Business

HCMC using digital transformation for economic recovery

SGGP

During the fourth outbreak of the Covid-19 pandemic, Ho Chi Minh City has endured severe economic impacts as it has to stay lock down for a long time. Yet also in that hard time, innovative ideas in business administration have been pushed forward and successfully carried out to overcome those tough challenges.

HCMC using digital transformation for economic recovery ảnh 1 Many individual investors enter the securities market during the Covid-19 pandemic. (Photo: SGGP)

At the end of June 2021, when HCMC continuously received bad news related to Covid-19 spreading in the community, Nguyen Luong was staying at home considering possible ways to earn money for their daily needs like studying, healthcare, essential commodities. Having asked for consultation from his acquaintances, Luong decided to invest in securities, which can be done right at home.

After understanding all instructions from the representative of Dai Viet Securities JSC., Luong scanned and sent his citizen ID card to the company, followed by a receipt of a corresponding account number and password to use for an app on a smart device. He then continued with the eKYC (Electronic Know Your Customer) process and changed the default password, before he can easily and safely deposit billions of VND online into this account for securities transactions.

According to Rong Viet Securities JSC., eKYC is truly a revolution for the securities field, since its online registration is by far simpler and takes much less time. It allows any investors with a stable Internet connection to open a valid account and conducts transactions without moving anywhere for paperwork. This is the reason behind a significant rise of over 1.5 million of newcomers to the securities market in 2021, compared to the total quantity of the previous 4 years (1.04 million accounts).

Vice Chairman of the State Securities Commission of Vietnam Pham Hong Son reported that the total amount of capital in this market in the first 11 months of 2021 reached nearly VND445,000 billion (approx. US$19.5 billion), an increase of 23 percent compared to this time of the previous year. Capital mobilization for the State budget via governmental bonds also grew by 1.3 percent to reach VND301,000 billion ($13.2 billion).

HCMC using digital transformation for economic recovery ảnh 2 Wood production in Thuan An Wood Processing JSC.
Also enjoying benefits from digital tools is the wood processing industry. According to General Secretary of the HCMC Handicraft and Wood Industry Association (HAWA) Nguyen Chanh Phuong stated that revenues from exports of wood and wooden products came to $14.8 billion last year.

During the two years of the Covid-19 pandemic, many nations applied the boundary blockage and travel restriction policies. A series of exhibitions, annual fairs of the industry had to stop, leading to difficulties for businesses to approach their potential international clients.

Right at that tough time, a member of HAWA came up with the idea of using advanced technologies to establish a platform for online exhibition to fulfill the above task. HOPE (HAWA Online Platform for Exhibition) was then formally introduced, with essential features like showrooms, factories, 3D models of products, online conference to bring about a vivid experience for visitors.

Noticeably, in HOPE, robots are used as guides, working 24/7 so that customers can easily seek providers or products, create direct contact with businesses for inquiries. Since the industry mainly aims at serving clients in the US and Europe, thanks to HOPE, customers can access exhibitions regardless of time zone differences.

HAWA frequently organizes international conferences via HOPE to work with global counselors and journals to promote domestic as well as international trades. This, along with the strict rule observation, allowed wood companies in Vietnam keep their development status in both 2020 and 2021.

Another typical success thanks to modern technologies during the pandemic is Phuc Sinh Group, which specializes in coffee and pepper production. Thanks to its close cooperation with coffee farmers, Phuc Sinh Group so far has formed a network of raw material supply in the Southeastern region and the Central Highlands. When the pandemic happened, the business used technologies to accelerate the construction of a material processing factory right near related farms to ensure no disturbance in the supply chain.

By Hanh Nhung, Thanh Hai – Translated by Vien Hong

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