Page 204 - Ebook HTKH 2024

Thirdly, infrastructure limitations: Vietnam’s digital and energy infrastructure is
unevenly developed. While urban centers such as Hanoi and Ho Chi Minh City have

advanced digital and energy capabilities, rural areas still face challenges related to
unreliable internet connectivity and limited access to renewable energy sources. This
disparity limits the potential for widespread dual transformation, particularly for
businesses operating in less developed regions (World Bank, 2021).
3.3.3. Benefits of dual transformation
Despite these challenges, the dual transformation of Vietnamese enterprises offers
numerous benefits that can significantly enhance their competitiveness, operational
efficiency, and sustainability.

Firstly, improved resource efficiency and cost savings: The integration of digital
technologies with green practices allows businesses to optimize resource use and reduce
operational costs. For example, IoT-enabled systems can monitor energy consumption
and provide real-time data on resource utilization, allowing companies to identify
inefficiencies and reduce waste. Similarly, AI and data analytics can optimize
production processes, leading to significant reductions in energy consumption and

material use (Kamble et al., 2019). These efficiency gains not only reduce costs but also
contribute to environmental sustainability by minimizing the company’s carbon
footprint and waste generation. As energy prices continue to rise, the ability to reduce
consumption through digital solutions becomes increasingly valuable for businesses.
Secondly, enhanced competitiveness and market access: Enterprises that adopt
dual transformation strategies are better positioned to meet the environmental and digital
standards required by international markets. As global supply chains increasingly

prioritize sustainability, businesses that align with these expectations can access new
markets and strengthen their relationships with global partners (UNCTAD, 2021). This
is particularly relevant for industries such as textiles, agriculture, and manufacturing,
where sustainable production practices are becoming a prerequisite for international
trade. Moreover, dual transformation enables businesses to differentiate themselves
from competitors by offering innovative, eco-friendly products and services that appeal

to environmentally conscious consumers. This creates new revenue streams and
enhances brand reputation in both domestic and global markets (Nguyen & Pham,
2020).
Thirdly, long-term sustainability and resilience: By adopting both digital and
green transformation, Vietnamese enterprises can build greater resilience to external
shocks such as environmental regulations, supply chain disruptions, and energy price
fluctuations. For instance, businesses that invest in renewable energy and energy-
efficient technologies are less vulnerable to rising fossil fuel prices and potential carbon

taxes (Nguyen et al., 2022). Similarly, digital transformation enables businesses to
respond more quickly to market changes and external disruptions. By leveraging digital
tools for real-time monitoring, predictive analytics, and flexible production systems,
businesses can adapt more effectively to evolving market conditions and regulatory
environments (Ismail et al., 2017).

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