Digital transformation to promote Vietnam’s export of goods

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The study focuses on clarifying some basic theories about digital transformation; analyzing the current situation of Vietnam’s export of goods; clarify the situation of digital transformation of export enterprises and the Government in order to promote the export of goods; thereby proposing a number of solutions to promote the export of Vietnamese goods in the coming time on the basis of promoting digital transformation of exporters and the Government.

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THE 4TH INTERNATIONAL CONFERENCE PROCEEDINGS COMMERCE AND DISTRIBUTION 243 DIGITAL TRANSFORMATION TO PROMOTE VIETNAM’S EXPORT OF GOODS PhD. Ngo Ngan Ha Thuongmai University Email: hann.vcu@gmail.com Abstract: Export of goods play an important role in the country’s socio- economic development. Participating in the negotiation and signing of new- generation free trade agreements as well as the impact of the Covid-19 pandemic taking place around the world have brought opportunities and challenges to Vietnam’s goods export activities. One of the solutions to take advantage of opportunities as well as overcome challenges is to implement digital transformation in export activities. The study focuses on clarifying some basic theories about digital transformation; analyzing the current situation of Vietnam’s export of goods; clarify the situation of digital transformation of export enterprises and the Government in order to promote the export of goods; thereby proposing a number of solutions to promote the export of Vietnamese goods in the coming time on the basis of promoting digital transformation of exporters and the Government. Keywords: Keywords: digital transformation, export, vietnam CHUYỂN ĐỔI SỐ NHẰM THÚC ĐẨY XUẤT KHẨU HÀNG HÓA CỦA VIỆT NAM Tóm tắt: Xuất khẩu hàng hóa có vai trò quan trọng trong phát triển kinh tế - xã hội của đất nước. Việc tham gia đàm phán, ký kết các hiệp định thương mại tự do thế hệ mới cũng như ảnh hưởng của đại dịch Covid - 19 diễn ra trên toàn thế giới đã mang đến những cơ hội và thách thức hoạt động xuất khẩu hàng hóa của Việt Nam. Một trong những giải pháp nhằm tận dụng cơ hội cũng như khắc phục những thách thức đó là thực hiện chuyển đổi số trong hoạt động xuất khẩu hàng hóa. Bài nghiên cứu tập trung làm rõ một số lý luận cơ bản về chuyển đổi số; phân tích thực trạng xuất khẩu hàng hóa của Việt Nam trong giời gian vừa qua; làm rõ tình hình chuyển đổi số của các doanh nghiệp xuất khẩu và Chính phủ nhằm đẩy mạnh xuất khẩu hàng hóa; từ đó đề xuất một số giải pháp thúc đẩy xuất khẩu hàng hóa của Việt Nam trong thời gian tới trên cơ sở đẩy mạnh chuyển đổi số của doanh nghiệp xuất khẩu và Chính phủ. Từ khóa: chuyển đổi số, xuất khẩu, Việt Nam
244 KỶ YẾU HỘI THẢO QUỐC TẾ “THƯƠNG MẠI VÀ PHÂN PHỐI“ LẦN THỨ 4 NĂM 2023 1. Introduction As of December 2022, Vietnam has negotiated, signed and implemented 17 Free Trade Agreements (FTAs), especially new generation FTAs including: Comprehensive Partnership Agreement and Trans-Pacific Partnership Duong (CPTPP), FTA between Vietnam - EU (EVFTA), FTA between Vietnam and the United Kingdom of Great Britain and Northern Ireland (UKVFTA); and the Regional Comprehensive Economic Partnership (RCEP). It is these FTAs that have created a solid basis for strengthening and promoting bilateral trade and investment exchanges, as well as strengthening international economic integration in the region and the world. However, the COVID-19 epidemic spreading on a global scale has led to consequences for economic activities such as a narrowing of the consumption market, the scarcity of raw materials due to the supply chain of raw materials entry is interrupted; financial problems due to production interruptions. Especially, major economies in the world such as China, EU, and the United States are the places with the largest number of cases and must implement prolonged social distancing measures while these are also big trading partners in Vietnam. In that context, the digital transformation is an inevitable and objective trend of countries around the world, including Vietnam. The digital transformation will help Vietnamese exporters seek a more flexible business model, both reducing costs and optimizing resources to overcome difficulties. At the same time, the digital transformation has opened up access to a large market, namely the EU and other countries, where the information technology system is developed. As for taking advantage of the opportunities brought by new-generation FTAs, the role of digital transformation is to provide Vietnamese exporters with a tool to effectively access the world market. than in previous forms. However, the digital transformation is still very new for the vast majority of exporters. Currently, very few businesses have undergone successful digital transformation. The adoption of digital technology in Vietnamese exporters is currently at an average level. Barriers in finance, technology and human resources have created fundamental challenges for Vietnamese export enterprises. Through the collection and processing of secondary data, the study focuses on clarifying some basic theories about digital transformation, analyzing the current situation of Vietnam’s exports; analyzing the difficulties and challenges facing export enterprises in digital transformation as well as the Government’s efforts in digital transformation to promote exports. From there, proposing solutions to promote the export of Vietnamese goods through digital transformation. 