Nghiên cứu năng lực cung ứng dịch vụ của doanh nghiệp logistics việt nam tại vùng kinh tế trọng điểm bắc bộ tt tiếng anh

MINISTRY OF EDUCATION
AND TRAINING

MINISTRY OF INDUSTRY
AND TRADE

VIET NAM INSTITUTE OF INDUSTRIAL AND TRADE POLICY
AND STRATEGY

LAM TUAN HUNG

RESEARCH ON THE CAPACITY OF PROVIDING
SERVICE OF VIETNAM LOGISTICS
ENTERPRISES IN THE NORTHERN KEY
ECONOMIC REGION
Major: Commercial
Code: 62.34.01.21

SUMARY OF ECONOMIC DOCTORAL THESIS

Ha Noi, 2020


The work was completed in
Vietnam Institute of Industrial and Trade Policy And Strategy
Instructor:
1. Assoc. Prof. Le Trinh Minh Chau
2. Dr. Luc Thi Thu Huong

1st defence:
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2nd defence:
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3rd defence:
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The dissertation will be defended in front of the State Council for Thesis
Evaluation at the Vietnam Institute of Industrial Policy And Strategy - Ministry
of Industry and Trade, 46 Ngo Quyen – Hanoi at…….

The dissertation can be found at:
Hanoi National Library
Library of Viet Nam Institute of Industrial and Trade Policy And Strategy


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INTRODUCTION
1. Urgency of research
Vietnam is considered as a country with ideal natural conditions and
geographical position to develop the logistics industry. With the scale of 20-22 billion
USD/year, accounting for about 20.9% of the country's GDP; the annual industry
growth rate has reached 20-25% on average; in recent years, the logistics service
industry is playing an important role in the process of integration and economic
development in Vietnam. The Northern key economic region (NKER) is a region with
a special position in economic development. It is the gateway of the northern provinces
of Vietnam, leading to the East Sea and connecting large markets with each other such
as Northeast Asia with the ASEAN region and vice versa. According to the Vietnam

Logistics Business Association (VLA), there are currently about 3,000 businesses
providing logistics services, mainly in forwarding, warehousing, loading and
unloading services, transport agents, etc. mostly located in Ho Chi Minh City, Vung
Tau, Da Nang, Hanoi, Hai Phong and Quang Ninh. Except for state-owned enterprises
which are being equitized, most logistics enterprises in the key economic region are
small and medium-sized, with the average charter capital of VND 4-6 billion dong, the
proportion of logistics trained human resources is still quite low at 5-7%. They are
mainly young and dynamic enterprises, mosly originally come from State-owned
enterprises, joint venture companies or foreign invested enterprises. Domestic logistics
enterpris come with a large number but only account for a very modest proportion of
service revenue and the main job is to act as an agent or undertake certain stage(s) for
international logistics businesses. Foreign-invested enterprises such as APL, NYK,
Linfox, Maersk, K&N, Schenker ... are currently active in logistics sector in Vietnam.
Comparing to the period before joining the WTO, Vietnam's logistics service industry
has significantly grown in terms of the number of participating enterprises as well as
the professionalism of service providers. How ever, this breakthrough is still
unsustainable due to the lack in the process and skills to provide full service. The
network of service is ineffectively disconnected and straitly covered. Thus, the
competitiveness of enterprises will be improved, contributing to the growth of the
industry and the national economic development. From the above analysis, the PhD
student has selected the topic:“ Research on the capacity of supplying service of
vietnam logistics enterprises in the northern key economic region”.


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2. Research objective and missions
- The research objective of the thesis is: The thesis clarifies the scientific basis
for both theoretical and practical aspects for proposing basic solutions to improve the
service provision capacity of Vietnam logistics enterprises in the Northern key

economic region.
- Research missions:
+ Systematize, supplement and develop a number of theoretical issues on the
capacity of logistics service enterprises.
+ Analyzing and assessing the current capacity of service provision of
Vietnamese logistics enterprises in the Northern key economic region;
+ Proposing solutions to improve the service supply provision of Vietnamese
logistics enterprises in the Northern key economic region.
3. Object and scope of the study
- Research object: theoretical and practical issues about the service provision
capacity of logistics enterprises and the service provision capacity of Vietnam logistics
enterprises in the Northern key economic region, approaching from the perspective of
management based on competency.
- Research scope:
+ In terms of space: carry research on logistics enterprises with its head office in
the Northern key economic region. This research is focused on pure logistics
enterprises that provide services to other businesses without transferring ownership of
goods.
+ In terms of time: practical research is limited to the period from 2010 - 2019;
Proposing solutions to 2025 and with a vision to 2030.
+ In terms of content: the thesis focuses on analyzing the service provision
capacity of logistics enterprises based on the constituent factors of service provision
capacity.
4. Research methodology
4.1. Research process.
The research process is illustrated in the figure 0.1


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Figure 0.1: Research process
(Source: Illustration by PhD student)
4.2. Research model
From theories of resources, capacity of logistics services, logistics enterprises as
well as documents on service delivery capacity in general and logistics services in
particular. In this study, PhD student proposed the research model of the thesis shown
in Figure 0.2. Model include:

