Ministry points out challenges in applying digital technology

Even though enterprises are well prepared, they still struggle with the process of digital transformation

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

Source: VNA
vietnamnews.vn

Related News

How to diversify the supply chain?

How to diversify the supply chain?

VCN - International experience showed that many domestic enterprises supplying products to multinational corporations has been an important factor enabling countries and territories to rise in the value chain.
“Opportune environment” for growth of insurance enterprises

“Opportune environment” for growth of insurance enterprises

VCN - According to the Ministry of Finance, in the first quarter of 2024, total assets of insurance enterprises are estimated to reach VND 934.8 trillion, an increase of 11%; Investment back into the economy is estimated at VND 7,776.5 trillion, an increase of 8.7%. These are positive numbers for insurance enterprises to expect positive business results for the whole year 2024.
Digitizing documents posted at Da Nang Port Border Gate Customs Branch

Digitizing documents posted at Da Nang Port Border Gate Customs Branch

VCN - Da Nang Port Border Gate Customs Branch is implementing digital transformation applications in communication, posting and disclosure activities of documents by using QR Code scanning.
OCOP Market – “Launching site” to help Vietnamese agricultural products fly high

OCOP Market – “Launching site” to help Vietnamese agricultural products fly high

VCN - Only the livestream “OCOP Market - Dong Thap - Land of the Red Lotus” attracted more than 24 million visits, 563,000 livestream viewers, bringing in more than VND 556 million in revenue. The products promoted in the livestream came from 12 typical subjects with nearly 35 specialty agricultural products of all kinds such as Linh fish sauce, dried fruit, rice vermicelli... This model is considered as extended arm help local specialties including agricultural products, reach consumers across the country, opening up new opportunities to access international markets and increase revenue.

Latest News

Memorial service for Party General Secretary Nguyễn Phú Trọng

Memorial service for Party General Secretary Nguyễn Phú Trọng

The memorial service for General Secretary of the Central Committee of the Communist Party of Việt Nam Nguyễn Phú Trọng was held at the National Funeral Hall, No. 5 Trần Thánh Tông Street, Hà Nội at 1 pm on Friday.
Leaders, people bid last farewell to General Secretary Nguyen Phu Trong

Leaders, people bid last farewell to General Secretary Nguyen Phu Trong

Since the early morning of July 25, large numbers of leaders and people from all walks of life have paid their last respects to Party General Secretary Nguyen Phu Trong at the National Funeral Hall in Hanoi, the Thong Nhat Hall in Ho Chi Minh City, and in his hometown in Dong Hoi commune of Hanoi’s Dong Anh district, showing their great grief over the passing of the Party leader.
State funeral held for Party General Secretary Nguyen Phu Trong

State funeral held for Party General Secretary Nguyen Phu Trong

A respect-paying ceremony in the national mourning etiquette was solemnly held for General Secretary of the Communist Party of Vietnam (CPV) Central Committee Nguyen Phu Trong at the National Funeral Hall in Hanoi, the Thong Nhat Hall in Ho Chi Minh City, and his hometown in Dong Hoi commune of Hanoi’s Dong Anh district on July 25.
(INFOGRAPHICS) Party leader develops diplomacy imbued with "Vietnamese bamboo" characteristics

(INFOGRAPHICS) Party leader develops diplomacy imbued with "Vietnamese bamboo" characteristics

Vietnam bamboo diplomacy, Party General Secretary Nguyen Phu Trong, Vietnamplus, Vietnam News Agency

More News

Prime Minister

Prime Minister's telegram promoting growth, controlling inflation, and stabilizing the macroeconomy in July and the third quarter of 2024

VCN - Prime Minister Pham Minh Chinh has just signed and issued Official Dispatch No. 71/CD-TTg dated July 21, 2024 on key tasks and solutions to promote growth, control inflation, and stabilize the macro economy in July and the third quarter of 2024.
Gov’t unveils action plan to accelerate industrialisation

Gov’t unveils action plan to accelerate industrialisation

The Vietnamese Government has outlined a comprehensive action plan to continue fasttracking the country's industrialisation and modernisation by 2030, with a long-term vision extending to 2045.
Ho Chi Minh City enterprises overcoming difficulties

