More Vietnam firms to embark on digital transformation journey: FPT Digital executive

As the global economic situation is more challenging in 2023, more Vietnamese enterprises are expected to join the digital transformation journey, said Le Vu Minh, consulting director of strategy & innovation at FPT Digital, a subsidiary of FPT Corporation.

Digital transformation is a growing trend among businesses, but some have failed in this process due to the application of unrealistic methods. What should businesses do to prepare before engaging in digital transformation to apply it most effectively?

Digital transformation is an inevitable direction for businesses to develop sustainably. About 98% of businesses surveyed by the Vietnam Chamber of Commerce and Industry (VCCI) in 2022 showed a great need for digital transformation. However, up to 90% of those businesses admitted their transformation had not been as successful as expected.

Through working with many Vietnamese enterprises, both large and medium, we find that these numbers reflect the reality quite well because most digital transformation programs have been implemented spontaneously, solving individual problems without a holistic and comprehensive plan. That's why digital transformation in most cases has been ineffective despite huge investment. Businesses have software and systems readily but still process information manually when needed.

The first thing companies need to do is take a long-term, methodical approach with a clear plan. Based on this mindset, businesses will have a more specific preparation in terms of time, resources, and leadership commitment, as well as issues related to staff training.

In 2022, FPT Digital signed digital transformation consulting contracts with leading enterprises in Vietnam like Petrolimex and Gas South. Could you share FPT Digital's experience and consulting remarks in this field last year?

Our cooperation with leading enterprises like Petrolimex and Gas South in 2022 was the result of FPT’s efforts to accompany the Vietnamese business community over the past 30 years, from basic steps such as digitization and computerization to digital transformation at present. Thanks to this long-term companionship, we cultivated deep understanding of businesses in terms of professional expertise, technology and corporate culture. This is an advantage that not many other businesses could afford.

In addition, at the 26th UN Climate Change Conference of the Parties (COP26) in the U.K. in November 2021, Prime Minister Pham Minh Chinh delivered Vietnam’s commitments to gradually reducing net emissions to zero by 2050. These are very strong commitments for the green and sustainable development goals.

Energy firms are among those with the most direct and extensive impact in this regard. Enterprises like Petrolimex and Gas South were aware of this matter very early, and digital transformation is certainly one of the important pillars to help them improve their performance and operational efficiency, thereby reducing the impact on the environment. Through digital transformation, businesses can also mine data and build ecosystems to be ready for future transformations.

As one of the pioneers in providing digital transformation consulting services in Vietnam, what are your takes on the leading and supporting role of large technology corporations for small businesses along the digital transformation journey?

In the digital transformation journey, it is clear that technology enterprises’ advantages are early adoption and application of technology, with capacity and strength in new technologies. For digital transformation consulting firms like FPT Digital, we grasp not only technology platforms and architectures, but more importantly, the major business and customer trends in Vietnam and globally.

In fact, businesses always understand their problems very well, but they have few opportunities to synthesize them into an overview. Therefore, the solutions are often not comprehensive and lack cohesion.

The engagement of consulting firms like FPT Digital will help firms analyze the problems they are facing, synthesize them into a picture of the present and future, and create connections between business and technology. This is important in forming a suitable digital transformation roadmap for businesses.

2022 was a year of strong fluctuations for the Vietnamese economy, especially the real estate sector. In your opinion, in 2023, which industries will further promote digital transformation and what will the focus be on?

The signs in 2022 show that 2023 will probably be a difficult year for enterprises in terms of production, business and finance. Many predictions indicate that the world economy will slow down and even go into recession. Therefore, companies will need to invest in digital transformation.

In this context, areas with interactions with consumers such as banking, finance, insurance, e-commerce and retail will certainly still be pioneers on the journey of digital transformation. The more difficult it is, the more these businesses will need to improve their competitiveness and improve customer experiences to maintain and gain market share.

Besides, this will also be the right time for businesses with great potential to grasp the opportunities to improve internal resources and look forward to long-term goals. Enterprises in the fields with large scale and influence such as energy, wood production and garment are of examples.

What are FPT Digital’s expectations for 2023 in domestic and international markets?

The government targets 2023 as the year of digital data. From the perspective of a digital transformation consulting firm, we expect that this year, more Vietnamese businesses will join the digital transformation journey, collect valuable data, and participate in a common ecosystem. These are key factors to accelerate digital transformation and become meaningful.

Based on data and the ecosystem, Vietnamese firms can also perfect and expand their products and services portfolio to step into the regional playground of Southeast Asia and the global market.

FPT Digital also expects to create a network of domestic and international digital transformation experts and improve the consulting capacity and quality to effectively support Vietnamese businesses on the journey of digital transformation and sustainable development.