Figure 0.2: Research framework model of the thesis
(Source: Summary and development from Barney, 1991; Sanchez and partner, 1996;
Mentzer, 2004; David, 2014; Thompson partner, 2015)


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4.3. Research Methods
- Data collection method:
+ Secondary data is collected through sources of conferences, theses,
research, books, newspapers and on the Internet.
+ Primary data was collected through: expert interviews, survey methods and
case studies.
- Data analysis method
+ Quantitative method
+ Qualitative method
5. New contributions of the thesis:
The thesis is a combination of theoretical research and applied research with the
following major new contributions:
- Theoretically, the thesis has contributed to systematize, supplement and
develop a number of theories on service provision capacity of logistics enterprises. In
particular, it clarifies the concept of service provision capacity of logistics enterprises;

inherit and adjust from international scholars about the constituent factors of logistics
service provider's provision capacity; proposing a model to evaluate the service
provision capacity of logistics enterprises;
- In practice, the thesis has pointed out the strong points, weaknesses and causes
of capacity to provide services of Vetnamese logistics enterprises in the Northern key
economic region. On that basis, the thesis will propose solutions to improve the service
provision capacity of logistics enterprises in the Northern key economic region.
__________________________
OVERVIEW OF RESEARCH
1. Overview of research
1.1. Research on logistics
* Research on logistics management in enterprises.
There are some international authors to mention such as: Alan Harrison and
Remko Van Hoek (2015) "Logistics Management and Strategy"; Martin Christopher
(2011) "Logistics and Supply Chain Management"; Doan Thi Hong Van (2011)
"Logistics - Basic issues"; Le Cong Hoa (2012) "Logistics management"; An Thi
Thanh Nhan, Nguyen Van Minh and Nguyen Thong Thai (2018) "Business Logistics
Management Curriculum". The aforementioned documents mainly approach logistics


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as a function of the business and manage this activity in enterprises, not to mention
much about the logistics service industry, especially the logistics services suppliers.
* Research on the status of logistics industry in Vietnam.
Studies on the status of Vietnam's logistics industry include research related to
the development of logistics services in Vietnam; Competitiveness of Vietnam's
logistics industry. To name a few: Dang Dinh Dao ans his partner (2011) "Developing
logistics services in Vietnam in the context of international integration"; Dang Dinh
Dao and Nguyen Minh Son (2011), "Logistics services in Vietnam in the process of

international integration"; Dinh Le Hai Ha (2012) "Developing logistics in Vietnam
nowaday"; Bui Duy Linh (2017), Improving the competitiveness of Vietnam's logistics
service industry in the context of economic integration ”; Vietnam Logistics Report
2017, 2018 and 2019.
* Research on Vietnam logistics enterprises.
There are several outstanding studies such as: Dang Thu Huong (2010),
"Developing Vietnamese logistics enterprises - Existence & solutions"; Nguyen Thi
Minh Nhan (2012), "Competitive strategy of Vietnamese logistics enterprises based on
knowledge in the context of globalization"; Le Tan Buu and partner (2014), "Core
criteria affecting the decision to select logistics service providers in Ho Chi Minh City";
Nguyen Hoang Hai (2017), "Assessing the competitiveness of Vietnamese logistics
enterprises"; Nguyen Thi Huong (2013), "Solutions for effective implementation of
M&A activities of logistics enterprises in Vietnam"; Ngo Tan Hung (2012), "Actual
situation and solutions to develop logistics service provision enterprises in Quang Ngai
province".
1.2. Research on service provision capabilities
* Research on services and service suppliant.
Typically, there are the following authors & research works: Nguyen Thi
Nguyen Hong (2014), "Service administration"; Pham Thi Huyen and Nguyen Hoai
Long (2018), "Service marketing curriculum";
* Research on service provision capabilities.
Nguyen Bach Khoa and Canh Chi Quan (2013), "Perspectives and some
solutions to improve the passenger transport service capacity of Vietnam Airlines";
Nguyen Hoang Long and Nguyen Thi Hang (2013), "Capacity of providing training


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services of Vietnamese universities and colleges, some arguments and research
models".

* Research on service provision capacity of logistics enterprises.
Competence - Based View - CBV was developed primarily by the studies of
Barney (1991), Wernerfelt (1984), Peteraf (1993), Sanchez and Heene (1996, 2004,
2008, 2010). Mentzer and partner (2014) "The unified theory of logistics service
provider's capacity" and Shang & Marlow (2007) show the components of logistics
service provider's service provision capacity; Sanchez and Heence (1996, 2004)
asserted that capacity is created by adding capabilities; combining resources will create
competitive advantages and allow enterprises to achieve their strategic goals.
1.3. Research on the Northern key economic region
There have been a number of related studies in the Northern key economic
region, typically the following studies: Nguyen Danh Son (2007), “Basic investigation
of sustainable development factors in the Northern key economic regions”; Ta Dinh
Thi (2007), "Shifting the economic structure from the viewpoint of sustainable
development of the Northern key economic region"; Tran Phuong Anh (2012),
"Development of human resources in key economic regions of Vietnam". Vu Thi Loc
(2018), "Building a commercial development strategy for the Northern key economic
region till 2030".
2. Research gaps
PhD student identify research gaps for the thesis as follows: (1) Research on the
service provision capacity of logistics enterprises, in which confirms the concept of
service provision capacity of logistics enterprises; explain the elements, evaluation
criteria and factors affecting the service provision capacity of logistics enterprises; (2)
Research on logistics enterprises whose headquarters in the Northern key economic
region.
__________________________
CHAPTER 1. THEORETICAL BASIS ON THE CAPACITY OF SERVICE
SUPPLY OF LOGISTICS ENTERPRISES


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1.1.

