Currently, driven by the severe impacts of the COVID-19 pandemic, digital transformation is not only a trend but also an urgent need of businesses towards sustainable development.

Digital transformation - an inevitable need for sustainable development in the new context

The complicated development of the COVID-19 pandemic has put businesses on digital transformation as a driving force to transform themselves. In fact, digital businesses and businesses that have implemented digital technology are able to withstand and overcome the crisis faster, and better meet customer needs. Therefore, digital transformation is considered an effective solution to help businesses find opportunities in production and business activities to overcome the crisis of the COVID-19 pandemic to move towards sustainable development.

In the last two years, the Government of Vietnam has shown great determination and efforts to ensure the successful implementation of the "dual goal", both effectively preventing the COVID-19 pandemic, and protecting the health and safety of the people, while making efforts to restore and maintain the socio-economic rhythm in the new normal state. Digital transformation is considered the key to promoting all economic sectors and industries for sustainable economic development and maintenance.

With the Government's drastic measures, a strong wave of digital transformation took place at businesses in all economic sectors, from industry, agriculture to services; from production to distribution and circulation of goods to supporting infrastructure such as transportation, logistics, finance and banking.

General Secretary of VCCI, Executive Vice Chairman of Vietnam Business Council for Sustainable Development Nguyen Quang Vinh shared that the impacts of the COVID-19 pandemic on stability and socio-economic development is much more negative in 2021 compared to in 2020. However, in the same challenging context, the wave of digital transformation is stronger than ever. The business community has actively found new directions, applied digital transformation in business operations to be able to maintain maximum production and business activities. The digital economy model is present more clearly than ever.

Mr. Nguyen Quyet Tam, Director of VietISO Joint Stock Company, which has provided more than 1,000 businesses with tourism management software solutions TravelMaster, said that finding and applying specialized management and operation software in the era of 4.0 technology is vital for businesses in general and tourism businesses in particular. Especially in the current pandemic period, digitization using advanced technology will help maintain and restore the development of businesses.

“Digital transformation has really created a positive change for improving product quality and experience for consumers, and bringing a safer, more productive and connected working environment for employees,” emphasized Mr. Nguyen Quyet Tam.

Affirming the effectiveness of digital transformation, expert Mr. Ngo Dinh Duc said the possibilities that 4G and 5G IoT create for all businesses across all industries will not only help businesses grow speed to meet the needs of the new world in the digital era, but more importantly, it will improve the competitiveness of businesses compared to other countries in the region, meeting the integration trend of Vietnam.

How do businesses convert digitally?

Strategy Director of VNPT Information Technology Company (VNPT-IT), Nguyen Trung Kien, said that the COVID-19 pandemic created a need for digital transformation. Over 80% of business leaders think that digital transformation is becoming more and more urgent; about 65% of business leaders expect to increase investment in digital transformation. High-priority solutions in today's businesses are teleworking, cyber security, e-commerce and marketing, as well as process automation.

Pioneering in the pharmaceutical field, Deputy General Director of Traphaco Joint Stock Company (TRAPHACO) Dao Thuy Ha shared that in recent years, the company has gradually succeeded in the comprehensive digital transformation of businesses, from preparing a 4.0 mindset for all business activities, to boldly investing in human resources, infrastructure, building appropriate processes, and catching up with online shopping trends.

TRAPHACO has actively invested in modern pharmaceutical technology in accordance with international standards, using robots in production to create a leading advantage in Pharmacy 4.0 in Vietnam, and applying information technology in sales management (DMS); applying ERP in business management; analyzing and exploiting customer data through the BI (Business Intelligence) system, assessing the capacity of each agent and pharmacy to optimize sales policies. When the pandemic hit, TRAPHACO quickly adapted and changed, achieving good growth.

Sharing experience, Factory manager of Nestlé Bong Sen, Urs Kloeti said, Nestlé Bong Sen's vision is to become a global business with local understanding and a leader in innovation, digital transformation and sustainable development. These key platforms have enabled the company to respond and continue to thrive under the impact of the COVID-19 pandemic.

In digital transformation, the corporate approach strategy focuses on analyzing the key values and opportunities from the transformation rather than just focusing on technology categories. First of all, it is necessary to prioritize data digitization, thereby finding and applying appropriate technologies. The most important thing in the digital transformation strategy is to equip and develop the necessary skills for employees to access and master technology.

For sustainable development in the new context, according to Mr. Ngo Dinh Duc, businesses participating in digitization for business reasons have digital infrastructure technology as a driving factor. Three factors are needed for successful digital transformation: people, institutions, and technology. Changing habits is the biggest difficulty of digital transformation; right perception is the biggest challenge of digital transformation. Therefore, each business needs to conduct its own risk analysis, which may include risks such as safety, cyber security, data governance, privacy, reduced quality and reduced employment.