The adoption of digital office solutions is on the rise in Vietnam, but high costs and scarcity of qualified personnel are necessitating collaborative efforts from multiple stakeholders.

Latest data from the General Statistics Office indicated that in June, 60,200 enterprises in Vietnam temporarily suspended their operations, up 18.2 per cent on-year. About 31,000 enterprises halted activities awaiting dissolution procedures, up 28.9 per cent on-year, and 8,800 firms completed such procedures, up 2.8 per cent on-year.

A seminar on digital office solutions held on July 21 in Hanoi heard that a total of 100,000 businesses closed in the first half of 2023, with an average of 16,700 businesses shutting down each month.

Experts at the event agreed that the figures underscore the financial strain and restructuring challenges faced by domestic enterprises, resulting in cost-cutting measures and personnel changes.

According to Tang Van Khanh, chairman of OOC Technology Solutions, businesses are compelled to undertake restructuring measures in the face of the challenging and competitive economic landscape.

“This restructuring strategy necessitates the systematic reformation and standardisation of management systems, processes, policies, and standards as a primary step. Subsequently, businesses should proceed with organisational restructuring and business model realignment,” Khanh said.

Khanh emphasised that enterprises, post-restructuring, will embrace a renewed business model, restructured organisational framework, and refined management systems and processes. This transformation is set to enhance operational efficiency while optimising costs.

“Leveraging digital transformation tools, such as digital offices, presents businesses with the opportunity to undergo a more robust and comprehensive restructuring process,” he noted.

In the same vein, Pham Thanh Dai Linh, consulting director at FPT Digital, underscored the constraint of limited business resources, both financial and human. In light of this, businesses must meticulously identify and allocate resources for optimal operations.

“Essential to this process is a clear and well-defined strategic roadmap, charting the intended direction for the next 1-2 years. Additionally, the selection of appropriate technologies that align with the objectives of successful digital transformation becomes imperative,” Linh said.

He cited data from FPT’s report on digital talent development strategies, indicating that Vietnam boasts nearly 400,000 IT engineers and more than 50,000 IT graduates annually.

“However, IT personnel constitute only 1 per cent of the total workforce, which is relatively low compared to tech-oriented countries like the United States, South Korea, and India. Efforts are underway to raise this proportion to 2 per cent and concurrently enhance technical proficiency,” he noted.

On the other hand, high cost is another factor hindering the widespread use of digital office solutions. The Ministry of Planning and Investment’s annual report on enterprise digital transformation last year revealed that just under 40 per cent of enterprises have sufficient budget to meet the demands of their digital transformation efforts.

Meanwhile, approximately 43.3 per cent of enterprises have allocated a budget for digital transformation, but it remains inadequate to fulfill their actual requirements.

“Indeed, the scarcity of financial resources for digital transformation is a challenge faced by Vietnamese enterprises, particularly small- and medium-sized enterprises. This lack of investment can hinder their ability to compete in an increasingly digitised business landscape and may lead to missed opportunities for growth and innovation,” consultancy Dezan Shira & Associates assessed.

Nonetheless, digital transformation continues to be an undeniable necessity. As the market witnesses the emergence of highly skilled personnel and novel products and players, the landscape for digital office solutions is anticipated to undergo refinement, playing a pivotal role in advancing the country’s digital transformation agenda.

“The digital office market presents an exceptional opportunity for foreign investors seeking to capitalise on the growing demand for advanced digital workplace solutions in Vietnam,” Dezan Shira & Associates added. “As the Vietnamese economy continues to thrive, investing in the digital office market promises significant returns and the ability to shape the future of work for businesses across various industries.”nLinh Dan

The adoption of digital office solutions is on the rise in Vietnam, but high costs and scarcity of qualified personnel are necessitating collaborative efforts from multiple stakeholders.

Latest data from the General Statistics Office indicated that in June, 60,200 enterprises in Vietnam temporarily suspended their operations, up 18.2 per cent on-year. About 31,000 enterprises halted activities awaiting dissolution procedures, up 28.9 per cent on-year, and 8,800 firms completed such procedures, up 2.8 per cent on-year.

A seminar on digital office solutions held on July 21 in Hanoi heard that a total of 100,000 businesses closed in the first half of 2023, with an average of 16,700 businesses shutting down each month.

Experts at the event agreed that the figures underscore the financial strain and restructuring challenges faced by domestic enterprises, resulting in cost-cutting measures and personnel changes.

According to Tang Van Khanh, chairman of OOC Technology Solutions, businesses are compelled to undertake restructuring measures in the face of the challenging and competitive economic landscape.

“This restructuring strategy necessitates the systematic reformation and standardisation of management systems, processes, policies, and standards as a primary step. Subsequently, businesses should proceed with organisational restructuring and business model realignment,” Khanh said.

Khanh emphasised that enterprises, post-restructuring, will embrace a renewed business model, restructured organisational framework, and refined management systems and processes. This transformation is set to enhance operational efficiency while optimising costs.

“Leveraging digital transformation tools, such as digital offices, presents businesses with the opportunity to undergo a more robust and comprehensive restructuring process,” he noted.

In the same vein, Pham Thanh Dai Linh, consulting director at FPT Digital, underscored the constraint of limited business resources, both financial and human. In light of this, businesses must meticulously identify and allocate resources for optimal operations.

“Essential to this process is a clear and well-defined strategic roadmap, charting the intended direction for the next 1-2 years. Additionally, the selection of appropriate technologies that align with the objectives of successful digital transformation becomes imperative,” Linh said.

He cited data from FPT’s report on digital talent development strategies, indicating that Vietnam boasts nearly 400,000 IT engineers and more than 50,000 IT graduates annually.

“However, IT personnel constitute only 1 per cent of the total workforce, which is relatively low compared to tech-oriented countries like the United States, South Korea, and India. Efforts are underway to raise this proportion to 2 per cent and concurrently enhance technical proficiency,” he noted.

On the other hand, high cost is another factor hindering the widespread use of digital office solutions. The Ministry of Planning and Investment’s annual report on enterprise digital transformation last year revealed that just under 40 per cent of enterprises have sufficient budget to meet the demands of their digital transformation efforts.

Meanwhile, approximately 43.3 per cent of enterprises have allocated a budget for digital transformation, but it remains inadequate to fulfill their actual requirements.

“Indeed, the scarcity of financial resources for digital transformation is a challenge faced by Vietnamese enterprises, particularly small- and medium-sized enterprises. This lack of investment can hinder their ability to compete in an increasingly digitised business landscape and may lead to missed opportunities for growth and innovation,” consultancy Dezan Shira & Associates assessed.

Nonetheless, digital transformation continues to be an undeniable necessity. As the market witnesses the emergence of highly skilled personnel and novel products and players, the landscape for digital office solutions is anticipated to undergo refinement, playing a pivotal role in advancing the country’s digital transformation agenda.

“The digital office market presents an exceptional opportunity for foreign investors seeking to capitalise on the growing demand for advanced digital workplace solutions in Vietnam,” Dezan Shira & Associates added. “As the Vietnamese economy continues to thrive, investing in the digital office market promises significant returns and the ability to shape the future of work for businesses across various industries.”

Vietnam Investment Review