The pandemic has disrupted the supply of source material for production businesses and affected the balance of trade. Businesses in 19 southern provinces, which account for 45% of Vietnam’s trade turnover, have halted production, causing serious harm to domestic and international supply chains.

Some logistics businesses have been working from home using outdated technology, with a predictable decrease in productivity.

Tran Thanh Hai, Deputy Director of the Export and Import Department of the Ministry of Industry and Trade, said: “We want big fleets of trucks, aircraft, and container vessels to make Vietnamese logistics businesses the fulcrum of the economy.”

Economists say technology is needed to connect suppliers of goods, owners of trucks, truck drivers, distributors, and others in the supply chain. Tran Chi Dung, Head of the Logistics Technology Village, says better logistics technology is needed during the pandemic.

“Technological application is now compulsory, not a matter of should or shouldn’t. We start at the macro-level to ensure sustainable development and create values for all parties with coordinated measures,” said Dung.

Countries like Singapore and Australia have used technology to simplify transportation procedures.

Although Vietnam’s logistics sector has digitalized 40% of its operations, trained human resources are needed to use the new technology. The focus should be on developing sustainable supply chains using cost-saving, environment-friendly technology.