Businesses embrace dual transformation to drive growth

At a seminar themed “Investment Pioneers for the Dual Transformation” hosted by VIR on August 12, experts from the government and business sectors shared insights on digital and green transformation towards international integration and attracting foreign investment.

Speakers at the seminar “Investment Pioneers for the Dual Transformation” hosted by VIR on August 12

AEON Vietnam, known as one of the most successful foreign retailers in Vietnam, has transitioned customer membership cards from hard plastic to mobile app accounts. This means that instead of issuing paper vouchers and shopping tickets, customers now accumulate points and redeem vouchers through the mobile app.

“All processes have been digitised. This initiative integrates both green and digital transformation, reducing costs and the use of plastic and paper while enhancing customer convenience and minimising payment errors,” said Nguyen Bang Lang, head of sustainable development and external affairs at AEON Vietnam.

As the largest coffee buyer in Vietnam, Nestlé has also contributed to its success in the market through green technology and production with the Nescafé 2030 Plan, which embraces regenerative agriculture, and focuses on farmers.

"We have implemented digitalisation to develop farm logs and digitise cultivation processes, allowing farmers to track agricultural metrics, replacing traditional handwritten records that lacked scientific data. This monitoring system was developed in collaboration with the Ministry of Agriculture and Rural Development and the 4C Certification System," said Le Hoai Thuong, senior communications and external affairs manager at Nestlé Vietnam.

Through the Nescafé Plan and its regenerative agriculture approach, Nestlé Vietnam has achieved a 40 per cent reduction in water usage and a 20 per cent reduction in fertiliser use. Many coffee farms now use entirely organic fertilisers, and some farmers have seen their income increase by 30-100 per cent.

"In December, Vietnam will need to implement new extended producer responsibility regulations for exporting coffee to Europe. Given their familiarity with green technology and sustainable production, Nestlé farmers are willing and proactive in making Vietnamese coffee internationally competitive," added Thuong.

Dual transformation is still the playground of large corporations and businesses. Despite government policies supporting digital and green transformation, implementation remains slow, especially for small and medium-sized enterprises (SMEs) facing high investment costs and financial constraints.

According to the Agency for Enterprise Development’s (AED) annual survey, most SMEs are only at the initial stage of digitalisation, with less than three per cent mastering technology and management software.

“While the Vietnamese government has issued various policies to support digital and green transformation, practical implementation is still sluggish. SMEs face challenges from high investment costs and a lack of financial resources. Green credit support policies are under consideration, but criteria for green projects are still being discussed, delaying deployment,” said Bui Thu Thuy, deputy general director of the AED under the Ministry of Planning and Investment.

Dual transformation an essential choice for business Accelerating digital and green transformation is expected to help Vietnam enhance the efficiency of attracting foreign investment.

Driving dual transformation Vietnam's Ministry of Planning and Investment and the German International Cooperation Agency (GIZ) have released a report titled “Business digital transformation 2023: Digital Transformation, Green Transformation”.

Enticing FDI legal framework for dual transformation Vietnam is preparing for future foreign direct investment (FDI) shifts to ensure funding reaches the right areas and embraces green and digital goals.