Financial Connectivity and Digital Transformation: Growth Opportunities for Small and Medium Enterprises in Ho Chi Minh City

Small and medium-sized enterprises (SMEs) in Ho Chi Minh City are facing significant challenges in the process of digital transformation. These difficulties are not only limited to a lack of capital but also include limited expertise and a shortage of high-quality human resources.

At the Ho Chi Minh City Economic Forum 2024, a discussion session themed "The Role of the Center for the Fourth Industrial Revolution (C4IR) in Promoting Industrial Transformation in Ho Chi Minh City" garnered considerable attention. Experts emphasized that, to restructure and develop core industries, the city must seek new growth drivers. Particularly, the active participation of businesses, especially in the financial sector, is crucial in providing the necessary capital for the transformation process.

In his speech, the Prime Minister expressed his trust and expectations for C4IR with a golden 20-word message: "Pioneering, cooperation, connection, digitalization, greening, practicality, efficiency, spreading, for the country, for the people." This underscores that the Center is not only a hub for advanced technological solutions but also a catalyst for sustainable and innovative development for Ho Chi Minh City and the nation.

Given that 97% of businesses in Ho Chi Minh City are SMEs, many opinions suggested that for industrial transformation to succeed, the city needs strong and feasible preferential policies from both the central and municipal levels. This includes administrative reforms, creating a favorable investment environment, and helping businesses access capital effectively through flexible and transparent mechanisms.

Dr. Trần Du Lịch, a leading economic expert, shared that the city has already issued various regulations and policies to support businesses in their digital transformation efforts. For instance, specific mechanisms such as interest rate subsidies and credit access have been introduced to ease financial burdens on businesses, helping them secure loans with preferential interest rates and encouraging long-term development.

Financial institutions have also actively supported businesses. Techcombank stands out as a key example, having implemented diverse financial solutions and practical actions to provide tangible value to citizens and customers. The bank continuously enhances customer experience by applying modern technology and improving its digital banking services, making it easier for customers to access financial services in the rapidly evolving digital landscape.

Mr. Prasenjit Chakravarti, Head of Strategy and Transformation at Techcombank, shared that the bank remains committed to accompanying the sustainable development of the Vietnamese Government, as well as the strategic direction of Ho Chi Minh City. Techcombank is also working closely with global partners to bring high-tech financial solutions and offer ESG (environmental, social, governance) consulting tailored to specific customer groups across different sectors.

A highlight of this year's Economic Forum was Mr. Hồ Anh Ngọc, Vice Chairman of Techcombank, becoming one of the founding members of the Center for the Fourth Industrial Revolution (C4IR) in Ho Chi Minh City. This showcases the bank's strong commitment to promoting digital transformation and sustainable development for both the city and the country. Currently, Techcombank provides a wide range of financial solutions and banking services to over 14.4 million individual and corporate customers through its nationwide branch network and leading digital banking services.

In the context of digital transformation becoming an inevitable trend, the collaboration of financial institutions like Techcombank, along with supportive policies from various levels of government, will create a favorable environment for businesses in Ho Chi Minh City, particularly SMEs, to thrive in the Fourth Industrial Revolution era.