Adapting to the new circumstances through digital conversion

Facing difficulties in sustaining their workforce, many enterprises have been adapting by applying technology in their production recovery efforts. Nevertheless, some are still to recognize the importance of technological implementation. According to Ms. Carolyn Tuck, World Bank Country Director for Vietnam, the rate of businesses operating on digital platforms is still lower than in other countries in the region. Vast potential is therefore waiting to be tapped.

With employee numbers lower than ever and labor costs rising, implementing digital platforms into production lines is inevitable. Thus, in various fields, advanced machinery has been playing a vital role in business operations, as productivity is improving and the cost of employment has been managed effectively. This leads to more and more enterprises investing in high-end technology, which not only boosts output but also enables greater competition with rivals.

After two years of Covid-19, digital conversion has become a crucial element all around the world, from public services to business and family activities. In Vietnam, where competition is coming from large domestic or international businesses, small and medium-sized enterprises (SMEs) and local businesses will face considerable obstacles without incorporating digital platforms into their core operations.

There is still space for development and for local enterprises to compete fairly with foreign rivals through technological conversion to boost their value chain. However, the importance of technology is still overlooked by many businesses. Furthermore, challenges continue to emerge, from a lack of information and support programs from the government to inadequate financial leverage. Businesses are in dire need of support from the government, not only for access to flagship technology but also for creating a technological background for the development of the economy.