Business strategists propose a plan for companies to adapt and thrive in the evolving economic landscape
In the dynamic landscape of Asian supply chains, Vietnam is poised to make significant strides, provided it addresses the challenges in digital transformation and embraces key strategies for growth.
According to André de Jong, the acceleration of automation, digital integration, and alignment with international Environmental, Social, and Governance (ESG) standards are crucial for Vietnam to become a high-value contributor within ASEAN supply chains. UOB, a global banking giant, is committed to supporting this vision by strengthening the operating models of Vietnamese enterprises, embedding ESG into core strategies, and bolstering digital transformation.
However, a gap persists between digital transformation goals and operational realities in Vietnamese enterprises. Vlad Savin, a partner at Acclime Vietnam, highlighted this disconnect, stating that bridging this gap requires addressing several challenges and implementing strategic solutions.
One of the main challenges is the presence of institutional and organizational barriers. Current structures and mindsets often hinder digital transformation. To overcome this, it's essential to strengthen institutional frameworks, implement legal reforms, and foster strategic partnerships within the digital ecosystem.
Infrastructure and technological challenges also pose a significant hurdle. While Vietnam has made strides in digital infrastructure, there's a need for more robust and widespread technological capabilities, especially in rural areas. To address this, investments in expanding and upgrading digital infrastructure, such as 5G networks, are necessary, along with policies encouraging investment in digital infrastructure development.
Another challenge is the digital skills gap. The lack of appropriate digital skills among employees, particularly in non-technical roles, can impede the effective implementation of digital strategies. To bridge this gap, comprehensive training programs for public servants and employees across various industries are required, with a focus on non-technical roles to ensure a fully integrated digital workforce.
Legal and regulatory frameworks also need further support. While advancements like the Law on Electronic Transactions 2023 have been made, more reforms are needed to fully support digital operations.
To overcome these challenges, Vietnamese enterprises can look to solutions such as data standardization and integration. Establishing standardized national data frameworks to facilitate efficient data use and sharing, and implementing data integration platforms to streamline administrative processes, can help bridge the digital transformation gap.
UOB Vietnam has taken steps to address these challenges by debuting supply chain finance solutions on UOB Infinity, its digital banking platform for businesses. The Vietnam Business Outlook 2025 event also brought together senior leaders to discuss topics including digitalisation, ESG, supply chain transformation, and market expansion.
As global buyers increasingly expect ESG to be embedded as a core business pillar, particularly as requirements around carbon emissions, recycling, and plastics management tighten, businesses that move early in ESG integration will secure market access and gain long-term strategic advantage. European firms are also moving beyond transactional models, focusing on value chain integration, strategic partnerships with local players, and advancing ESG and digitalisation in tandem with Vietnam's growth.
With nearly 90% of Vietnamese firms planning to increase investments in digital transformation, the future looks promising for the country's digital landscape. However, it's essential that businesses emphasize the need for translating insights into decisive action to achieve success in areas such as digitalisation, ESG, supply chain transformation, and market expansion. By addressing the challenges and implementing these strategic solutions, Vietnamese enterprises can effectively bridge the gap between their digital transformation goals and operational realities.
- In the scope of digital transformation, it is crucial for Vietnamese enterprises to focus on bridging the gap between their goals and operational realities, especially by addressing challenges such as digital skills deficits, institutional barriers, and weaknesses in legal and regulatory frameworks.
- Recognizing the importance of digital integration and ESG standards in today's business environment, global banking giants like UOB are extending their support to Vietnamese enterprises by strengthening their operating models, embedding ESG into core strategies, and bolstering digital transformation, thus helping these enterprises to participate more effectively in the Asian finance and business industry.
