IT application improves business competitiveness

Vietnam currently has 120 million mobile phone subscribers and more than 34 million Internet users. Subscriptions to 3G services are predicted to rise 20 percent by 2015.

The latent potential for e-commerce is undeniable.

The Ministry of Industry and Trade’s (MoIT) E-Commerce and Information and Technology Department Head Tran Huu Linh says e-commerce and IT application are essential to maintaining business competitiveness in the current era of globalization.

Via the internet, businesses can directly access customers, reduce costs, and increase revenues and profits when excess inventories, widespread bankruptcy and business dissolution are leading to a decline in the purchasing power and export performance.

Dr Vo Tri Thanh, Deputy Head of the Central Institute for Economic Management, says business survival depends on exploiting IT advantages such as high speed connectivity and capacity for integration.

A recent E-Commerce and IT Department survey of businesses’ marketing method assessments showed 18 percent focus on search engines, 12 percent prioritised social networks; 6 percent used print newspapers, 11 percent used online newspapers, 5 percent advertise on television, and 6 percent resorted to other means.

Pham Tan Cong, Head of the centrally-run business bloc’s Party Committee Office says 32 of the bloc’s businesses have created 1.3 million jobs, significantly contributing to national budget revenue.

Another survey of 19 businesses of the bloc found all respondents used the internet and local area networks but only 12 opened a specific IT office and 8 integrated the IT section into the corporate budget.

All these business have their own websites, only seven accept online orders, four use online payment systems, six collect customer information via the internet, and eight offer customers online consultancy.

Eleven percent of surveyed businesses use a customer relationship management (CRM) model and 29 percent apply an enterprise resource planning (ERP) system.

Only three of businesses maintain a Chief Information Officer position.

FPT Group representative Mai Cong Nguyen argues competitiveness includes access to capital and materials, up to date technology, and management capacity.

Management capacity is the key to international competition, he stresses.

A Vietnam National Petroleum Group (Petrolimex) representative agrees that State-run businesses must have new thinking and focus more on investment in technology.

Pham Tien Cong insists that businesses should fully realize the importance of applying   IT solutions in the building of a modern system of administrative and operational management.