Enhancing competitiveness of small and medium-sized enterprises

Resolution No. 57-NQ/TW on breakthroughs in the development of national science, technology, innovation, and digital transformation, alongside Resolution No. 68-NQ/TW on private sector development, has established a vital policy framework. This framework identifies science and technology as key drivers, the private sector as a primary economic engine, and enterprises as direct forces for integrating technology into production, business, and the market.

At Ba Vi Golden Cow Milk Joint Stock Company, fresh milk undergoes rigorous testing prior to processing. Company Director Dao Cong Truong recalls that when the milk-based confectionery facility was established in 2007, all production stages were manual: milk was cooked on traditional stoves, the product was hand-rolled, and simple wax paper was used for packaging; consequently, 100 kg of fresh milk yielded only about 13 kg of finished product after the concentration process. The establishment of Ba Vi Golden Cow Milk Joint Stock Company in 2019 marked a pivotal shift from manual production to modern processing methods.

Currently, the company is partnered with 45 farming households — managing a combined herd of nearly 300 dairy cows — and purchases approximately 5.3 tons of fresh milk daily. The company applies freeze-drying technology at -40°C, preserving the milk's nutritional content. Recently, nine products from Ha Noi received national five-star OCOP certification, with Ba Vi Golden Cow Dairy Joint Stock Company alone accounting for five of them. Additionally, the enterprise holds 15 products with city-level four-star OCOP certification.

According to Dr. To Hoai Nam, Permanent Vice Chairman and Secretary General of the Viet Nam Association of Small and Medium Enterprises (VINASME), small and medium-sized enterprises (SMEs) currently account for approximately 98% of all businesses nationwide; the private sector contributes about 51% of the GDP and creates jobs for over 40 million workers. However, this sector also faces significant pressure regarding capital, technology, digital workforce, innovation, and digital transformation.

Surveys by VINASME and various business representative organisations indicate that 60–70% of SMEs struggle to access credit. Meanwhile, investment costs for management software, digital data, information security, automation, e-commerce platforms, traceability systems, and artificial intelligence applications are relatively high compared to the financial capacity of small businesses. Many enterprises are forced to prioritise maintaining operational cash flow, labour costs, and order fulfilment before considering technology investments.

It is essential to establish a financial ecosystem supporting technological innovation and digital transformation for SMEs and business households — one that integrates the state, commercial banks, investment funds, and technology businesses — and to create a national and regional-level support fund for SME digital transformation, It is also necessary to support the development of shared platforms and establish digital transformation support centres in key economic regions — centres tasked with providing consultancy, training, and technology solution testing, as well as facilitating practical implementation.

Most private enterprises are small-scale and lack the resources for long-term research.

Dr. Nguyen Duy Tuan

National Economics University

Dr. Nguyen Duy Tuan from the National Economics University notes that the majority of private enterprises are small-scale and lack the resources required for long-term research. Consequently, practical policies are needed to support digital transformation for small and medium-sized enterprises (SMEs). Many businesses do not need to start with complex technologies; instead, they require fundamental solutions such as digital accounting, inventory management, e-invoicing, e-commerce, digital marketing, cybersecurity, and customer data management. The state can provide support through digital transformation vouchers, shared platforms, standardisation consultancy, and training for business owners.

The goal of building a development model driven by science, technology, innovation, and digital transformation is unlikely to succeed if SMEs and millions of household businesses remain on the sidelines. Therefore, it is essential to build a broad ecosystem comprising manufacturing, service, technology, and supporting enterprises, alongside startups and household businesses transitioning into the formal sector. This would create a foundation for science, technology, and digital transformation to become increasingly integrated with production and business operations.