2. Literature review and methods The impact of digitization on foreign trade has been studied by many scholars at home and abroad. Most of the early scholars have explored the impact of the Internet on the country’s overall trade from a macro level, with digitalization playing a positive role in the area of trade in goods, trade in services, which can facilitate international trade by reducing transaction costs, increasing efficiency and alleviating information asymmetry, and also by reducing language distance to facilitate differentiated exports (Visser, 2019). With the continuous improvement of heterogeneous trade theory, scholars have gradually expanded the study of the relationship between digitization and export to the enterprise level, using enterprise microdata to argue that the research results show that the Internet and digitization significantly promote enterprise exports. Chaney (2011) by building a dynamic model of the composition of importers and exporters, the use of the Internet by enterprises
THE 4TH INTERNATIONAL CONFERENCE PROCEEDINGS COMMERCE AND DISTRIBUTION 245 improves the dynamics of export trade. The impact of digital transformation of enterprises on the technical complexity of exports has significant nonlinear characteristics (Lin & Li, 2021). While digital transformation has a direct positive impact on export performance, firm innovation and market competition have a positive moderating role in it, while institutional environment has a negative moderating role (Yi & Wang, 2021). In addition, effective information disclosure has a positive contribution to corporate exports. Hamidreza Alipour Shirsavar (2016) examined the impact of electronic customs on export of goods and services. The results indicate that identifying new opportunities is effective to reduce transaction costs on export so that the reducing of transaction costs will be caused to creating a competitive advantage and will be developed with increasing in exports competitive advantage of goods and services. Also, the results showed that the reduction of transaction costs impacts on the export development. Agree with Hamidreza Alipour Shirsavar (2016), Netta Gichuki (2021) also pointed out that the automation and digitalization of customs processes and procedures and other cross border trade agencies processes and procedures reduces the amount of time goods spend at borders. This reduces costs for stakeholders along the clearance supply chain and in turn allows firms efficiency gains through reduced production costs thus increasing output for export and domestic markets. Based on the combing of related studies, this paper argues that enterprise digital transformation and government digital transformation has a positive impact on exports. In Vietnam, there have also been some studies on the positive relationship between digital transformation and export of goods. However, most of the studies mainly focus on clarifying the digital transformation of export enterprises. There are few complete and comprehensive studies on digital transformation of the government to promote Vietnam’s goods exports. The study identifies two new contributions: (i) Regarding space: Case study in Vietnam; (ii) Regarding content areas: Simultaneous study of both the digital transformation of exporters and the digital transformation of the government to promote exports. The research tried to clarify the current situation of Vietnam’s exports of goods in recent years, assess the situation of digital transformation of enterprise and the government to promote exports. From there, propose solutions to promote the export of Vietnamese goods through digital transformation. To clarify the above research objectives, the research mainly using secondary data sources, taken from the General Statistics Office of Vietnam, reports of the Ministry of Industry and Trade, the General Department of Customs... Research methodology used in the article are statistical methods, synthesis of theory and practice, inferential analysis, comparison, contrast, combined with expert opinion method... to clarify the reality of Vietnam’s export of goods as well as the situation of digital transformation in enterprises and the government to promote the export of goods. 3. Results and discussion 3.1. Overview of digital transformation There is no common agreed definitions of digital sector, products, or transactions, let alone the digital economy (IMF, 2018). Ebert and Duarte (2018) argue that the digital transformation is the process of applying breakthrough technologies to increase productivity, create value and increase social welfare.
