Mr. Dao Trong Khoa
Vice President of VLA
Executive Chairman of DTK Logistics Solutions
1984-1989: Technical University of Sofia (Msc in Engineering)
2004-2005: CBAM – Innotech France (Msc in E-management)
1996 – now: T&M Forwarding
2003 – now: DTK Logistics Solutions
Current Status and needs of digital transformation in Vietnam’s logistics service industry
Logistics is an essential service industry, a key service industry with high added value, serving as a back borne for trade development, contributing to improving the competitiveness of the economy.
According to the World Bank’s Logistics Performance Index (LPI), Vietnam ranked 39 out of 160 studied countries in 2018, 3rd in the ASEAN and it is best performer in the emerging markets.
At present, Vietnam’s logistics costs is equivalent to 16.8% compared to the GDP according to the Vietnam Logistics Association’s calculation, which is comparatively high to the developed countries and in those the Indo-Pacific region.
The logistics service industry has ample room for digital transformation, with adoption rates of digital technology increasing from 15-25% in the years of 2015-2016 to 35-45% in 2017-2018. It is expected that by the end of 2020-2021, the number of enterprises applying technology in their core activities will increase to 50-60%.
Optimizing operational efficiency through improvement of operating procedures, optimal use of resources, better connectivity between supply and demand, minimizing empty back-haul, etc and digitization and digital transformation are opportunities but also the challenges of the logistics industry and also an opportunity for businesses and technology startups in Vietnam.