Page 203 - Ebook HTKH 2024

international partners and customers to meet both digital and environmental standards.
Many multinational corporations now require their suppliers to adopt sustainable

practices, adhere to carbon reduction goals, and implement digital tools to increase
transparency and traceability in production processes (UNCTAD, 2021). Vietnamese
exporters, particularly in the textile, agriculture, and electronics industries, must align
with these expectations to remain competitive in the global market.
Thirdly, technological innovation and consumer expectations: The rapid
advancement of digital technologies provides new opportunities for businesses to
enhance sustainability. Technologies such as IoT, AI, and data analytics can help
enterprises monitor their environmental performance, optimize resource use, and reduce

waste (Kamble et al., 2019). Moreover, consumers are increasingly demanding eco-
friendly products and services, pushing businesses to innovate by adopting both digital
and green strategies. For instance, IoT sensors in factories can track real-time energy
consumption and provide data-driven insights into where efficiencies can be gained.
Similarly, AI systems can predict and reduce operational inefficiencies, ultimately
lowering energy use and minimizing environmental impact (International Energy

Agency, 2020). This convergence of digital and green initiatives is becoming a key
competitive advantage for Vietnamese businesses.
3.3.2. Challenges of dual transformation
Despite the potential benefits, the integration of digital and green transformations
presents several challenges for Vietnamese enterprises:
Firstly, financial and technological barriers: Dual transformation requires
significant financial investments in both digital technologies and green infrastructure.

While large enterprises may have the resources to undertake this dual transition, small
and medium-sized enterprises (SMEs)—which dominate Vietnam’s business
landscape—often face financial constraints. The high upfront costs associated with
digital platforms, renewable energy systems, and waste management solutions can deter
businesses from adopting both transformations simultaneously (Nguyen et al., 2021).
Additionally, many enterprises lack the technical expertise required to integrate these

technologies effectively. The shortage of skilled workers in fields such as AI, data
analytics, and sustainability management remains a key bottleneck in the dual
transformation process (Pham, 2020).
Secondly, organizational resistance and lack of awareness: Another major
challenge is internal resistance to change. Implementing digital and green
transformations often requires a fundamental shift in business culture and operations.
Employees and management may resist new technologies due to a lack of understanding
or fear of job displacement. This resistance can slow down the adoption of dual

transformation initiatives (Dyllick & Muff, 2016). Moreover, many businesses,
particularly SMEs, remain unaware of the long-term benefits of combining digital and
green strategies. The perception that sustainability initiatives are costly and offer little
immediate return further hinders adoption (Nguyen & Pham, 2020).

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