246 KỶ YẾU HỘI THẢO QUỐC TẾ “THƯƠNG MẠI VÀ PHÂN PHỐI“ LẦN THỨ 4 NĂM 2023 According to Gartner (2019), the digital transformation is the application of technology to change business models, create more opportunities and new values, help businesses achieve better sales and increase growth. Vial and Gregory (2019) define the digital transformation as “a process that aims to improve an entity by triggering significant changes to its properties through combinations of information, computing, communication, and connectivity technologies”. From the above analysis, it can be understood that, in the most general way, the digital transformation is the use of digital technology or the application of digital technology on the basis of digital data or digitized data to change the research, production and business models in order to create many new opportunities and values, improve and enhance operational efficiency and competitiveness of organizations/enterprises. According to Siebel (2019), digital transformation is driven by technological advances and breakthrough digital technologies are: artificial intelligence (AI); internet of things (IoT); big data; cloud computing; blockchain According to FPT Digital (2022), the digital transformation will include 3 main stages: Digitization; Digitalization; Digital Transformation Stage 1: Digitization: Is the conversion of data from physical form (analog) to digital form (digital). Phase 2: Digitalization: Is the application of technology to automate existing processes, reducing operating costs and increasing efficiency. Phase 3: Digital Transformation: A fundamental change in technology and psychology, creating a breakthrough and transforming processes both internally and externally business and society. At this level, the business can change its business model. The digital transformation is increasingly being developed and popularized, it is applied in many different fields. In Vietnam, there are 02 most used areas: Digital transformation in businesses and digital transformation of the government. The important role of digital transformation in promoting exports is reflected in several key aspects as follows: Firstly, the role of digital transformation in trade promotion activities, connection and cooperation, and access to diverse customers. In the past, the trade promotion was mainly operated in the traditional form. It is bringing goods to other countries to introduce at fairs or product showrooms. Although the closing rate is high, the logistics costs for these activities are not small. When trade promotion moves to online form and is carried out in a variety of digital technology platforms, this form has eliminated the geographical distance, accessibility and quantity as well as limited costs for businesses. Second, the digital transformation and the opportunity to create new distribution channels, both reducing costs and optimizing resources. Digital transformation helps develop export activities through social networks as well as e-commerce. In particular, cross-border e-commerce (in both B2B as well as B2C), as an extension, effectively support the traditonal distribution channel in finding output for products to potential markets by connecting directly with customers around the world and directly promoting business brands in import export markets. Third, the digital transformation helps to collect and process product data, thereby this help to better meet the needs of goods in foreign markets. The digital technology can
THE 4TH INTERNATIONAL CONFERENCE PROCEEDINGS COMMERCE AND DISTRIBUTION 247 provide businesses with insights into historical customer data including product interactions, preferences and requirements (such as produce traceability). That helps businesses meet the quality of goods, along with the reputation of the business in meeting customers for sustainable development. 3.2. Digital transformation in Vietnam’s goods exports 3.2.1. Overview of Vietnam’s export of goods in recent times ● Export turnover Unit: billion USD Figure 1: Vietnam’s export turnover in the period of 2013 - 2021 and the first 9 months of 2022 Source: General Department of Vietnam Customs (2022) In terms of growth rate, export growth in the period 2013-2021 averaged 12.5%/year. In the period of 2013-2015, export growth decreased more than in the previous period because industrial production faced difficulties due to the impact of the financial crisis and public debt crisis in Europe. At this time, the world economy has not fully recovered. Accordingly, export demand decreased, so the increase was low compared to previous years. In the period 2016- 2017, export growth increased again because of efforts in market opening, improvements in goods consumption promotion and support for export enterprises. In 2019 and 2020, due to the great influence of the Covid-19 pandemic, Vietnam’s export growth decreased compared to previous years. Specifically, export growth in 2019 and 2020 reached 8.4% and 6.9%, respectively. However, by 2021, Vietnam’s export growth will begin to recover, reaching 282.52 billion USD, up 17.2%. ● Export structure of goods In recent years, Vietnam’s commodity exports have seen a marked change in quality, reflected in the restructuring of export goods. The structure of export goods has a positive shift among commodity groups and is directed towards the core of industrialization. Specifically, in 2021, industrial goods will account for over 80%; followed by the group of agricultural products and aquatic products accounted for over 10% and the group of fuels and minerals accounted for just over 1% of total export turnover.