OVERVIEW

OF

LOGISTICS

SERVICES

AND

LOGISTICS

ENTERPRISES.
1.1.1. Definition, features and classification of logistics services
1.1.1.1. Logistics services definition.
According to Article 233 of the 2005 Commercial Law, logistics services are
defined as follows: “Logistics services are commercial activities, whereby
businessman organize one or more tasks including receiving goods, transporting and
storing goods, warehousing, customs clearance, paperwork, customer advice,
packaging, code signing, delivery or other services as agreed upon with the customer
for remuneration ”.
1.1.1.2. Features of logistics services
Logistics services are quite similar to other services in some features such as: no
reserve, intangible, no separation between production and consumption; unstable
quality of service in different times and different suppliers. In addition to the features
of the service industry in general, logistics services also have the following
characteristics: (1) The object of logistics service relationship includes suppliers and

customers; (2) The complexity of the process of providing logistics services; (3)
Logistics services create a continuance with goods-related services such as
transporting; packing; freight forwarding; warehousing; customs brokering; (4)
Logistics services play an important role in the production and business activities of
enterprises.
1.1.1.3. Classification of logistics services
Currently, there are many ways to classify logistics services, within the scope of
the thesis, logistics services are divided into many different criteria: by type of
operation; in the WTO classification manner; according to the level of added value of
the service or according to the service content.
1.1.2. Definition, role and classification of logistics enterprises
1.1.2.1. Logistics enterprisses definition
Logistics enterprises are understood as: "an economic legal entity with the
purpose of providing one, several or entire logistics services at the request of
customers".
1.1.2.2. The role of logistics enterprises


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The role of logistics enterprises
Logistics enterprises have a role in the supply chain: connecting goods transactions
between suppliers and customers in the supply chain; Logistics enterprisses help
businesses in the supply chain focus on developing core and specialized competencies.
1.1.2.3. Classification of logistics enterprises
There are many ways to classify logistics enterprises, within the scope of the
thesis, they are divided according to different criteria: according to the type of service
provided; the goods type; the position of participation and level of integration in the
supply chain; ownership level & scale.
1.1.3. System and process of providing services of logistics enterprises

1.1.3.1. Service supply system of logistics enterprises
The service delivery system helps to clarify the interaction between customers
and employees through the service supply process, and at the mean time shows how
they are supported by the activities and systems behind. For customers, the service
supply system gives customers a better service experience, exploit the value of the
benefits of the service. For providers, the service supply system facilitates the
integration of resources with the operational activities of logistics enterprises.
1.1.3.2. The services providing process of logistics enterprises
Researching from the perspective of being a logistics service provider, the
process of providing services consists of many stages, starting from the time the
enterprise determines the needs of its customers until the customers consume
products/services of businesses.
1.2. DEFINITION, FACTORS AND CRITERIA FOR EVALUATION OF
SERVICE PROVISION CAPACITY OF LOGISTICS ENTERPRISES
1.2.1. Definition of service provision capacity of logistics enterprises
1.2.1.1 Resources and capabilities of enterprises
a. Resources of enterprises
The enterprise resource theory states that it is the resources of the enterprise that
will determine the competitive advantage and business efficiency of enterprises. The
essence of the theory states that businesses can gain and maintain a competitive
advantage by creating and deploying valuable capabilities and resources (Wernerfelt,
1984). Aziz and partner (2015) through a survey with managers of logistics enterprises


9

found that resources of logistics enterprises include: physical resources, management
resources, technology resources, relational resources and organizational resources.
b. Capacity of enterprises
Competence - Based View (CBV) Businesses management perspective focus on

