Digital and Green Transformation: Key Strategies for Businesses
The annual report on Digital Transformation for businesses in 2023 focuses on promoting digital and green transformation. (Photo: Vietnam+)
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Climate change and dwindling natural resources have posed significant challenges for businesses in Vietnam and worldwide. However, this has also created a strong impetus for companies to transition to sustainable business models.
Convergence of Transformation Requirements
Along with this development trend, the integration of Digital Transformation with Green Transformation, known as dual transformation, has become an urgent requirement for businesses to ensure both business objectives and social responsibility.
On April 9, the Department of Enterprise Development, Ministry of Planning and Investment, in collaboration with the German Corporation for International Cooperation (GIZ), released the 2023 Annual Report on Digital Transformation for Enterprises: Promoting Digital Transformation and Green Transformation.
The report is an annual publication within the framework of the Business Transformation Support Program for the period 2021-2025, implemented by the Department of Enterprise Development with the support of the German Government through GIZ.
This year’s publication aims to provide concepts and trends of Dual Transformation taking place globally to raise awareness within the business community and government about its potential implications for Vietnam. Additionally, the 2023 report continues to disclose annual data on business readiness and the efforts of the government and international organizations to promote digital and green transformations over the past year.
 This year’s publication aims to provide concepts and trends of Dual Transformation taking place globally to raise awareness within the business community. (Photo: Vietnam+)
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At the conference, Mr. Nguyen Duc Trung, Deputy Director of the Department of Enterprise Development, shared that recognizing this inevitable trend, the government and Prime Minister have emphasized that “Green Transformation, along with Digital Transformation and innovation, are objective requirements, strategic choices, and top priorities for Vietnam to develop rapidly, sustainably, and transform the economy from brown to green.” On this basis, the Department of Enterprise Development, together with experts, has surveyed, analyzed, and compiled a report to provide information and trends to support businesses in their digital transformation more effectively in the coming time.
According to Mr. Trung, this publication will present an overall and updated “picture” of the digital transformation landscape globally and in Vietnam, helping businesses gain multiple perspectives on the dual transformation trend. This is a trend being implemented by businesses worldwide during digital transformation.
“The 2023 Annual Digital Transformation Report will provide useful information with lessons learned on digital and green transformations, enabling the business community to make informed choices in their digital and green transformation processes while also offering new perspectives for ministries, sectors, and localities to consider when supporting businesses,” said Mr. Trung.
Three Main Pillars of Dual Transformation
Sharing the key highlights of the report, Ms. Le Thi Quyen, Head of Information Technology Department, Department of Enterprise Development, said that the dual transformation trend is increasingly important worldwide, with initiatives revolving around three main pillars: Increasing productivity and economic efficiency sustainably; Enhancing resilience and adaptability to climate change; and Minimizing or eliminating greenhouse gas emissions.
Ms. Quyen emphasized that in Vietnam, digital technology and digital transformation are expected to be drivers for the successful transition to a Green Economy model, realizing strategic objectives for Green Growth. Specifically, this includes reducing the intensity of greenhouse gas emissions per GDP, transforming the growth model towards greening economic sectors, adopting a circular economy model (through efficient and economical exploitation and use of natural resources and energy based on science and technology, and the application of digital technology and digital transformation), while also greening lifestyles and promoting sustainable consumption.
Digital technology and digital transformation are expected to be drivers for the successful transition to a Green Economy model. (Photo: Vietnam+)
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Based on this, the report analyzes the readiness of businesses (mainly small and medium-sized enterprises) in 2023, as well as aspects of strategic orientation with proactive exploration, updating, and access to technology trends, solutions, and initiatives for application in production and business operations.
Moreover, Ms. Quyen reported that the report also highlights limitations in standardizing system processes, operational policies, data collection, storage, and analysis capabilities, infrastructure connectivity, IT systems, and investment resources for small and medium-sized enterprises. These factors impact businesses’ readiness for transformation. Specifically, the aspects of Supply Chain and IT Systems and Data Management are at the lowest levels in the research aspects.
According to the report, the readiness assessment results show a significant improvement in scores above the average (>2.5) with an increase of 0.7-1.4 points compared to the previous year.
Ms. Quyen emphasized that this indicates that businesses operating in all sectors have and are deeply aware of the importance of Digital Transformation. Consequently, they are proactively integrating digital transformation goals into their business development strategies (such as enhancing necessary resources, particularly leadership personnel, or investing more in projects).
“This is a positive sign that businesses in all industries are ready for this transformative and comprehensive digital transformation,” said Ms. Uyên.
Based on these findings, Ms. Quyen shared that despite having sufficient awareness and knowledge of digital transformation, businesses find it challenging to implement this comprehensive change on their own. Therefore, policies, support programs, and advisory services on roadmaps and assistance in applying suitable solutions are essential for businesses to make breakthroughs in the next phase.
Hanh Nguyen
