As part of efforts to compete with foreign goods flooding the market, and gaining consumer trust, many Vietnamese firms have invested in new technology in order to increase efficiency and reduce prices.
Dien Quang Lamp JSC recently put into operation a Panasonic-developed production line applying modern technology. The Japanese technology helped increase production three-fold, while reducing production costs and addressing consumer demand for new products.
Vietnam currently has 600,000 businesses, over 90% of which are small and medium enterprises. Among these SMEs, only about 20% are applying new technologies in their operations, with the remainder relying on outdated tech. Businesses are currently allowed to invest 10% of their pre-tax incomes into new technology. However, few businesses actually invest in new technology to improve their efficiency.
As Vietnam integrates further into the world economy, enterprises will see great opportunities and face competitiveness challenges. Therefore, accurately assessing business efficiency and investing in new technology are important in helping Vietnamese enterprises deal with these new challenges.
