Applying advanced tech to supply chain development

Vietnam's supply chain currently holds several advantages for robust development, but to fully exploit this potential in the international market, promoting the application of technology in supply chains is essential.

That was the view of experts at the third Vietnam Symposium in Supply Chain Management, organised by the Association of Vietnamese Scientists and Experts Global and the University of Commerce, on October 21.

Photo: Freepik

Stefan Minner, a professor of Logistics and Supply Chain management at the Technical University of Munich, remarked that integrating technology into Vietnam’s supply chain enhances efficiency, reduces costs, improves inventory management and accuracy, while also promoting transparency and reliability.

"Modern technology has become a driving force in improving the efficiency of Vietnam's supply chain. Advanced technologies such as AI and machine learning are unlocking significant opportunities to optimise supply chain operations, from cost reduction to better integration across production stages," Minner said.

He added, "In addition, additive manufacturing technology is expected to revolutionise traditional production methods, thus boosting Vietnam’s competitiveness in the supply chain."

Meanwhile, Prof. Alexandre Dolgui, head of Department Automation, Production and Computer Sciences at IMT Atlantique, an elite technological university, France, emphasised that today's advanced technologies not only enhance production performance but also play a crucial role in managing transport and logistics, which are key elements in the supply chain.

"My advice is that Vietnam should start building capabilities in these areas, particularly through education. AI and machine learning should be integrated into university curricula as core subjects to maintain Vietnam’s competitive edge in the global supply chain," he suggested.

With an estimated $5.3 trillion in world trade passing through the East Sea annually, according to the Research Community for Strategics and international Affairs, and Vietnam’s prime geographic location near the massive Chinese market, along with its stable political and economic environment, Vietnam serves as a vital hub in the international logistics network.

Dolguifrom IMT Atlantique stressed, “Vietnam currently offers a stable political and economic environment, and its strategic location makes it a natural logistics centre in Southeast Asia. Enhancing Vietnam's role in the global supply chain will undoubtedly be strengthened and expanded in the future.”

According to data from the General Statistics Office, the added value of the entire industry in the first nine months of 2024 is estimated to have increased by 8.34 per cent compared to the same period last year. Notably, the processing and manufacturing industry, a core sector in the supply chain, recorded a growth of 9.76 per cent.

At the same time, foreign direct investment in this sector reached $15.63 billion, maintaining its position as the leading sector in Vietnam. These figures reflect Vietnam's growing status as an attractive destination for international investors, particularly as global companies strive to diversify their supply chains.

Minner from the Technical University of Munich highlighted that Vietnam's most prominent advantage is its competitive production costs, without compromising the skill level of its workforce.

"Moreover, Vietnam’s growing consumer market is also attracting companies that wish to combine production with consumption within the domestic market. The Vietnamese government has implemented numerous policies to encourage investment, creating better conditions for companies to set up operations and boost exports, further increasing Vietnam's appeal."

Another attractive aspect of Vietnam’s supply chain is the emerging trend towards developing green and sustainable supply chains, Minner shared, "Vietnam has made initial strides in applying environmentally friendly technologies, using sustainable materials, and reducing emissions. If Vietnam pioneers green supply chain development, it will capture a significant advantage as global demand for eco-friendly products continues to rise."

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