Contents

I. Pestel Analysis....................................................................................................................................1
II. SWOT Analysis..............................................................................................................................8
III. TOWS Analysis............................................................................................................................11
IV. Critical evaluation & recommendations....................................................................................11
References List:.......................................................................................................................................12

I. Pestel Analysis
1. Political & Legal
 The political stability rating for domestic business activity in Vietnam is high.
Vietnam's political stability index ranged between 0.26 and -0.08 from 2013 to 2020,
which is within the stable range. The range of stability for the political stability index
is -2.5 to 2.5. Vietnam is seen as a suitable market for AIONtech to compete in and
expand owing to the country's stable politics, which will foster the growth of the
economy, society, and technology, particularly the banking business, in which
AIONtech is concentrating on the development of technological innovation.
Therefore, AIONtech also benefits from Vietnam's growth and political stability.

The Prime Minister announced Decision 10/2021 on high-tech firm identification

criteria on March 16, 2021. Consequently, a high-tech firm is an organization that
satisfies the conditions outlined in Article 75 of the 2014 Law on Investment, as well
as the criteria for the ratio of labor, income, capital, etc. Thus, AIONtech satisfies all
new regulatory requirements for classification as a high-tech firm.

AIONtech has met the requirements outlined in the proposed government

resolutions, including a minimum annual revenue of 70% from high-tech business and
a proportion of professional employees with a college degree or higher. This large
criterion includes additional criteria for classifying high-tech businesses as small,
medium, or large. AIONtech is thus categorised as a small high-tech firm. (AIONtech,
2022)

State policies on the application and development of information technology

should emphasize the application and development of information technology in the
country's industrialization and modernization strategies. Creating conditions for
organizations and individuals to apply and develop information technology to meet
the needs of socio-economic development, foreign affairs, national defense, and
security; fostering the development of the information technology industry as a key
economic sector to meet the demands of domestic and international markets.
Encourage information technology investment. Adopting policies that encourage
organizations and people to implement and improve agricultural information
technology. Protecting the legal rights and interests of businesses and persons who
use and create information technology. Prioritize state budget allocations for the
implementation of information technology in a variety of vital disciplines, the creation
of an information technology industry, and the cultivation of information technology
human resources. (Coyne & Downey, 1991)

The State is also responsible for managing the growth of information technology.
The government handles the unified administration of information technology on
behalf of the state. The Ministry of Post and Telematics is accountable before the
Government for presiding over and coordinating with appropriate ministries and
ministerial-level agencies in the execution of state administration of information
technology. Ministries and ministerial-level agencies should, within the scope of their
responsibilities and authorities, bear primary responsibility for and collaborate with
the Ministry of Post and Telematics in carrying out the government-assigned state
administration of information technology. The People's Committees of provinces and
cities governed centrally must, within the scope of their responsibilities and authority,
handle information technology in their respective locations. Government regulations
must govern the structure and execution of information technology applications in the
operations of state agencies.

2. Economic

Due to the impact of the Covid-19 epidemic, the production cost of machines
running AIONtech's software skyrocketed for a high-tech company like AIONtech.
AIONtech also incurred increased transportation costs because it does not
manufacture the hardware components that run its software, but rather partners with
third-party hardware manufacturers. As global freight costs rise, they buy more
hardware from China's GRGBanking, causing imports of hardware to cost more.

According to statistics, Vietnam's inflation rose dramatically between 2015 and

2020, from 0.6% to 3.2%, then fell little to 2.8% in 2019. Moreover, between 2015
and 2020, Vietnam's interest expenditure rose from 7.1% to 7.6%, hitting a high of
7.6% in 2019. In 2015, Vietnam's currency rate was 21,712 VND per dollar; by 2020,
it will be 23,201 VND per dollar. These numbers indicate that, from 2015 to 2020, the
central bank regularly increased interest rates to tighten monetary conditions.
currencies and exchange rates. Consequently, the financial expenses of businesses
grow as a result of this incident. The rise may be attributed to transportation and
import expenses. Consequently, AIONtech will struggle to sustain profitability over
this time. In 2020, however, the Central Bank has lowered lending rates, indicating
that the government has relaxed monetary policy to assist companies in overcoming
the challenging time caused by the Covid epidemic.

