Digital transformation is both a need and an inevitable trend that will help SMEs develop (Photo: VNA)According to Vice Chairman of the People's Committee Nguyen Van Danh, there areover 57,000 enterprises in the province, of which SMEs account for more than 97%.
When the COVID-19 pandemic hit, over 90% of SMEs were severely affected as thetraditional market and production shrank.
SMEs need digital transformation tools to change the way they operate and dobusiness in the new environment.
The pandemic has created a labour shortage besides hitting demand, and after itpasses SMEs need to increase the use of digital technology to survive andfunction efficiently.
Digital transformation is the integration of digital technology into all areasof a business that results in fundamental changes to the way it operates.
This is the right time for SMEs to adopt technology in management and make thedigital transformation, and so it is essential to quickly have policies to helpthem overcome difficulties and resume operations, especially to make thetransformation, experts say.
Danh said to persuade firms to embrace digital transformation, the provinceadministration would create a legal framework to help them innovate and avoidpossible legal risks.
The experts say policies that encourage enterprises and create conditions forthem to adopt new technologies and digital transformation are needed,especially those that allow the testing of new products and technologies thatstill face legal obstacles.
The province needs to foster the development of large technology companies, raiseawareness in society about the benefits of digital transformation and digitaltechnologies and set basic standards for digital transformation to helpbusinesses mitigate the risks involved, they say.
It needs to invest in technology infrastructure that only it could and adoptpolicies to encourage and support creative start-ups and develop humanresources for digital transformation.
The US Agency for International Development (USAID) along with the Ministry ofPlanning and Investment and Binh Duong province is set to implement a programmecalled USAID Linkages for Small and Medium Enterprises to improve supply chainlinks for SMEs and the ability of business associations to support thedevelopment of SMEs.
It seeks to enable systematic changes in the business environment fromreforming institutions and simplifying administrative regulations andprocedures to reducing the cost of implementing administrative procedures toimprove the competitiveness of businesses, helping improve their ability tointegrate internationally including the global SME value chain.
While FDI in Vietnam had reached historic levels, the spillover benefits forthe domestic economy were affected by the limited supply chain linkages of VietnameseSMEs, according to USAID.
The programme aims to address this gap by strengthening the capabilities ofintermediary organisations in Vietnam, such as business associations, exportdevelopment centres and SME promotion agencies, to facilitate thesupplier-buyer relationships between Vietnamese SMEs and lead firms located in Vietnamand expand Vietnamese SMEs’ capacity to participate in manufacturing supplychains.
Binh Duong has 403 foreign-invested projects worth over 6.8 billion USD. /.
VNA
