Vietnam’s small- and medium-sized businesses embrace digitization to weather global expansion risks: survey

While global expansion remains a key priority for the country's small- and medium-sized businesses (SMBs), achieving this goal requires overcoming challenges by leveraging the right talent and advanced technologies, including AI, according to Payoneer’s findings.

Payoneer, a financial technology company, has unveiled insights from its second annual SMB Ambitions Barometer for Vietnam.

"Vietnamese SMBs are showing remarkable resilience in overcoming the challenges of globalization," said Viet Vu, country manager of Payoneer in Vietnam.

Payoneer's survey highlights the SMBs' rapid adoption of technologies and diversification of networks, all while remaining committed to strengthening the local economy.

By leveraging their strengths and resources, they’re positioning themselves for global growth and long-term success. These SMBs play a crucial role in driving the country’s economic growth, Vu added.

According to the findings, Vietnam’s SMBs remain focused on global expansion, and they’ve been reaping the benefits so far.

With the U.S, China, and Australia as the top three markets for sending and receiving payments, these businesses have experienced growth in key areas: new customers (64%), innovation (62%), high-quality supply (59%), access to vendors (58%), and financial performance (57%).

To maintain this momentum and safeguard against external threats, Vietnamese SMBs are diversifying their customer and vendor networks, with 63% believing this approach helps protect them from disruptions.

Besides, Vietnam’s SMBs are embracing digitization to overcome barriers to global expansion. The top challenges include high business costs (44%), accessing capital and inconsistent financial performance (46%), high debt-to-income ratios (40%), and limited personal or professional networks (37%).

However, with the right technology and talent in place, the businesses are finding these obstacles more manageable. In fact, 58% of companies say digitization has reduced barriers to entering international markets, and 77% believe the pace of technological change is driving innovation.

Many Vietnamese SMBs are increasing their AI adoption, with 26% using it to improve customer service, aligning with the global average. However, some are still lagging in areas like content creation (19% in Vietnam vs. 24% globally), inventory management (15% in Vietnam vs. 24% globally), and merchandizing (21% in Vietnam vs. 23% globally).

Moreover, Vietnam's SMBs are dedicated to driving local economic growth, even with their sights set on growing beyond borders. Despite their global growth ambitions, Vietnamese SMBs are committed to supporting the local economy by creating jobs and generating revenue for their communities.

Nearly two-thirds (65%) are prioritizing local hiring and are optimistic about both their growth and the future of Vietnam's economy. 79% are confident in their ability to increase revenue over the next 12 months, and 82% expect improvements in the local economy.

As the local economy strengthens, SMB performance improves, which in turn further boosts the local economy. More than two-thirds (69%) of Vietnamese SMB owners rely on their business as the only source of family income.