Firms urged to promote digital transformation to expand exports

Saturday, Aug 22, 2020 08:02

In the context of rising cross-border e-commerce, firms should speed up the digital transformation process as an effective solution to expand exports. — Photo

Firms should speed up the digital transformation process as an effective solution to expand exports in the context of rising cross-border e-commerce, according to the Ministry of Industry and Trade.

Dang Hoang Hai, Director of the ministry’s Viet Nam e-Commerce and Digital Economy Agency, said to Vietnam News Agency that together with opportunities from the new-generation free trade agreements, the trend of shifting from traditional business models to digital-based is becoming common.

Digital transformation was considered an effective solution for firms to penetrate and expand their export markets, Hai said, adding that digital transformation would help firms set up a more flexible and more efficient export model.

A number of Vietnamese firms were now implementing business-to-business and business-to-consumer e-commerce business models, he added. On a global scale, cross-border e-commerce was developing rapidly and becoming a highlighted trend of trade in recent years.

It was forecast that global online exports could touch US$1 trillion this year, especially amid the COVID-19 pandemic.

Hai said firms should pay attention to three factors, namely developing digital platforms, digital databases and mobile websites in the digital transformation process to boost exports.

Hai said that the Ministry of Industry and Trade was implementing a number of measures to support import and export activities, especially through e-commerce.

Under the national e-commerce development master plan in 2021-25 and the national digital transformation programme to 2025, Viet Nam identified digital transformation as a vital process to speed up the modernisation of the distribution system, increase enterprises’ competitiveness, develop the domestic market and increase exports.

Hai said the ministry was increasing the application of information technology in conducting administrative procedures to facilitate exports, such as the eCoSys system which allows online submission of certificates of origin.

According to the Multilateral Trade Policy Department, trade promotion activities were now moving online, especially amid the COVID-19 pandemic, which also helped save significant sums for businesses compared to traditional trade promotion.

Hai, however, noted that the digital transformation of Vietnamese firms was taking place too slowly.

Vu Thi Hong Nhung, deputy director of VietRap Investment Joint Stock Company, said although firms would develop more rapidly with digital transformation, most remained not ready due to challenges related to resources.

As the digital economy was gradually becoming the main road of economic development, it was vital for firms to renovate their ways of running business through the application of technologies to increase competitiveness, especially for small and medium sized enterprises.

Viet Nam targeted to develop about 50,000 technology companies nationwide to accelerate digital transformation. — VNS

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