the ability to use, combine assets, resources, and capabilities to achieve the overall
growth and efficiency of the organization. It was developed primarily by the studies of
Barney (1991), Wernerfelt (1984), Peteraf (1993), Sanchez and Heene (1996, 2004,
2008, 2010). Studies by Sanchez and Heene (1996, 2004), Freiling and partner (2008)
confirm that competencies created by adding capabilities, combining resources to
create competitive advantages and allow companies to achieve strategic goals.
According to Sanchez and Heene (1996, 2004), organizations organized as an open
system of resources, resources flow deployed and coordinated in the process will create
and distribute value.
1.2.1.2. Definition of service provision capacity of logistics enterprises
The definition of service provision capacity in this study can be stated as follows:
“The service provision capacity of logistics enterprises is the ability to create, deploy
and coordinate logistics enterprises' resources to meet the demand for logistics services
of customers, provide added value to customers and achieve business goals of the
enterprise ”. (Source: Compiled and developed from Lai, 2004; 2010; Sanchez and
Heene, 1996).
1.2.2. Factors contributing to the service provision capacity of logistics enterprises
Mentzer et al (2004) suggest that the result of the service supply process of an
enterprise is to create value to meet the needs of customers at the highest level. This is
the core element for to businesses build a competitive advantage, achieve long-term
profits and help enterprises to survive and thrive in competitive environment.
Customers' requirements for LSPs often focus on: providing package services, being
punctual, ensuring safety and right products, ensuring flexibility and responding to
unexpected requests. Therefore, the evaluation of logistics capacity is the assessment
of the provision capacity of logistics enterprises. For enterprises, providing services
must stem from the needs of customers. Therefore, for service providers in general and
logistics service providers in particular, the ability to identify and meet customer needs
is one of the important components of the service provision capacity. After that,
logistics enterprises will carry out specific operational processes to meet customers'

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demand for logistics services. This process consists of many diverse and relatively
complex stages. Through the service delivery process, customers' needs will be met
and transformed into the result of service provision. In order for the service results to
satisfy customers with the highest quality, logistics enterprises must be able to meet
requirements of customers on the following criteria: time, accuracy and safety,
flexibility in solving situations and handling of complaints from customers. Therefore,
to evaluate the service provision capacity of logistics enterprises, it is indispensable for
operational competence components. If the ability to identify and meet customer needs
and operational competence is conssidered as the necessary conditions, the information
management capability would be the sufficient condition for the services provision
capacity. In order to provide services to customers on the basis of maintaining and
developing market share as well as profits, identifying advantages to achieve the goals,
logistics enterprises must "synchronize" the capabilities and available resources. To do
so, logistics enterprises need to have integration and connectivity capability.

Figure 1.9: Factors contributing to the service provision capacity of logistics
enterprises
(Source: Proposed by PhD student, 2019)
Research students identify four factors that constitute the capacity to provide
services of logistics enterprises, which are: capacity to identify and meet customer
needs; operational capacity; information management capacity; integration and
connectivity capability.


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1.2.3. Criteria for evaluating the service provision capacity of logistics enterprises

Based on the literature review of the authors Mentzer et al (2004); Shang and
Marlow (2007); Lai (2004; 2010), PhD student proposed the criteria to evaluate the
service delivery capacity of logistics enterprises. Then, the PhD student carried out
interview to consult with experts to assess the suitability of the proposed criteria. PhD
student had a direct discussion with experts in the field of logistics to collect
information needed for research. Experts consulted include: scientists at research
institutes, universities and colleges; policy makers working at the Ministry of Industry
and Trade; logistics enterprises in the Northern key economic region. Among the 23
proposed criteria, the percentage of criteria with an average of 2.5 points or more is
100% (23/23 criteria; none of the criteria has a score below 2.5 points); The average
value of the criteria ranges from 3.58 to 4.79 points. This result shows a very high level
of agreement among the experts with the criteria proposed by the PhD student. With
the results, the above 23 criteria will be used in large-scale surveys with service
providers and customers using services to evaluate service provision capacity of
Vietnam logistics enterprises in the Northern key economic region.
1.3. FACTORS AFFECTING SERVICE PROVISION OF CAPACITY
LOGISTICS ENTERPRISES
1.3.1. Macro environment: national logistics infrastructure, economic factors,
political - legal factors; Science - technology factors.
1.3.2. Industry environment: customers, competitors, partners
_______________________________
CHAPTER 2. EVALUATION OF ACTUAL SITUATION OF SERVICE
PROVISION CAPACITY OF VIETNAM LOGISTICS ENTERPRISES IN
THE NORTHERN KEY ECONOMIC REGION
2.1 OVERVIEW OF LOGISTICS SERVICES IN THE NORTHERN KEY
ECONOMIC REGION
2.1.1. The socio-economic development advantages of the Northern key
economic region have an impact on the development of logistics industry
The northern key economic region includes 7 provinces and cities: Hanoi, Hai
Phong, Vinh Phuc, Bac Ninh, Hai Duong, Hung Yen and Quang Ninh; with a natural

area of 15,594.2 km2, accounting for 4.7% of the country's natural area. The population


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is about 14,467 thousand people, accounting for 16.31% of the national population and
the average population density is 875 people/km2. From the socio-economic features
of the key economic region, there are several features that create advantages for the
development of logitics service industry: the region has a special geopolitical and geoeconomical position which is a extremely important prior condition for the strong
development of the fields of economy - politics - society in general; a relatively diverse
economic development potential and allow economic to develop in the direction of
multi-sectoral and high quality; clear conditions and potentials to quickly develop trade
and service sectors, especially high-quality trade and service industries; advantages to
develop into a major industrial center of the country.
2.1.2. Features of Vietnamese logistics enterprises in the Northern key economic
region
The northern key economic region also recorded a rather busy operation of
logistics enterprises. The number of businesses here is about 10,878, accounting for
29.2% of the country. The average number of employees is about 21 employees /
enterprise with an average capital of about 23.4 billion. Logistics enterprises in the key
economic region are mainly located in Hanoi and Hai Phong.
Like other key economic regions, there are currently 3 groups of enterprises
participating in logistics services, namely multinational corporations, state
corporations, private companies or joint stock companies. In general, there has been an
improvement compared to the past that enterprises have paid attention and invested to
the quality of human resources as well as equipment. However, service provision
capacity is still limited compared to the requirements from the client side, the
competitiveness and business efficiency are still low and inadequate with the
development potential.
2.1.3. Demand for logistics services in the Northern key economic region

