GDP forecast to surge US$30 billion through digital transformation of SMEs
Vietnam’s gross domestic product (GDP) is projected to surge by US$30 billion if the country succeeds in its digital transformation of small- and medium-sized enterprises (SMEs).
Nguyen Trong Duong, deputy director general of the Department of Enterprise Management at the Ministry of Information and Communications (MIC), revealed the information at a recent conference which looked to bolster digital transformation support for SMEs this year.
Firms engaging in digital transformation have reported higher productivity and profits by two-fold compared to their peers, Duong said.
Statistics showed that US$3.1 trillion will be added to Asia-Pacific’s GDP by 2024 if digital transformation for SMEs is accelerated. The process is forecast to help raise Vietnam’s GDP by US$30 billion, he added.
The country is currently home to about 785,000 SMEs, which make up more than 98% of the total number of businesses. They create jobs for 70% of the country’s labourers and contribute about 50% of GDP.
2021 continued witnessing uncertainties due to new variants of the coronavirus SARS-CoV-2, which forced 24% of SMEs to suspend operations and the number of newly established firms to slip by 15%, Duong said.
Therefore, digital transformation is viewed as key for SMEs to address bottlenecks and adapt to the pandemic.
Deputy Minister of Information and Communications Nguyen Huy Dung said the MIC will join hands with localities nationwide to carry out a programme to bolster digital transformation among SMEs this year, and set up a consultation network on a digital economy and technology at commune levels.
Under the programme, the MIC will evaluate the digital transformation rate of 100,000 firms across the country based on the Digital Business Indicators (DBI). The assessment is projected to help fine-tune specific action plans and step up digital transformation among enterprises as well as digital economic development, the official added.