Vietnamese businesses in technology race to keep their domestic market

VCN- According to information from the Vietnam Business Association  of high quality Vietnamese goods, the spirit of market penetration of Vietnamese enterprises has recently decreased. The most obvious is that businesses are "clustering" distribution areas.
tin nhap 20190308102619 CPTPP to cause dramatic changes in domestic market in 2019
tin nhap 20190308102619 Improvement of food safety standards is a key for exports of agricultural products
tin nhap 20190308102619 Fishery enterprises expand the domestic market
tin nhap 20190308102619
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...

Mr. Do Duy Hieu, CEO of Vietnam Pomina Steel Company:

As a heavy industry enterprise, technology investment in machinery and equipment has a huge and long-term impact on the future of the business. Pomina has equipped steel refining and rolling mills with world-advanced production lines (EAF Consteel) with a high degree of automation, clean steel production and automatic elimination of good response errors to meet most rigorous quality standards of Vietnamese and international standards.

At the same time, Pomina also very soon applied technology in management: Being the first enterprise to invest and bring SAP-ERP system into operation in 2008. Scientific management by computing has helped operating processes internally is transparent and timely innovation. More than 10 years of investing in technology, Pomina has constantly improved on human management technology, data management and data system exploitation effectively.

By Nguyen Hue / Bui Diep

Related News

Complying with regulations of each market for smooth fruit and vegetable exports

Complying with regulations of each market for smooth fruit and vegetable exports

VCN - According to Mr. Dang Phuc Nguyen (photo), General Secretary of the Vietnam Fruit and Vegetable Association (Vinafruit), with the development momentum and increasing consumption demand from the Chinese market, the Vietnamese fruit and vegetable industry is setting new records and is expected to reach an export turnover of US $10 billion by 2030. With great potential and advantages in developing agricultural products, Vietnam has been affirming its position as one of the world's leading agricultural exporters.
Request for price management and stabilization, avoiding unusual fluctuations during Tet 2025

Request for price management and stabilization, avoiding unusual fluctuations during Tet 2025

VCN - Minister of Finance Nguyen Van Thang has just signed and issued Directive No. 05/CT-BTC on strengthening the price management, operation and stabilization during the Lunar New Year 2025.
Six export commodity groups see billion-dollar growth

Six export commodity groups see billion-dollar growth

From the beginning of the year to December 15, there were six key export commodity groups with an increase in turnover of US$1 billion or more, according to the latest statistics of the General Department of Customs.
Automobile localization: rapid development from internal strength

Automobile localization: rapid development from internal strength

VCN - Enjoying many investment incentives for many years, FDI enterprises have failed to fulfill their commitments on the localization rate in automobile production. It was thought that Vietnam would not have an automobile manufacturing industry, depending on imports and stopping at assembly. However, in a short time, with their internal strength, determination and mettle, domestic enterprises have initially affirmed their role and position in the automobile market, with strong development in both quantity and quality.

Latest News

Việt Nam tightens fruit inspections after warning from China

Việt Nam tightens fruit inspections after warning from China

The Plant Protection Department has urged local authorities and relevant agencies to strengthen the inspection and monitoring of durian cultivation areas and export packing facilities following a warning from China.
Brand building key to elevate Vietnamese fruit and vegetable sector: experts

Brand building key to elevate Vietnamese fruit and vegetable sector: experts

Trade promotion, product introduction and brand promotion also need to be innovated to attract customers effectively.
Freight transport via China-Việt Nam cross-border trains posts rapid growth

Freight transport via China-Việt Nam cross-border trains posts rapid growth

The Nanning branch of China Railway Group Limited reported a sharp increase in freight transport on the China-Việt Nam cross-border railway last year, with trains departing from Guangxi carrying a total of 19,670 containers, marking a staggering annual increase of 1,153 per cent.
Vietnamese retail industry expects bright future ahead

Vietnamese retail industry expects bright future ahead

With a young and dynamic population, rising incomes and increasing urbanisation, the sector is emerging as one of the most promising engines for economic expansion in the coming years.

