By Thi Hong – Translated by Kim Khanh
Business core competencies
HÀ NỘI — A book about digital transformation was published on Monday to provide knowledge, a roadmap and digital transformation technology solutions for Vietnamese businesses.
The guidebook was developed by experts from the programme to support businesses in digital transformation for the period 2021-25 of the Ministry of Planning and Investment, in collaboration with the USAID LinkSME Project.
The digital transformation roadmap for small and medium-sized enterprises in Việt Nam recommends going through stages including a preparation phase and three stages to make the gradual transition from “doing digital” to “being digital”.
These stages are relative, depending on the status, goals and potential of each enterprise.
The stages include defining goals and strategies, followed by the digital transformation of business models, the digital transformation of management models, and connecting business, management and innovation to create new products and services.
The book summarises the map of technology solutions, evaluates the advantages and disadvantages of the solutions and compares the readiness of domestic solutions with international solutions on the Vietnamese market.
The programme to support businesses in digital transformation in 2021-2025 is chaired by the Ministry of Planning and Investment and co-ordinated by the US Agency for International Development (USAID).
The programme aims to enhance awareness of digital transformation for all businesses by 2025 and have at least 100,000 enterprises receive technical support on digital transformation.
It also targets at least 100 businesses becoming successful digital transformation models to spread and replicate.
The programme will also establish a network of experts including at least 100 organisations and individuals to consult, provide solutions to promote digital transformation for businesses and support the development of digital platforms.
Digital transformation technology solutions for businesses can be found at ebook.business.gov.vn . — VNS
HCMC businesses donate rice to Ehome residents in Saigon Times – Great Circle program
By Le Vu – Trinh Hoang
|Rice and necessities are transported to Ehome apartment building compound in Binh Tan District, HCMC to be delivered to the residents on lockdown – PHOTOS: LE VU|
HCMC – Businesses in HCMC on June 15 donated eight tons of rice and other gifts to residents of the Ehome 3 apartment building compound on lockdown in Binh Tan District, HCMC, as part of the “Saigon Times – Great Circle – Join hands to fight the Covid-19 pandemic” program.
The necessities were mainly provided by the An Cuong Wood Working Joint Stock Company, the Saigon Thang Long Group and the Thang Loi Group.
The “Saigon Times – Great Circle” program last year saw the participation of many businesses in HCMC and other localities nationwide. For six months of the program, the businesses donated necessities and medical equipment to frontline medical workers, border guards and underprivileged people across the country.
The program also provided relief to people affected by storms and floods and support to localities to promote tourism.
This year, the Saigon Times Group is calling on businesses, individuals and organizations to join the “Saigon Times – Great Circle – Join hands to fight the Covid-19 pandemic” program to support people in need.
The fourth Covid-19 wave, which began on April 27, has negatively affected the livelihoods of many people in HCMC. Due to an upsurge of new Covid-19 cases, the city has put some areas under lockdown or isolation.
Ehome Binh Tan is one of the areas that have been put on lockdown to curb the spread of the disease. Therefore, the Saigon Times Group collaborated with businesses to provide relief aid to the residents here.
|Representatives of the Saigon Times Group, the An Cuong Wood Working Joint Stock Company, the Saigon Thang Long Group and the Thang Loi Group pose for a photo at the event|
Nguyen The Loi, board chairman of the Saigon Thang Long Group, said, “This is the second time that our company and partners have joined the Saigon Times – Great Circle program of the Saigon Times Group. In the first program in 2020, we gave medical equipment and gifts to border guards in the southern provinces when the pandemic broke out.”
According to Loi, social distancing measures have made life even more difficult for disadvantaged people. Therefore, the An Cuong Wood Working Joint Stock Company, the Saigon Thang Long Group and the Thang Loi Group decided to lend a helping hand.
“We expect to donate 50 tons of rice to needy people that have been severely affected by Covid-19. On June 11, we gave eight tons of rice to people in 16 wards of Go Vap District. Today, we also donated two tons of rice to the locals of Thanh Loc and An Phu Dong wards, District 12,” he added.
The Saigon Times Group launched the “Saigon Times-Great Circle 2021” program with the theme “Join hands to fight the Covid-19 pandemic” on June 2, aimed at supporting people affected by the pandemic.
