BANKING ACADEMY OF VIETNAM FACULTY OF INTERNATIONAL BUSINESS GRADUATION THESIS TOPIC: ENHANCING THE APPLICATION OF AUTOMATION TO LOGISTICS OPERATIONS IN VIETNAM Student’s name: Dinh Thi Huong Class: K24KDQTA Year: 2021 - 2025 Student’s code: 24A4051285 Supervisor: Dr. Nguyen Thi Cam Thuy Hanoi, April 2025 BANKING ACADEMY OF VIETNAM FACULTY OF INTERNATIONAL BUSINESS GRADUATION THESIS TOPIC: ENHANCING THE APPLICATION OF AUTOMATION TO LOGISTICS OPERATIONS IN VIETNAM Student’s name: Dinh Thi Huong Class: K24KDQTA Year: 2021 - 2025 Student’s code: 24A4051285 Supervisor: Dr. Nguyen Thi Cam Thuy Hanoi, April 2025 i DECLARATION I hereby affirm that my Graduation’s thesis entitled "Enhancing the application of automation to Logistics operations in Vietnam" is the result of my personal research conducted under the guidance of Dr. Nguyen Thi Cam Thuy– Lecturer of the Faculty of International Business at the Banking Academy of Vietnam.
All data sources and information used in this study have clear and well-founded origins and were collected and processed in accordance with academic and institutional regulations. I confirm that no part of this thesis has been previously submitted to Banking Academy of Vietnam or any other university for the purpose of obtaining an academic degree. The research findings presented in this thesis serve the purpose of independent study and objective analysis. I take full responsibility for the content and integrity of my thesis.
Student Dinh Thi Huong ii ACKNOWLEDGEMENTS First of all, I would like to express my sincere gratitude to Ms. Nguyen Thi Cam Thuy, whose unwavering support, insightful guidance, and constructive feedback have played a crucial role in shaping this research. Her expertise and encouragement have been invaluable throughout the entire process of completing this thesis. I would like to sincerely thank all the teachers of the Faculty of International Business - Banking Academy for creating a supportive learning environment and equipping me with valuable knowledge throughout my four years of study.
Their dedication and expertise have not only guided me in completing this thesis but have also provided me with essential insights for my future career in International Business. Because there are still many limitations in my knowledge and theoretical ability. Therefore, I warmly welcome any constructive feedback and suggestions from lecturers and esteemed readers to further improve my work. Finally, I would like to wish all teachers good health and more success in their careers.
Thank you sincerely! Student Dinh Thi Huong iii Table of Contents DECLARATION. ii LIST OF ABBREVIATIONS. vi LIST OF FIGURES .x LIST OF TABLES. Research object and scope.
Structure of the thesis .6 CHAPTER 1: THEORETICAL FRAMEWORK. Overview of Logistics Operations. Definition of Logistics. Characteristics of Logistics.
The role of Logistics. Fields of Logistics. Overview of the automation of Logistics. Definition of automation on Logistics.
Characteristics of automation Logistics. The role of automation on logistics. Applications of automation on logistics. Factors affecting the application of automation in logistics operations.25 SUMMARY OF CHAPTER 1 .29 CHAPTER 2: THE CURRENT SITUATION OF APPLYING AUTOMATION TO LOGISTICS OPERATIONS IN VIETNAM .The current situation of logistics in Vietnam.
Growth rate and scale. Number of logistics enterprises. Logistics costs in Vietnam. Types of services provided by logistics enterprises.
The current situation of applying automation to logistics operations in Vietnam. Transportation and Delivery. Evaluation of applying automation to Logistics operations in Vietnam. Limitations and reasons .54 SUMMARY OF CHAPTER 2 .60 CHAPTER 3: SOLUTIONS FOR APPLYING ENHANCING AUTOMATION TO LOGISTICS OPERATIONS IN VIETNAM.
Trends and future opportunities in automation in logistics. Trends in automation in logistic. Opportunities in automation to logistics development in Vietnam. Strategies for developing and applying automation to logistics Vietnamese.
