Covid-19 urges businesses to accelerate digital transformation

"Covid-19 has had a negative impact on local business, urging firms to accelerate digital transformation," Vu Tien Loc, chairman of the Vietnam Chamber of Commerce and Industry (VCCI), said at 2020 Vietnam Business Summit on Nov. 12.

Themed "Digitized Vietnam: Toward Resilient Responsive and Sustainable Development," the forum focused on science and technology innovation, human resources transformation in the digital age, and business opportunities for Vietnam.

Loc emphasized digital transformation would especially help Vietnamese small and medium-sized enterprises (SMEs) adopt more flexible business models to reduce costs and optimize resources to overcome challenges in the post-pandemic era.

The perception of digital transformation among Vietnamese enterprises increased as larger firms took to it before the Covid-19 outbreak, according to Digital Transformation Report by VCCI in cooperation with Japan External Trade Organization (JETRO).

The report surveyed more than 400 enterprises in Vietnam. However, it highlighted digital technology applied solely to management, logistics and marketing, with the most important stage - manufacturing - absent.

According to the report, major barriers to digital transformation include the high cost of application, insufficient infrastructure, fears of data leakage and insufficient expertise.

Loc stressed the need to create a modern ecosystem for e-commerce and the digital economy.