Buzz
Changing familiar operational and management practices always poses challenges. However, to survive and thrive with the general trend, businesses must overcome this period. Let's explore the obstacles that businesses face when undergoing transformation with Vntrip.
1. Challenges on the digital transformation path of enterprises
Challenges in awareness on the digital transformation path of enterprises
The majority of manufacturing businesses lack significant experience in technology application and utilization. Therefore, understanding the importance of change and its impact on business operations is relatively challenging. Such businesses often hesitate about whether to implement changes or not.
Not all businesses can grasp the importance of digital transformation (DT)
Even when aware of the inevitable trend of digital transformation, successfully executing it poses another headache. Businesses are uncertain about the return on technology investment, have limited technological capacity internally, face financial constraints, and encounter legal obstacles. According to a survey by the World Bank, over 75% of small and medium-sized enterprises and 63% of large enterprises in Vietnam are unclear about the return on technology investment and whether it meets their needs. Less than 60% of small and medium-sized enterprises stated that they lack information about existing technologies and skills to use them. These enterprises also indicate limited access to foreign financial sources.
For instance, e-commerce platforms in Vietnam based on domestic digital platforms (Sendo, Tiki) have lower competitiveness compared to regional counterparts (Lazada, Shopee) due to limited access to foreign investment.
Market challenges and solutions on the digital transformation journey of businesses
Vietnam has yet to establish agencies or organizations acting as independent channels to objectively evaluate the pros and cons of technological solutions, thereby helping businesses have sufficient information to make appropriate choices and refine their solutions.
Additionally, limited financial resources for digital transformation also discourage businesses. According to a survey by the Vietnam Chamber of Commerce and Industry (VCCI) in 2020, up to 55.6% of surveyed businesses cited technology adoption costs as the biggest constraint.
Challenges due to rigid digital transformation structures
The government has reinforced the National Committee for Digital Transformation according to Decision No. 1619/QD-TTg dated September 24, 2021. Similar committees have also been established at the provincial level, with the Chairman of the People's Committee of the province heading the committee. However, in terms of implementation, major tasks in the conversion program are scattered, posing many challenges in coordination and policy implementation. Additionally, government support remains limited for digital enterprises or enterprises looking to invest in digital tools. Support from the public sector is still focused on research and development activities rather than technology upgrades and technology commercialization.
Challenges due to the lack of a conducive environment in the digital transformation process of enterprises
The digital economy environment in Vietnam is still modest. Apart from the broadband internet subscriber density index, other indices are very limited. Specifically: there are no focal technology directions, representing Vietnam's brand through large research and investment projects; digital technology enterprises in Vietnam currently have low investment in science and technology development for innovation compared to international enterprises. The information technology and telecommunications industry has achieved only 15% localization rate. Compared to other countries, the localization rate of Japanese enterprises operating in Vietnam was 33.2% in 2017 and 36.3% in 2018 (while China was 68%, Thailand was 57%).
2. Leading digital transformation consulting and service providers
Businesses unable to navigate their digital transformation or unsure where to start and how to implement it can hire third parties for consulting and service procurement. Typical providers of digital transformation services include FPT Digital, Vntrip, FSI, and others.
For more specific information, refer to the article: Leading digital transformation consulting and service providers today
Above are some challenges on the path of digital transformation for enterprises and some companies providing digital transformation solutions. Digital transformation is a trend that not only businesses but also our country must strive to implement to meet the world's development needs.
>>> Related articles:
- Exemplary companies that have successfully undergone digital transformation
- National digital transformations