Enterprises often combine self-employed and outsourced logistics activities to
ensure production activities. According to experts from VLA, the outsourcing rate of
logistics service industry in Vietnam ranges from 60% - 70%.
2.2. ANALYSIS OF FACTORS AFFECTING THE SERVICE PROVISION
CAPACITY OF VIETNAM LOGISTICS ENTERPRISES IN THE NORTHERN
KEY ECONOMIC REGION.
2.2.1. Macro environment


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- National logistics infrastructure: At present, the national logistics infrastructure
for logistics activities in Vietnam in general and in the Northern key economic region
in particular is quite poor, small-scale and not really reasonably distributed leading to
poor connectivity.
- Economic factors: In the period of 2010 - 2019, the economy of Vietnam
achieved a relatively high growth rate compared to many countries in the world, the
following year consecutively reached the growth of over 7%, an average of 6.1%. The
average growth rate of the retail industry is about 12% per year, which depends greatly
on the economic growth of Vietnam in recent years.
- Political - legal factors: The policy of innovation, openness, safe and secure
living environment is the prior reason for the volume of foreign direct investment in
Vietnam. In addition, the administrative procedure and institutional reform program in
Vietnam demonstrated the determination of creating favorable conditions for citizens
and enterprises, especially in the field of logistics.
- Scientific and technological factors: The application of artificial intelligence or
robots to perform a number of services, such as container loading or unloading, loading
and unloading goods in warehouses are gradually appearing in the context of the 4th
industrial revolution.
2.2.2. Industry environment

- Customers: consider the cooperation relationship of the owners is also one of
the criteria to evaluate the service provision capacity of logistics enterprises as well as
considering how the customer impacts the service provision capacity. This relationship
shows the level of cooperation or customer loyalty for the enterprises.
- Competitors: Vietnam has about 30 logistics service providers operating in
Vietnam. Compared with domestic enterprises, these enterprises have advantages in
transportation contracts with large shipping lines due to the parent company signed
with shippers with global networks, the advance level of investment in information
technology applications, advanced management level and especially good relationship
with global customers.
- Partners: Suppliers in some areas are tending to merge into a few specialized
supply groups instead of each supplier operating individually as usual.


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2.3. ANALYSIS OF THE SITUATION OF RESOURCES OF VIETNAMESE
LOGISTICS ENTERPRISES IN THE KEY ECONOMIC REGION OF THE
NORTH REGION
The results below reflect the current state of resource factors affecting service
provision capacity of enterprises.
- Human & management resource factors: 4.42/5 & 4.34/5 points on average,
these two factors are assessed to have the greatest impact on the capacity of
Vietnamese logistics enterprises to provide services in the Northern key economic
region.
- Technological and physical resources factors corresponds to 4.15 and 3.89
points of assessment;;
- Relational resources factor: 3.91 points. According to the evaluation of
logistics enterprises in the Northern key economic region, this relationship is assessed
at a fair level for customers and partners;

- Organizational resources factor: 3.9 points of evaluation. Logistics
enterprises in the Northern key economic region have quite simple organizational
structures without high specialization.
- Branding and culture factor, these are the two factors that are assessed to have
the least impact on the service provision capacity of logistics enterprises among all
resource factors. However, at the assessment level, these two factors are assessed as
quite important and directly affect the capacity to provide services, respectively with
3.67 points and 3.31 points.
2.4. ANALYSIS OF THE STATUS OF SERVICE PROVISION CAPACITY OF
VIETNAMESE LOGISTICS ENTERPRISES IN THE NORTHERN KEY
ECONOMIC REGION
2.4.1. Ability to identify and meet customer needs.
The results from Figure 2.10 show that LSPs' ability to identify and meet customer
needs is at an average level for both groups of businesses. In particular, the group of
small and medium enterprises is at 3.46 points; micro enterprises group with a score of


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3.3.
3.00

3.15

3.45

3.60

3.08
3.5

3.32

3.61

Ability to provide quality consistent with price services
3.54
Wide scope supply ability 3.06
Ability to provide a variety of services

Customer group

3.75

3.27
3.27 3.33

Ability to respond quickly to changes of customers
Ability to innovate services to keep up with customers'
needs

