In the dynamic landscape of international commerce, Vietnam’s small and medium-sized enterprises (SMEs) are strategically embracing digital transformation to mitigate the complexities associated with global expansion. A recent survey by Payoneer, a prominent financial technology firm, underscores this trend, highlighting the pivotal role of technology and talent in overcoming international market entry barriers.
The SMB Ambitions Barometer, Payoneer’s annual survey, reveals that Vietnamese SMEs are demonstrating remarkable resilience amid globalization challenges. Viet Vu, Payoneer’s country manager for Vietnam, notes that these businesses are rapidly adopting advanced technologies and diversifying their networks, all while maintaining a commitment to strengthening the local economy. This strategic approach positions them for sustained global growth and underscores their crucial role in driving the nation’s economic development.
The survey indicates that the United States, China, and Australia are the top three markets for Vietnamese SMEs in terms of payment transactions. Engagement in these markets has yielded significant benefits, including the acquisition of new customers (64%), fostering innovation (62%), securing high-quality supplies (59%), enhancing access to vendors (58%), and improving financial performance (57%).
To sustain this momentum and safeguard against external threats, 63% of Vietnamese SMEs are diversifying their customer and vendor networks, viewing this strategy as a protective measure against potential disruptions.
Despite the advantages, SMEs face notable challenges in their global expansion efforts. High business costs (44%), difficulties in accessing capital and inconsistent financial performance (46%), elevated debt-to-income ratios (40%), and limited personal or professional networks (37%) are among the primary obstacles identified.
However, the integration of digital technologies is proving instrumental in addressing these challenges. A significant 58% of surveyed companies report that digitization has reduced barriers to entering international markets, and 77% believe that the rapid pace of technological change is driving innovation within their operations.
Artificial intelligence (AI) adoption is also on the rise among Vietnamese SMEs. Currently, 26% are utilizing AI to enhance customer service, aligning with global trends. Nonetheless, there is room for growth in areas such as content creation (19% adoption in Vietnam versus 24% globally), inventory management (15% in Vietnam versus 24% globally), and merchandising (15% in Vietnam versus 23% globally).
In conclusion, Vietnamese SMEs are strategically leveraging digital transformation to navigate the complexities of global expansion. By embracing advanced technologies and diversifying their networks, they are not only overcoming existing challenges but also positioning themselves for sustained growth in the international arena. This proactive approach underscores the resilience and adaptability of Vietnam’s SME sector in the face of an ever-evolving global market landscape.
