HCM City (VNA) – Digitalisation and overseas expansion are deemed asthe best new strategies for medium-sized companies in Vietnam and other ASEANmember states to promote economic growth in the context of drastic marketchanges, Standard Chartered Bank said in its reported announced on April 22.

Titled “ASEAN – a region facing disruption: positioning mid-corporates forgrowth in Southeast Asia”, the report looked at the critical impacts of tradetension and digital breakout on the bloc’s medium-sized enterprises (withannual revenue ranging from 10 million-500 million USD) in production, retailsale, consumption, and infrastructure development.

The bank said that human resources, culture, technology, and capital managementare key areas to support businesses towards continued growth in the face ofdisruption.

Low labour productivity, which lags significantly behind the world average of65 percent, is described as ASEAN’s main internal growth challenge. Meanwhile,the main external challenges are global uncertainties that increase risks forthe region, which is highly dependent on external trade. Extra-ASEAN tradeaccounted for 77 percent of the bloc’s total exports in 2017.

To that end, Standard Chartered Bank suggested that mid-sized companies in theregion apply smart business operations, including the Internet of Things (IoT),3D printing, and blockchain-enabled contracts to move forward.

Furthermore, fast-growing e-commerce requires corporations to channel focus ondigital go-to market solutions, including those is micro-segmentation,geo-targeting, and augmented Reality, to better understand their customers.

In a bid to promote cross-border expansion, firms should deliver their productsto new market segments and establish relations with foreign partners.

According to Nirukt Sapru – Standard Chartered Bank’s Chief Executive Officerof the Vietnam, ASEAN, and South Asia Cluster Markets – the Vietnamese economyis forecast to sustain its stable growth with FDI being a key catalyst foreconomic expansion this year.

The FDI sector is predicted to experience two-digit growth this year, he said,adding that Vietnam is an open country for trade activities, while localmid-sized companies have favourable conditions for operations.

In the last six months, Standard Chartered Bank Vietnam successfully arrangedHoan My Medical Corporation and Refrigeration Electrical EngineeringCorporation (REE)’s issuance of fix-rate bonds to mobilise capital for theirbusiness plan.

He said that domestic companies should shake hands with prestigious partnersand banks who can help them seek new capital sources, as well as provide themwith effective solutions to capital management, and rational risk managementstrategies. –VNA