BANKING ACADEMY OF VIETNAM FACULTY OF INTERNATIONAL BUSINESS BACHELOR’S THESIS TOPIC DIGITAL TRANSFORMATION IN VIETNAMESE LOGISTICS ENTERPRISES Student : Nguyen Ngoc Anh Class : K24KDQTA Course : 2021-2025 Student ID : 24A4050047 Advisor : Assoc. Tran Ngoc Mai Ha Noi, April 2025 iii DECLARATION I hereby ensure that my graduation thesis entitled "Digital Transformation in Vietnamese Logistics Enterprises" is my personal research with the guidance of Assoc. Tran Ngoc Mai, Deputy Head of the Department of International Investment, Faculty of International Business, Banking Academy of Vietnam. Data sources and information used for analysis purposes in this thesis have clear and well-founded origins and were collected and processed in accordance with regulations.
Research results in the thesis topic serve for self-study and objective analysis. I take full responsibility for the content of my thesis. Student Nguyen Ngoc Anh iv ACKNOWLEDGEMENT First of all, I would like to express my wholehearted gratitude to Assoc. Tran Ngoc Mai, Deputy Head of the Department of International Investment, Faculty of International Business, Banking Academy of Vietnam, for her invaluable guidance, support, and dedication throughout the completion of this thesis.
My deepest appreciation also goes to the esteemed lecturers of the Banking Academy of Vietnam and the Faculty of International Business, who have provided me with fundamental and specialized knowledge. The knowledge and guidance imparted by the lecturers have not only helped me complete this graduation thesis but also shaped my academic growth and personal development throughout my four years of study. As my knowledge and theoretical understanding still have many limitations, I sincerely look forward to receiving guidance and contributions from my lecturers to make my thesis more complete. Finally, I would like to wish all lecturers good health and more success in their careers.
Thank you sincerely! Student Nguyen Ngoc Anh v TABLE OF CONTENTS DECLARATION .iv LIST OF ABBREVIATIONS. viii LIST OF FIGURES .x LIST OF IMAGES. The urgent of the subject. Research object and scope.
Structure of the thesis: .6 CHAPTER 1: THEORETICAL BASIS. OVERVIEW OF LOGISTICS. Definition of logistics. Classification of logistics.
The role of logistics. OVERVIEW OF LOGISTICS ENTERPRISE. Definition of logistics enterprise. Classification of logistics enterprises.
OVERVIEW OF DIGITAL TRANSFORMATION. Definition of digital transformation. Phases of digital transformation .3 The role of digital transformation. Digital Maturity Model (DMM).
OVERVIEW OF DIGITAL TRANSFORMATION IN LOGISTICS ENTERPRISE. Definition of digital transformation in logistics enterprise. The role of digital transformation in logistics enterprise. The necessity of digital transformation in logistics enterprise.
Key aspects of digital transformation in logistics enterprise. Technologies and applications of digital transformation in logistics enterprise. Factors impacting the digital transformation in logistics enterprises:. EXPERIENCE OF COUNTRIES IMPLEMENTING DIGITAL TRANSFORMATION IN LOGISTICS.
Experience of America. Experience of China. 31 SUMMARY OF CHAPTER 1. 32 CHAPTER 2: THE CURRENT SITUATION OF DIGITAL TRANSFORMATION IN VIETNAMESE LOGISTICS ENTERPRISES.
THE CURRENT STATE OF KEY ASPECTS OF DIGITAL TRANSFORMATION IN VIETNAMESE LOGISTICS ENTERPRISES. Awareness of digital transformation in Vietnamese logistics enterprise. Maturity of digital transformation in Vietnamese logistics enterprise. Demand of digital transformation in Vietnamese logistics enterprise.
THE CURRENT STATUS OF TECHNOLOGIES AND APPLICATION IN DIGITAL TRANSFORMATION OF VIETNAMESE LOGISTICS ENTERPRISE .3 Internet of Things (IoT). EVALUATION OF DIGITAL TRANSFORMATION IN VIETNAMESE LOGISTICS ENTERPRISE. Causes of limitations. 54 SUMMARY OF CHAPTER 2.
