Digital transformation in enterpries: Indispensable solution

By Ngo Duc Hanh|03/01/2023 14:58

In Vietnam, digital transformation in enterprises has been generally understood as the progress of changing traditional models to digital enterprises by applying new technology as Artificial Intelligence (AI), Big Data, IoT and Cloud Computing. They will change ways of management, working progress and enterprises’ culture.

Digital transformation is an inevitable trend. If properly understood, it will be an impact for people to change their working mind sets and then, they find ways to apply them into each specific activity. It also has great impacts on culture and working environment as well.


This is really the process of strategic change of an enterprise in general and the logistics sector in particular. Therefore, it is not simply using a successful method or a successful model, but there should be a planned implementation process with clear goals.

We have gone through the time when businesses operated with pens and notebooks, gradually using computers, the Internet and digital transformation is a similar transition. This is the development process that will become an indispensable part of an enterprise in the transformation of the whole world. The benefits of digital transformation are: improving business efficiency; improving work productivity; improving the quality of products and services; increasing revenue and profit.

Digital transformation has become a familiar concept for many enterprises so far. Especially after 2 years of the Covid-19 pandemic, digital transformation is a need and a survival solution to maintain and develop.

In Vietnam, there is a clear difference between the reality of digital transformation as well as the expectation of the effectiveness of digital transformation between large enterprises and small- medium sized ones. In which, large-scale enterprises convert quickly and have more confidence in digital transformation.


Currently, in Vietnam, small and medium-sized enterprises (SMEs) still account for about 97% of the number of enterprises, but they are the group that has the most difficulty in digital transformation. Although there have been awareness about the need for digital transformation, however, due to limited production capacity and low level of automation, it is difficult for them to apply digital transformation. Therefore, there should be a number of solutions for enterprises to develop in Industry 4.0:

Digital transformation requires high-quality human resources to be able to master new technologies and serve the implementation of digital transformation, and that is also something that SMEs have to face. On a national level, each year Vietnam lacks about 90,000 human resources to develop the digital economy and digital society while domestic IT training programs have not yet met the demands.

Employees are the most valuable resource of an enterprise. Human resource development strategy must be a part of the enterprise’s long-term development strategy. In particular, first of all, it is necessary to have solutions to improve the quality of existing human resources of enterprises, especially key staff and experts through training activities, updating knowledge, equipping necessary skills; being proficient in professional and professional capacity; having foreign language skills, first of all English; being proficient in information technology, computers... to improve labor productivity; attaching importance to recruitment work, having strategies to supplement high-quality human resources for enterprises.

Investment in digital transformation is an investment to change, from awareness, strategy, human resources, infrastructure to key technology solutions, so this is a work that requires large capital investment. However, it will have to make a large investment in finance and human resources, while the efficiency is uncertain as well as the risk of failure, thereby creating a big barrier for Vietnam’s enterprises.


SMEs have been facing barriers in digital transformation such as lack of digital skills and human resources (17%), lack of strong enough IT platform to enable digital transformation digital (16.7%), lack of digital thinking or digital culture challenges in business (15.7%)... Nevertheless, Vietnam’s SMEs are making initial investments into Cloud Computing technology (18%), network security (12.7%), upgrading software and hardware for digital transformation (10.7%).

Digital transformation at each enterprise will have a great impact on the business strategy and operation form of it, so it will be a big change for the entire enterprise, which puts pressure on the leaders in these companies.

A survey showed that 85% of people holding key decision-making roles in enterprises said they only had 2 years to master digital transformation. Therefore, reality forces leaders to have timely awareness and take early action for digital transformation in their enterprises.

The successful experience of the world’s businesses shows that a research and development department in an enterprise is very important, no matter what field it operates in, from consumption to production. Enterprises all appreciate the task of research and development to come up with new innovations, products and improvements to best serve market needs.

With the innovative spirit of enterprises today, comprehensive digitization is an indispensable solution for them, especially with the Government’s digital transformation policy in recent years, they need to both mentally and financially prepared, creating a solid foundation for the future digital transformation.

Logistics enterprise leaders and managers need to improve their digital transformation expertise to make right decisions of investment and changing for their enterprises.

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Digital transformation in enterpries: Indispensable solution