6 mandatory elements to develop a sustainable supply chain to the international market

VietTimes – If they do not apply digital transformation promptly, Vietnamese logistics businesses will lose the opportunity to breakthrough international growth and not only that, but businesses also need to comply with rules and systematic processes according to international standards.

The event that Bac Giang lychees reaching EU people through the “Cross-border e-commerce” model on Vietnam’s own platform is one of the important milestones of Vietnam’s logistics industry.

Those are 2 of the 6 factors that Ms. Cao Cam Linh – Head of Logistics Technology Village, Head of Research Department, Vietnam Association for Logistics Manpower Development , Strategy Director of Viettel Post Joint Stock Corporation – raised at the second online discussion titled “Vietnam Logistics – Towards the supply chain”. This is an activity within the Vietnam’s National Innovative Entrepreneurship Festival – Techfest Vietnam 2021. The event is organized by the Logistics Technology Village, with more than 1,300 followers via the Facebook platform. Within the framework of the activity, logistics experts shared and discussed “sustainable supply chains” – a concept that, although not new, is being given a lot of attention by governments, businesses, and economists. concern in the current context.

Digital transformation in logistics is a hot issue

Ms. Cao Cam Linh pointed out that Vietnamese logistics businesses need all 6 factors to develop a sustainable supply chain to the international market.
First is financial resources. Second, high-quality human resources in the logistics industry are still weak and lacking, requiring the participation of associations, schools, institutes, etc. in improving the knowledge of this team. Third is comprehensive management capacity. Business leaders need to know how to cope with social changes and avoid major risks.

Fourth is technological capacity. If we do not apply digital transformation in a timely manner, we will lose the opportunity to breakthrough international growth. Fifth is competitiveness, businesses need to raise awareness so as not to lose the market at home. Finally, compliance capacity means that if businesses want to integrate, they need to have rules, regulations, and systematic processes according to international standards – said the Head of Logistics Technology Village.

Ms. Linh emphasized that besides agricultural logistics, rural logistics also needs to be developed. If agricultural logistics only refers to one-way consumption of agricultural products, then rural logistics is a two-way process, both helping people consume agricultural products and providing raw materials for production and life in rural areas. thereby creating a closed ecosystem and contributing to the sustainability of the agricultural supply chain.

Agreeing with Ms. Cao Cam Linh on the need to promote digital transformation, Ms. Ho Thi Thu Hoa – Director of Vietnam Logistics Research and Development Institute – International University, Vietnam National University, Ho Chi Minh City, and Vice President of the Vietnam Association for Logistics Manpower Developement believes that digital transformation plays an extremely important role in logistics to ensure sustainability. The application of technology, infrastructure resources and human resources all need to be developed in order to develop sustainable supply chains, serving the right needs of the right customers, at the right time and at the right place. right place.

Shifting to a digital supply chain

The online attendees all agreed that once the supply chain can meet economic activities, we need to continue to consider other factors. Specifically, the supply chain needs to operate in an environmentally friendly manner while minimizing resources: people, energy, water and waste. Regarding society and people, all businesses today, in order to develop sustainably, need to train people to develop skills, knowledge, and ensure welfare, working conditions, labor health, and labor safety.

Speakers attending the online discussion “Vietnam Logistics – Towards the supply chain”

The pandemic also presents opportunities for the economy as supply chains and consumer behavior change. Supply chains need to be transformed into digital supply chains and businesses also need to adapt to operating that new supply chain. In particular, after society enters the “new normal state”, transportation demand skyrockets, logistics businesses need to prepare plans to maintain and develop operations, avoiding the risk of workforce shortage. after a long period of social distancing. However, the challenge is that the financial resources of the business will more or less take time to stabilize and serve business services.

From the perspective of international trade, Mr. Bui Huy Son – Counselor of the Vietnamese Minister – Trade in the US – commented: “In the context of economic development again, logistics costs tend to increase. With the large scale of the import economy, when other economies recover, goods will be stagnant”.

Counselor of the Vietnamese Minister – Trade in the US pointed out that this situation is more serious when the US lacks logistics workers. According to the latest Customs statistics, Vietnam’s import and export activities with the US are increasing. To be able to stand firm in a large and complex market like the US, Vietnamese businesses need to make every effort.

Mr. Son also gave a few suggestions and directions for Vietnamese businesses to expand export markets to the United States, the most important of which is chain linkage between departments throughout the distribution process. Accordingly, logistics needs to connect consumers to producers.

Therefore, “logistics businesses need to orient producers to meet those standards, and logistics businesses themselves clearly reflect that we have met those standards when they go to market” – Mr. Bui Huy Son added.

Translated by: Pham Linh – Dieu Linh