57 vii CHAPTER 3: SOLUTIONS AND RECOMMENDATIONS TO PROMOTE DIGITAL TRANSFORMATION IN VIETNAMESE LOGISTICS ENTERPRISES. VISION AND ORIENTATION OF IMPLEMENTING DIGITAL TRANSFORMING IN VIETNAMESE LOGISTICS ENTERPRISES. Logistics enterprises strive for comprehensive digital transformation. Logistics service enterprises aim for sustainable and green development through digital transformation.
DEVELOPMENT TREND OF DIGITAL TRANSFORMING IN VIETNAMESE LOGISTICS ENTERPRISES. The trend of AI integration in data management and demand forecasting for logistics services. The trend of sensor technology and shipment tracking platforms. Application of automated delivery robots in warehousing.
SOLUTIONS TO PROMOTE DIGITAL TRANSFORMATION IN VIETNAMESE LOGISTICS ENTERPRISES. Develop an appropriate workforce strategy. Establish a clear vision, objectives, and a digital transformation strategy tailored to their business. Implement a standardizing process and data intergration.
Transform mindset and corporate culture for digital transformation. Proposed digital transformation model for Vietnamese logistics enterprises. For the Vietnamese Government. For the Vietnam Logistics Business Association (VLA).
For the Viet Nam Association for Logistics Manpower Development (VALOMA) .71 SUMMARY OF CHAPTER 3 .75 viii LIST OF ABBREVIATIONS ABBREVIATIONS ORIGINAL ENGLISH MEANING 1PL First Party Logistics 2PL Second Party Logistics 3PL Third Party Logistics 4PL Fourth Party Logistics 5PL Fifth Party Logistics AGV Automated Guided Vehicles AI Artificial Intelligence APEC Asia-Pacific Economic Cooperation China Academy of Information and Communications CAICT Technology CRM Customer Relationship Management CSCMP Council of Supply Chain Management Professionals DMM Digital Maturity Model eDO electronic delivery order ERP Enterprise Resource Planning ESCAP Economic and Social Commission for Asia and the Pacific FMS Freight Management Software GPS Global Positioning System GVC Global Value Chain IDC Internet Data Center IoT Internet of Things IT Information Technology LSP Logistics Service Providers ML Machine Learning NOC Network Operations Center OMS Order Management System RFID Radio Frequency Identification SCM Supply Chain Management ix SMEs Small and Medium Enterprises SNP Saigon Newport Corporation TMS transportation management systems WMS Warehouse Management System VALOMA Viet Nam Association for Logistics Manpower Development VBC Vietnam Blockchain Corp VLA Vietnam Logistics Business Association x LIST OF FIGURES Figure Page Figure 2. Awareness of the Importance of Digital 36 Transformation in Logistics Service Enterprises in Vietnam Figure 2. The Current Level of Interest in Digital Transformation Among Logistics Service Enterprises in 37 Vietnam Figure 2. Awareness of the Importance of Digital 37 Transformation in Logistics Service Enterprises in Vietnam Figure 2.
Motivations Driving Digital Transformation in 38 Vietnamese Logistics Service Enterprises Figure 2. Current Digital Transformation Levels of Logistics 41 Service Enterprises in Vietnam Figure 2. Software Currently Used by Logistics Service 43 Enterprises in Vietnam Figure 2. Investment Budget of Vietnamese Logistics 44 Enterprises for Digital Transformation Figure 2.
The time commitment of Vietnamese Logistics 45 Enterprises for digital transformation projects Figure 2. Expected Profit Growth of Logistics Enterprises 46 with Digital Transformation xi LIST OF IMAGES Image Page Image 1.1: The Levels in the Development Roadmap of Industry 4.2: The Digital Maturity Model 19 Image 3.1 Proposed Digital Transformation Model for Vietnamese 71 Logistics Enterprises 1 INTRODUCTION 1. The urgent of the subject In Resolution No. 57 - NQ/TW (2024) "On the Breakthrough in the Development of Science, Technology, Innovation, and National Digital Transformation," it is affirmed that: "The development of science, technology, innovation, and digital transformation is becoming a decisive factor for the progress of nations.
