Plan approved to accelerate digital transformation of SMEs

Plan approved to accelerate digital transformation of SMEs

At least 300,000 will be supported in adopting digital technology solutions, digital platforms and artificial intelligence (AP) applications.

A greenhouse melon farming model in An Giang Province. Việt Nam targets at least 500,000 SMEs receive support in digital transformation by 2030. — VNA/VNS Photo Công Mạo

Deputy Prime Minister Nguyễn Chí Dũng has signed a decision approving a national plan to accelerate digital transformation among small- and medium-sized enterprises (SMEs)  to improve their productivity, competitiveness and integration into global value chains by 2030.

The plan provides tailored support packages based on company size, sector characteristics and levels of technological preparedness to strengthen the digital readiness and capabilities of SMEs.

Specifically, it targets at least 500,000 SMEs will receive support by 2030 through activities such as digital readiness assessments, pilot programmes for digital solutions, consulting services and training to improve digital skills.

At least 300,000 will be supported in adopting digital technology solutions, digital platforms and artificial intelligence (AI) applications.

The plan also aims to develop a group of 200 SMEs that demonstrate successful digital transformation in key sectors including science and technology, manufacturing, agriculture, healthcare, trade, logistics, finance, education, and tourism.

In addition, the plan aimed to establish a network of at least 500 digital transformation consultants to assist SMEs.

To achieve the goals, the plan outlines three solutions.

The first focuses on improving legal and policy frameworks to support SME digital transformation, including reviewing and amending provisions of the 2017 Law on Support for SMEs and related regulations to remove obstacles in policies supporting the adoption of digital technologies, digital platforms and AI.

Efforts would also be enhanced to improve the legal framework for digital transformation, science and technology, innovation, artificial intelligence and data governance.

The second is to strengthen infrastructure to support SME digitalisation, including expanding fixed broadband, 5G mobile networks and next-generation technologies in industrial parks, export processing zones, economic zones and high-tech parks to support smart manufacturing, automation, industrial Internet of Things, and real-time control systems.

Thirdly, the plan focuses on directly supporting SMEs through consulting services, financial support for digital solutions, and training programmes to improve digital capabilities among business owners and employees.

The plan also aims to encourage innovative startups, technology companies and high-tech firms to develop digital products and solutions tailored to SME needs.

Key to competitiveness

The plan is raised as the digital economy is expanding rapidly in Việt Nam with digital transformation increasingly seen as essential for SMEs to remain competitive, expand markets and achieve sustainable growth.

Accounting for around 97 per cent of the total number of firms, SMEs form the backbone of the economy but are also among the most vulnerable to market disruptions occur.

Experts pointed out three main difficulties SMEs face in digital transformation, including limited capital, gaps in technological capacity, and shortages of digital-skilled workers.

According to Vũ Tuấn Anh from the National Economics University, business growth models are changing.

Previously, enterprises expanded mainly by increasing production scale but today, growth needs to be driven by technology, data and innovation, he said, stressing that digital transformation is the fastest way for SMEs to strengthen their competitiveness.

According to Phạm Ngọc Minh from Vietnam Academy of Science and Technology’s Institute of Information Technology, technology should be viewed as a tool rather than an end goal.

Minh said the success or failure of digital transformation depends largely on management capacity, user habits and the commitment of business leaders.

He also stressed the importance of data, noting that many small businesses still do not treat data as a strategic asset, which often leads to decisions being made without reliable evidence. The first step in digital transformation is to standardise data, Minh stressed. 

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