Digital transformation challenges many Vietnamese firms

08:22 | 16/09/2020 Science - Technology

The resurgence of the Covid-19 pandemic once again shows that digital transformation in business operations is of great importance in order to respond promptly to crises and minimize external impacts.

Digital transformation is an inevitable requirement for businesses

On August 20, 2020, the Hanoi Association of Small and Medium Enterprises (HANOISME) collaborated with the MISA Joint Stock Company to organize a webinar on digital transformation in corporate governance. The event took place amid the Covid-19 resurgence and its complicated developments.

Mac Quoc Anh, Secretary General cum Vice President of HANOISME, said the goal of the national digital transformation program is to increase the total number of digital transformation enterprises from 50,000 to 100,000 within the next five years. “Digital transformation is the only way for businesses to develop and compete sustainably with the most economical costs,” said Mac Quoc Anh.

Founded in 1994, MISA provides accounting, financial, enterprise resource planning and business management software to enterprises, government and individuals across Vietnam. The company serves more than 70,000 government sector clients and 100,000 small and medium-sized enterprise (SME) clients across the country and has over 1,500 employees.

Nguyen Xuan Phu, Vice Chairman of HANOISME and Chair of the Board of Directors of Sunhouse, said it is essential for a business to embrace digital transformation if it plans to operate on a large, widespread scale because only digital tools can help managers operate departments and branches in a synchronous manner. In the digital age, people use cellphones for an average of 8-10 hours a day, requiring businesses to create data links on different platforms to assert dominance for sustainable development.

Obstacles to digitization

According to a report by the market research company International Data Corporation (IDC) on the importance of digital transformation, 90 percent of businesses are interested in digital transformation, with 30 percent rating it as a critical issue. However, not all businesses understand correctly and apply digital transformation to their own scale or field of business.

Dinh Thi Thuy, General Director of MISA said that despite recognizing the importance of digital transformation, many barriers hamper such progress. Small and medium-sized enterprises find it difficult to deploy complex solutions due to their limited budgets and untrained staff. Large enterprises also find foreign solutions too cumbersome and expensive yielding a low success rate (25-30 percent) or they have to use different solutions provided by many suppliers, which undermine synchronous implementation and linkage among departments.

Board Chair of MGLAND Vietnam, Nguyen Huu Kieu, said that the enterprise has applied technology in accounting from the outset due to specific complex business requirements and data. Subsequently, MGLAND applied technology to all other parts of the business through the corporate governance platform MISA AMIS to create data connections between sales, accounting and human resources.

Data compiled by the Business Registration Management Agency (under the Ministry of Planning and Investment) show that in the first seven months of this year, nearly 63,500 enterprises have withdrawn from the market, up nearly 11 percent over the same period last year, reflecting the negative impact of the Covid-19 pandemic.

Nguyen Hanh