248 KỶ YẾU HỘI THẢO QUỐC TẾ “THƯƠNG MẠI VÀ PHÂN PHỐI“ LẦN THỨ 4 NĂM 2023 Figure 2. Export structure of goods in 2021 Source: General Department of Vietnam Customs (2022) In 2021, there are 35 items with export turnover of over 1 billion USD, an increase of 1 item compared to 2020 and accounting for 93.8% of total export turnover (there are 8 items with export turnover of over 10 billion USD, an increase of 2 items compared to 2020). Some key export products had outstanding growth, such as iron and steel of all kinds, up 124.3%; fibers, textile yarns of all kinds increased by 50.2%; machinery, equipment, tools and spare parts increased by 41%,... In the first 9 months of 2022, there are 32 items with export turnover of over 1 billion USD, accounting for 92.8% of total export turnover (there are 6 export items of over 10 billion USD, accounting for 63.9%). In addition, items with export value of over 20 billion USD in the first 9 months of 2022 include: Phones and components (45.4 billion USD); electronics, computers and components (41.51 billion USD); other machinery, equipment, tools and spare parts (34.06 billion USD) and textiles and garment (29.13 billion USD). Table 1. Some export products over 10 billion USD in 9 months of 2022 9 months of Growth/decrease rate in Items 2022 9 months in 2022 compared to (million USD) the same period in 2021 (%) Phone and equipment 45.396 10.7 Electronics, computers and components 41.511 13.3 Other machinery, equipment, tools and spare parts 34.063 29.8 Textile 29.135 24.3 Footwear 18.169 36.6 Wood and wood products 12.257 10 Source: General Department of Vietnam Customs (2022)
THE 4TH INTERNATIONAL CONFERENCE PROCEEDINGS COMMERCE AND DISTRIBUTION 249 ● Export markets of goods The export market has increased, not only in the traditional markets but also in exploiting new and potential markets and especially taking advantage of the new generation FTAs. Vietnam’s exports have reached most markets in the world, many products have gradually gained a firm foothold and improved their competitiveness in many markets with high quality requirements such as the EU, Japan, the US, Australia, etc. Export turnover to all market areas achieved positive growth, increasing sharply in markets with FTAs with Vietnam such as: China increased by 15%, the US increased by 24,2%; EU by 14%; ASEAN increased by 25.8%, Korea by 15.8%, India by 21%, New Zealand by 42.5%, Australia by 3.1%. In particular, export turnover to markets that are members of CPTPP achieved a good increase. That shows the effectiveness of commitments from this Agreement to promote exports and diversify export markets. Specifically, exports to Canada reached 5.2 billion USD, up 19.5%; exports to Mexico reached 4.6 billion USD, up 46.1%, etc. Exports to the EU market reached about 40.07 billion USD, an increase of about 14% over the same period in 2020. Many of Vietnam’s export products have had positive changes in the EU market after the EVFTA Agreement was approved. enforcement, for example seafood, shrimp, rice, etc. 3.2.3. Situation of implementing digital transformation to boost Vietnam’s exports in recent years a. Exporters’s digital transformation Many exporters have been proactive in digitizing product data and using online platforms to conduct online exports. According to data from September 1, 2021 to August 31, 2022, Vietnamese sales partners have recorded an impressive growth on Amazon: Nearly 10 million Made-in-Vietnam products were sold to customers. Cross-border e-commerce with Amazon opens an economic engine with strong and clear potential for Vietnamese businesses. Top 5 best-selling categories of Vietnamese businesses on Amazon include: Kitchenware, Household Appliances, Garment, Health and Personal Care Products, Household Utilities. The international markets for Vietnamese sellers are quite diverse, from North America (including the US, Canada, Mexico), Europe (8 countries: UK, France, Italy, Germany, Spain, and the Netherlands). , Poland, Sweden) and some other countries such as Australia, Japan, Singapore, India, Saudi Arabia... At the same time, many businesses have applied software solutions, used digital platforms in accounting and financial management, sales, online marketing, distribution channel management, business administration or create new products and services. However, many