The program will receive donations from organizations and individuals and then distribute them to the needy in HCMC and other provinces.
Donations for the program can be sent to:
Tap chi Kinh te Sai Gon
Bank account number: 1007 1485 1003318
Vietnam Export Import Commercial Joint Stock Bank (Eximbank) – Hoa Binh Branch – HCMC
Transaction content: Name – UnghoSaigon Times – NVTL – Donghanhchongdich
|Ho Chi Minh City has 5,002 tourism businesses operating with about 31,500 employees|
Accordingly, the proposal aims to support tourism businesses that are facing difficulties due to the impact of the COVID-19 pandemic, to pay wages to employees. The expected amount is more than VND208.8 trillion ($9.1 billion) to pay salaries for employees for three months.
Ho Chi Minh City has 5,002 tourism businesses in operation, with about 31,500 employees including 552 travel businesses with 12,000 employees and 4,450 tourist accommodation establishments with 19,500 employees.
Furthermore, Ho Chi Minh City Department of Tourism also proposed the city to spend more than VND21.7 billion ($943,480) supporting tourist attractions and museums of relics as public non-business units for five months.
Specifically, there would be free entry to five attractions, including the War Remnants Museum, the City History Museum, the City Museum, the city’s Fine Arts Museum and Historic Relics and the Cu Chi Tunnel complex in the year-end tourist season from August to the end of 2021. Plus, the salaries of employees would be also supported.
Ho Chi Minh City Department of Tourism also proposed considering training human resources for tourism this year, with 20 classes expected with a total amount of about VND1.2 billion ($52,170). 80 per cent of this expenditure comes from the city budget. The participants are managers, tour guides, and workers who directly work at tourist resorts, restaurants, and accommodation.
In addition, the department also proposed extending the period of suspension of payment of retirement and survivorship life insurance, delaying the time of payment of the union’s fund for business and those affected by the pandemic without interest and penalties for late payment.
At the same time, the regulations on unemployment benefits in 2021 are proposed to adjust in the direction of reducing the minimum working time from 12 to three months, increasing the unemployment benefit from 60 to 80 per cent of the average monthly salary paid for voluntary insurance.
Along with that is the proposal to the Ministry of Finance (MoF) to consider reducing the value-added tax from 10 to 5 per cent, prolonging the policy of 15 per cent land rent reduction, extending the reduction of fees for appraisal of travel business licenses and tourist guide cards until the end of this year.
Furthermore, the MoF is proposed to coordinate with the State Bank to study and propose the government to allow travel businesses to reduce their deposit by 80 per cent within two years.
By Hong Phuc
HCM CITY — The Government has in recent years issued policies to promote the development of supporting industries, which are key to raising the value of other industries.
However, supporting industries remain limited in their capabilities, their output is low and their products do not meet quality standards required by multinational companies.
Việt Nam’s supporting industries need pioneering enterprises to play a leading role in spurring development so that the former can play a role befitting their potential.
THACO AUTO belonging to THACO Group is one of the bright spots in developing supporting industries.
Over nearly 20 years it has created a positive transformation, both for itself and supporting industries, increasing domestic production value and the rate of use of local parts and also increasing exports of components.
In Việt Nam, companies spend billions of dollars each year to import spare parts and accessories, which causes production costs to be 10-20 per cent higher than in other countries in the neighbourhood and often makes enterprises wait for shipments, and reduces the rate of use of local parts to low levels.
So many look for capable suppliers who can meet their needs so that they can increase the rate of use of locally made parts in their products as directed by the Government.
Based on its automobile production and assembly activities, especially demand for parts, nearly 20 years ago THACO AUTO devised a large-scale supporting industries development strategy and built Việt Nam’s largest automobile parts manufacturing industrial park in Quảng Nam to meet the dual goals of increasing the use of local parts and exports of automobiles and parts.
This was the right direction for developing supporting industries, meeting domestic and export needs and attracting investments into the park for the manufacture of accessories for the automobile, mechanical engineering and other industries.
This explains why THACO AUTO was successful in both exporting autos and parts even as many businesses switched to imports.
