Ministry points out challenges in applying digital technology
Workers using equipment inside a plant of ITM Semiconductor Việt Nam Co. in the VSIP Industrial Park in Bắc Ninh. VNA/VNS Photo Thái Hùng
The COVID-19 pandemic has boosted enterprises to change models, shifting business activities to digital platforms to find more markets, cut costs and improve operational efficiency.
Digital transformation has taken place in recent years as a natural need to meet changes in consumer behaviour and management demand.
Many businesses have applied software solutions in sales management, online marketing, distribution channel management, business administration, and creating new products and services.
However enterprises still struggle during the process for many reasons, even if they are well prepared.
A recent survey of 1,300 enterprises conducted by the Enterprises Development Agency showed that the biggest challenge was the large investment capital needed for carrying out the process.
Accordingly, up to 60.1 per cent of respondents said that the biggest barrier they faced when applying digital technology was application costs. This is partly due to the impact of the COVID-19 pandemic, causing falling revenues and lack of capital, which affect funds for investment, implementation and solutions for digital transformation.
Another big challenge was difficulties in changing business habits and practices, affecting 52.3 per cent of participants.
The transformation leads to changes in habits and ways of working, but not all employees are willing to adapt to the new norms. Some businesses said that they had applied software, but employees do not use it, or only partially used it, making enterprises fail to achieve digital transformation goals.
The report also pointed out that the lack of internal human resources to apply digital technology was another difficulty, affecting 52.3 per cent of enterprises.
In the past year, awareness of businesses on digital transformation has improved a lot, as many businesses have the intention and need for it.
However, “when businesses start carrying out the transformation plan, they lack staff with experience, knowledge and skills to implement digital transformation projects for their businesses,” the report said.
The fourth biggest challenge for businesses in the process of transforming is a lack of digital infrastructure, while short of information on digital technology and difficulty in integrating digital technology solutions are other obstacles.
On the other hand, not many enterprises were concerned over securities issues like personal and business data leakage.
The difficulties are somewhat different between micro-enterprises, small-sized enterprises, medium-sized enterprises, and large-scale enterprises, the report noted.
At the moment, Việt Nam has about 870,000 enterprises in operation, with more than 97 per cent of enterprises being small- and medium-sized.
In general, the biggest challenge of micro- and small-sized enterprises with limited financial potential is capital for investment and technology application.
Meanwhile medium- and large-sized enterprises that have better financial conditions are struggling in changing business habits and practices.
This is partly because medium- and large- enterprises have more complex apparatus and procedures than micro- and small-sized enterprises, so it is more difficult to adapt to changes.
The report also showed that 39.5 per cent of the enterprises approach digital transformation knowledge to apply and improve their production and management activities, while more than 22 per cent said that they just wanted to study and research the process. — VNS
Related News
![How to diversify the supply chain?](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/072024/05/15/croped/4-4e0ec527db9a78c4218b202406271009052024062716352020240705155825.jpg?240708095145)
How to diversify the supply chain?
09:51 | 08/07/2024 Import-Export
![“Opportune environment” for growth of insurance enterprises](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/042024/26/10/croped/14-z5201627263796-937a69a104c2231d700c103716b16d3c202404110942432024041118473720240426101739.jpg?240503101541)
“Opportune environment” for growth of insurance enterprises
10:15 | 03/05/2024 Finance
![Digitizing documents posted at Da Nang Port Border Gate Customs Branch](https://english.haiquanonline.com.vn/stores/news_dataimages/2023/102023/30/15/croped/qr2023102713505120231030155346.jpg?231101103224)
Digitizing documents posted at Da Nang Port Border Gate Customs Branch
10:32 | 01/11/2023 Customs
![OCOP Market – “Launching site” to help Vietnamese agricultural products fly high](https://english.haiquanonline.com.vn/stores/news_dataimages/2023/092023/18/14/croped/95058509b63c63623a2d-22023091014494520230918145608.jpg?230919095646)
OCOP Market – “Launching site” to help Vietnamese agricultural products fly high
09:56 | 19/09/2023 Import-Export
Latest News
![Memorial service for Party General Secretary Nguyễn Phú Trọng](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/072024/26/15/07202426140706-casket20240726150022.6922290.jpg?rt=20240726150406?240726030531)
Memorial service for Party General Secretary Nguyễn Phú Trọng
15:05 | 26/07/2024 Headlines
![Leaders, people bid last farewell to General Secretary Nguyen Phu Trong](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/072024/25/13/croped/screenshot-2024-07-25-114547-399120240725135826.7244170.jpg?240725015851)
