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Digital transformation in administration – The change brings great value to businesses

24/08/2022 04:01 PM
Textile and garment is one of the industries with the largest export turnover in the country with a fast growth rate. In 1999, the whole industry's export turnover only reached 1.75 billion USD, by 2021 it will reach more than 40 billion USD and ranked in the top 3 leading textile and garment exporting countries in the world. With nearly 3 million employees, the textile and garment industry is a job-creating industry that generates stable income, contributes to ensuring social security and order, and increases budget revenue for the State and localities.

Difficulties caused by the prolonged Covid-19 pandemic and challenges from the market have forced many textile and garment enterprises to stop operating. In that context, the application of new technologies, digital transformation in production and administration is an inevitable trend, a "two-in-one" solution to help textile enterprises quickly recover from the pandemic and move up to the higher position in the global supply chain.

Barriers on the journey of digital transformation in administration

Based on the survey results from more than 100 businesses in the Report "The situation and needs of digital transformation of the textile and garment industry" (conducted by Novaon Tech in collaboration with the Vietnam Textile and Apparel Association (VITAS), up to 50% enterprises in the textile and garment industry have not yet applied technology in human resource management, mainly still using Excel. 85% of businesses do not know where to start digital transformation and have difficulty in choosing a deployment unit. 81% of enterprises in the textile industry want to increase employee productivity, reduce management costs, and increase employee satisfaction.

The survey shows that there are 04 biggest challenges in human resource management that textile enterprises often face. Firstly, minimizing resources and time for calculating wages and salaries. Second, improve the performance of personnel. Third, how can a quick and transparent reporting system help leaders make timely management decisions? Finally, the problem of improving the human resource experience.

According to Ms. Nguyen Thi Tuyet Mai - Vice General Secretary cum  Head of Rep. Office of VITAS in HCMC, the implementation of the program "Greening Vietnam's textile and garment industry" with the participation of global apparel brands has put Vietnam's textile and garment industry in front of new challenges. To be able to keep the momentum of export turnover growth, enterprises must meet the transparency of origin and origin; production materials must be localized; must comply with labor and environmental commitments in FTAs. Mrs Mai affirmed that digital transformation will facilitate increased transparency & efficiency in the management system, increase the connection between departments, divisions and units in the enterprise, optimize employee productivity, increase product quality and improve the competitiveness of enterprises. However, with 80% of enterprises having small and medium scale, investing in advanced technology is really a difficult problem. There are many barriers that businesses face in digital transformation. In which, investing in digital technology solutions and deploying and maintaining technology is the most difficult because of the relatively high cost, while the effectiveness of technology application in production and business activities is not shown clear in the short term. Along with that is the difficulty in changing business habits and practices and one of the big challenges for businesses in the industry is the responsiveness of human resources to apply digital technology.

Big bariers but high efficiency

Mr. Vu Duc Giang – Chairman of VITAS informed that 45-47% of textile and garment enterprises have applied digital management, typically Phong Phu International Joint Stock Company (PPJ), Viet Tien Garment Joint Stock Company , Garment 10 Corporation - JSC…

Mr. Dang Vu Hung, Chairman of PPJ said that business activities are constantly expanding and the complexity increases every year, so businesses often face difficulties in monitoring production plans and progress. Each production department and division has its own production plan but is not connected so there is no visual view of the overall process; When there is a change or an incident occurs in an area, it often takes a long time to calculate the impact on other stages.

“After adopting digital governance, we managed to proactively manage the plan and make decisions faster, thereby improving the on-time delivery rate from 90% to 96%. We calculated that we saved about 100 hours of work per week, and more importantly, each team knew exactly what tasks they needed to prioritize and what potential issues needed to be addressed right away.” PPJ representative shared.

Faced with increasingly strict requirements of brands, Vietnamese textile and garment enterprises are investing in artificial intelligence (AI) and automation, but this issue will be directly related to human resources. Therefore, Vietnamese textile and garment enterprises must have a vision, focus on human resource training and be able to adapt to digital transformation.

Since 2014, Garment 10 Corporation - JSC has oriented training to improve the quality of human resources, prioritizing training experts in technology, market and skilled workers. Currently, May 10 has a technical department to study each worker's operation, a research room to organize production, then train each operation, arrange production lines according to modern machines, and coordinate with existing machinery to increase the highest productivity.

Facing the inevitable requirements, VITAS has been connecting with companies that provide management software solutions to support guidance, training and development of software packages suitable for small and medium textile enterprises. At the same time, cooperate with the Finance Leasing Association to support businesses in obtaining bank loans for green or digital transformation projects, sustainable development of the textile industry.

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