Digital transformation is an inevitable process for food processing firms, especially small and medium enterprises (SMEs), to improve production and management efficiency, said experts.
This is especially true given the importance of the food processing and distribution industries in connecting both input and output sources of the supply chain.
The Vietnamese food processing industry plays a vital role in the growth of the country’s industry, with the index of Industrial Production (IPP) growing at a rate of 7 per cent each year on average during 2016-20, according to the General Statistics Office of Viet Nam.
The 2022 report of EMIS, an international organisation specialising in research and data, showed that the global processed food market is estimated to achieve a compound growth rate of 3.8 per cent during the period of 2023-28.
The growth trend is also expected to be seen in Viet Nam’s market as the Government considers it a priority industry for development in order to raise the output and export value of domestic agricultural products and processed foods.
Applying new technology and boosting digital transformation are key strategic plans to strengthen the food processing sector’s position and increase competitive advantages over other markets.
The Enterprise Development Agency under the Ministry of Plans and Investment (MPI), in collaboration with the Centre for Digital Transformation and Agricultural Statistics under the Ministry of Agriculture and Rural Development, and the US Agency for International Development (USAID), released a handbook yesterday to help small and medium enterprises (SMEs) in the food processing and distribution industry digitalise effectively.
Nguyen Duc Chung, Deputy Director of the Enterprise Development Agency, said that the handbook provides an overview and guidelines for SMEs to apply digital technology in food processing and distribution.
It provides an effective roadmap to apply digital technology at different levels, associated with production and business goals and the existing resources of enterprises.
Meanwhile, Nguyen Quoc Toan, Director of the Centre for Digital Transformation and Agricultural Statistics, said that in the current climate, enterprises that carry out digital transformation can take advantage of increased opportunities. And SMEs have to find key points in the digital transformation process to create value for products in a closed chain.
The guidebook provides technical solutions that are effectively applied to different stages in the value chain of firms based on the features of the food processing and distribution sectors.
Depending on the business's potential, technological solutions might be implemented sequentially or concurrently.
Businesses should prioritise two solutions for early deployment: multi-channel sales solutions and traceability to boost income and connections in the chain.
On the other hand, Nguyen Viet Long, the programme’s expert, noted that there are factors that businesses must consider when developing a digital transformation plan, including compliance with state regulations and export market standards, market expansion and customer attraction, and cost optimisation.
While implementing digital transformation, businesses must also be conscious of strict rules from key export markets throughout the world connected to the environment, society, and governance (ESG). — VNS