3.30

3.65

3.35
3.48
3.16
3.16

Micro enterprises group

3.35

S&M enterprises

Figure 2.10: Evaluating the ability to identify and meet customer needs of
Vietnamese logistics enterprises in the key economic region
(Source: Survey of phD student)
The ability to identify and meet the needs of customers of logistics enterprises
is only at average level, with the average assessment for both groups of enterprises only
reach 3.46 points for small and medium enterprises micro businesses and 3.32 points
for micro enterprises. Evaluation results are also similar to the assessment from
customers (3.24 points). In this ability, the majority of enterprises' self-assessment
points are higher than customers' assessments (3/5 criteria are evaluated by enterprises
at a higher level; 2/5 of enterprises' assessments are at level equivalent to customer
reviews). The above results show that there is a gap between the ability of enterprises
and customer expectations.
2.4.2. Operational capacity
Operational capacity of logistics service providers is assessed to be quite good.
In particular, the group of small and medium enterprises self-assessed at 3.69 points;
the micro enterprises group was at 3.54 points and customers rated at 3.55 points.
According to the evaluation results, there are 5/8 criteria businesses rated themselves
higher than the evaluation of customers; 1/8 criteria have the similarity between the
evaluation results of the 2 parties and 2/8 criteria the customers evaluated the
operational capacity of logistics service providers higher than the level that enterprises
rated themselves. In general, the operational capacity of service providers is assessed
to be rather good, but most of the surveyed enterprises are small-scale enterprises and

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provide single services. The number of enterprises surveyed which provide package
services are still modest.
3.25
Ability to handle complaints of customers
Ability to ensure transparent information

3.50
3.5

3.75

3.52

3.31

3.68

3.27

3.81

3.66
3.58

Ability to ensure professionalism during process

3.96

Ability to ensure high reliability during process

3.39
Ability to consult customers with suitable service

4.00

3.49
3.52
3.61

3.36

3.54
3.53

Flexibility with the urgent requirements of the customer

3.32
3.29

Ability to ensure goods safety, delivery of correct quantity &
volume committed

3.62
3.84 3.89

Ability to delivery as time committed

Customer group

Micro enterprises group

3.85

3.74

3.97
Small & Medium Enterprises group

Figure 2.12: Evaluate operational capacity of Vietnamese logistics enterprises in the
Northern key economic region
(Source: Research synthesis of PhD student)
Therefore, the above analysis results have great meanings for enterprises
providing single services but do not reflect the operational capacity of the group of
enterprises providing package services. With the global demand of full-package
logistics services, it is imperative for service providers to improve their capabilities and
then they can take the first step in competetiton with foreign service providers.
2.4.3. Information management capacity
The faster and the more accurate the information is transmitted, the more
effective the decisions related to logistics would be. However, it can be affirmed that
one of the reasons for unreliable service provision capacity in many enterprises is due
to the poor application of information technology.


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3.00

3.15

3.30

3.60

3.75

3.90

3.35
3.44

Time saving in looking up information

3.21
Ability to have high information security

3.45

3.01
3.16
3.09

Ability to convey information fully, accurately & timely

3.47

3.59
3.68

3.46

Ability to collect information with high reliability

3.52 3.47
Ability to collect and process information quickly, accurately &
effectively

Customer group

3.21

Micro enterprises group

3.37
3.49

Small & Medium Enterprises group

Figure 2.13: Evaluate the information management capacity of Vietnamese logistics
enterprises in the Northern key economic region
(Source: Survey of phD student)
In the criteria to assess the information management capacity of service
providers, 2/5 criteria achieved a decent level for small and medium enterprises; 1/5
criteria achieved a good level according to customer reviews; Micro enterprises do not
have any criteria to be ranked well. Information management capacity of logistics
enterprises as assessed at a fairly limited level, the data shows that both groups of small
and medium enterprises, micro enterprises group when assessed were equally below
3.5 points. Comments from customers also showed similar results with 3.36 points.
Restrictions are pointing out that domestic logistics service providers are struggling to
compete with foreign enterprises.
2.4.4. Integration and connectivity capability

The final results show that there is a strong divergence in self-assessment of
integration and connectivity capability among the groups of businesses surveyed. If
small and medium enterprises group has 4/5 criteria to achieve good level; 1/5 criteria
reached the average level, the micro enterprises group had completely opposite results
with only 1/5 criteria achieved the good level; 2/5 criteria achieved the average level
and 2/5 criteria rated as weak. Besides, the evaluation results from customers seem to
be quite similar to the group of micro enterprises, specifically: 1/5 criteria are quite
good; 3/ criteria are medium and 1/5 considered weak.