Ho Chi Minh City enterprises overcoming difficulties

VCN - The economy of HCM City has gradually moved through the first half of 2024 with many positive signs. Business activities are stabilizing and recovering, with export orders in sectors such as wood, textiles, food, and beverages surging.
PM asks for all efforts to ensure sufficient supply of electricity, petroleum products

PM asks for all efforts to ensure sufficient supply of electricity, petroleum products

Prime Minister Phạm Minh Chính asked relevant agencies and authorities to ensure sufficient supply of electricity and petroleum products in all situations.
Ministries asked to review and revise policies on infrastructure development

Ministries asked to review and revise policies on infrastructure development

A plan outlines key tasks and solutions to develop a modern and synchronous infrastructure system with focus, priority on key areas, and advanced steps ahead.
Vietnam

Vietnam's GDP in 2024 could achieve nearly 7% growth

VCN - According to Nguyen Anh Duong, Head of the General Research Department at the Central Institute for Economic Management (CIEM), Vietnam achieved significant socio-economic results in the first half of the year. Based on these outcomes, CIEM has developed two macroeconomic forecast scenarios for 2024.
Foreign diplomats hail late Party chief’s role in Vietnam’s modern history

Foreign diplomats hail late Party chief’s role in Vietnam’s modern history

Party General Secretary Nguyen Phu Trong holds an enormous role in the development and achievements of Vietnam, in terms of both domestic and external affairs, said foreign diplomats who used to work in the country.
Highest determination to remove IUU "yellow card".

Highest determination to remove IUU "yellow card".

VCN - The 5th inspection of the European Commission (EC) is expected in October 2024, which is the decisive time for Vietnam to remove the "Yellow Card" warning in 2024. This is considered an important and urgent and important task because the EU is in the top 5 largest export markets of Vietnamese seafood, after the US and China.
Party General Secretary Nguyen Phu Trong passes away

Party General Secretary Nguyen Phu Trong passes away

General Secretary of the Communist Party of Vietnam Central Committee Nguyen Phu Trong passed away on July 19 afternoon at the age of 80, according to the board of health protection and care for central officials.
Read More

Your care

Latest Most read
Memorial service for Party General Secretary Nguyễn Phú Trọng

Memorial service for Party General Secretary Nguyễn Phú Trọng

The memorial service for General Secretary of the Central Committee of the Communist Party of Việt Nam Nguyễn Phú Trọng was held at the National Funeral Hall, No. 5 Trần Thánh Tông Street, Hà Nội at 1 pm on Friday.
Leaders, people bid last farewell to General Secretary Nguyen Phu Trong

Leaders, people bid last farewell to General Secretary Nguyen Phu Trong

Since the early morning of July 25, large numbers of leaders and people from all walks of life have paid their last respects to Party General Secretary Nguyen Phu Trong at the National Funeral Hall in Hanoi, the Thong Nhat Hall in Ho Chi Minh City, and in his hometown in Dong Hoi commune of Hanoi’s Dong Anh district, showing their great grief over the passing of the Party leader.
State funeral held for Party General Secretary Nguyen Phu Trong

State funeral held for Party General Secretary Nguyen Phu Trong

A respect-paying ceremony in the national mourning etiquette was solemnly held for General Secretary of the Communist Party of Vietnam (CPV) Central Committee Nguyen Phu Trong at the National Funeral Hall in Hanoi, the Thong Nhat Hall in Ho Chi Minh City, and his hometown in Dong Hoi commune of Hanoi’s Dong Anh district on July 25.
(INFOGRAPHICS) Party leader develops diplomacy imbued with "Vietnamese bamboo" characteristics

(INFOGRAPHICS) Party leader develops diplomacy imbued with "Vietnamese bamboo" characteristics

Vietnam bamboo diplomacy, Party General Secretary Nguyen Phu Trong, Vietnamplus, Vietnam News Agency
Prime Minister

Prime Minister's telegram promoting growth, controlling inflation, and stabilizing the macroeconomy in July and the third quarter of 2024

Prime Minister Pham Minh Chinh has just signed and issued Official Dispatch No. 71/CD-TTg dated July 21, 2024 on key tasks and solutions to promote growth, control inflation, and stabilize the macro economy in July and the third quarter of 2024.
Mobile Version