Vietnamese retailers to continue to carry out digital transformations in 2023
The company’s solutions aim to help retailers in Vietnam and around the world achieve optimal performance by digitizing their operations to meet changing customer needs.
The retail industry has faced numerous challenges over the past three years, including closures and uneven reopening processes, supply chain disruptions, and inflation.
To succeed in this environment, retailers must provide customers with the products they want, and according to Zebra’s Global Shopper Study, product availability and diversity are the top two reasons for customer purchases.
Retailers in 2023 will need a comprehensive view of their inventory, including availability on shelves, modernization of order fulfillment, and active theft and fraud prevention measures.
Additionally, retailers must provide seamless, flexible experiences to meet customers’ demand for personalized shopping experiences.
Key factors to increase profitability for traditional retailers include modernizing the order fulfillment process, expanding visibility across the distribution network, and optimizing reverse logistics operations.
Sales staff can be a significant cost for many retailers, and automating human-centered activities can reduce repetitive tasks and free up time for sales staff to perform higher-value tasks like customer support.
By optimizing workforce management processes, retailers can forecast workforce demand and apply easy mechanisms for registering leave and changing shifts.
Vietnam’s retail market is expected to increase by an additional $163.5 billion with a gross annual growth rate of 11.4% from 2022 to 2027, accounting for about 12% of the country’s GDP.
The Vietnamese government considers digital transformation as an essential factor in maintaining the country’s growth and prosperity. Therefore, Vietnamese retailers will continue to carry out digital transformations in 2023 and beyond.
Mr. Christanto Suryadarma, Vice President of Business for Southeast Asia at Zebra Technologies Asia-Pacific, said that the company’s solutions would help Vietnamese retailers digitize their operations to meet changing customer needs.
The retail sector in Vietnam is rapidly growing, and digital transformation will be crucial for retailers to succeed in 2023 and beyond.
Source: Cong Thuong
Viet Nam’s fintech reaches new heights
The country’s fintech market is forecast to reach a staggering US$18 billion mark by 2024, according to an article on asiaone.com of Singapore.
Housing close to 200 fintech organizations, now 66 percent of adults have payment accounts as listed by the Ministry of Planning and Investment. The perfect medley of 91.3 million smartphone subscribers and an internet penetration rate of 73.2 percent have made the situation more conducive for the industry’s growth.
The success of these promising fintech organizations has been linked with their close ties with the banking sector that has created invaluable synergies.
The Viet Nam Banks Association (VNBA) has always been upfront in bringing favorable changes to the country’s financial services industry, be it for lowering SMS charges for banking services or urging Visa and Mastercard to reduce several types of fees on Vietnamese banks during COVID-19.
Its most recent move got a lot of attention when it stepped forward as the official supporting partner for World Financial Innovation Series (WFIS) that’s shaping to be the country’s premier fintech event.
The National Digital Transformation Program by 2025, with an orientation towards 2030, which was approved in September 2021, sets the goal that 50 percent of banking operations by customers to be fully online.
In addition, half of the population have a digital checking account while 70 percent of customer transactions made through digital channels.
Besides, half of decisions on lending, small and consumer loans of individual customers made digitally and are automated whilst 70 percent of work and service records at credit institutions to be processed and stored digitally.
Digital banks attract significant numbers of customers
After only six months of launching MyVIB 2.0 digital banking application – which uses multi-cloud computing technology to process 60-70 per cent of the input data to help banks realise ideas, bring products and services to the market faster and respond sooner to customer requests, VIB has doubled the number of customers compared to the previous year and reach the target of 4 million customers nearly a year earlier than expected.
Not only VIB, the wave of “cloudisation” of digital banking applications to expand modes and storage capacity, and increase integrated processing and user data security capacity has been invested in and implemented by many commercial banks.
Currently, VietABank, PVcomBank, VietinBank, Techcombank, SeABank, ABBank and OCB have all integrated cloud computing technologies to launch new digital banking platforms serving the sales of retail products and services, attracting millions of users.
The business results by the end of 2022 of banks showed a sharp increase in the number of new customers attracted by banks thanks to their digital applications. For example, MB last year added 7 million customers in the wake of developing Biz MBBank and Charity app while Techcombank with E-Banking apps (using AWS cloud computing technology) attracted an additional 1.2 million users in 2022. ACB and TPBank also said they recorded an annual growth of 30 per cent in the number of customers using digital applications in the 2019-22 period.
Along with the increase in the number of customers, the investment in new technologies and digitalisation of business activities have helped many banks attain significant achievements. For VIB and ACB, the proportion of revenue from retail activities was around 90 per cent in 2022. Retail activities at other banks such as MB, Techcombank and Sacombank currently account for more than 50 per cent of their business portfolio.
Recent research by Gimigo Vietnam showed 2023 will continue to witness fierce competition between banks in developing retail digital banking applications to gain market share.
According to Gimigo, the group of large State-owned banks such as Vietcombank, BIDV, Agribank, VietinBank and MB was leading in the retail segment thanks to being trusted by users and having a widespread network by the end of 2022. However, the group of private banks such as Techcombank, Sacombank, ACB, VPBank and TPBank have significantly improved their awareness level and attracted a large number of users in recent months.
Gimigo’s survey in Ha Noi, HCM City and some other big cities showed the digital applications of Techcombank, ACB and Sacombank are currently competing strongly with large-sized State-owned banks. Other private banks such as TPBank and VPBank also have high net promoter scores (NPS). Thus, the group of banks has many opportunities to expand the customer base thanks to the existing group of loyal customers and the new customers.
According to experts, developing the networks of branches, transaction offices, POS and ATMs is no longer the banks’ top priority. Instead, they focus on digitisation of products and services. To maintain the number of customers, banks need to pay more attention to transaction costs, quality of products and services, staff attitude, customer service, and continuous improvement of online procedures.
Regarding the development trend of digital application generations this year, Gimigo said besides investment in cloud computing technologies and applying Artificial Intelligence (AI) and Machine Learning to develop applications to support retail sales of products and services, banks will tend to pour in an integrated open banking ecosystem.
Some banks, which have so far invested in purely digital banking models such as Cake, Timo, Tnex, Octo and Ubank, have attracted users. For example, VPBank’s Cake app currently has 1 million users.
Experts forecast banks will invest more in developing completely new digital banking brands in the near future. In which, micro products and services will be integrated into personal financial management tools to attract customers to use banks’ retail products and services.
Source: Việt Nam News
Over 57,000 ransomware attacks hit Vietnam in 2022
Vietnam suffered 57,389 ransomware attacks in 2022, the third-highest in Southeast Asia following Indonesia and Thailand.
The region recorded a total of 340,904 ransomware attacks targeting businesses last year, General Manager of Kaspersky for Southeast Asia Yeo Siang Tiong told a press briefing in Ho Chi Minh City on March 14.
Ransomware is a type of malware that locks a computer and mobile device or encrypts electronic files. To obtain the “decryption” key or retrieve data, a ransom is sought by the cybercriminals behind the attack.
Digital kidnappers are targeting enterprises in Southeast Asia, Mr. Yeo said, and the trend is forecast to continue increasing this year and see more complicated attacks.
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