Dual push: Customers at a cafe along the Saigon River. In Vietnam, digital technology and digital transformation are expected to be a motivation to bolster its green economic transition and realise strategic targets on growth. — Bloomberg
HO CHI MINH CITY: Although the Ho Chi Minh (HCM) City government is investing in many preferential policies and incentives for digital transformation and green development, many small and medium enterprises (SMEs) are still confused about how to implement them.
According to the City Investment and Trade Promotion Centre (ITPC), digital transformation and green transformation, also known as “dual transformation”, has become an urgent requirement for businesses to achieve their goals and fulfill their social responsibilities.
The dual transformation could help the manufacturing sector come up with synchronised plans, attract more foreign investment and enter deeper into global production value chains.
These businesses are clearly aware of the benefits of digital transformation and green development.
However, their resources are insufficient and limited.
Nguyen Ngoc Hoa, chairman of the City Business Association, said that demand for order at enterprises in the City has shown positive signs.
Most enterprises have received orders from now until the end of this year.
Many enterprises even have orders until the end of the first quarter of 2025.
Another good sign is that commercial banks are now offering preferential loan packages with attractive interest rates, so capital is no longer a big problem. Currently, businesses are both maintaining production orders and planning to invest in digital transformation and green development.
Firms have understood the significance of digital transformation, with many proactively integrating digital transformation targets into their development strategy as well as mobilising necessary resources for digital transformation projects.
The twin green and digital transition trend is becoming increasingly important in the world, focusing on the three main pillars of increasing sustainable productivity and economic efficiency, strengthening resilience and adaptation to climate change and minimising or eliminating greenhouse gas emissions, experts said.
Many enterprises have embarked on digitising data, standardising process, accelerating the application of digital technology and moving towards more extensive and synchronised digital transformation.
However, many SMEs are still hesitant and confused about digital transformation and investing in green production.
Firms face challenges in achieving transformations in terms of database establishment, data analysis, usage and security, human resources, having transformation support systems, and importantly, finding the right solutions for their businesses, experts said.
According to businesses, although the order situation has shown positive signs, due to price competition with other countries, profit margins remain the same or are even lower.
Meanwhile, investing in digital transformation and green manufacturing requires a lot of resources and capital.
“Green transformation and digital transformation are putting a lot of pressure, especially on most small and medium enterprises.
“Enterprises are confused because they do not know where to start with green transformation and digital transformation, because if they do everything at once, their resources will not be enough,” Hoa said.
In Vietnam, digital technology and digital transformation are expected to be a motivation to bolster green economic transition and realise strategic targets on green growth.
Despite having adequate awareness and knowledge about digital transformation, Vietnamese businesses often find it difficult to independently carry out this comprehensive change process.
Therefore, it is necessary to have policies, support programmes and consultations for businesses about the digital transformation roadmap, as well as assistance in applying appropriate digital transformation solutions, thus helping them make breakthroughs in the coming time, according to experts.
According to the report of the City Statistics Office, the business environment in the city has not changed positively as the number of newly established enterprises in the first 10 months of 2024 decreased by 1.2% and capital decreased by 16.8% over the same period.
The number of enterprises participating in the market increased by 2.4% but the number of enterprises withdrawing from the market increased by 6.5% over the same period. — Viet Nam News/ANN
