The digital transformation revolution is rapidly sweeping through Vietnam's manufacturing sector and supporting industries in particular, requiring enterprises to jump on the bandwagon to adapt to the new requirements of development.

The A Chau Industrial Technology Joint Stock Company, based in Hanoi's Thuong Tin district, invests heavily in advanced technology. Photo: hanoimoi.vn

Persistent challenges

Experts said most Vietnamese supporting industry enterprises remain in the early stages of digital adoption, with persistent challenges like limited digital skills, lack of IT infrastructure, absence of a digital mindset, and others regarding digital culture within firms.

While opportunities for successful digital transformation abound with support from the State, the journey is riddled with hurdles encompassing leadership commitment limitations, technology infrastructure constraints, human resource gaps, and international cooperation complexities. To capitalise on digital transformation trends, enterprises must invest heavily in technology and infrastructure while adopting advanced technologies such as Big Data and the Internet of Things.

Deputy Director General of Hanel PT Tran Duc Tung said digital transformation is not easy, and that the biggest challenge for businesses lies in the commitment of top executives to a clear strategy.

“Without a clear strategic vision from management, digital transformation efforts are unlikely to succeed,” he said.

Enhanced support for enterprises

Emphasising technology's crucial role in enhancing supporting industry enterprises' capabilities, Vice Chairman of the Hanoi Supporting Industry Association Nguyen Van said that major manufacturers have established fully automated supply chains.

While Vietnamese companies are not yet at that level, Van believed they can move forward in stages, starting with digital transformation, which will enable all enterprises to participate in supply chains effectively.

General Director of Vietnam Industrial and Technical Group Joint Stock Company (Intech Group) Hoang Huu Thang explained that operating on digital platforms allows comprehensive data collection, enabling scientific decision-making and strategic planning for subsequent phases. Additionally, customer experience improves significantly with more timely service delivery.

"Made in Vietnam" supporting industry products have gained trust from major global corporations like Samsung, LG, Honda, and Toyota. Many domestic firms have become suppliers of key parts in global product chains.

Tung held that firms must focus on standardising operational technology and information technology components towards smart manufacturing. Hanel PT has already achieved around 60% automation in its operations and aims to raise that figure to 80%. Upskilling employees through targeted training is also crucial for efficient system management.

He expressed his hope that companies will be able to access concessional financial packages with simple procedures, adding there should be funding for research and development as digital transformation is fundamentally an R&D activity embedded in production.

According to Director of the Industrial Development Centre under the Ministry of Industry and Trade’s Industry Agency Chu Viet Cuong, the agency has provided assistance for enterprises such as digital transformation models and smart factory development, helping them enhance capabilities and optimise production process to meet the requirements of the global supply chain.

Besides, the ministry has joined hands with multinational corporations and FDI enterprises to carry out various activities to improve production, competitive edge, human resources quality and digital transformation for industrial firms in Vietnam, he added, stating these efforts have yielded positive results, increasing development opportunities for domestic firms.