were key to enhancing the competitiveness and status of Vietnamese export goods.

Sharing his thoughts, Tran Quy Cuong, Director of IGB Automotive Vietnam Co., Ltd (Binh Duong), mentioned that the company was implementing two major programs in line with the inevitable trend toward net zero and greening production. The first is an efficient energy handbook aimed at achieving machine performance indices above 90%. The second is an energy improvement program to find projects that reduce energy consumption, with the goal of reducing total electricity consumption by at least 3% (index for two consecutive years is 12%). The company aims to use renewable energy and recycle over 90% of its waste by 2030.

Supportive policies needed

At a recent conference on the "dual transformation" trend, Nguyen Duc Trung, Deputy Director of the Business Development Department, Ministry of Planning and Investment, stated that digital transformation, innovation, technology transfer, and application have been identified as top priorities by the Party and the Government. These are crucial for driving growth, sustainable development, and enhancing national competitiveness, with the goal of the digital economy contributing 20% of GDP by 2025 and 30% by 2030.

Businesses have shown a marked shift in awareness of the necessity of digital transformation. Many have moved into the stage of data digitization, process standardization, digital technology application, and towards comprehensive digital transformation. However, domestic businesses, especially SMEs, are facing numerous challenges in achieving digital transformation, green growth, and sustainable development goals. Therefore, extensive support policies and programs are needed to help businesses overcome these challenges.

Nguyen Xuan Tho, a senior advisor at Digiwin Software, highlighted that Vietnam's digital economy has seen positive results, with growth reaching 22.4%, equivalent to 18.4% of GDP by June 2024. Retail sales grew by 80% compared to 2023, and the number of digital technology companies increased by 8%.

However, Vietnam's efforts in digital transformation and digital economy promotion still face many limitations and challenges, including a digital divide, capital access issues, intellectual property challenges, and legal and digital ecosystem shortcomings. Solutions are needed to address these barriers to help businesses accelerate digital transformation, contribute to the national digital economy, and promote growth, Tho emphasized.