Businesses take heed of the dual transition

Companies are optimising inventories and developing new systems to help improve revenues, Photo: Shutterstock

At last week’s conference on the issue at the Ministry of Planning and Investment (MPI), Nguyen Thi Le Quyen, representative of the MPI’s Agency for Enterprise Development, highlighted that the dual transition trend worldwide involves increasing productivity and economic efficiency, enhancing resilience to climate change, and eliminating greenhouse gas emissions.

“In Vietnam, digital technologies are expected to be the driving force promoting the success of the green transition, realising our goals in the nation’s green growth strategy,” she said.

Specifically, these activities include reducing the intensity of emissions per GDP, transforming the growth model towards greening economic sectors, applying a circular economic model, and promoting sustainable consumption.

Many nations have also been applying this twin transition, which can offer lessons for Vietnam, according to the MPI.

Germany actively contributes worldwide by providing essential knowledge and resources to developing countries. The country has successfully become a carbon-neutral economy through enhancing the efficiency of energy use.

Switzerland offers digital technology initiatives and solutions as key to implementing commitments on sustainable development, such as creating smart agriculture and applying AI and big data. The country limits the waste of resources and renewable energy through a tracking system using blockchain tech.

Singapore applies digital technology and data to promote sustainable development goals, as well as apply sustainable thinking to the management and operation of data and IT infrastructure, for example in using AI or the Internet of Things in environmental management and building construction. Singapore also proactively researches, develops, and tests solutions of greening data centres.

In a specific case, thanks to digital transformation, food producer Eubiz has successfully exported many high-quality Vietnamese agricultural items to the American market and European countries. It has successfully registered its trademark in the US, and is listed among the top 100 best-selling cashew brands in the United States.

“To achieve good outcomes within only a few years, Eubiz has delved into digital transformation activities, promoting sales on major e-commerce platforms,” CEO Nguyen Thi Thanh Hoa told VIR. “The biggest weakness of the agricultural industry is in management and technology. So digital technologies are the best solutions for management.”

To expand suppliers, consumption areas, factories, and then expand the market, if Eubiz only moved in a traditional direction, it would take lots of time to pass through many steps. “But with digital transformation, we can create information coverage of up to thousands or millions of sellers, partners, and customers in only a few months,” Hoa explained.

Besides Eubiz, there are many successful cases on applying digital transformation in businesses. Under the USAID Improving Private Sector Competitiveness (IPSC) project, Thai Xuan Bien in the Central Highlands province of Gia Lai has already developed a traceability tracking system, business management software, and a website for sales. These have helped the company improve performance, productivity, and customer service at a lower cost.

“Thanks to optimising inventory and production management, the company has raised seed output by 15 per cent and revenue has improved significantly,” company director Thai Xuan Bien said.

At Thu Do Multimedia, with the support of the IPSC, the implementation of enterprise resource planning (ERP) is also an important move for the company’s digital transformation.

“Standardising business processes following international practices and ERP solutions in international standards has given positive signals on enhancing performance and speed of coordination among departments, thereby significantly improving labour productivity and customer service quality,” a representative of the company said.

Dai Phuc Hai Packing and Print Service Trading Co., Ltd. has already built a business management system to create quality control and production plans, calculate costs, and monitor manufacturing defect rates.

“We have corrected and cut down 30 per cent of printing errors, standardised production processes, and increased labour productivity. Eliminating waste at every stage of production minimises the environmental impact and significantly saves the production costs,” said company representative Nguyen Thi Duyen.

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