How USAID is Supporting Digital Transformation in Vietnamese Businesses

Mr. Dang Thanh Tung, the owner of the family run Tam Chien Co. Ltd, in Hai Phong Province, Vietnam, has overseen the company's growth since its founding in 2001. Starting with just 10 employees, the electrical cable manufacturer now employs 60 full-time staff. Inspired by this growth, Mr. Tung set his sights on expanding into international markets, but lacked the skills to scale operations and leverage digital tools to compete in these competitive markets.

"We were struggling to find digital transformation solutions until I attended USAID’s Digital Transformation for Manufacturing Small and Growing Businesses course,” said Mr. Trung about the May 2023 training.

Small and growing businesses are essential to Vietnam’s economic growth, accounting for more than 90% of the private sector and contributing to 40% of GDP. USAID works with businesses like Tam Chien, providing customized training programs, one-on-one coaching, and business-to-business linkages to expand economic opportunities in Vietnam.

Mr. Trung continued, “I received in-depth coaching to identify our needs and determine a roadmap forward for the company.”

The company invested over $23,000 in the adoption of Enterprise Resource Planning (ERP), a software system to manage and integrate business operations, centralizing data and processes across departments into a unified system, allowing for real-time visibility, streamlined workflows, and improved efficiency across the organization.

“The ERP system is a comprehensive solution to manage and optimize operations, improve efficiency, ensure quality, and support growth. By integrating various functions into a single system, it is reducing costs, improving customer satisfaction, and enabling data-driven decisions,” remarks Tung. He continued, “With this application, our entry into international markets is more feasible.”

Tam Chien received additional support from USAID to enhance its ERP system, enabling it to not only collect data but also generate reports for better decision-making in processes and sales. This boost in confidence in digital tools has led the company to plan an investment of over $120,000 to transform its factory into a smart facility—one that leverages advanced technology to automate and optimize manufacturing. These upgrades are expected to reduce errors, improve inventory management, and cut costs, supporting Tung's goal of doubling Tam Chien’s growth and entering international markets within three years.

By 2025, through its Improving Private Sector Competitiveness project, USAID will have assisted over 3,500 small and growing businesses and 50 business support organizations. This is facilitating Vietnam’s transition to a knowledge economy through technological innovation, digital transformation, and developing a highly-skilled digital workforce.