Many logistics enterprises are using digital documents in-house, but still using paper documents for transactions with customers. —VNA/VNS Photo

HÀ NỘI — Logistics enterprises need to move toward a true digital transformation, as technology is needed to shorten times, cut costs and maintain their standing within the supply chain, experts said.

Ngô Khắc Lễ, an arbitrator at the Vietnam International Arbitration Centre, said that digital transformation is under way across various logistics segments, including transportation, warehousing, freight forwarding, port operations, customs and cross-border trade.

However, the pace of adoption is uneven, he said, explaining that many logistics enterprises are using digital documents within their companies, but still using paper documents for transactions with customers.

This situation stems from a combination of legal regulations, Government agency practices and subjective factors, such as a lack of confidence in the process or partners lacking compatible systems.

Lễ noted that the digital transformation in logistics must go beyond merely replacing paper documents with electronic versions. After this initial stage, logistic enterprises must redesign processes to enable parties to exchange information and handle tasks within a unified system. A more advanced stage will be reached when electronic documents gain legal recognition, allowing for cross-border transfer and use.

In this context, tools like electronic bills of lading, electronic FIATA bills of lading and electronic negotiable cargo documents do more than just reduce paperwork, but become integral links in international transactions. 

The true measure of digitalisation lies not in the volume of electronic documents, but in the ability of parties to mutually validate, securely transfer and agree a single authoritative version, which will help businesses minimise errors, reduce disputes and shorten transaction times, he said.

Meanwhile, experts said only good technological solutions are enable to handle issues specific to the Vietnamese logistic market.

Chief Technology Officer at GHN Logistics' ProTech Freight Nguyễn Cảnh Thức cited the last-mile delivery stage of the logistics sector as a prime example. 

Drivers must deal with many issues, such as navigating time-based truck restrictions, combining driving with walking in narrow alleys and following area-specific parking regulations while the system must coordinate thousands of drivers.

These are data layers that international mapping platforms do not have available, Thức said. According to Thức, AI is only truly effective when it is built on data that closely reflects real-world conditions. This is essential for the technology to accurately address the specific challenges of the Vietnamese logistics sector.

Việt Nam currently has over 34,000 logistics enterprises, contributing approximately 4.5-5 per cent of GDP, but logistics costs remain at around 16 per cent of GDP.

The country’s goal for the next decade is to reduce the costs to 12-15 per cent of GDP, yet this gap cannot be bridged solely through cost-cutting.

Logistic enterprises must thus also transform their operational models to retain a competitive edge as supply chains increasingly demand greater speed and connectivity. — BIZHUB/VNS