ACKNOWLEDGEMENT The path toward this dissertation has been circuitous. Its completion is thanks in large part to the special individuals and organizations who challenged, supported, and stuck with us along the way. Our deep gratitude goes first to Mrs. Cung Thi Anh Ngoc – our research supervisor – for her motivation, patience, and valuable guidance throughout the research process that helps us effectively complete this study.
Secondly, we would like to thank FPT University for its support and guideline during the graduation process. Lastly, we would like to give special thanks to the logistics experts for sharing their precious experiences, and all the businesses who were willing to take the survey and contribute their opinions and information during the research. It would be challenging to complete the research without their kind support. Hoa Lac, August 26th, 2020 Authors of the thesis 2 EXECUTIVE SUMMARY The logistics services industry plays a major role in supporting, connecting, and enhancing the socio-economic development of the country as well as contributing to enhancing global economic competitiveness.
In Vietnam, logistics services have many opportunities for development but also face many challenges in terms of labor resources, institutions, and policies. Moreover, the development of import and export activities in Vietnam also sets the requirements for logistics services to improve quality to meet practical needs. Therefore, it is essential and necessary to learn, identify, and analyze the factors affecting the development of logistics services, especially in the context of deepening international economic integration. For over the past years, this topic has been of interest to many researchers around the world.
However, there are not many studies that have specifically identified the factors affecting the development of logistics services in import and export activities and how to enhance it better in Vietnam. In this study, the authors tried to study the influence of these factors on the development of logistics services in import and export activities. This study not only follows the quantitative method but also the qualitative method to ensure both objective and subjective viewpoints. In addition to that, the authors also collect opinions of businesses by conducting a survey.
On the basis of the obtained results, this study gives a number of suggestions and orientations to improve the development of the logistics services industry. After 168 valid answers from business representatives, the study identified four main factors: Political-legal framework factor, Economic-integration factor, Technological factor, Infrastructure factor that mainly affects the development of logistics services in import – export activities in Vietnam. 3 TABLE OF CONTENTS ACKNOWLEDGEMENT. 3 LIST OF FIGURES.
7 LIST OF CHARTS. 7 LIST OF TABLES. 8 ABBREVIATIONS AND ACRONYMS LIST. Methodology and data overview.
13 CHAPTER 2: LITERATURE REVIEW. Theories related to logistics services. Definition and characteristics of logistics services. Legal basis of logistics.
Classification of logistics. Role of logistics services. Logistics services in import and export activities. Main logistics services in import and export.
Logistics services process in import and export activities. Empirical research on factors influencing logistics services. Proposed research model. Proposed research model and hypothesis.
Qualitative versus Quantitative. Data collection methods. Adjust the research model and design questionnaire to official research. Data analysis methods.
Limitations of the research project. 47 CHAPTER 4: FINDINGS AND ANALYSIS. Overview of the logistics services market in Vietnam. Overview of the development of logistics services in Vietnam from 2014 – now.
Logistics services provided for import and export activities in Vietnam. Factors influence logistics services in import-export activities in Vietnam. Describe the research sample. Assess the reliability of the scale through Cronbach’s Alpha coefficient.
Exploratory factor analysis (EFA). Multiple linear regression (MLR). Regression analysis result. 85 CHAPTER 5: RECOMMENDATIONS AND CONCLUSION.
Summary of findings – answer the research questions. The Government’s orientation in developing logistics services in Vietnam in the period 2020-2025. Recommendations to enhance the logistics services in import and export activities in Vietnam. Recommendation for “Technological” factor.
Recommendation for “Political-legal framework” factor. Recommendation for “Infrastructure” factor. Recommendation for “Economy-Integration” factor. Limitations and suggestions for further research.
Limitations of the research project. Suggestions for further research. 100 6 LIST OF FIGURES Figure 2.1: The task of logistics (Haasis, 2008) Figure 2.3: Proposed conceptual model Figure 3.1: Inductive process in research approach (Saunders, M.2: Deductive process in research approach (Saunders, M.3: The proposed research model for official research Figure 4.1: Information on the size of the company's human resources (survey data result) LIST OF CHARTS Chart 4.1: Types of logistics enterprises in Vietnam (VLA, 2020) Chart 4.2: The number and size of domestics enterprises (VLA, 2020) Chart 4.3: The growth rate of the logistics services industry (VLA, 2019) Chart 4.4: Import and export value in 2014-2019 (General Statistics Office, 2019) Chart 4.5: Percentage of responses by business type of the sample (survey data result) Chart 4.6: Evaluating observed variables of PL factor (survey results) Chart 4.7: Evaluating observed variables of IE factor (survey results) Chart 4.8: Logistics cost as the percentage of GDP (WB, 2018) Chart 4.9: Evaluating observed variables of TE factor (survey results) Chart 4.10: Rate of logistics enterprises applying technology and information technology in business activities (VLA, 2018) Chart 4.11: Evaluating observed variables of IF factor (survey results) Chart 4.12: Surveying the quality of logistics human resources in Vietnam (Ho Chi Minh City Research and Development Institute, 2019) 7 LIST OF TABLES Table 3.1: Phases and steps in the Research Process Table 3.2: Differences between quantitative and qualitative Table 3.3: Rule of Cronbach’s Alpha (Cronbach, 1951) Table 4.1: Rank of Vietnam in the Logistics Performance Index from 2014 to 2018 (World Bank, 2018) Table 4.2: Volume of freight carried by mode of transportation in Vietnam from 2014 to 2019 (General Statistics Office, 2019) Table 4.3: Factor descriptive analysis (SPSS results) Table 4.4: Reliability analysis result of independent variables (SPSS results) Table 4.5: Reliability analysis final result of independent variables (SPSS results) Table 4.6: Reliability analysis result of dependent variables (SPSS results) Table 