businesses are still facing difficulties and barriers to conduct digital transformation such as concerns about investment costs; difficulties in the lack of human resources to apply digital technology; change of the habits of enterprises and employees, etc. Especially, when participating in online export on cross-border e-commerce platforms, they also face difficulties and challenges. The process of registering to become a partner of these platforms is not easy and include many verification steps. Goods must meet the standards of the market and go through the trademark registration process. Specifically, for the Amazon platform, products must ensure to meet strict requirements on origin and product quality criteria, international certification of food safety and hygiene; Product packaging and packaging must also follow standards from Amazon. Once on the floor, businesses still have to continue to have appropriate marketing, advertising and goods management strategies...
250 KỶ YẾU HỘI THẢO QUỐC TẾ “THƯƠNG MẠI VÀ PHÂN PHỐI“ LẦN THỨ 4 NĂM 2023 b. Government’s digital transformation and Government’s support in exporter’s digital transformation to promote export of goods In recent times, the Party and State have issued guiding documents as well as implemented many programs to support digital transformation for businesses to promote export of goods. Specifically: Firstly, building a legal framework for digital transformation The Politburo issued Resolution No. 52-NQ/TW, dated September 27, 2019 on a number of guidelines and policies to actively participate in the Fourth Industrial Revolution, which emphasized urgent requirements to accelerate the digital transformation process. In particular, in the documents of the 13th National Party Congress, concepts such as digital transformation, digital economy, and digital society were also mentioned for the first time. On June 3, 2020, the Prime Minister issued Decision No. 749/QD-TTg approving the “National Digital Transformation Program to 2025, with a vision to 2030” with the goal that Vietnam is in the group of 50 leading country in e-Government (EGDI). The promulgation of this Program marks Vietnam as one of the first countries in the world to issue a national digital transformation program, making Vietnam a country with digital transformation awareness in parallel with advanced countries in the world. Currently, many ministries and localities have been implementing programs to support businesses in digital transformation. For example, in January 2021, the Ministry of Planning and Investment approved the Program to support businesses in digital transformation for the period 2021-2025. The Ministry of Information and Communications has approved the Scheme to determine the Index to assess the level of enterprise digital transformation and support to promote digital transformation. The Hanoi People’s Committee has issued the plan “Supporting digital transformation for small and medium-sized enterprises in the city for the period 2021-2025”, which clearly states that it will support digital transformation for 90,000 small businesses and newly established, etc. In addition, Vietnam also has legal documents to regulate and guide for each specific field related to digital transformation. (i) The legal framework for e-government development is reflected in Resolution 36- NQ/TW issued by the Politburo in 2014; Decision 714/QD-TTg of the Prime Minister in 2015; Resolution 17/NQ-CP 2019. (ii) The legal framework for e-commerce development includes Law on Electronic Transactions, Commercial Law, Civil Code, Law on Intellectual Property, Law on Information Technology, Decree 52/2013/ND-CP on commerce e-commerce, Circular 47/2014/TT-BCT on management of e-commerce websites, also has the Law on Tax Administration 2019. (iii) The legal framework for non-cash payments is Decree 101/2012/ND-CP and Directive 22/CT-TTg (issued in May 2020) on promoting the implementation of solutions to develop non-cash payments. use cash in Vietnam. (iv) The legal framework for sharing economy activities has Decree 10/2020/ND-CP stipulating conditions for transport business by car, replacing Decree 86/2014/ND-CP to pave the way for the Traffic modernization and operation of technology car companies such as Grab officially came into operation after the pilot period.
