Vietnamese businesses in technology race to keep their domestic market

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Milk production line of NutiFood Milk Joint Stock Company

Competitive pressure from technology

The reason, according to Mrs. Vu Kim Hanh, Chairman of Vietnam High Quality Enterprises Association, is due to imported goods from many countries, so enterprises have to reduce the list of goods and focus on main majors to compete. According to the survey results of the Vietnam High Quality Goods Association, the proportion of consumers who love and often buy Vietnamese goods is 89% and 93%. However, in addition to the high proportion of consumers who prefer Vietnamese goods, the proportion of customers who love and buy imported products has also continuously increased in the last three years. With this trend, it is possible that in the near future, the demand for goods procurement will continue to shift. That is, from "made in Vietnam" products to imported products, especially those from Japan, Korea, Thailand...

Based on the reality of competition in the market between domestic products and imported products, representatives of Vietnam High Quality Goods Association said that there is a fierce competition on technology. Enterprises want to have a foothold in the market or not by technology decision. Therefore, enterprises should consider to overcoming weaknesses, especially technology weaknesses because the import tax rate is 0%, foreign enterprises are in danger of winning with technology.

With the same point of view, Mr. Nguyen Lam Vien, Chairman of Vinamit Company, said that technology helps Japanese; Korean, Thai enterprises ... succeed. However, this is a weakness of Vietnamese enterprises. The period 2015 - 2025 is a period of technological change. The first is digital technology, artificial intelligence. Next is biotechnology, then technology materials, high technology. Besides, young consumers are demanding more utilities and want to serve more from the product. The old solutions are soon outdated, do not satisfy expectations, there is no novelty. So, digital is changing a lot. “If the business does not change, it means choosing the route of elimination from the market. The picture of businesses being eliminated is taking place from 30-50%,”Mr. Vien warned.

Efforts to apply technology

Facing the risk of lagging in the market, many businesses have strongly implemented investment plans on technology application. Typically, PNJ Company applies many different technologies in many fields. According to Mr. Le Tri Thong, General Director of PNJ, the company has used Data Analytics (data analysis) to analyze and optimize the inventory and the amount of goods on the way. Along with that, PNJ also applies computer vision technology in combination with artificial intelligence, turning security cameras into cameras that read customer behavior and sales staff behavior. Since then help us rearrange the shelves in the store, facilitate the flow of visitors, optimize staff use efficiency as well as rearranging shifts, crews ... Besides, we apply new interactive technologies to help customers experience better purchases with online and offline links.

Another example of technology application is Dien Quang Company. According to Mr. Ho Quynh Hung, Chairman of the Board of Directors and General Director of Dien Quang Company, in the period of 2018 to 2022, the company identified technology as the core factor. In the last 2 years, Dien Quang focused on developing technology solutions for consumers. In 7/2018, Dien Quang launched simultaneously 4 sets of technological solutions, including: DQ Home Solution - Smart House, which helps consumers control all household electrical appliances at all times. , everywhere according to the previous scenario; Apollo solution - intelligent lighting helps consumers control lighting devices up to more than 16 million colors; Home Care solution, connecting consumers with electricians and brands in the electricity industry, thereby placing consulting, design, construction and installation services, warranty for only 1 station and finally Like Check- Lighting consulting solution through App, mobile application. Thereby knowing whether the light is satisfactory or not, what needs to be added ... This key product group will provide comfort, safety and convenience for consumers.

Businesses not only operate in the industry, high technology and technology, but also help the activities of the agricultural sector become much more efficient. Mr. Pham Minh Thien, General Director of Co May Company - a company specializing in rice processing, said that the new technology is now a golden opportunity for businesses like Co May to feel about the ability to shorten the gap about level of development on the basis of new knowledge.

Specifically, Co May not only set up R&D lab to study the essence in bran used in seafood processing, establish a company of Automation (Automation), but Co May also has Co May Bach Hoa company specializing in ornamental flowers at Sa Đéc, specialized in local products business combined with automation technology and artificial intelligence. Another area which has been applied is the technology of counting fishes in ponds, using size and weight sensors that are swimming in the pond. Recently, May May Grass has put into operation a device "Automatic Fish Scales" at seafood processing company Imexco Co...

The effort in technology application of enterprises is remarkable, however, according to Mrs. Vu Kim Hanh, only large enterprises have applied modern technology. Most small domestic enterprises are struggling with this plan. The main reason is due to lack of investment capital. The support policy of the local government or the Government is still quite general. Meanwhile, many ASEAN region countries are making strong investments in digitalization and technology. Most ASEAN countries have strategies, practical training and support policies for small and medium enterprises, local enterprises in digitalization to improve competitiveness. Malaysia has a training program three years ago. Singapore has the Go digital program and is now the Digital Start with a special policy to support small businesses. Similarly, the Philippines and Indonesia have policies to support capital, management skills, especially digitization. Thailand has a policy to encourage the application of advanced technological innovations to small and medium enterprises at the locality...

With the situation of Vietnam, technology investment is not difficult for large enterprises, but for small businesses is a problem, because of large costs, very long practice time. Therefore, the Ministry of Science and Technology must be a bridge between domestic enterprises and international organizations to advise enterprises to select appropriate investments...