Vietnamese SMEs are Looking for a Push Toward Digital Transformation

Vietnamese SMEs are Looking for a Push Toward Digital Transformation

According to the “APAC SMB Digital Maturity Index” (Index) released today by global technology company Cisco, small and medium-sized businesses (SMBs) in Vietnam are making initial technology investments in cloud, cybersecurity, and IT software and hardware upgrades as they begin their digital transformation journeys.

The Index was created by the global research firm IDC based on an independent survey of 1,340 people, and it examined the level of digital maturity of small and medium-sized businesses across four business dimensions: technology adoption and application; digital transformation strategy and organization; digital transformation processes and governance; and the ability to source, manage, and retain the right talent to enable their digital transformation.

Taking into account the four dimensions, the majority of ASEAN’s small and medium-sized enterprises (SMBs) fell into the “Digital Indifferent” category. The phase is characterized by a lack of initiative on the part of businesses with regards to their digital strategies, with the emphasis instead being placed on responding to shifts in the market. It’s no surprise that as small and medium-sized businesses in Vietnam become fully digital, Cloud is the primary technology they’re purchasing (18 per cent).

This is consistent with the regional trend toward adopting cloud computing, as this enables small and medium-sized businesses to develop swiftly as needed without requiring a substantial initial investment in IT equipment. Cybersecurity is one of the top three technologies being invested in by 12.7% of Vietnamese SMBs, indicating that security is a top priority in Vietnam’s ongoing digitalization.

To keep up with the demands of small and medium-sized businesses (SMBs) in Vietnam, it is essential to have a solid IT foundation in place. 10.7 percent of respondents work for a small or medium-sized business that is investing in IT software and hardware upgrades because they know how important it is.

“Small and medium-sized businesses in Vietnam are rapidly digitalizing, using technology to increase their revenue and their access to clients across borders. According to Luong Thi Le Thuy, managing director, Vietnam, Cisco, “SMBs will truly move Vietnam’s economy to the next stage of growth with the cooperation of the government and enterprises.”

When it comes to laying a solid digital groundwork in Vietnam, Cisco is involved on a number of fronts. One way in which the Cisco Networking Academy has helped Vietnam’s workforce adapt to the digital age is by providing training to approximately 36,000 students. When it comes to boosting digitalization in Vietnam, Thuy said, “we look forward to deepening our cooperation with the government and with SMBs.”

However, small and medium-sized businesses (SMBs) in Vietnam are also encountering resistance to going digital. There is a shortage of digital skills and talent (17%), a lack of a robust IT platform to support digital transformation (16.7%), and a lack of a digital mind-set or cultural problems in the organization (13%), according to respondents (15.7 per cent).

The study also found that digitalization efforts of Vietnam’s small and medium-sized enterprises (SMBs) are affected by government initiatives. Sixty-four percent of respondents report having benefited from government programmers designed to aid small and medium-sized enterprises. About 30% are aware of these initiatives but have not participated.

One of the major benefits of technology is that it allows small businesses to expand rapidly without making a sizable investment in IT infrastructure, as stated by Bidhan Roy, regional director and general manager of SMB Markets and Distribution, ASEAN, Cisco.

With more and more small and medium-sized enterprises going digital and putting their data and apps in the cloud, security becomes paramount. Small and medium-sized businesses (SMBs) will be able to compete more successfully against larger competitors and join the supply chains of giant multinational organizations if they have the proper cybersecurity procedure and IT infrastructure in place, as stated by Roy. Vietnam’s small and medium-sized businesses (SMBs) can benefit greatly from the advice offered by the Index, which includes things like making strategic investments using a digital transformation strategy and roadmap, and teaming up with a reliable, established company that knows its way around the SMB world.

More than 60% of SMBs in the Asia-Pacific region have begun digital transformation as a result of increased smartphone and internet use, as highlighted by the Index. These small and medium-sized businesses are capturing investment and finance opportunities while also transforming customer experience and expectations.

IDC’s Index is based on data collected from 1,340 small and medium-sized businesses in 14 countries across Asia and the Pacific. These countries include Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, the Philippines, Singapore, South Korea, Thailand, Taiwan, and Vietnam. Companies of all sizes were polled; sectors represented included banking, retail, manufacturing, construction, resources, government, and infrastructure.

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About the Author: Amanda Byers

Amanda Byers is a graduate of Columbia, where she played volleyball and annoyed a lot of professors. Now as Zobuz’s entertainment and Lifestyle Editor, she enjoys writing about delicious BBQ, outrageous style trends and all things Buzz worthy.