In the digital transformation process, high equipment investment costs and quality
assurance difficulties are prevalent. Digital transformation in the financial - banking
sector is seen as an inevitable trend; yet, this process needs a significant amount of
time, effort, and expense and is a worry for the whole banking sector. In addition,
there is a dearth of qualified personnel in specialist disciplines related to finance and
technology. Human capital is required to understand the emerging technologies of
Industry 4.0, such as artificial intelligence (AI), big data (Big Data), data analytics
(Data Analytics), and blockchain. (Beatty & Liao, 2013)

In several Party and Government decisions, the importance of science and

technology to Vietnam's socio-economic growth is emphasized. According to the
Vietnam 2035 study, in order to accomplish socio-economic development objectives
for the period 2016-2035, the Vietnamese economy must undergo significant
transformations to enable the production and mobilization of new resources to satisfy
development demands. develop. In actuality, the development of science, technology,
and innovation in Vietnam is unclear, and their contribution to economic growth is
negligible. In the period of the Fourth Industrial Revolution, there is abundant
evidence that IT capital has a significant impact on the economy. In the late 1990s and
early 2000s, IT capital enhanced worker productivity in the economy, according to
studies.

The need for technology on the market has altered the development of technology.
AIONtech specializes on software-related banking sector company. In addition,
owing to the effect of the Covid pandemic, AIONtech has changed its operating
technique during the outbreak from direct office work to working from home.

3. Social

In 2020, Vietnam will have a population of nearly 97.6 million, a population

growth rate of 0.91 percent, and a population density of more than 290 people per
square kilometer. Nearly 7.9% of the population is above the age of 65. Vietnam is
designated as a nation with a fast rate of aging of approximately 13 percent over the
next decade. By 2020, the per capita income will exceed $2,800. A growing aging
population will need modifications to the IT solutions industry. Due to the fast growth
of AI, the need for technological solutions has expanded significantly in Vietnam. The
need for using IT and the internet is high, and as a result, the digital transformation of
sectors has expanded. AIONtech specializes on providing technological solutions for
the banking sector, among others. (GarimaKaneria, 2022)

Vietnam is now a nation with a youthful population, and its capacity to learn and
integrate with global development is quite strong. Therefore, the study and use of
science and technology are essential to existence. The practice of using IT, software
technology, ... as vital items (needs) is quite prevalent, particularly among young
people. This is an excellent chance for AIONtech to grow in order to fulfill society's
expanding and demanding needs.

The Covid-19 epidemic has altered individuals' paying practices. This has
bolstered the motivation for Vietnam's financial and banking sector to engage in
digital transformation, online operations, digital apps, and electronic payments. Due
to travel constraints, clients must use cashless and online payment options throughout
the period of social separation. Although travel has grown more easy in the post-
Covid-19 era, individuals have developed the habit of purchasing and performing
transactions online. Consequently, accelerated applications and technologies in the
financial - banking industry is a current trend. Digital transformation in the financial -
banking sector (Digital Banking) is the application of a digital technology platform to
all levels of industry operations, products, and services. This is the trend of the digital
age and the next objective of the whole banking business in Vietnam. However,
digital transformation is not an easy task; on the contrary, it offers several obstacles to
the whole financial and banking sector. From then, the study, appraisal, and
identification of potential and obstacles of digital transformation in the financial-
banking business in Vietnam, based on the experiences of a number of nations across
the globe, will be conducted. In the post-Covid-19 era, it is crucial and vital to provide
comprehensive advice on this topic.

4. Technology

With the fast expansion of the information technology sector, the relatively short
product life cycle necessitates AIONtech's ongoing research and development in order
to satisfy the expectations of customers with higher-quality goods. This is the reason
for the launch of new items to replace ones that no longer satisfy the needs of
customers. Currently, all important processes at AIONtech are automated to guarantee
comprehensive, precise, and accurate data. AIONtech chose in February 2006 to
spend over $2 million in its enterprise resource planning (ERP) system to
accommodate future growth. With the group's general orientation to grow toward
digital convergence, the company's technological development center focuses on
analyzing the company's development direction and identifying chances to increase
goods, services, and solutions. Customers benefit more from innovative technological
solutions. (GarimaKaneria, 2022)

