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The tech revolution has heralded a new age of digital transformation, redefining Vietnam’s path towards modernisation and economic development, with logistics emerging as a focal sector for innovation, experts highlighted at a logistics forum held in Can Tho, within the Mekong Delta.
Despite its critical role in the country’s socioeconomic growth, the logistics sector faces challenges, including high costs – 16.8%-17% in Vietnam, surpassing the global average of 10.6% – stemming from limited capacity, inadequate infrastructure, and fragmented transportation systems.
Vietnam’s standing in the World Bank Logistics Performance Index has slid from 39th in 2018 to 43rd in 2023, showcasing room for enhancement in infrastructure, customs operations, and international shipping. Concerns also persist about the industry’s readiness for digital transformation, lagging in tech adoption across logistics businesses.
Deputy Minister of Industry and Trade, Phan Thi Thang, highlighted Vietnam’s emergence as a top-10 logistics market globally, projecting a compound annual growth rate of 5.5% for the industry in the 2022-2027 period. This growth is evident in the country’s robust trade figures, with a trade surplus of US$ 24.59 billion in the first 10 months of the year, signalling the need to capitalise on digital transformation to improve competitiveness and drive socioeconomic growth, particularly in the Mekong Delta, a region ripe for logistics expansion.
Le Quang Trung, Vice Chairman of the Vietnam Logistics Service Business Association, underscored the Mekong Delta’s logistical challenges, notably high costs accounting for 30% of production expenses. While the region hosts 1,461 logistics service providers, mostly serving agriculture, significant hurdles remain, requiring upgrades in logistics infrastructure, specialised stages, multimodal transport, air cargo services, and smart warehousing technologies.
Trung emphasised the urgency for regions to fortify their logistics infrastructure, advocating for specialised facilities and enhancing multimodal transport while leveraging regional connectivity policies to bolster supply chains and logistics operations.
Additionally, he proposed the establishment of new waterway transport routes connecting the Mekong Delta with Cambodia and the Cai Mep-Thi Vai area, facilitating direct trade of key products like seafood and agricultural goods with Europe and the US.
This comprehensive approach, integrating technological advancements and strategic partnerships, is poised to transform Vietnam’s logistics landscape, propelling the country towards greater economic integration and sustainable growth.
Vietnam is embarking on an ambitious journey towards digital transformation, aiming to position itself at the forefront of the global digital age. In a bold stride towards progress, the nation is aggressively pursuing strategic initiatives to amplify digitalisation and fortify its digital economy.
With an unwavering commitment to innovation, Vietnam is harnessing the boundless power of technology to reimagine and revolutionise diverse sectors. This concerted effort is geared towards not just enhancing the nation’s competitive edge on the global platform but also laying the groundwork for sustainable economic expansion.
OpenGov Asia reported that GenAI is set to transform Vietnam’s digital landscape with an estimated VND 14 trillion (US$ 574.83 million) contribution by 2030, according to Dang Huu Son, Vice Chairman of the Artificial Intelligence for Industry Development (AIID).
AIID, formed by 17 tech-oriented universities and enterprises, bridges academia-industry gaps by imparting practical digital skills and preparing individuals for the dynamic tech landscape’s evolving demands.
Son underscores the significance of AI’s evolution, portraying it not merely as a technological advancement but as a transformative force that will redefine efficiency and enhance personal skills on a national scale across multiple generations.
Vietnam’s embrace of AI stands out prominently, boasting an impressive 91% positive outlook on this technology, as revealed by a survey conducted by Finastra Financial Services. This enthusiasm surpasses rates observed in various global markets, reflecting the nation’s keenness to harness the potential of AI.
