A panel discussion at the APEC Workshop in July drew attention from both businesses and the public. VNA/VNS Photo Minh Đức

 HÀ NỘI — As digital transformation and AI are reshaping global manufacturing, business and competition, enhancing digital capacities for micro, small and medium-sized enterprises (MSMEs) has become a top priority in cooperation among members of the Asia Pacific Economic Cooperation (APEC).

The backbone of APEC member economies

According to the United Nations' Economic and Social Commission for Asia and the Pacific, MSMEs make up about 97 per cent of total enterprises and create jobs for about 69 per cent of the labour workforce in APEC countries. 

Closely attached to local markets and communities, MSMEs play an important role in creating jobs, stimulating demand and maintaining the diversity of the economy. MSMEs are largely involved in traditional crafts in the Asia-Pacific, including wholesale, retail, agriculture and trade, food processing, lodging and other services. 

Despite being the backbone of APEC member economies, MSMEs belong to a group of enterprises that are easily impacted by outside shockwaves. Due to limited scale and resources, MSMEs are often greatly affected by economic and financial crises, natural calamities or sudden changes of the business environment. The COVID-19 pandemic was a clear example, with the sector hurt by declining domestic and international demand and investment.

Experts said at a recent workshop in Hà Nội on empowering MSMEs through digital transformation that an effective solution to help MSMEs minimise the impact of outside shocks is to use technology to boost production, optimise activities, reach wider markets and increase competitiveness. 

AI in particular has opened up new methods for MSMEs to automate their workflows and improve data analytics, product marketing and service quality.

Facilitating the MSME digital transformation

MSMEs play an important role in creating jobs, stimulating demand and maintaining the diversity of the economy, participants heard at a workshop in July. VNA/VNS Photo Minh Đức

 For APEC member countries, helping MSMEs with the digital transformation can create a huge impact in many areas, from increasing productivity, opening trade opportunities and participating in the value chain to strengthening the resilience of the economy when dealing with shocks. 

Narrowing the gaps in digital capability between enterprises and economies also helps create a more dynamic and balanced environment. APEC has thus been strengthening cooperation to help MSMEs access and effectively use digital technology, specifically AI. 

Permanent Deputy Minister of Foreign Affairs and Chair of the APEC 2027 National Secretariat Nguyễn Minh Vũ spoke at the APEC Workshop on Empowering MSMEs through Digital Transformation in the AI-Driven World held in Hà Nội in July.

Vũ said that as AI and digital technology reshape the global economy, enhancing the digital capability of MSMEs is essential not only to support their digital transformation, but also to unlock new momentum for enhancing productivity, efficiency and competitiveness in the AI era.

According to the deputy minister, developing the private sector and strengthening the competitiveness of MSMEs together form a strategic priority for Việt Nam in the new era, aimed at helping realise the country's sustainable growth goals.

Vũ noted that Việt Nam hopes for closer cooperation among APEC economies in technology transfer, experience sharing, digital skills development and the building of a favourable ecosystem to help businesses make effective use of digital technologies and AI.

He added that as Việt Nam hosts APEC 2027, it will continue working closely with other member economies to advance practical cooperation initiatives that foster productivity growth, enhance regional competitiveness and strengthen economic resilience of regional economies.

The workshop was an initiative proposed by Việt Nam within the framework of the APEC Small and Medium Enterprises Working Group, with a goal of strengthening regional cooperation in digital transformation and innovation to support Việt Nam's role as APEC 2027 host.

One major focus of APEC collaboration is to guide enterprises in applying digital technologies, particularly AI. 

Chairman of the APEC Digital Economy Steering Group Ichwan Nasution said that APEC's cooperation priorities include advancing the adoption of digital technologies and AI, boosting digital connectivity, narrowing the digital gap, fostering a safe and trustworthy digital environment and supporting MSMEs in seizing the opportunities that digital transformation brings about. 

APEC economies are also focused on sharing their experiences and applying AI models that may facilitate productivity and the ability to join global value chain for MSMEs. This is a practical approach, because for enterprises with limited resources, access to tested models can help reduce trial costs and keep the risks of applying new technology under control. 

With the priority on technology, APEC looks forward to building an ecosystem that fully supports MSMEs in developing digital technology skills, narrowing the digital gap and increasing capability. Creating a favourable environment for enterprises to safely and responsibly apply AI was also raised at the workshop as an important requirement for companies in their digital transformation process. — VNS