18
2.00

2.25

Ability to flexibly integrate multiple services to ensure package
factor

Ability to flexibly integrate multiple customers on the same route

2.50

2.75

3.00

3.25

3.50

3.75

4.00

2.86
3.56

2.28

2.13

2.22
3.5

Ability to connect with partners in the service provision process

2.66

3.27

3.36
3.92

Ability to effectively connect with customers in the service
provision process

3.67
3.88

3.45

Ability to effectively connect with internal resources

Customer group

Micro enterprises group

3.36

3.68

Small & Medium Enterprises group

Figure 2.16: Assessing the integration and connectivity capability of Vietnamese
logistics enterprises in the Northern key economic region
(Source: Survey of phD student)
Through the results of the survey, the integration and connectivity capability of
logistics service providers still reveals many limitations, there was not a really closeknit connection with customers and especially with partners. The ability to integrate to
ensure the package factor as well as integrate many customers to have the opportunity
to reduce costs has not met customer expectations. Improving this capacity does not
only aims at improving the provision capacity of logistics enterprises but also helps
enterprises increase their competitiveness.
2.5. ANALYSIS OF THE SITUATION OF SERVICE PROVISION CAPACITY
OF SOME VIETNAMESE LOGISTICS ENTERPRISES IN THE NORTHERN
KEY ECONOMIC REGION
2.5.1. Intercargo Logistics Joint Stock Company
The service provision capacity of Intercargo Logistics Joint Stock Company is at an
upper average level (3.4 points), higher than the average of logistics enterprises in the
key economic region according to customer reviews (3.31 points). Among the criteria,
a quarter of the criteria rated by customers are slightly higher than the average level
(3.62 points / 3.36 points) and 3/4 of the remaining criteria of Intercargo is similar to

the enterprises surveyed.


19
Integr
ation
an…

3.1

3.15

Infor
matio
n…

3.62

3.36

Oper
ation
al…

3.59
3.55

The
abilit
y…

3.26
3.24

3.00

3.15
Customer in general

3.30

3.45

3.60

3.75

Intercargo Customer Group

Figure 2.18: Assessment results of service provision capacity of Intercargo Logistics
JSC
(Source: Survey of phD student)
Besides the advantages of Intercargo, the company still exposed many
weaknesses during its operation. First of all, Intercargo is a small-scale company with
limited resources, the services that the company provides are still limited, human
resources of the company are small in number, quite young age and mostly work at the
field contrary to the trained profession. This directly affects the quality of service
provided. In addition, the current state also shows that Intercargo, like other small
businesses in the same field in the market, is not really ready to work with other
businesses to create higher supply value which leads to ineffective business results,

low profits and sluggish growth.
2.5.2. Orient Shipping & Trading Joint Stock Company
The service provision capacity of Orient Shipping and Trading Company is quite
good (3.39 points), higher than the average of logistics enterprises in the Northern key
economic region according to customer reviews (3.31 points). Among the criteria, 2/4
of the criteria rated by customers are slightly higher than the common ground
(respectively: 3.5 / 3.24 points; 3.45 / 3.1 points); the operational capacity of OSTC at
a similar level comprare to the common ground; information management capacity is
lower than the average level of surveyed enterprises (3.15/3.36 points). Like stateowned originated enterprises doing sea transportation, the market share of domestic
fleets is shrinking. Even in the domestic market, Vietnamese enterprises are currently


20

inferior to international shipping lines. The low freight rates made profits drop.
Therefore, the requirements for crew quality, maintenance, and upgrade received less
attention; ships began to deteriorate and accidents began to occur, resulting in
insecurity in goods.
Customer in general
I NTE GRATI ON AND CONNE CTI VI TY
CAP ABI LI TY

OSTC Customer group
3.45

3.1
3.36

I NF ORMATI ON MANAGE ME NT CAP ACI TY

3.15

3.55

OP E RATI ONAL ABI LI TY

3.47
THE ABI LI TY TO I DE NTI F Y & RE S P OND
TO NE E DS I DE NTI F I CATI ON

3.24

3.00

3.25

3.5

3.50

3.75

4.00

Hình 2.19: Assessment results of service provision capacity of Orient Shipping &
Trading Joint Stock Company
(Source: Survey of phD student)
The ability of OSTC in applying information technology is still modest although
it is in the testing phase of IPACS application. Due to high operating, copyright costs
and in the context of the company's unprofitable state, the ability to maintain this

application in the future is very low.
2.6. OVERALL ASSESSMENT OF SERVICE PROVISION CAPACITY OF
VIETNAM LOGISTICS ENTERPRISES IN THE NORTHERN KEY
ECONOMIC REGION
2.6.1. The advantages
- Firstly, the number of Vietnamese logistics enterprises is large and tends to
grow compared to the entry of foreign-based enterprises.
- Secondly, logistics enterprises here have advantages over logistics enterprises
in other regions due to the advantages of geographical factors and the socio-economic
development process of the key economic region.
- Third, logistics enterprises have taken advantage of internal resources to serve
the process of providing logistics services.
- Fourthly, logistics enterprises have made great efforts and tried to improve the
quality with services towards professionalism.


21

- Fifth, logistics enterprises have the ability to advise customers on appropriate
services as well as receive quite good results when resolving customer complaints
during the use of the service.
2.6.2. Weaknesses
- Firstly, most Vietnamese logistics businesses have modest capital and small
scale.
- Secondly, most of Vietnam's logistics businesses in the key economic region
have not yet taken advantage of the digital technology platform to improve capacity.
- Thirdly, most of the human resources working in logistics enterprises lack
necessary and weak professional skills.
- Fourthly, most of Vietnam's logistics businesses in the Northern key economic
region have limited information management capacity.

