Vietnam’s SMEs embrace digitalisation
Vietnam’s SMEs embrace digitalisation
Vietnam’s small- and medium-sized enterprises (SMEs) are increasingly embracing digitalisation to overcome barriers to global expansion, according to the SMB Ambitions Barometer released on December 20.
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The SMB Ambitions Barometer, a joint initiative by Payoneer and Oxford Economics, surveyed over 3,700 SMEs across 15 countries, including more than 250 SMEs in Vietnam, earlier this year to identify key factors driving their growth.
The findings reveal that while global expansion remains a key priority for the country's SMEs, achieving this goal requires overcoming challenges by leveraging the right talent and advanced technologies, including AI.
However, the top challenges include high business costs (44 per cent), accessing capital and inconsistent financial performance (46 per cent), high debt-to-income ratios (40 per cent), and limited personal or professional networks (37 per cent). However, with the right technology and talent in place, these businesses are finding these obstacles more manageable. In fact, 58 per cent of companies say digitalisation has reduced barriers to entering international markets, and 77 per cent believe the pace of technological change is driving innovation.
Many Vietnamese SMEs are increasing their AI adoption, with 26 per cent using it to improve customer service, aligning with the global average. However, some are still lagging in areas like content creation (19 per cent in Vietnam vs. 24 per cent globally), inventory management (15 per cent in Vietnam vs. 24 per cent globally), and merchandising (21 per cent in Vietnam vs. 23 per cent globally).
Another finding is these companies remain focused on global expansion–and they’ve been reaping the benefits so far. With the US, China, and Australia as the top three markets for sending and receiving payments, these businesses have experienced growth in key areas - new customers (64 per cent), innovation (62 per cent), high-quality supply (59 per cent), access to vendors (58 per cent), and financial performance (57 per cent). To maintain this momentum and safeguard against external threats, SMEs are diversifying their customer and vendor networks, with 63 per cent believing this approach helps protect them from disruptions.
In addition, smaller firms are dedicated to driving local economic growth, even with their sights set on growing beyond borders. Despite their global growth ambitions, SMEs are committed to supporting the local economy by creating jobs and generating revenue for their communities. Nearly two-thirds (65 per cent) are prioritising local hiring and are optimistic about both their growth and the future of Vietnam's economy. 79 per cent are confident in their ability to increase revenue over the next 12 months, and 82 per cent expect improvements in the local economy. As the local economy strengthens, SME performance improves, which in turn further boosts the local economy. More than two-thirds (69 per cent) of Vietnamese SME owners rely on their business as the only source of family income.