In the financial - banking industry, digital transformation is defined as the

integration of digitalization and technology across all sectors and services of the bank.
This change will assist the bank in integrating with the global trend, hence generating
ideal circumstances for optimizing customer policies while using bank services.
Additionally, it helps banks save money and simplify operations. As a consequence of
the quick development and use of digital transformation tools, a number of banks
have experienced early success, including: According to State Bank data, 95 percent
of credit institutions have already developed and implemented a digital transformation
plan. Joint Stock Commercial Bank for Foreign Trade of Vietnam is testing a digital
business model (Vietcombank Digital); Tien Phong Commercial Joint Stock Bank
deploys Livebank to help customers register fingerprints, face recognition takes only
three seconds, and electronic identification enables customers to register, log in to
their accounts, and complete transactions in just thirty seconds. Vietnam International
Joint Stock Commercial Bank utilizes artificial intelligence and big data specifically
for Online Plus online shopping while issuing credit cards. Vietnam Prosperity Joint
Stock Commercial Bank introduced Yolo, a digital bank modeled off Timo; Orient
Commercial Joint Stock Bank launched OMNI digital bank; Vietnam Technological
and Commercial Joint Stock Bank focuses on developing customer experience on
online banking (Ebanking), minimizing transaction time and costs for customers1;
Military Commercial Joint Stock Bank implemented the integration of all banking
transactions and free financial management on the MBBank and Biz MBBank apps.
Nam A Joint Stock Commercial Bank is the first bank in Vietnam to build the
ONEBANK digital ecosystem, which connects digital banking services with other
digital services in the economy to provide consumers with a smooth and all-
encompassing experience. This is an environment that promotes new client behaviors
for utilizing financial services without visiting the bank directly. Several banks may
now be observed aggressively transitioning digitally using online support tools. Some
banks are still in the testing phase, while others have moved on to wider
implementation. This demonstrates that digital transformation or digital banking is not
that odd and is quickly becoming the banking industry's primary instrument. (Rani et
al., 2020)
5. Environment
Vietnam creates about 1,9 million tons of plastic trash annually, ranking it among
the top 10 countries in terms of waste production. Particularly, the polluted
environment includes water sources for both contagious and non-infectious vehicles.
(Feng et al., 2021)

The number of industrial parks in Vietnam exceeds 183. More than sixty percent
of industrial parks lack a central wastewater treatment infrastructure. Only 60 to 70
percent of urban solid waste is collected. Infrastructure for drainage, wastewater, and
waste treatment cannot meet environmental protection requirements. The majority of
wastewater is contaminated with grease, cleaning chemicals, and dyeing chemicals,
and is dumped directly into rivers and lakes without treatment. The direct release of
untreated gases into the environment. (Cordell & Thompson, 2019)

II. SWOT Analysis

1. Strengths

In the financial banking industry, digital transformation is an unavoidable

development. In other words, although in the past discovering and creating a client
network was conducted in a conventional and passive manner, the digital technology
sector has influenced the manner in which this activity is conducted today. A number
of integrated electronic portals, social media, and mobile apps have facilitated and
accelerated the bank's ability to communicate with clients. During the age of social
distance, the majority of people's living and purchasing activities need online
payments, since this has altered the consumer psychology in the post-Covid-19 era.
They see that making and paying online is incredibly easy, an opportunity that the
banking sector must also seize. In addition, the proportion of individuals using digital
platforms is rising, since our nation has a youthful demographic structure and a
smartphone use rate that is continuously expanding. According to Adsota's Vietnam
digital advertising industry study for July 2020, there are up to 43.7 million
smartphone users in Vietnam, or 44.9% of the population; Vietnam is one of the 15
markets with the greatest number of users. (GÜREL, 2017)

The solutions created by AIONtech are intended to enable industrial and production
zones - where a large number of workers and people are concentrated - stabilize
output.

With technologies that can track both temperature and time attendance using facial
recognition, it is simpler and more precise to supervise workers during this epidemic
season, and any anomalous instances are reported to the public. management or
protection for timely processing.

With a centralized management system - one of the most notable characteristics of the
AIONGate solution package developed by AIONtech - managers may sit in their
workshop or any other location. Any region may still get quick HR system
deployment and management signals.

