Analyzing Digital Transformation Barriers in Small and Medium-Sized Construction Enterprises in Ho Chi Minh City

Abstract

The COVID-19 epidemic that has taken place since the beginning of 2020 has caused businesses in Vietnam to be severely affected. In that context, the need for digital transformation becomes urgent when companies are forced to innovate their models, gradually shift business activities on digital platforms, seek more markets, cut costs, and upgrade their businesses with high operational efficiency and competitiveness to adapt to the new context. Although the needs of companies for digital transformation are significant, there are still many barriers that not only international but also initial small and medium-sized companies face when applying digital technology. Research aimed at elucidating the significance and inevitability of digital transformation in the domestic construction sector, as well as identifying and assessing digital transformation hurdles in small and medium-sized construction companies in Vietnam through the level business barriers in business digital transformation in Ho Chi Minh City. The findings of the research indicate that the elements that were surveyed affect the degree of digital transformation that is taking place in small and medium construction businesses in Ho Chi Minh City. The research also includes recommendations for potential solutions that might assist small and medium construction businesses in Ho Chi Minh City in overcoming obstacles that stand in the way of their participation in the ongoing digital revolution.