The Vietnam Growth and Digital Transformation

Digital adoption and IT modernisation can unlock significant value for Vietnamese businesses. Here’s how to do it right.

“The future of Vietnam will be changed dramatically by digital transformation.” From Nguyen Duc Thanh, Director, Vietnam Institute for Economic and Policy Research, VNU University of Economics and Business, in Vietnam’s Future Digital Economy – Towards 2030 and 2045

Vietnam’s Path to Growth and Profits is Digital

Explosive potential. It’s an apt summary of the Vietnamese economy. A combination of reforms, government initiatives around Industry 4.0, relatively low labour costs, and geographic advantages, among others, have positioned Vietnam well to continue its trajectory of growth, and attract investment to its economy.

In order to maximise this opportunity, and for Vietnamese companies—98% of which are SMEs—to attain their full potential, businesses need to transform digitally and modernise.

This process will benefit them in numerous ways, including achieving higher levels of productivity, efficiency, and cost-optimization; improving business visibility, agility, and customer experience; and speeding up decision-making, and time-to-market. The cumulative result? Higher revenues, profitability and customer experience.

But for many Vietnamese companies this journey can be challenging. This is why, according to a survey by the Vietnamese Ministry of Industry and Trade, “16 out of 17 industries have low level of readiness for engagement in digital transformation…and over 80% of enterprises have just started to understand digital transformation.”

The Cloud Upside for Vietnamese Businesses

Key challenges include less-than-optimal productivity, high-costs stemming from inefficiencies, and a shortage of in-house technology skillsets.

48% Of Vietnamese SMEs are in the red.

Source: Vietnam Economic Times

2x At 68 days, Vietnam’s cash-to-cash cycle is two times or more higher than most regional and global peers.

Source: PWC

16.8% The cost of logistics operations in Vietnam is high, compared to 12.5% in Asia Pacific.

Source: Vietnam’s Future Digital Economy – Towards 2030 and 2045

How can Vietnamese IT leaders help accelerate this transformation?

Key to the answer is leveraging the cloud. By cloud-enabling their organisations, Vietnamese IT leaders can supercharge their business’ ability to scale, advance swiftly, and be more cost-efficient, innovative, and secure. For many companies, this strategy necessitates moving Windows workloads to the cloud. This transition raises a number of questions in the minds of IT leadership including: What’s the business case for transitioning Windows to the cloud? Which cloud should we move to? How do I judge which is the best partner to make the journey with?

As one of the foremost experts in helping Vietnamese companies move Windows workloads to the cloud, Renova Cloud understands the questions CIOs want answers to. This guide is our attempt to help IT leaders gain the clarity they need to move forward faster, and with greater certainty.

Some of the Business Value of Running your Workloads (Windows…) on AWS

  • 442% ROI over five years (Source: IDC)
  • 98% Less unplanned downtime (Source: IDC)
  • 56% Lower cost of operations over five years (Source: IDC)

“Being on AWS allows us to execute new ideas quickly, and marketing promotions can be developed and executed three times faster as a result.”

“Our vision is always to have a robust system that can serve our customers in the best way possible. We are expanding fast and being on the AWS Cloud has given us a lot more flexibility and scalability,”

Do Bui Anh Khoa, CTO, N KID Group, a leading group in Vietnam.

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