- Next, most Vietnamese logistics enterprises are quite passive in innovating and
have not really responded promptly to customer changes, lack of necessary flexibility.
- Although there is a fairly large proportion of Vietnamese logistics businesses
that have not established close relationships with customers.
2.6.3. The cause of the weaknesses
* Objective reason: The impact of the free trade agreements between the European
Union - Vietnam (EVFTA) is a huge challenge for Vietnamese logistics businesses
when they have to open the market. The provinces / cities in the key economic region
in the recent period have not had specific support policies for logistics enterprises.
Logistics infrastructure in the key economic region is still poor, backward, lacking of
uniformity and not being well invested. Logistics enterprises have not been able to
access and use capital from preferential packages, support programs from credit and
insurance organizations.
* Subjective cause: most Vietnamese logistics enterprises have modest capital and
small scale; the level of coordination and linkages between logistics enterprises is lax,
lacks interconnection, operates independently, has no connection with external
logistics service networks and global logistics networks; The structure of services and
the proportion of value-added services in Vietnamese logistics enterprises in the key
economic region remain low, while customers require full-service services. In addition
to the limited resources, logistics enterprises have not paid adequate attention to
investing in market research and development. Service providers have not properly
assessed the importance of the factors affecting customers' choice of service. Although
businesses are already aware of the application of information technology to their
business activities, they still keep a considerable distance from foreign logistics
enterprises. Human resources lack knowledge and experience in this field as well as
limited foreign language skills.


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_______________________________
CHAPTER 3: IMPROVE CAPACITY OF VIETNAMESE LOGISTICS
ENTERPRISES IN THE NORTHERN KEY ECONOMIC REGION
3.1 BACKGROUND, VIEWPOINTS AND OBJECTIVES TO IMPROVE THE
LOGISTICS SERVICE CAPACITY
OF VIETNAM
LOGISTICS
ENTERPRISES IN THE NORTHERN KEY ECONOMIC REGION
3.1.1. Forecasting the context to improve the service provision capacity of Vietnam's
logistics enterprises in the Northern key economic region
* International context: Political conflict continues to be more complicate and
put impacts on world commodity prices, the trend of returning to protectionism,
commercial protectionist policies of countries continues to rise. This hinder trade and
investment, creating negative consequences for world economic growth.
* Domestic context: Macro economy to maintain stably, Vietnam is assessed as
a fast growing economy in Asia, with GDP growth from 6.8% to 7.1 %/year.
Commerce is promoted through implementation and participation in new generation
free commercial agreements of Vietnam.
3.1.2. Viewpoints, objectives of socio-economic development of provinces and
cities of the Northern key economic region to 2025, with a view 2030
* Viewpoints: The Northern key economic region has been identified as the
center of politics, economy, culture and science and technology of the whole country,
with central government agencies, centers operating many large economic
organizations, national scientific and technological training, research and development
facilities will continue to play an important role in the development process of the
country.
* Objectives: The economic structure is transforming towards increasing the
proportion of services. Besides, it is necessary to promote investment attraction, make
use of new opportunities to expand domestic and international markets; effectively
promoting the geo-economic position advantages with a synchronous, modern and

outstanding infrastructure system, especially seaports, international airports and
highway systems.
3.1.3. Viewpoints and objectives to improve the service provision capacity of
Vietnamese logistics enterprises in the Northern key economic region.
* Viewpoints: Capacity building of services must be consistent with the current
domestic and international context, in the direction of modernization, strengthening
integration and connectivity capacities, based on digital technology and on high quality
human resources.
* Objectives: To establish a chain of logistics enterprises focus on developing
leading logistics enterprises, having sufficient competitiveness in the domestic and


23

international market. Mean while, there must a mechanism to support, promote and
assign logistics enterprises in the chain in a logical and modern way; focus on
transforming traditional logistics enterprises into modern logistics enterprises in the
direction of applying new technology solutions in the field of logistics.
3.2. SOLUTIONS TO IMPROVE SERVICE PROVISION CAPACITY OF
VIETNAM LOGISTICS ENTERPRISES IN THE NORTHERN KEY
ECONOMIC REGION
3.2.1. Solutions to improve the identify and meet customer needs capacity
- Conducting customer satisfaction surveys on the quality of service;
- Focusing on investing in resources of logistics enterprises.
3.2.2. Solutions to improve operational capacity
- Innovate and enhance technology solutions in operational activities;
- Improve organizational qualifications and management capacity;
3.2.3. Solutions to improve information management capacity
- Raise the awareness of logistics enterprises about the role of information
technology;

- Develop an information technology strategy for enterprises;
- Develop the ability to share information with customers and partners.
3.2.4. Solutions to improve integration and connectivity capability
- Build and develop network;
- Associate with logistics enterprises through cooperation and merger.
- Strengthen connections with banks and credit institutions through credit
cooperation programs.
3.2.5. Others solutions
- Expand business area;
- Developing and promoting brands using digital marketing;
- Improve the quality of human resources through specific and transpatent
human resource policies;
3.3. RECOMMENDATIONS TO THE GOVERNMENT
- Complete the infrastructure for logistics activities;
- Establish logistics centers;
- Thoroughly tackle the shortcomings in management and specialized inspection
of goods;
- Reduce road costs, transparent BOT stations activities, eliminate hidden costs
in road management;
- Change and standardize regulations on business conditions;
- Promote the training of human resources for logistics industry;
- Create mechanisms to promote cooperate Vietnamese logistics enterprises;