Overcoming technical skill gaps and workforce adaptation challenges. Enhancing integration and compatibility of automation systems .3 Encouraging research and development .4 Addressing high initial investment costs and long payback periods. Enhancing legal framework and digital infrastructure to facilitate logistics automation. Recommendations for Vietnamese Government and related Logistics associations.
Recommendations for Vietnamese government. Recommendations for related Logistics associations .77 SUMMERY OR CHAPTER 3 .81 vi LIST OF ABBREVIATIONS Abbreviation Full meanings 1PL First-Party Logistics 2PL Second-Party Logistics 3PL Third-Party Logistics 4PL Fourth-Party Logistics 5PL Fifth-Party Logistics AGV Automated Guided Vehicle AI Artificial intelligence AMR Autonomous Mobile Robot AR Augmented Reality AS/RS AutomatAutomated Storage and Retrieval Systems B2B Business to Business CAGR Compound Annual Growth Rate CEO Chief Executive Officer CFS Container Freight Station CIEM Central Institute for Economic Management COD Cash on Delivery vii Comprehensive and Progressive Agreement for Trans-Pacific CPTPP Partnership CSCMP Council of supply chain management professionals D2D Door to door DC Distribution Center DSCT Digital Supply Chain Twin ERP Enterprise Resource planning EU European Union EVFTA European-Vietnam Free Trade Agreement FMS Freight Management System GDP Gross Domestic Product GQII Global Quality Infrastructure Index ICD Inland Container Depot IoT Internet of Things IROCO Intelligent Robotics Company IROCO Intelligent Robotics Company JIT Just in time LPI Logistic performance index viii MIS Management Information System ML Machine Learning MTO Multimodal Transport Operator NQI National Quality Infrastructure OMS Order Management System QI Quality Infrastructure QUATEST Quality Assurance and Testing Center 2 R&D Research and Development RCEP Regional Comprehensive Economic Partnership RCEP Regional Comprehensive Economic Partnership Agreement RFID Radio Frequency Identification RPA Robot process automation ix SMEs Small and Medium Enterprises TCO Total cost of ownership TMS Transportation Management Systems USD United States Dollar VLA Vietnam Logistics Business Association VLI Vietnam Logistics Research and Development Insitute VND Vietnam Dong VPA Vietnam Seaports Association VR Virtual Reality VTC Vietnam Multimedia Corporation WB World Bank WMS Warehouse Management System x LIST OF FIGURES Figure Page Figure 1. Automation concepts and framework for supply chain and 20 logistics management Figure 2. Proportion of logistics costs compared to GDP of some 32 countries Figure 2.
Volume of Freight Transported by Road in the Period 35 2022-2024 Figure 2. Volume of Freight Transported by Rail in the Period 2022- 36 2024 Figure 2. Volume of Freight Transported by Maritime in the Period 37 2022-2024 Figure 2. Volume of Freight Transported by Air in the Period 2022- 38 2024 Figure 2.
Volume of Freight Transported by Inland Waterway in the 40 Period 2022-2024 Figure 2. Commonly Applied Technologies in Logistics Enterprises 45 Figure 2. Information technology applications and development trends that businesses are currently or planning to provide for 47 customers using logistics services Figure 2. Software Currently Used by Logistics Service Companies 48 in Vietnam Figure 3.
Logistics Automation Market Size 2024 to 2034 64 Figure 3. Concept of a Digital Supply Chain Twin 67 LIST OF TABLES Table Page Table 2. Vietnam’s LPI Ranking from 2007 to 2023 31 1 INTRODUCTION 1. Research motivation In recent years, the rapid advancement of technology and the increasing complexity of global supply chains have emphasized the importance of automation in logistics operations.
As businesses strive for efficiency, accuracy, and cost reduction; automation has become a key driver in modernizing logistics processes worldwide. In this context, Vietnam’s logistics sector must accelerate its adoption of automation to enhance operational efficiency, reduce costs, and improve service quality in both domestic and international markets. The integration of automation in logistics is essential to strengthening Vietnam’s competitiveness, optimizing resource utilization, and aligning with global supply chain trends. Despite efforts to modernize logistics operations, Vietnam still faces barriers in adopting automation.
