Hanoi, Vietnam – Small businesses in Vietnam are most likely to invest in technology in contrast to their SMB counterparts in APAC during 2021, new data from CPA Australia shows.
This focus in investing in technology was evident by the fact that seven in ten of the Vietnamese SMB respondents expect to grow this year, the third highest result in the Asia-Pacific. Strong investment in technology and government support are likely to be key drivers of this turnaround.
In addition, Vietnam’s small businesses are the most likely to increase their emphasis on online sales and up their investment in technology in reaction to COVID-19. This change saw the percentage that earned more than 10% of their revenue online jump from 60% in 2020 to 73% in 2021.
Of the markets surveyed, Vietnam was most adversely impacted by the pandemic, with 78% of small businesses nominating it as their biggest barrier to growth last year. In response, many local small businesses invested in improving their business, with 44% increasing their investment in technology and 42% shifting to online sales. Both results were the highest of the markets surveyed.
Can Van Luc, chair of North Vietnam Advisory Committee at CPA Australia said, “While 2021 was a difficult year, 45% of Vietnamese small businesses still managed to grow. Under the government’s dual goals of ‘preventing the pandemic and promoting socio-economic recovery’, inflow of foreign direct investment has grown steadily over the past year–up by 9.2% in 2021. Recovering domestic and overseas demand, together with government policy support, have bolstered small businesses operations and accelerated their digital transformation.”
The data also noted that 60% of Vietnam’s small businesses stated they reviewed their cybersecurity protections in the past six months, nearly double the 32% recorded in 2020. Further, 42% sought professional advice from IT consultants or specialists in the past 12 months.
“Threats of cyberattacks are on the rise as small businesses digitalise. [Around] 64% of respondents are concerned that their business could be cyberattacked in 2022. Given that our country has increased the pace of the development of its digital economy, small businesses should keep investing in capabilities to safeguard themselves against increasing malicious cyberattacks. Measures such as enhancing cybersecurity and consulting IT consultants are crucial to protecting vital assets and customer data,” Luc added.
