Leading businesses key to spurring dual transformation

This message was conveyed by Bui Thu Thuy, deputy general director of the Agency for Enterprise Development (AED) under the Ministry of Planning and Investment, at a VIR talk show themed "Investment Pioneers for the Dual Transformation" held on August 12.

The talk show, featuring representatives from Nestlé Vietnam and AEON Vietnam, focused on strategies to promote rapid and sustainable transformation in both a digital and green direction for businesses.

Bui Thu Thuy, deputy general director of the Agencyu for Enterprise Development under the Ministry of Planning and Investment (centre) at VIR's talk show on August 12

At the event, Thuy reported that, according to the annual survey by the AED under the Ministry of Planning and Investment, many small- and medium-sized enterprises (SMEs) are now aware of the dual transition.

"However, a great deal of them businesses lack a systematic roadmap and are only in the early stages of digital transformation," Thuy said. "Only 3 per cent of SMEs have advanced to the digitalisation phase, while the rest are still in the process of gradual digitalisation, workforce training, and roadmap planning."

Regarding support policies, the government has launched a national digital transformation initiative and issued policies to provide consultation, raise awareness, offer training, and partially subsidise costs for businesses transitioning to new production and corporation solutions.

However, policy implementation remains slow. A major challenge for businesses in the dual transition is investment costs. While large companies like AEON and Nestlé Vietnam have successfully implemented the dual transition, up to 90 per cent of SMEs struggle financially. The government and central bank have considered green credit solutions for businesses.

In addition to policy support, the participation of pioneering enterprises will create market-driven momentum for the dual transition process, encouraging SMEs to take action and develop, Thuy added.

"We hope large enterprises will provide more support for SMEs to follow suit. In their development strategies, beyond achieving their own goals, they should assist other businesses," Thuy said. "For example, AEON could set requirements for their suppliers regarding sustainability factors, and train businesses on the criteria AEON demands for products to be shelved. We want large enterprises to accompany and guide their supporting businesses, working together to change behaviours."

Also at the talk show, Nguyen Bang Lang, corporate sustainability and external relations manager of AEON Vietnam, shared that the company holds annual training sessions to help its current and potential partners, particularly SMEs, understand new state regulations, retail rules, digital transformation, and sustainable development, accelerating their ability to supply goods to consumers.

Le Thi Hoai Thuong, senior corporate affairs manager of Nestlé Vietnam, shared that the company has promoted public-private partnerships with the Ministry of Agriculture and Rural Development, researchers, and SMEs to develop a sustainable and prosperous coffee community. This year, Nestlé also organised training and exchanges with suppliers and transporters in Vietnam to achieve net-zero commitments.

AED currently has resources from USAID and international organisations to implement projects supporting businesses in greening and digitalisation.

"We hope future activities supporting businesses in the dual transition can collaborate with pioneering companies like AEON and Nestlé to provide practical training content relevant to businesses, " Thuy said. "AED hopes that the green and digital transformation journeys of Nestlé and AEON will be successful, and that this success will include an ecosystem of SMEs, cooperatives, and farmers."

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