Digital transformation is a national priority in Vietnam, emphasized as a core driver of economic growth and competitiveness. Government leadership has highlighted full-scale digital transformation as a strategic focus for 2025, reflecting its importance to national development and business resilience – Ministry of Science and Technology.

Yet in practice, many small and medium-sized enterprises invest heavily in digital tools but fail to achieve the expected outcomes. The problem is rarely a lack of technology. Instead, businesses often fall into a technology-driven mindset, assuming that adopting new systems automatically leads to transformation. What is missing is governance, data discipline, and a clear strategy for how technology supports daily operations and long-term decision-making.

Digital transformation is not a technology project. It is a management and governance journey supported by technology.

A Lack of Digital Strategy and Governance, Not Technology

Research in Vietnam shows that while many enterprises acknowledge the importance of digital transformation, a large proportion of SMEs still lack a clear digital strategy. More than eighty percent remain at an early exploration stage, without a structured plan for data governance or digital management.

This leads to several common issues.

• Data is not treated as a strategic asset and therefore lacks standardization.
• Key decisions are still driven by experience and intuition rather than reliable data.
• Technology exists, but teams do not know how to use it effectively.

In many organizations, different departments adopt digital tools at different levels of maturity. This creates fragmented data across systems and prevents leadership teams from gaining a holistic view of the business. Without unified governance, technology investments fail to translate into strategic value – HanoiTimes.

The Human and Leadership Barriers

People and leadership awareness remain critical barriers to digital transformation in Vietnam. Studies conducted in Ho Chi Minh City highlight that management perception plays a decisive role in determining whether a business is ready for digital transformation.

When leaders view digital transformation as a technical upgrade rather than a management strategy, initiatives often stall or stop halfway. Without executive ownership, digital efforts lack continuity and direction.

In addition, many SMEs face structural limitations. More than half do not have a dedicated IT function, and a significant number struggle to allocate sufficient budget for comprehensive digital initiatives. These constraints further reinforce the need for a strategic technology partner who understands both governance and operational realities – HanoiTimes.

Lack of a clear data governance roadmap limits technology effectiveness

Another major challenge is the absence of a structured data governance roadmap. Many SMEs use separate systems for accounting, sales, and customer management, but without shared data standards across platforms.

As a result, aggregated reports become unreliable. When leadership teams need accurate data to support strategic decisions, the information is either inconsistent or unavailable. This undermines confidence in digital systems and reduces their practical value.

Unclear data processes also lead to wasted resources. Businesses pay for software subscriptions but cannot measure return on investment or track improvements compared to pre-transformation performance. Without governance, technology becomes an expense rather than a strategic enabler.

New regulations highlight governance rather than technology gaps

Recent regulatory requirements, such as electronic invoicing, online tax reporting, and customer data standardization, have further exposed governance weaknesses within SMEs.

Compliance today is not only about having the right software. It requires transparent data management, traceability, and accountability across the organization. Reports indicate that many SMEs still rely on manual processes or paper-based workflows, increasing the risk of errors and compliance violations.

In recent years, thousands of SMEs in Ho Chi Minh City have been penalized for data-related compliance issues. These cases demonstrate that digital transformation failures often stem from weak governance and data transparency, not from inadequate technology – TPM.

Phần kết luận

Successful digital transformation starts with governance and strategy

“Technology is only a tool.”

Many SMEs struggle with digital transformation not because they lack advanced platforms, but because they lack a clear digital governance strategy, standardized data practices, and an operational roadmap built around data.

When businesses place data at the center of governance and align technology with management strategy, digital transformation becomes a competitive advantage rather than a costly experiment.

Digital transformation is not a destination. It is a governance-driven operating model supported by the right technology partner. For enterprises that approach it strategically, digital transformation becomes a foundation for sustainable growth, informed decision-making, and long-term resilience.

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