Mr. Nguyen Dinh Thang: "... Digital technology is the key to sustainable development and international integration for Vietnamese businesses."

On the rooftop of the Hong Co Building, amidst a space filled with flowers and plants. An outdoor furniture set is arranged with a colorful fruit platter, tea, macadamia nuts, and even whisky that the host mentioned was recently brought back from a business trip to Australia. From the height of the 6th floor, the view extends out across the landscape – in front is the Tan Thuan Export Processing Zone (established in 1991), the first industrial zone of Ho Chi Minh City, the economic powerhouse, marking the beginning of a wave of foreign direct investment (FDI), industrialization, and modernization driven by the winds of reform.

• Mr. Nguyen Dinh Thang (second from the left) - Member of the University Council - National Economics University (NEU);

Mr. Thang, in your view, what role will digital technology play in Vietnam's industrialization, modernization, and international integration?

Mr. Nguyen Dinh Thang: Digital technology is a key factor in Vietnam's industrialization and modernization, helping to enhance productivity, quality, and production efficiency. Thanks to digital technology, businesses can optimize production processes, minimize errors, reduce costs, and boost competitiveness. Particularly, the application of digital technology facilitates Vietnamese businesses in international integration. They can access global markets more quickly and efficiently, thereby elevating Vietnam’s position in the global value chain. With the development of e-commerce, artificial intelligence (AI), and the Internet of Things (IoT), digital technology will further enable businesses to expand internationally

Specifically for the logistics sector, what value do you think the application of information technology (IT) brings to Vietnamese businesses?

Mr. Nguyen Dinh Thang: The application of IT in logistics brings numerous significant benefits. First, it improves management and operational efficiency, helping businesses minimize errors and optimize resources. Modern management systems allow businesses to track goods in real-time, ensuring accuracy and timeliness in delivery processes. This not only enhances service quality but also increases customer trust. Additionally, IT supports businesses in forecasting market demand and planning more effectively, thereby saving costs and improving competitiveness.

From your perspective, what are the driving forces and barriers to applying IT in logistics services in Vietnam today?

Mr. Nguyen Dinh Thang: The main driving force for IT application in logistics lies in the need to improve efficiency, reduce costs, and meet the ever-growing customer demands. With the explosive growth of e-commerce, logistics companies need strong IT systems to handle large volumes of goods and meet fast delivery requirements. However, the biggest barrier is the initial investment cost for technology systems. Additionally, the shortage of highly skilled technology professionals is a major challenge. Moreover, the lack of synchronized technology infrastructure and differing legal regulations between countries also complicate the integration and widespread implementation of technology.

Comparing Vietnamese logistics companies with those in developed countries regarding IT application, what is your assessment?

Mr. Nguyen Dinh Thang: The level of IT application in Vietnamese logistics companies is still quite limited compared to developed countries. In advanced nations, digital technologies such as artificial intelligence, blockchain, and the Internet of Things are deeply integrated into supply chain management processes, optimizing every stage from operations and forecasting to inventory management. Meanwhile, in Vietnam, many businesses are still in the early stages of digital transformation, primarily using basic systems like warehouse management and transportation software. To keep up with global trends, Vietnamese businesses need to invest more heavily in technology and enhance the capacity of their workforce.

With current technological advancements, how will the logistics supply chain develop in the future?

Mr. Nguyen Dinh Thang: Scientific and technological advancements, particularly in artificial intelligence (AI), blockchain, and the Internet of Things (IoT), will revolutionize the entire logistics supply chain. AI significantly enhances demand forecasting, while blockchain ensures transparency and security in the exchange of information between parties. IoT provides real-time data, enabling more efficient management of goods and tracking of the transportation process. These technologies not only help logistics businesses optimize operations but also improve service quality, thereby strengthening their competitive position in the international market.

Aside from the human factor, do you think strong technology alone can make a business strong?

Mr. Nguyen Dinh Thang: Strong technology is a crucial factor, but it cannot be separated from the human element. Technology helps optimize processes and improve efficiency, but it’s people who directly operate, innovate, and adjust the technology to suit real-world needs. A business must combine advanced technology with a highly skilled workforce to create sustainable strength and thrive in an increasingly competitive environment.