THE 4TH INTERNATIONAL CONFERENCE PROCEEDINGS COMMERCE AND DISTRIBUTION 251 (v) There is also a legal framework for artificial intelligence (AI) development (Directive 16/CT-TTg May 2017 of the Prime Minister); legal framework for smart city development (Decision 950/QD-TTg dated August 1, 2018 approving the Project on sustainable smart city development in Vietnam for the period 2018-2025 and orientation to 2030); The legal framework on information safety and network security is governed by two laws (Law on Cyberinformation Security 2015 and Law on Cybersecurity 2018). However, the legal regulations for Vietnam’s digital transformation have so far been assessed as incomplete. The overall national strategy on digital economy and digital society development has not yet been issued. There is no legal corridor for piloting the application of new business and service models. The system of promulgated legal documents is inconsistent, overlapping, even contradictory, not suitable for the requirements of digital transformation and development of the digital economy. There is a lack of regulations on data transactions, database protection, personal data, and privacy information, as well as creating trust in the digital space; lack of regulations on personal rights and ethics when applying artificial intelligence; regulations on digital identity, identification and electronic authentication for people are still slow to be promulgated. Second, building a national digital infrastructure Although the National Digital Transformation Program started in 2020, due to the impact of the Covid-19 pandemic, it is not until 2022 that it is really considered a boom time to build and develop digital infrastructure. In the first six months of 2022, the fixed broadband network access speed reached 71.79 Mbps (up 32.7% over the same period in 2021); mobile broadband network access speed reached 35.29 Mbps (up 4.7% over the same period in 2021). Mobile telecommunications enterprises have deployed to cover 477 out of 832 villages and hamlets and handed over 457,249 computers to localities in the program “Waves and computers for children”. Besides the advantages of digital infrastructure development, there are still many shortcomings and limitations that need to be overcome. The speed of fixed and mobile broadband networks in Vietnam is still at the average level of the world and the region, and has not yet created a breakthrough in infrastructure for national digital transformation. According to the statistical assessment of Ookla Speedtest, by September 1, 2022, Vietnam’s fixed network speed ranked 45th out of 182 countries and mobile network speed ranked 47th out of 140 countries. The removal of the area without telecommunications waves and providing computers in the program “Waves and computers for children” has not been completed. Platforms and technologies that are key to global development, although deployed in Vietnam, are still weak and have not created a bright spot for digital infrastructure. In fact, with two key goals in 2022 of the National Committee on Digital Transformation that have not been completed, that is, 85% of the population has a smartphone and the percentage of households with cable internet access. Broadband optical reaches 75% Third, improving the efficiency of online public services to boost the export of goods. The Ministry of Industry and Trade has implemented online public services in the field of import and export at levels 3 and 4 on the Ministry of Industry and Trade’s online public service portal. In particular, the issuance of C/O via the internet has helped enterprises’ goods to be cleared quickly, reducing time and costs... In particular, the issuance of C/O via the internet also helps to make the origin of export transparent. origin, improving the competitiveness of the enterprise’s products.
