For many years, “digital transformation” has been a familiar slogan at economic forums, yet for most Vietnamese small and medium-sized enterprises (SMEs), it remains a distant concept. According to the Ministry of Planning and Investment, over 80% of SMEs still manage operations via Excel, 65% lack automated accounting software, and only about 6% have integrated management systems (ERP). Meanwhile, private sector labor productivity remains low—just 40% of that of FDI enterprises.
The irony is that SMEs—accounting for 97% of all enterprises nationwide—are the backbone of the economy. They create most jobs and contribute over 45% of GDP, yet they are the most vulnerable to volatility: rising costs, unstable cash flow, low productivity, and fragmented data. Without digital transformation, SMEs will struggle to survive in supply chains that increasingly demand standardization, transparency, and automation.
The COVID-19 pandemic was the clearest test. While many traditional firms faltered amid supply chain disruptions, a handful of technology-adopting enterprises weathered the storm impressively—moving sales online, optimizing inventory with data, and managing HR through the cloud. Digitalization is no longer a long-term strategic option—it has become an instinct for survival.
However, most SMEs embarking on digital transformation face three fears: high investment costs, lack of digital talent, and the worry that “it won’t last.” In fact, many have spent hundreds of millions of VND on ERP or CRM software that went unused due to poor planning, unclear roadmaps, or lack of management mindset change.
The issue lies not in technology, but in approach. Digital transformation need not start with a large-scale project—it can begin by solving specific “pain points” such as inventory control, cash flow, order processing, or customer data. When technology solves a real problem, it becomes a profit driver—not a burden.
A powerful example comes from Indonesia, home to over 60 million SMEs, mostly in traditional retail (warungs). In 2018, the Indonesian government launched the “Digital Warung” initiative in partnership with startups such as Bukalapak, Gojek, and Kudo to digitize corner stores.
These warungs received free digital tools for order, inventory, and accounting management, integrated with supplier ordering platforms. As transaction data became digitized, banks could assess creditworthiness and issue microloans based on actual sales. Within just two years, over 5 million stores joined the program, average revenue increased by 30%, inventory halved, and millions of store owners accessed formal credit for the first time.
The lesson: digital transformation for SMEs works only when results are fast, affordable, and scalable. There’s no need to talk about AI or blockchain—just help businesses move “from Excel to cloud,” “from paper to systems,” and “from reactive to proactive.”
In Vietnam, several pioneering models prove this approach is entirely feasible. For instance, small distributors in Ho Chi Minh City adopted point-of-sale (POS) software costing just 3–5 million VND per month, allowing real-time revenue tracking and automated tax reporting. A mechanical firm in Bac Ninh invested 150 million VND in a mini-ERP system, cutting material waste by 20% and shortening delivery cycles from 10 days to 6.
The key is to start small, act decisively, and measure outcomes. A “180-Day Playbook”—a practical six-month digital transformation roadmap—can be designed for Vietnamese SMEs in three stages:
Phase 1 – Initiation (30 days):
Identify the enterprise’s biggest operational “pain point”—in order management, accounting, logistics, or sales. Review existing processes, choose readily available tools (e.g., Google Workspace, MISA, KiotViet, FastWork), and focus on digitizing one specific area. The goal: reduce manual errors or processing time by 20–30%.
Phase 2 – Standardization & Connection (60 days):
Once accustomed to basic tools, integrate data across departments—link accounting with sales, inventory, and HR. Create dashboards tracking revenue, costs, inventory, and receivables. Standardize internal processes with digital templates, eliminating paper-based workflows.
Phase 3 – Analysis & Optimization (90 days):
With complete data, apply Business Intelligence (BI) tools or basic AI for sales forecasting and cost control. This is the stage of “moving beyond Excel”—enabling decisions based on real data rather than intuition.
This roadmap does not require massive capital—only 5–10 million VND per month, comparable to the salary of one administrative employee. What matters is having a plan, a responsible person, and tangible results at each stage.
To help SMEs follow this journey, Vietnam needs a coordinated support system similar to Indonesia’s. VAPEDCO could play the role of a “guiding hand”—designing, coordinating, and standardizing the “180-Day Playbook” for Vietnamese private enterprises.
Specifically, VAPEDCO could implement the “Digital SME Fast Track Program,” consisting of three components:
- Training & Consulting: Short courses (2–4 weeks) for business owners and accountants on choosing suitable platforms and setting measurable KPIs.
- Technology Support Packages: Partnerships with domestic software providers to offer discounted digital toolkits (mini-ERP, CRM, accounting, logistics).
- Evaluation & Certification: Granting “Digital-Ready Enterprise” certificates to firms completing the 180-day Playbook—qualifying them for supply chain participation and preferential financing.
In addition, VAPEDCO could collaborate with banks and venture funds to create a Digital Transition Fund—offering small, fast-track credit packages based on companies’ digital plans and actual operational data. As technology becomes an asset, enterprises could use digital records as credit evidence—mirroring the “Digital Credit” model trending across Southeast Asia.
The center could also build a Digital Playbook Online Platform, allowing SMEs to self-assess their digital readiness, download templates, KPIs, and case studies. This would serve as a “practical knowledge library” helping businesses avoid costly trial-and-error and progress efficiently.
More importantly, VAPEDCO could connect successful digital adopters as “mentor enterprises,” sharing real-world experience. A “SME Mentor Network” of 100 digitalized firms would act as a strong catalyst, transforming digital transformation from a slogan into a movement.
Broadly speaking, digital transformation is not just a technical process—it is a restructuring of mindset. When business owners trust data, embrace transparency, and make faster decisions, they naturally upgrade their enterprise culture, productivity, and competitiveness. That is the essence of “true digital transformation.”
If every Vietnamese private enterprise can confidently take this 180-day journey—from Excel to ERP, from intuition to data—Vietnam’s economy will gain a new generation of smart, adaptable SMEs deeply embedded in regional supply chains.
When VAPEDCO becomes the hub for connection, knowledge, and certification in this journey, Vietnam will have a national digital transformation map for private enterprises—where technology is no longer a cost, but a competitive advantage.
In the new era, digital transformation is no longer the choice of the strong—it is the survival path of those determined to endure.
