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Digital Transformation in Vietnam: Where Is Your Business on the Tech Map?

Published on 2026-01-20 | By MercTechs
#digital transformation#business strategy#odoo erp#ai#custom software#vietnam market#sme
Language: EN | JA | KO | ZH | VI

"Digital Transformation" is no longer just a buzzword or a fleeting trend in Vietnam. It is a matter of survival.

However, amidst the noise of emerging technologies, many business owners and C-level executives are still grappling with a critical question: Where do we actually stand, and what is the next strategic move?

1. The State of Digital Transformation in Vietnam: Fast but Fragmented

Vietnam is recognized as one of the fastest-growing digital economies in Southeast Asia. However, there is a clear divide:

  • Enterprises: Have invested heavily in Core Systems, Big Data, and AI.
  • SMEs (Small and Medium Enterprises): While making up the majority, most are stuck using disconnected tools (Zalo, Excel, standalone accounting software) without integration.

The biggest challenge isn't a lack of technology, but the lack of a seamless data strategy. Businesses often buy software before defining processes, leading to data silos—where departments cannot "talk" to each other effectively.

2. The 3 Stages of Transformation - Where Do You Fit In?

To determine your next step, identify which stage your business currently occupies:

Stage 1: Digitization

This is the foundational step. You convert physical documents and paper records into digital formats.

  • Signs: Managing inventory via Excel, discussing work via Zalo/Email, scanning contracts to Google Drive.
  • Limitations: The data is digital but "static." You still manually copy-paste between files. The risk of human error remains high.

Stage 2: Digitalization

This is the stage MercTechs most frequently advises Vietnamese businesses on. The goal is to use technology to automate processes and connect data points.

  • Signs: Using CRM, HRM, or ERP software. For example, when sales create an order, the warehouse automatically receives a dispatch note, and accounting sees the receivable. No triple data entry required.
  • Recommended Solution: Implementing Odoo ERP is a strategic move here. With high customization capabilities and cost-effectiveness, Odoo consolidates sales, inventory, and accounting onto a single platform.
  • Real-world Example: MercTechs successfully implemented an Odoo ERP system for an enterprise with over 500 users. The result was a 70% reduction in manual processes, significantly streamlining workflow operations.

Stage 3: Digital Transformation (DX)

The ultimate destination. Technology doesn't just support the business; it fundamentally changes the business model and decision-making.

  • Signs: Data becomes your greatest asset. Businesses use AI to forecast market demand and Machine Learning to personalize customer experiences.
  • Recommended Solution: AI & Machine Learning or Predictive Analytics. Example: Building an intelligent AI Chatbot capable of handling thousands of customer support requests daily without human intervention.

3. Major Barriers and How to Overcome Them

Let’s be honest: Technology is just the tool; human mindset is the barrier. Here are 3 common "pain points" and how to solve them:

High Initial Investment Costs?

  • The Fear: Burning money on software without seeing ROI.
  • The Solution: Think Big, Start Small. Don't try to build a "super app" overnight. Start with essential modules (like Inventory or Sales) and scale up. Solutions like Next.js or Odoo allow for flexible scaling as your business grows.

Employee Resistance to Change

  • The Fear: Staff used to Excel will resist new software.
  • The Solution: Choose a tech partner with strong Training and Support processes. At MercTech, we don't just deliver code; we accompany your team until the system runs smoothly.

Fear that Tech Won't Fit the Vietnamese Context

  • The Fear: International software is too rigid for the flexible Vietnamese way of working.
  • The Solution: Opt for Custom Software Development. A partner with Local Expertise like MercTechs knows how to "tailor" software to fit your specific workflows, rather than forcing you to bend to the software.

4. Why Act Now?

The market waits for no one. While you hesitate, your competitors may already be:

  • Optimizing operating costs through automation.
  • Reaching customers faster via Mobile Apps or robust E-commerce platforms.
  • Making accurate decisions based on Real-time data.

Conclusion

Whether you are at the digitization stage or looking to integrate AI, the most important thing is to start. Don't let technical barriers hold back your growth.

If you are looking for a technology partner who delivers Quality Code and truly understands business problems, MercTechs is ready to collaborate. From Custom ERP implementation and Mobile App development to advanced AI solutions, we help turn technology into your competitive advantage.

Posted by MercTechs

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