Covid-19 is speeding up Digital Transformation in Vietnam. 

Covid-19 is speeding up Digital Transformation in Vietnam. 

The coronavirus pandemic is having a profound impact on social life and the economy. In Vietnam, while the government works on containing the pandemic, businesses do whatever is needed to ensure company continuity and survival. 

At present, with any businesses, responding and recovering won’t be enough to be back as normal. However, swift digital transformation into a pandemic-proof organizational model seems to be a key for them to grow more sustainably in a post-Covid-19 world. 

So why is digitization more important than ever? And how should businesses respond to this?

Let’s take a closer look at this article and find out!

Covid-19 Marked the Digital and E-commerce turning point

The social distancing due to the pandemic has introduced e-commerce to many Vietnamese consumers who had earlier not been interested in online shopping and e-payment. By shopping online, they enjoy the benefits of not having to wear a face mask or having to follow distance restrictions when physically shopping or waiting in lines.

Statistics from the E-commerce White Book showed that the rate of new internet users shopping online in Vietnam has increased from 77% in 2019 to 88% percent in 2020 during the pandemic. Also, there has been a growth in the value of goods purchased online from 229 USD in 2019 to 240 USD in 2020 per person. Specifically, 74% of people were shopping on e-commerce platforms and websites. 

In response to the crisis and the changes in Vietnamese consumer behavior, many businesses have adopted a proper digital strategy that helps them reduce their exposure and capture opportunities. They invested more in strengthening their online presence by using Artificial Intelligence (AI), Virtual Reality (VR), live streaming and internet celebrities, etc. to introduce their products and better serve the target group. 

Those who have not been online yet, need to reconsider their channel strategies by building multiple sales channels, thereby developing an omnichannel sales model, and at the same time making efforts to overcome existing problems of selling through e-commerce platforms such as logistics, transportation, or attracting customers. Moreover, they need to re-examine consumer preferences and habits to redefine the consumer experience and thrive in the new normal after Covid-19. 

Covid-19 Created Remote Working Trend 

The trend of remote work started long before the epidemic, but Covid-19 has accelerated it significantly. The work-from-home model offers a world of possibilities for economic growth, global talent recruiting, job creation, and, eventually, improved human prosperity and well-being. 

After Covid-19, as companies see the benefit of working digitally and employees also seem to get familiar with the flow of working remotely, the model of remote working is likely to continue to grow. However, navigating this all-remote work environment is quite challenging, and as a result, companies have started embracing more digital and collaboration solutions to adapt, including:

• Provide staff with digital tools and platforms such as communication platforms to stay connected with co-workers and clients; and cloud-based project management applications to share documents.
• Protect and secure company data by providing remote workers with virtual private networks; and equipping their devices with updated cyber security tools including antivirus and anti-malware software. 
• Provide employees training courses to develop new skills relating to artificial intelligence, data analytics, and robotics capabilities, among other sophisticated technology, etc. Thiswill help narrow the knowledge gap and jump-start digitization efforts.

Even with companies that still return to working offline, digital transformation is still a key to help bridging the gap between departments, increasing transparency in business management, and optimizing employee work efficiency.

Credits: The White Book on Vietnamese E-Business 2021