Digital transformation vital to business recovery

Digital transformation will play a vital part in helping businesses recover after the COVID-19 pandemic, according to experts.

The digital transformation is an irreversible trend, according to Nguyen Phu Tien, Deputy Director of the Ministry of Information and Communications. He added that this transformation will help to reconstruct markets in the new normal. His comments were part of a seminar held by the Vietnam Chamber of Commerce and Industry (VCCI) in Hanoi on October 15.

The Prime Minister was encouraging this digital transformation, including digital government, digital economy and digital society, he said. This change would not only be limited to large enterprises; in fact, smaller enterprises perhaps would have the most to gain.

Tien said that raising awareness was the most important part of the digital transformation. Enterprise leaders must realise that this would be an unstoppable trend, and react appropriately. The earlier businesses exploit this change the greater the rewards to be reaped.

Le Thanh Liem, Chief Financial Officer of the Vietnam Dairy Products Joint Stock Company (Vinamilk), said the digital transformation needed foundation and commitments from the government, ministries and the sector itself.

Vinamilk identified the digital transformation trend in business development nearly 20 years ago, from production, supply, and sales to financial management, he said.

The company had almost maintained normal production and business activities during the pandemic, even though its office operation was reduced to 10 percent and sales activities were limited.

Vinamilk had applied technology to all stages of its operation, including production, transport and storage, he said.

Liem said Vietnam has had many laws and guiding circulars relating to digital technology. However, it is necessary to promote digitalisation in management and administrative procedures to create more favourable conditions for businesses.

The application of technology in financial and tax activities gained good results in the past years, he said.

At the event, Nguyen Hai Hung, Managing Director of Deloitte Vietnam, said that while COVID-19 had created a crisis, it would not be the only crisis in the coming years. Enterprises must prepare to overcome these difficulties.

These preparations would include good management in human resources, risk and finance, Hung said.

According to Pham Hoang Hai, head of Cooperation Group at VCCI’s Vietnam Business Council for Sustainable Development (VBCSD), the council has the corporate sustainability index (CSI) to help businesses manage risks and restructure themselves.

Enterprises applying these CSI indicators have gained growth in corporate revenue and labour income, and stabilisation in labour force and production. Human resources and corporate management are important factors for enterprises at the moment.

Doan Thi Mai Huong, General Director, the South Aviation Services Joint Stock Company (SASCO), said the pandemic had forced the company to change its business strategy and focus more on human resources. If human resources were protected, the company would be protected.

The company had ensured income for employees during the pandemic. In addition, during the pandemic, SASCO had provided training courses to improve the quality of human resources, Huong said.

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