More News

Fruit and vegetable industry aims for $10 billion in exports by 2030

Fruit and vegetable industry aims for $10 billion in exports by 2030

Based on impressive export results in recent years, Việt Nam’s fruit and vegetable industry has set a target of achieving US$10 billion in export value by 2030, according to the Việt Nam Fruit and Vegetables Association.
GDP grows by over 7 per cent, exceeds target for 2024

GDP grows by over 7 per cent, exceeds target for 2024

The growth rate is relatively impressive for the 2011-24 period, only lower than the rates of 2018, 2019 and 2022.
Vietnamese pepper: decline in volume, surge in value

Vietnamese pepper: decline in volume, surge in value

In December 2024, Việt Nam exported 15,265 tonnes of pepper of all types, including 12,771 tonnes of black pepper and 2,494 tonnes of white pepper, generating a total turnover of $100.6 million.
Việt Nam maintains position as RoK’s third largest trading partner

Việt Nam maintains position as RoK’s third largest trading partner

Việt Nam continued solidifying its position as the Republic of Korea (RoK)’s third-largest trading partner in 2024, trailing only China and the US, marking the third consecutive year of the significant trade relationship.
Greater efforts to be made for stronger cooperation with European-American market

Greater efforts to be made for stronger cooperation with European-American market

The European-American Market Department (MoIT) will monitor regional developments and explore opportunities to strengthen Việt Nam’s economic and trade ties.
Leather, footwear industry aims to gain export growth of 10% in 2025

Leather, footwear industry aims to gain export growth of 10% in 2025

The footwear sector will still focus on exporting to available and easy-access markets such as Africa and Asia to increase revenue.
Grasping the green transformation trend - A survival opportunity for Vietnamese Enterprises

Grasping the green transformation trend - A survival opportunity for Vietnamese Enterprises

VCN - Green transformation not only helps enterprises minimize the risk of being eliminated from important export markets, but also creates opportunities to build sustainable brands, enhance product value and reach high-end customer segments globally.
Việt Nam to complete database of five domestic manufacturing industries in 2026

Việt Nam to complete database of five domestic manufacturing industries in 2026

The project to build a comprehensive database of domestic industries aims to enhance the capacity and efficiency of trade remedy investigations. It also serves as a strategic tool to protect domestic production.
Logistics firms optimistic about growth prospects in 2025: Survey

Logistics firms optimistic about growth prospects in 2025: Survey

The logistics industry’s business community has expressed optimism about growth prospects in 2025, with nearly 42 per cent of companies surveyed by Vietnam Report JSC affirming that their business outlook will be more positive.
Read More

Your care

Latest Most read
Việt Nam tightens fruit inspections after warning from China

Việt Nam tightens fruit inspections after warning from China

The Plant Protection Department has urged local authorities and relevant agencies to strengthen the inspection and monitoring of durian cultivation areas and export packing facilities following a warning from China.
Brand building key to elevate Vietnamese fruit and vegetable sector: experts

Brand building key to elevate Vietnamese fruit and vegetable sector: experts

Trade promotion, product introduction and brand promotion also need to be innovated to attract customers effectively.
Freight transport via China-Việt Nam cross-border trains posts rapid growth

Freight transport via China-Việt Nam cross-border trains posts rapid growth

The Nanning branch of China Railway Group Limited reported a sharp increase in freight transport on the China-Việt Nam cross-border railway last year, with trains departing from Guangxi carrying a total of 19,670 containers, marking a staggering annual increase of 1,153 per cent.
Vietnamese retail industry expects bright future ahead

Vietnamese retail industry expects bright future ahead

With a young and dynamic population, rising incomes and increasing urbanisation, the sector is emerging as one of the most promising engines for economic expansion in the coming years.
Complying with regulations of each market for smooth fruit and vegetable exports

Complying with regulations of each market for smooth fruit and vegetable exports

VCN - According to Mr. Dang Phuc Nguyen (photo), General Secretary of the Vietnam Fruit and Vegetable Association (Vinafruit), with the development momentum and increasing consumption demand from the Chinese market, the Vietnamese fruit and vegetable indu
Mobile Version