Vietnam’s GDP to increase 30 billion dollars if enhancing SMEs digital transformation

In News / July 6, 2022

On 25 March 2022, VnEconomy published an article in Vietnamese: GDP sẽ tăng thêm 30 tỷ USD nếu chuyển đổi số cho doanh nghiệp SME

We provide a translation of the key points in English below:

On March 24th, 2022 Mr. Nguyen Trong Duong, Deputy Director of the Business Management Department, Ministry of Information and Communications, shared that digital enterprises will be twice as productive and profitable as non-digital/traditional enterprises. Statistically, there will be 3.1 thousand billions USD (equivalent to 72 million billion VND) added into the GDP of Asia-Pacific region in 2024 if digital transformation of SMEs can be achieved. According to him, Vietnam expects an increase of 30 billion USD in its GDP. 

Vietnam currently has about 785,000 small and medium enterprises, accounting for more than 98% of the total number of enterprises. SMEs employ 70% of the workforce, contributing about 50% of GDP.

After the implementation of digital transformation programs for 16,000 SMEs in 2021, the Ministry of Information and Communications decided to continue this process in 2022 with the goal of 30,000 SMEs participating. 

GDP sẽ tăng thêm 30 tỷ USD nếu chuyển đổi số cho doanh nghiệp SME - Ảnh 2

Demands to digital transformation of Vietnamese enterprises
Source: e-Conomy SEA 2021

In 2022, businesses will receive financial support for digital transformation from the budget. In particular, according to Decree 80/2021/ND-CP about the implementation of several articles of the Law on Support for Small and Medium-sized Enterprises, enterprises will receive 50% support if they rent or purchase digital platforms or solutions which are certified and announced by the Ministry of Information and Communications.

Deputy Minister of Information and Communications Nguyen Huy Dung stated that the element of digital transformation is the digital platform which is a breakthrough solution for us to popularize digital technology into a service and turn digital technology into an input factor in production such as electricity, water, etc. Then, we will succeed in digital transformation since technology has permeated all production and business activities.

According to Mr. Dung, in order to support SME digital transformation, in 2022, the Ministry of Information and Communications will strive with 63/63 provinces to carry out a program to encourage SME businesses to digitally transform as well as to form a network of digital economic consultants and organize a network of community digital support groups to the commune level.

Nguyen Trong Duong said that the new feature of the digital transformation supporting program for SMEs (SMEdx)  in 2022 is to apply a digital benchmark index (DBI) to supervise the level of business digital transformation (DBI). This will be used to evaluate 3 groups of businesses including SMEs, large enterprises and corporations.

According to this year’s plan, the Ministry of Information and Communications will also evaluate the digital transformation level of 100,000 businesses nationwide based on the DBI. The assessment results will be the basis for completing specific action plans, promoting businesses to digital transformation and developing the digital economy.

Key Takeaways

  • Vietnam currently has about 785,000 small and medium enterprises, accounting for more than 98% of the total number of enterprises. SMEs employ 70% of the workforce, contributing about 50% of GDP.
  • According to Decree 80/2021/ND-CP about the implementation of several articles of the Law on Support for Small and Medium-sized Enterprises, enterprises will receive 50% support if they rent or purchase digital platforms or solutions which are certified and announced by the Ministry of Information and Communications.
  • This year, the Ministry of Information and Communications will strive to carry out a program to encourage SMEs to digitally transform in 63/63 provinces with an aim of 30,000 businesses. 
  • Also look forward to forming a network of digital economic consultants and organizing a network of community digital support groups to the commune level. 
  • The new feature of the digital transformation supporting program for SMEs (SMEdx)  in 2022 is to apply a digital benchmark index (DBI) to supervise the level of business digital transformation. 
  • The plan is to evaluate the digital transformation level of 100,000 businesses nationwide based on the DBI.
  • Expect to add 3.1 thousand billions USD to the GDP of the Asia-Pacific region in 2024 and an increase of 30 billion USD in its GDP of Vietnam.

The original article in Vietnamese can be accessed here: https://vneconomy.vn/gdp-se-tang-them-30-ty-usd-neu-chuyen-doi-so-cho-doanh-nghiep-sme.htm