Digital transformation: no time for hesitation
The governments that quickly move forward will be ahead of those that hesitate and proceed slowly in applying digital technologies.
Many companies in the country have been using digital technology. Established in 1973, Dien Quang Lamp, operating in the field of lighting and electric equipment in Vietnam, for example, has geared up in recent years for digital transformation
Ho Quynh Hung, chair of Dien Quang Lamp, said the company in 2016 changed its development strategy, deciding that it not only will provide products, but also solutions to urban lighting and overall electric equipment for construction works.
It committed to apply advanced technologies to design smart control solutions to serve people’s lives and business operations.
The enterprise has set up a hi-technology factory with modern automatic production lines and equipment, an R&D (research and development) center with 100 specialists who are young engineers.
It has restructured the distribution system to increase customers’ experience through modern consumption channels, including e-commerce and online show gallery, as well as direct access to customers to give consultancy to them.
The moves have turned Dien Quang Lamp from a lighting equipment manufacturer into a technology firm. Two generations of Dien Quang Smart, a smart technology solution, have been launched with considerable improvement in the next generation.
Dien Quang is not alone. Other enterprises have also launched ‘made in Vietnam’ digital products.
Nguyen Minh Quy, CEO of Novaon, said his company is going to launch a series of digital apps and platforms it has been preparing for 3-5 years. These include OnCustomer Live and OnCustomer Webbot, two apps which help enterprises easily manage customers and boost sales, and Onsign, an app for electronic contract signing.
Quy noted that Vietnam’s businesses have been aware of the importance of digital transformation and have taken actions to carry out the transformation. The Covid-19 epidemic has urged them to speed up the process.
He went on to say that businesses have begun allocating budget and personnel for applying digital solutions.
“Businesses are most interested in solutions to improve customers’ experience and increase revenue (70 percent), while the solutions to increase performance and save costs account for 30 percent,” he said.
The statements and actions taken by the government and agencies show that Vietnam has been and will follow the path of digital transformation, from building a digital government to developing a digital economy and society.
The Ministry of Information and Communication (MIC) estimated that Vietnam had 45,500 IT (information technology) firms as of June 2020, an increase of 11 percent compared with 2018.
The total revenue from the IT, electronic and telecommunication industries (domestic and foreign invested) was estimated to reach $50 billion in H1, a 2.2 percent increase over the same period last year.
Of this, the revenue from foreign invested enterprises was $47 billion, accounting for 95 percent of total revenue ($107.905 billion in the whole year 2019).
It was estimated that the digital economy made up $12 billion in 2019, higher than the $9 billion in 2015.
The national digital transformation program by 2025 with the vision until 2030 approved by the government on June 3, 2020 says that by 2030, Vietnam will become a digital country, stable and prosperous, pioneering in experimenting new technologies and models.
By that time, the government’s management activities, enterprises’ operations and the people’s way of living and working will be reformed.
The national digital transformation program aims to develop the digital government, economy and society, and form digital technology firms in Vietnam, capable of competing with global firms.
In his speech at the Vietnam Development and Reform Forum held a few days ago, Nguyen Trong Duong, Deputy Director of the Authority of Information Technology Application under MIC, said digital transformation means using data and digital technology to make a total and comprehensive change in the way of life, working style and production method of individuals and organizations.
Digital transformation is an overall and comprehensive process of change, and therefore is the job of all members in organizations.