Leaders, people bid last farewell to General Secretary Nguyen Phu Trong
13:58 | 25/07/2024 Headlines
![State funeral held for Party General Secretary Nguyen Phu Trong](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/072024/25/14/croped/state-funeral-held-for-party-general-secretary-nguyen-phu-trong-1-800520240725140013.7976120.jpg?240725020054)
State funeral held for Party General Secretary Nguyen Phu Trong
09:00 | 25/07/2024 Headlines
![(INFOGRAPHICS) Party leader develops diplomacy imbued with "Vietnamese bamboo" characteristics](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/072024/24/13/croped/tbt20240724135842.jpg?240724020014)
(INFOGRAPHICS) Party leader develops diplomacy imbued with "Vietnamese bamboo" characteristics
14:00 | 24/07/2024 Headlines
More News
![Prime Minister](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/072024/23/15/croped/anh-ct-712024072209195820240723151002.jpg?240724091811)
Prime Minister's telegram promoting growth, controlling inflation, and stabilizing the macroeconomy in July and the third quarter of 2024
09:18 | 24/07/2024 Headlines
![Gov’t unveils action plan to accelerate industrialisation](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/072024/23/14/croped/hcm-144420240723143123.4882920.jpg?240723023146)
Gov’t unveils action plan to accelerate industrialisation
14:31 | 23/07/2024 Headlines
![Ho Chi Minh City enterprises overcoming difficulties](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/072024/15/16/142024070910274820240715163152.jpg?rt=20240715163155?240723082455)
Ho Chi Minh City enterprises overcoming difficulties
08:24 | 23/07/2024 Headlines
![PM asks for all efforts to ensure sufficient supply of electricity, petroleum products](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/072024/22/14/croped/363185-petrol20240722143133.3479450.jpg?240722023201)
PM asks for all efforts to ensure sufficient supply of electricity, petroleum products
14:31 | 22/07/2024 Headlines
![Ministries asked to review and revise policies on infrastructure development](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/072024/22/14/croped/362555-screen20shot202024-07-1820at2013313520240722142614.6139270.png?240722022731)
Ministries asked to review and revise policies on infrastructure development
14:27 | 22/07/2024 Headlines
![Vietnam](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/072024/22/09/croped/3-ong-nguyen-anh-duong-truong-ban-nghien-cuu-tong-hop-vien-nghien-cuu-quan-ly-kinh-te-trung-uong-ciem-kich-ban-kinh-te202407151102582024071517223620240722095118.jpg?240722100823)
Vietnam's GDP in 2024 could achieve nearly 7% growth
10:08 | 22/07/2024 Headlines
![Foreign diplomats hail late Party chief’s role in Vietnam’s modern history](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/072024/21/19/croped/party-general-secretary-nguyen-phu-trong-visits-cuba-in-2012-411220240721193440.0137290.jpg?240721073532)
Foreign diplomats hail late Party chief’s role in Vietnam’s modern history
19:35 | 21/07/2024 Headlines
![Highest determination to remove IUU "yellow card".](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/072024/19/16/17-449005821-438292439105506-1900049865909254375-n202407101621112024071211045320240719162813.jpg?rt=20240719162816?240720065016)
Highest determination to remove IUU "yellow card".
18:50 | 20/07/2024 Headlines
![Party General Secretary Nguyen Phu Trong passes away](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/072024/20/18/croped/party-general-secretary-nguyen-phu-trong-8-811220240720184221.2451090.jpg?240720064311)
Party General Secretary Nguyen Phu Trong passes away
18:43 | 20/07/2024 Headlines
Your care
![Memorial service for Party General Secretary Nguyễn Phú Trọng](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/072024/26/15/medium/07202426140706-casket20240726150022.6922290.jpg?rt=20240726150406?240726030531)
Memorial service for Party General Secretary Nguyễn Phú Trọng
15:05 | 26/07/2024 Headlines
![Leaders, people bid last farewell to General Secretary Nguyen Phu Trong](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/072024/25/13/croped/medium/screenshot-2024-07-25-114547-399120240725135826.7244170.jpg?240725015851)
Leaders, people bid last farewell to General Secretary Nguyen Phu Trong
13:58 | 25/07/2024 Headlines
![State funeral held for Party General Secretary Nguyen Phu Trong](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/072024/25/14/croped/medium/state-funeral-held-for-party-general-secretary-nguyen-phu-trong-1-800520240725140013.7976120.jpg?240725020054)
State funeral held for Party General Secretary Nguyen Phu Trong
09:00 | 25/07/2024 Headlines
![(INFOGRAPHICS) Party leader develops diplomacy imbued with "Vietnamese bamboo" characteristics](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/072024/24/13/croped/medium/tbt20240724135842.jpg?240724020014)
(INFOGRAPHICS) Party leader develops diplomacy imbued with "Vietnamese bamboo" characteristics
14:00 | 24/07/2024 Headlines
![Prime Minister](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/072024/23/15/croped/medium/anh-ct-712024072209195820240723151002.jpg?240724091811)
Prime Minister's telegram promoting growth, controlling inflation, and stabilizing the macroeconomy in July and the third quarter of 2024
09:18 | 24/07/2024 Headlines