It serves as a prerequisite and the most favorable opportunity for our country to grow into a prosperous and powerful nation in the new era - an era of national rise and resurgence. In the context of the Fourth Industrial Revolution unfolding globally, digital transformation has become an inevitable trend, playing a crucial role in the socio-economic development of nations, including Vietnam. The Party and the State of Vietnam recognize digital transformation as one of the key priorities in the country’s industrialization and modernization process. On the occasion of the 79th anniversary of the National Day of the Socialist Republic of Vietnam (September 2, 1945 – September 2, 2024), General Secretary To Lam published an article titled “Digital Transformation – A Key Driver for Advancing Productive Forces, Perfecting Production Relations, and Leading the Nation into a New Era.” The digital transformation revolution is regarded as a fundamental factor in restructuring production relations to align with the advancement of productive forces.
Notably, significant investments in digital infrastructure have been a driving force in accelerating the digital economy, with the goal of positioning Vietnam among the world’s top 50 countries in e-government and the digital economy by 2030. Recognizing the significance of digital transformation, the Vietnamese government has introduced numerous policies and strategies to accelerate this process. 749/QĐ-TTg “National Digital Transformation Program to 2025, with an Orientation to 2030” stated that among the eight priority sectors for digital transformation, logistics has been identified as a key economic sector with a core role and high value-added potential, forming the foundation for sustainable development and contributing to the overall economic growth. However, most logistics enterprises in Vietnam are SMEs that are still in the early stages of digital transformation.
Limited financial capacity, shortages of highly skilled human resources, inadequate technological infrastructure, and cybersecurity concerns remain significant barriers to digital adoption in the logistics sector. 2 As a crucial industry, logistics requires substantial investment, particularly in digital transformation, to adapt to market dynamics and maximize its role in driving the growth of other industries. The application of digital technology in logistics offers multiple benefits, optimizing operational efficiency and ultimately reducing overall logistics costs for the national economy. This aligns with a critical goal for any country, especially for Vietnam, where logistics costs still account for a significant proportion of the economy.
Today, digital transformation is considered the key to survival in an era where digital disruption is imposing new demands on organizations and businesses. Radical changes in labor productivity, consumer trends for products and services, and the emergence of new business models highlight the immense role and impact of digital transformation in modern society. For businesses, the primary focus of digital transformation is to create value, leverage digital technologies to increase profitability, enhance corporate value, and strengthen competitive positioning in the market. Based on this practical context, the thesis titled “Digital Transformation in Vietnamese Logistics Enterprises” aims to propose solutions and recommendations to promote successful digital transformation for the Vietnamese logistics enterprise.
The study focuses on analyzing the current situation of digital transformation adoption among logistics enterprises, thereby evaluating their achievements, limitations, and the underlying causes of those limitations. Domestic research Le Mai Trang et al (2024) believed that the logistics sector plays a crucial role in the national economy. It is not only an essential service industry but also a key driver that facilitates and promotes socio-economic development at both national and local levels, contributing to enhancing the economy's competitiveness. In the context of a rapidly evolving digital economy, competition among businesses has intensified.
Notably, the disruptions caused by the COVID-19 pandemic and the Russia-Ukraine conflict have severely impacted supply chains, pushing many logistics companies into financial distress. This situation underscores the urgent need for the logistics industry, particularly logistics enterprises, to accelerate digital transformation. Nguyen Thi Yen et al (2023) revealed that logistics, as a high-value-added service sector, acts as a fundamental pillar of trade and contributes significantly to 3 strengthening the economy's competitiveness. With the rapid advancement of digital technology and the Fourth Industrial Revolution, the logistics industry has significant opportunities for breakthroughs that could further drive economic growth, provided that digital transformation is expedited.
This study examines the current state of digital transformation in Vietnamese logistics enterprises, highlighting key challenges and obstacles. Additionally, several solutions are proposed to support and accelerate the digital transformation process within the industry. Pham Quang Hai, Phung Quang Phat and Do Hong Quan (2023) demonstrated the logistics industry's crucial role as the backbone of the economy, influencing various aspects of production, distribution, circulation, and product consumption. Within the context of digital economy integration, logistics enterprises must accelerate their digital transformation efforts to enhance managerial capabilities, optimize business operations, and improve workforce quality.
This study aims to clarify the theoretical framework of digital transformation in Vietnamese logistics enterprises, examine both achievements and existing limitations, and propose strategic solutions to advance digital transformation in the sector. Pham Trung Hai (2022) believed that the logistics service sector plays a crucial role as a key industry that drives trade and enhances competitiveness. As a vital link within the supply chain, logistics enterprises must accelerate digital transformation to optimize operations, reduce costs, attract more customers, and improve profitability compared to the pre-transformation period.