252 KỶ YẾU HỘI THẢO QUỐC TẾ “THƯƠNG MẠI VÀ PHÂN PHỐI“ LẦN THỨ 4 NĂM 2023 In addition, the Ministry of Industry and Trade has connected 11 online public services with the National Single Window (NSW), including: Issuing licenses for import and export of industrial explosives; granting import permits for ozone-depleting substances; granting automatic import license of large displacement motorcycles; issue certificate of origin form D; granting import and export licenses of rough diamonds; chemical notification; procedures for licensing import and export of industrial explosives; procedures for licensing import and export of precursors used in the industrial sector; procedures for importing tobacco for non- commercial purposes; procedures for applying for a written approval to participate in the pilot self-certification of origin in ASEAN; procedures for notifying import quotas for tobacco ingredients and cigarette paper. Up to now, 100% of enterprise records can be declared on the electronic system. This saves time and costs. In particular, fast customs clearance and quick delivery of goods to the warehouse are a favorable premise for businesses to meet the delivery schedule for customers. This is a huge benefit that customs modernization brings. Fourth, supporting exporters to promote trade in the digital environment to make the most of export opportunities. In order to innovate trade promotion to adapt to the industrial revolution 4.0 and support businesses to take advantage of opportunities from this revolution, in 2020, the Trade Promotion Department has implemented the construction 05 applications, software including: (i) Customer management (CRM) shared database system: This is a system that connects trade promotion support units including Vietnamese counselors in the market, trade promotion organizations domestic and foreign, import and export enterprises. Up to now, the system has updated information of nearly 13,000 businesses, information about Departments of Industry and Trade, Trade Promotion Centers in 63 provinces and cities and industry associations. (ii) Trade Promotion Ecosystem (VECOBIZ): is an application platform that integrates trade promotion services such as consulting/training, trade promotion, trade fairs, exhibitions, etc. (iii) Trade promotion traceability portal (www.itrace247.com). (iv) Portal guiding import and export of goods (https://vietnam.tradeportal.org); (vi) Online trade promotion training platform(E-learning). At the same time, in July 2020, the Ministry of Industry and Trade launched the ECVN Vietnam export support platform at: www.ecvn.com to help businesses easily find trading opportunities in the online environment. line. In March 2021, the Vietnam Institute of Business Administration and Digital Economy (VIDEM) together with the Department of E-commerce and Digital Economy - Ministry of Industry and Trade (IDEA) and Kim Nam Group launched a cooperation program to support businesses exploit the Vietnam - European Union Free Trade Agreement with an e-commerce platform. The Vietnam-EU business e-commerce platform (VEFTA) is a key national-scale project implemented to realize a “large-scale highway” connecting Vietnamese businesses with international trading partners, especially partners from Europe (EU) on e-commerce platform.
THE 4TH INTERNATIONAL CONFERENCE PROCEEDINGS COMMERCE AND DISTRIBUTION 253 In November 2021, the Department of E-commerce and Digital Economy chaired and coordinated with major domestic and foreign partners such as China’s largest and most prestigious e-commerce platform JD.com, Vinanutrifood, General Corporation Viettel Post (Viettel Post), VP Bank, Visa... to organize the construction of “Vietnam National Pavilion” on JD.com e-commerce platform. Thanks to the above-mentioned trade promotion activities, goods produced by Vietnamese enterprises will be distributed through this prestigious and official channel in foreign markets. The brand of the enterprise will be promoted right in the importing country market, which not all Vietnamese enterprises can do. It is also important that this activity not only promotes the online sales channel for the company’s products, but also indirectly helps the brand and products of the enterprise to directly approach major importers in the host country. 3.3. Recommendations to boost Vietnam’s goods exports through digital transformation Based on the current situation of Vietnam’s export of goods; difficulties of exporters in the digital transformation process; situation of Government’s digital transformation and Government’s support in exporter’s digital transformation to promote export of goods, the research proposes some recommendations as follows: On the business side Along with opportunities from FTAs, the trend of switching from traditional business to digital platforms is becoming more and more popular. In that context, digital transformation is considered an effective solution to help businesses penetrate and expand export markets. Exporters need to pay attention to three basic factors: digital platform, digital data and mobile-compatible website when starting the digital transformation process. On the basis of developing digital