2. Weaknesses

AIONtech's failure in producing software for the banking business also stems from
Vietnam's inadequate technological production capacity, since the firm concentrates
on the banking industry despite Vietnam's inadequate technological production
capability. The ability to sell AIONtech's goods depends in part on the importation of
foreign hardware. This prevents AIONtech from being proactive in the manufacture
and use of software it provides on the platforms. In addition, the testing procedure has
not fulfilled international standards, which disturbs AIONtech's proactive capacity to
introduce its software to banks.

In addition, there is a dearth of qualified technology engineers on the Vietnamese

labor market, so AIONtech cannot recruit highly qualified technology engineers. They
must recruit technology engineers through expensive headhunter firms, which is
costly and incurs a significant cost. (GÜREL, 2017)

3. Opportunity

The requirement for banks to collaborate with technology solution providers and
sales and service providers6 is digital transformation. Specifically, digital
transformation will serve as the foundation for fostering competition and luring firms
that provide technological solutions or sales enterprises that sell products and services
to collaborate with banks. To conduct transactions via e-wallets or credit cards in
order to fulfill the rising need for convenient goods for clients, while optimizing
revenues, as stated in the preceding paragraph.

AIONtech plans to temporarily shift its focus from the banking industry to the
retail industry by the end of 2022. This will be a great opportunity for AIONtech, as
Vietnam has many retail businesses but none have yet been implemented. The use of
AI technology to retail business procedures. Meanwhile, AI is AIONtech's greatest
asset. They have a lengthy history of development in AI technology and an existing
AI technology potential. (GÜREL, 2017)

4. Threats

The difficulty for AIONtech stems from the fact that banks continue to struggle
with digital transformation of banking procedures. The legal framework for digital
banking is lagging behind the rate of technological advancement. The financial and
banking sector is seen as an industry that plays a crucial role in the economy by
controlling and operating cash flow. Therefore, all active banks must adhere strictly to
the law. In fact, however, the promulgation of legal laws involves a great deal of time,
the promulgation process and processes are complex, and the implementation period
is lengthy, in contrast to the fast growth of science and technology.

Problems in resolving security concerns. The trend of escalating high-tech crime

with an increasing number of new and sophisticated techniques. Because the structure
and function of the Internet is to be an open network, financial transactions are riskier
as technology advances. Specifically, according to a statistic, the financial sector
accounted for approximately 51% of online scams in 2019 (44.7% in 2018); the
primary motivation for cybercrime is financial gain, accounting for 86%; web
application attacks account for approximately 30% of information security incidents
in the financial sector. (GÜREL, 2017)

III. TOWS Analysis

SO Strategy

AIONtech uses the strengths of AI technology and digital transformation

technology to promote opportunities in the banking industry. Current trends in
banking include digital transformation and economic recovery after the Covid
epidemic. To remain competitive, banks must digitally transform their processes in
response to customers' demand for banking convenience.

WO Strategy

AIONtech's aim here will be to use the chance to eliminate the flaw. AIONtech
capitalizes on the digital transformation trend of the whole banking sector to
encourage development prospects and produce bank-specific software solutions.
Combining with GRGBanking to import hardware also relieves AIONtech of
hardware-related concerns, since GRGBanking supplies the majority of the banking
industry's technological hardware. (GONTARCZYK et al., 2015)

IV. Critical evaluation & recommendations

Due to the significant lack of IT engineers on the labor market in Vietnam,

AIONtech should concentrate its economic resources on acquiring competent
technology engineers and skilled people in order to achieve a competitive edge and
separate itself from rivals. Large technology businesses, such as Apple Inc. and
Google, concentrate on investing in human resources of the information technology
 sector as their first step. With a large and competent labor force, AIONtech may be
confident not just in the banking business, but also in other sectors. According to the
CEO of AIONtech, the firm will transition to the retail sector by 2023, necessitating
that AIONtech study the retail industry's operations in order to apply AI technology to
the appropriate process. This will guarantee that AIONtech's software solutions
adhere to the B2B strategy it has followed since its inception and suit the demands of
clients. In addition, the firm should encourage software development in the education
and training market. The current trend in schools is the use of digital transformation to
lectures and student management. Diversification of software sectors may assist
AIONtech broaden its product lines and grow the business.

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