Digital Transformation in Small and Medium Enterprises (SMEs) in Vietnam

The digital transformation of small and medium enterprises (SMEs) in Vietnam has progressed significantly in recent years, though it remains constrained by several barriers. Earlier studies revealed that most SMEs were unprepared for Industry 4.0, but surveys after the COVID-19 pandemic show a growing readiness, driven by the clear benefits of digital adoption such as higher productivity, reduced costs, better customer engagement, and expanded market reach. Despite this progress, SMEs continue to face major challenges including limited financial capacity, weak IT infrastructure, shortage of digital skills, and difficulties in changing long-established business habits. The Vietnamese government has introduced multiple supportive policies and national programs to accelerate SME digitalization, ranging from strategic frameworks to practical initiatives like providing local digital platforms and readiness assessments. Recent quantitative research on SMEs highlights that technological infrastructure, leadership, and well-defined digital strategies play the most influential roles in shaping digital transformation, with the intention to adopt digital solutions acting as a critical mediating factor. Complementary qualitative studies also emphasize the cultural and managerial hurdles SMEs encounter, such as resource constraints and resistance to data-driven decision-making, though leaders increasingly recognize the long-term value of digital tools for planning and competitiveness. Overall, while challenges remain, Vietnam’s SMEs are gradually building the momentum needed to succeed in the digital era.