Challenges such as high initial investment costs, resistance to technological change, lack of skilled workforce, and outdated infrastructure hinder the widespread application of automation in logistics. Additionally, many Vietnamese enterprises, especially small and medium-sized logistics providers, struggle to integrate advanced technologies. Overcoming this challenge is crucial for Vietnam to leverage the benefits of automation and remain competitive in the global logistics industry. Vietnam is currently in a phase of economic integration and digital transformation, participating in free trade agreements and global value chains.
This creates both opportunities and challenges for the logistics sector, as automation is becoming a necessity rather than an option. By enhancing the application of automation, Vietnam can improve logistics performance, minimize operational inefficiencies, and reduce dependency on manual labor. Moreover, a more automated logistics system can attract foreign investment, enhance supply chain resilience, and support the country’s broader economic development goals. Recognizing the critical role of automation in the modernization of logistics operations, I have chosen the topic "Enhancing the application of automation to logistics operations in Vietnam" for my research.
This study aims to analyze the current 2 state of automation adoption in Vietnam’s logistics sector, identify key challenges, and propose strategic solutions to accelerate the implementation of automation technologies. The findings will contribute to developing an efficient, technology-driven logistics system that supports Vietnam’s long-term economic growth and competitiveness in the global market. Literature review Automation in logistics has been increasingly applied around the early 2000s but it has significantly accelerated in recent years, especially from 2020 onwards. The rise of e-commerce, advancements in technology, and the need for more resilient supply chains have driven this trend.
In the context of the Fourth Industrial Revolution, research on automation in logistics has become a significant topic that attracts the attention of many scholars and industry experts Basir (2025) explores the role of digital transformation in improving supply chain efficiency for SMEs. The paper demonstrated the automation in logistics operations enables SMEs to streamline inventory management, optimize transportation routes, and enhance demand forecasting accuracy. Moreover, it argues that integrating digital solutions fosters better collaboration across the supply chain, leading to reduced delays and improved customer satisfaction. The research findings suggest that businesses adopting automation in their logistics operations can significantly boost productivity and adaptability in a rapidly evolving market.
Valluri (2021) have released research on the integration of automation and advanced WMS in logistics operations, highlighting their role in improving efficiency, accuracy, and cost-effectiveness. Traditional warehouse management relies on manual processes, which often result in inefficiencies, errors, and increased operational costs. In contrast, the adoption of automated solutions such as robotic picking systems, AGV, IoT sensors, and AI driven predictive analytics enhances warehouse performance. The study also emphasizes that automation optimizes inventory management, streamlines order fulfillment, and reduces labor-intensive tasks, leading to improved operational efficiency.
Furthermore, real-time data tracking through IoT and cloud-based WMS 3 allows businesses to make data-driven decisions, increasing supply chain visibility. However, challenges such as high initial investment costs, integration issues, and employee resistance to change remain barriers to adoption. The research suggests that phased implementation, strategic planning, and employee training are crucial for successful automation adoption in logistics operations A recent study by Weng Chen & partner (2024) shows the synergistic combination of AI with traditional logistics optimization methods, which allows for more accurate decision-making and improved operational performance. Additionally, the study highlights the role of AI in sustainable logistics, as it helps businesses minimize carbon emissions, reduce waste, and optimize resource allocation.
By integrating AI-based decision-making into logistics management, companies can achieve both efficiency and environmental sustainability. Not only is it a hot topic attracting foreign authors, logistics sector competitiveness is also a topic that attracts the attention of Vietnamese authors. Hai et al (2023) delves into the theoretical foundations of digital transformation within Vietnam's logistics sector. It evaluates the current achievements and identifies existing limitations in the adoption of digital technologies by Vietnamese logistics enterprises.
Based on this analysis, the article proposes several solutions to enhance and accelerate the digital transformation process in these businesses. A study by Nguyen Thu Huong (2022) explores the impact of Industry 4.0 technologies on the sustainable development of Vietnam’s logistics sector, highlighting the role of digital automation in improving efficiency and reducing environmental impact. The research identifies key challenges and opportunities presented by automation, AI, IoT, and data-driven logistics systems in modern supply chain management. The study shows that automation plays a crucial role in optimizing logistics operations, particularly in areas such as inventory management, transportation planning, and warehouse automation.
