Removing dual transformation barriers for small and medium-sized enterprises

DNVN - Although dual transformation is identified as an inevitable path, many businesses, especially small and medium-sized enterprises, are still struggling due to barriers in resources and information. This issue requires synchronous participation from the State, solution providers and the businesses themselves.

The "fragmented" situation and inherent barriers

At the conference "Partnership to promote digital transformation - green Vietnamese enterprises 2025" (VETTP 2025) held on October 20 in Hanoi, Mr. Bui Anh Tuan - Director of the Department of Private Enterprise Development and Collective Economy ( Ministry of Finance ), affirmed that up to now, dual transformation, i.e. digital transformation and green transformation, is no longer an option but an inevitable requirement for Vietnamese enterprises to survive and develop.

With about 98% of the nearly 1 million operating businesses being small and medium-sized enterprises (SMEs), they are both the core force of the economy and the most challenged in the new era.

Explaining further about this urgency, Dr. Bui Thanh Minh - Deputy Director of the Office of Private Economic Development Research (Department IV) said that there are three main factors that are pushing businesses to change.

Firstly, Vietnam's double-digit economic growth target in the 2026-2030 period can only be achieved through increasing labor productivity, and the only way is digital transformation and green transformation.

Mr. Bui Anh Tuan - Director of the Department of Private Enterprise Development and Collective Economy (Ministry of Finance).

Second, direct pressure from international markets with increasingly stringent regulations such as the EU's Carbon Border Adjustment Mechanism (CBAM) or green product requirements from China and Japan.

Third, Vietnam's commitment to achieving net zero emissions by 2050 requires the entire business community to join forces in reducing greenhouse gas emissions.

Sharing the same view, Mr. Jens Schmidt Kreye - Deputy Head of Development Cooperation Department, German Embassy in Vietnam, emphasized: "Dual transformation is no longer a trend, but has been and is happening. This is an inevitable requirement of Vietnamese SMEs in the process of international economic integration".

Despite the recognition of its importance, the actual implementation in SMEs is still very limited. A representative of FiinGroup said that the dual transformation process is generally still "at the initial and fragmented level, mostly stopping at the digitalization of each stage, and greening activities are of minimal compliance".

For example, in the textile and garment industry, a key export industry, many businesses still manage production through simple tools such as accounting ERP and Excel. There is no centralized energy management system and environmental reports are still done manually.

According to FiinGroup, the main barriers facing SMEs include lack of investment capital, limitations in high-quality human resources and technical infrastructure.

In terms of awareness and information, there is a lack of commitment to decisive action, a reluctance to change, a lack of information about suitable solutions, and difficulty in integrating them into existing systems.

A synchronized ecosystem is needed to act

Faced with the above situation, the Government has had clear strategic directions. Important policies such as Resolution 57-NQ/TW on scientific and technological breakthroughs, innovation and Resolution 68-NQ/TW on private economic development all emphasize promoting digital transformation and green transformation. In particular, the goal of building 1,000 typical pioneering enterprises has been set, demonstrating strong political determination.

SMEs face many barriers in dual transformation.

However, for the policy to come into life, there needs to be synchronous coordination and an effective support ecosystem. FiinGroup representative proposed a three-party cooperation model: State – Enterprise providing solutions – Enterprise using solutions.

The State plays a role in policy creation, creating a favorable legal framework and providing support programs. Technology enterprises need to come up with "tailor-made" solutions that suit the capacity and needs of SMEs. And SMEs themselves need to be more proactive and decisive in changing.

Recognizing the importance of promoting dual transformation in enterprises, in recent times, the Department of Private Enterprise Development and Collective Economy has implemented many activities to support enterprises in dual transformation and the conference "Partners to promote digital transformation - green Vietnamese enterprises 2025" is also one of the activities to promote dual transformation.

Within the framework of the conference, the Organizing Committee also introduced the Twin Transition Hub Initiative. This is a typical public-private partnership model, supporting Vietnamese small and medium enterprises in dual transformation.

Accordingly, Twin Transition Hub will build a comprehensive ecosystem, connecting Vietnamese enterprises with credit institutions and domestic and international experts, accessing advanced dual transition models in the world, to support enterprises towards the goal of reducing emissions and improving sustainable productivity as well as participating in the global value chain.

Minh Thu

Source: https://doanhnghiepvn.vn/chuyen-doi-so/go-rao-can-chuyen-doi-kep-cho-doanh-nghiep-nho-va-vua/20251020033830127