platforms, digital data, and really investing in product images, exporters need to fully exploit cross-border e-commerce activities. However, to benefit from cross-border e-commerce, businesses need to regularly improve the quality of goods and products; packing specifications meet the needs of distributors, importers at home and abroad. In addition, businesses need to regularly update information about export products, distributors and potential importers as well as upgrade and maintain facilities, machinery and equipment to connect digital platforms is highly efficient. On the State side Firstly, perfecting the legal system for digital transformation. Accordingly, it is necessary to develop, amend and supplement specialized legal regulations accordingly; review, amend and supplement mechanisms, policies and legal documents in each industry and field to concretize the promotion of e-transactions in all socio-economic aspects. Reviewing, amending and supplementing mechanisms, policies and legal documents is also necessary to implement anti-monopoly, anti-merger, anti-merger that affects fair competition; combats forms of transfer pricing, tax transfer in the digital economy; strengthen regulations to avoid abusive businesses; to organize law enforcement supervision to ensure the principle of fair enforcement and equal responsibility before the law for both Vietnamese enterprises and enterprises providing cross-border services entering Vietnam. Second, developping digital infrastructure and synchronous and modern digital platforms to meet the needs of enterprises and authorities for digital transformation. The plan to build digital infrastructure for digital transformation must be based on inheritance and
254 KỶ YẾU HỘI THẢO QUỐC TẾ “THƯƠNG MẠI VÀ PHÂN PHỐI“ LẦN THỨ 4 NĂM 2023 development from existing infrastructure platforms; clearly define goals, prioritize resource allocation to focus on implementing synchronously key information technology infrastructure platforms, such as broadband infrastructure, Internet of Things (IoT) infrastructure; cloud computing infrastructure; application of new generation Internet protocol addresses (IPv6), data integration center, intelligent operation center, information security monitoring center; provincial data sharing and integration platform; central system for monitoring and operating safety and network security; online payment platform, etc. Third, promoting digital transformation in customs. It is necessary to implement information technology application; digitize business processes; implement a new information technology system and actively research and gradually apply key technologies of the industrial revolution 4.0 in state management of customs. In particular, promote digital transformation in the implementation of the National Single Window and the ASEAN Single Window, ensuring synchronization with the digital transformation of customs operations and businesses towards digitization and centralized processing administrative procedures of ministries and branches for imported and exported goods; expanding the number of administrative procedures of ministries and branches; connecting, exchanging and sharing information among related parties. Fourth, promoting digital transformation in trade promotion activities and building a digital trade promotion ecosystem. The Digital Trade Promotion Ecosystem is a soft infrastructure and is invested and developed by the Government. This system includes basic platforms shared for the economy such as digital fairs and exhibitions; smart trade connection; specialized database on trade promotion; online consulting-coaching; promotional information; e-identification... in order to meet the trade promotion support needs of enterprises, cooperatives, business households and improve the quality and efficiency in the activities of the government’s trade promotion agencies, trade promotion support organization. Fifth, promoting propaganda about the benefits of digital transformation to exporters. It is necessary to build electronic publications, electronic manuals, specialized youtube pages on knowledge, skills, technology, digital transformation consulting to help export businesses see the benefits of digital transformation properly. Thereby accelerating the digital transformation process of exporters. 4. Conclusions Digital transformation is one of the “doors” to open up opportunities to bring domestic goods to the world. Digital transformation will help promote export activities of enterprises, help trade activities to close the gap between domestic and international markets. However, digital transformation and technology applications only provide the foundation, the exporters must actively approach and find a way to introduce products, then a series of solutions to promote transactions, ensure on goods at the request of partners. These are all not simple jobs, so they need the dynamism of the business, along with the support from the authorities. References Vietnamese General Department of Vietnam Customs, Import and export situation of Vietnam < https://www. customs.gov.vn/index.jsp?pageId=2&aid=179628&cid=25>
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