It has exported a number of products and parts to South Korea, Japan, Malaysia, Italy, Russia, Cambodia, Turkey, and Kazakhstan. From 2021 THACO AUTO’s products have also been available in new markets such as the US, Canada and Australia.
Besides, the company has entered into joint ventures and tied up with domestic and foreign manufacturers with advanced technologies to make products that meet international standards and produce OEM parts.
With this approach, THACO AUTO is both a supplier to the domestic market and an exporter.
In order to supply to foreign-invested firms and compete with foreign firms in the supporting industries, products must be of good quality and price. Therefore, investing in technology is very important and that is also THACO AUTO’s top priority.
In 2021 alone the company has invested over VNĐ300 billion (US$13.1 million) in new technologies, including upgrading plastic injection moulding and blow moulding technologies with machines of 100 to 2,000 tonnes for the former and 2500ml for the latter, installing SMC closed moulding thermal forming technology and 400-tonne hydraulic press machines and building a digital-based production system.
Expanding both domestic and export markets
Investing in supporting industries has been a success story for THACO AUTO, helping increase the rate of local parts — cars manufactured by the company currently have a rate of 20 – 60 per cent, the highest in Việt Nam — and create a premise for the development of other sectors such as mechanical engineering, agriculture and others.
This has helped increase the value of domestic production, gradually reducing the trade deficit.
The strategy for developing Việt Nam’s automobile industry, both serving the domestic market and exporting to regional markets, is being realised gradually.
Being a manufacturing and assembly partner of international car companies, THACO AUTO thoroughly understands the global component manufacturing processes and standards, and on that basis builds a road map for increasing the use of locally made parts in accordance with local and foreign manufacturers’ requirements.
THACO AUTO has supplied OEM components (glass windows for trucks and buses, bumpers, tweezers, flooring, ceiling panels, paints for motorcycle plastic components, and others) to many car and motorbike manufacturers in Việt Nam.
It is expected that in 2021 THACO AUTO’s sales of parts and accessories in the domestic market will triple from the previous year.
It targets earnings of $25 million from exports of parts and accessories this year to South Korea, Australia and Laos, including by expanding sales of new products such as glass windows for buses, ventilation panels for pickup trucks and mezzanine trucks and CNG tank covers. VNS
Hanoi (VNA) – Vietnam’s retail market has been stirred up recently by two huge deals that confirm the appeal the 100-million-strong market holds.
On May 19, E-mart , the largest retailer in the Republic of Korea (RoK), announced that it will sell its retail store business in Vietnam to local firm the Truong Hai Auto Corporation (THACO).
The move marks the Korean retailer’s withdrawal from Vietnam after nearly seven years.
The number of RoK products sold in E-mart outlets in Vietnam rose from 170 in the year it came to Vietnam to 1,200 by 2020.
The E-mart deal comes after a 400 million USD investment from Chinese giant Alibaba in The CrownX , a company owned by the Masan Group Corporation, to operate the VinMart supermarket chain.
The deal is one of the largest by Alibaba in Southeast Asia since it bought Lazada in 2018 for 4 billion USD. It will allow Alibaba and Lazada to access a network of more than 2,000 outlets without having to spend time and money establishing a distribution network. Consumers will also see products sold in VinMart available on Lazada and can pick up orders from Lazada at VinMart.
This is a perfect combination between the two giants in the omni-channel retail trend, according to e-commerce expert Nguyen Huy.
Lazada has acquired a handsome share of Vietnam’s e-commerce market and this deal is expected to help Alibaba speed up its online-to-offline (O2O) scheme in the country.
The leader of one small domestic supermarket said that that since Lazada entered Vietnam, foreign traders have penetrated more deeply into the market through trans-border trading activities, which pose difficulties for domestic production.
Merger and acquisition (M&A) experts said that after a period of relative silence, Vietnam’s retail market has entered a new stage of competition that is much fiercer than previously. M&A deals are forecast to continue to rise in the time to come.
The market has seen strong growth in recent years, of about 10 percent annually to reach some 160 billion USD in value by 2020. Vietnam is considered one of the fastest-growing e-commerce markets in Southeast Asia, after only Indonesia./.