4.7: Results of exploratory factors analysis for independent factors (SPSS results) Table 4.8: Results of exploratory factors analysis for dependent factors (SPSS results) Table 4.9: New hypothesis for research model Table 4.10: Multiple linear regression results (SPSS results) Table 4.11: Development model summary and result of ANOVA test Table 4.12: Development Coefficients Table 4.13: Hypothesis question result Table 4.14: Ranking of Logistics Performance Index - LPI 2018 (WB, 2018) Table 4.15: Road transport infrastructure (Vietnam Road Administration, 2019) 8 ABBREVIATIONS AND ACRONYMS LIST AW Industry awareness factor ASEAN The Association of Southeast Asian Nations Comprehensive and Progressive Agreement for Trans-Pacific CPTPP Partnership EC Economic factor EVFTA European Union-Vietnam Free Trade Agreement FTA Free Trade Agreement FIATA International Federation of Freight Forwarders Associations IE Economic-integration factor IN Integration factor IF Infrastructure factor ICC International Chamber of Commerce LCL Less than Container Loading LPI Logistics Performance Index LSPs Logistics Services Providers PL Political-legal framework factor P.T Political, Economic, Social, Technological SWOT Strengths, Weaknesses, Opportunities, Threats TE Technological factor VAS Value-added Services VLA Vietnam Logistics Business Association WB World Bank 9 CHAPTER 1: INTRODUCTION 1. Topic background Logistics is an essential service sector in the overall structure of the national economy.
It plays a role in support, connection, and improvement of the social-economic development of the whole country as well as contributes to the advancement of economic competitiveness. Logistics is also a core service industry that brings high country value. The development of this industry is associated with national development in commodity production, commercial operations including import and export, as well as information technology development and transportation infrastructure. Furthermore, sustainably developing the logistics services market will create a fair chance for enterprises in all economic sectors and encourage both domestic and foreign investments into Vietnam.
In Vietnam, the logistics industry has developed rapidly in recent years. It is considered as a potentially attractive market to grow. According to World Bank’s report “LPI Global Rankings” (2018), Vietnam is ranked at position 39 with a significant improvement in its Logistics Performance Index, much higher than the 64th position in 2016 (World Bank, 2016). Furthermore, in recent years with an annual growth rate of 14-16% (Ministry of Industry and Trade, 2019), logistics is one of the fastest-growing and the most stable service industries of Vietnam.
This is considered as an excellent opportunity for the logistics industry to expand and become one of the service industries with excellent development prospects in the coming time. In import and export activities, logistics helps solve both inputs and outputs for businesses effectively, optimize the process of transporting materials, goods, services, reducing costs and increasing competitiveness for businesses. According to the Vietnam Logistics report (Ministry of Industry and Trade, 2019), the volume of goods and services produced and supplied to foreign markets is increasing over the same period in 2018. As of this moment, more trade agreements are signed between Vietnam and other big nations, bringing more benefits to Vietnam's economy, and they show high potential for the logistics services industry to grow more influential in this S-shaped country.
According to experts, the logistics industry in Vietnam has many opportunities to grow but also faces many challenges in labour source, institutions and policy. Furthermore, the development of import and export activities in Vietnam has also laid out requirements that require logistics services to improve quality 10 to meet practical needs. Therefore, finding out, identifying and analyzing the factors affecting the development of logistics services are essential and necessary, especially in the context of an increasingly broad international economic integration. Hence, the topic "An analysis of factors affecting the development of logistics services in import-export activities in Vietnam" is chosen to analyze these factors more clearly.
From there, propose solutions and recommendations to facilitate the sustainable development of logistics services in Vietnam. Practical problem Vietnam officially joined the WTO in 2006, and one of the conditions under GATS (General Agreement on Trade in Services) for Vietnam is to open the gate for the logistics industry. This opening has become an essential driving force for the logistics to develop. Over the last few years, Vietnam has signed some FTAs ( VCFTA, VKFTA, AIFTA,CPTPP, EVFTA.) with many major economies in the world which open up opportunities for import and export activities.
It sets the requirements for logistics businesses to ensure both timely and service delivery to support the effective development of import and export activities. However, the logistics are now facing specific difficulties and limitations. There are some significant challenges of Vietnam ‘s logistics industry such as infrastructure, capital scale, taxes and fees, infrastructure, the system of seaports and warehouses that face many inadequacies. Moreover, human resources are also the main reason that makes it difficult for domestic enterprises to compete with foreign ones.
To deal with this matter, we decided to conduct this research to systematize the macro factors which influence the development of logistics services in Vietnam, especially logistics services in import-export activities. Based on the result, the study proposes a number of recommendations to promote the sustainable development of these services in Vietnam. Research objectives The primary purpose of this research was to determine the critical factors that affect logistics services import-export activities in Vietnam. From that, the authors provide some hypotheses and solutions as well as recommendations to improve this industry.
The research was conducted by implementing the following objectives: Objective 1: Determine the theories of logistics in general, and logistics in import-export activities in particular 11 Objective 2: To overview the situation of the logistics services in import-export activities in Vietnam from 2014 to now Objective 3: To identify the critical factors and evaluate the impact of them on the development of Vietnam’s logistics services in import-export activities Objective 4: To propose some feasible recommendations to deal with existing limitations and to improve the development of logistics services in foreign trade activities in Vietnam 1.