It’s known that you have an interest in blockchain technology; what contributions can this technology make to the logistics sector?

Mr. Nguyen Dinh Thang: Blockchain has tremendous potential to improve traceability in the logistics supply chain. By recording every transaction and the changes in goods from production to consumption, blockchain ensures transparency and security. Stakeholders can easily check the origin, history, and status of goods, thereby reducing the risk of fraud and increasing product reliability. This is especially important as demand for traceability and product quality continues to rise.

How do you assess the trend of integrating logistics technology platforms with e-commerce?

Mr. Nguyen Dinh Thang: The integration of logistics technology platforms and e-commerce is an inevitable trend for the future. As e-commerce continues to grow, logistics systems need to be faster, more accurate, and more efficient. Technologies such as AI, blockchain, and IoT will play a key role in automating and optimizing the transportation process, helping logistics businesses improve service quality and meet market demands promptly.

If competing on price is no longer a viable option, what direction do you think logistics businesses should take to enhance their competitive advantage?

Mr. Nguyen Dinh Thang: When competing on price is no longer an option, logistics businesses should focus on service quality, technological innovation, and creating added value for customers. Investing in information technology, building intelligent logistics systems, and offering a wide range of services such as supply chain management and customer service will help businesses differentiate themselves and enhance competitiveness. Additionally, personalized and flexible services to meet the unique needs of customers will be a key factor for success in the future.

AI has been applied in many areas of social life, so how will AI contribute to the development of the logistics supply chain?

Mr. Nguyen Dinh Thang: AI has the ability to comprehensively optimize supply chain management in logistics. It can analyze big data to forecast demand accurately, optimize transportation routes, and improve inventory management efficiency. By applying AI, businesses can reduce errors, save time and costs, and enhance operational efficiency. AI also helps automate many manual processes, thereby boosting a business's competitiveness.

The term "Big Data" has been widely used globally and in supply chain management. Could you share specifically about the activities that Big Data can contribute to logistics businesses?

Mr. Nguyen Dinh Thang: In my view, Big Data offers numerous benefits to logistics businesses, especially in activities related to demand forecasting and inventory management optimization. By leveraging and analyzing big data, businesses can more accurately predict market demand, allowing them to plan production and distribution appropriately, avoiding unnecessary shortages or stockpiling. Big Data also greatly supports optimizing transportation routes, analyzing delivery times, forecasting traffic conditions, and weather patterns to adjust routes promptly, reducing costs and increasing operational efficiency.

Additionally, Big Data helps businesses better understand customer behavior and needs. By analyzing data from transactions and online interactions, businesses can offer personalized services, improve customer experience, and build more effective market engagement strategies. With the combination of Big Data and technologies like AI and blockchain, businesses can optimize their supply chains and create a competitive edge in the market.

From what you've shared, it's clear that technology plays a crucial role in promoting the development of the supply chain and logistics. To conclude this conversation, do you have any final messages for the business community, particularly logistics companies on the cusp of the technology revolution?

Mr. Nguyen Dinh Thang: What I want to emphasize to logistics businesses is not to hesitate to invest in technology. The world is entering the era of the Fourth Industrial Revolution, where technology plays not just a supporting role but is the foundation determining the success or failure of businesses. Digital transformation is no longer an option; it is a mandatory requirement for survival and growth in an increasingly competitive environment.

However, businesses must have a clear and well-structured digital transformation strategy. Investment in technology must be accompanied by the development of a skilled workforce capable of operating and effectively utilizing that technology. Additionally, businesses should strengthen collaboration, share experiences, and learn from countries and businesses that have gone before to avoid repeating mistakes and seize opportunities from technological advancements. Only in this way can businesses maintain their competitiveness and achieve sustainable growth in the future.

Thank you, Mr. Thang, for your incredibly valuable and insightful sharing on the role of technology in logistics and the supply chain. I look forward to future opportunities to hear more of your perspectives, experiences, and viewpoints in upcoming discussions.

Le Van Hy executes