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THEORETICAL BASIS ON INFORMATION TECHNOLOGY
Some related concepts
In the modern economy, as free trade and international commerce become increasingly prevalent, countries are striving to deeply integrate into the international market In this development, competition and technological innovation are essential factors Therefore, in order to maintain the strong domestic market and expand into the international market, both governments and businesses need to proactively coordinate various improvement activities, in which trade promotion is an indispensable activity.
For businesses involved in import-export activities and economic-commercial management agencies in Vietnam, the term "trade promotion" is not unfamiliar, but in practice, there are various interpretations of this concept (Thuong, Thanh, & Huong, 2005).
From a linguistic perspective, "promotion" refers to encouragement, support, expansion, or advancement Therefore, "trade promotion" is a type of behavior that directly impacts trade activities Understood as "making progress faster," the term
"promotion" is seen as activities that seek and promote the development and exploitation of a certain object or phenomenon in a better way This term is widely used in various fields of economic, life, and legal Accordingly, the concept is widely used for different subjects such as trade promotion, investment promotion, export promotion, employment promotion, and banking promotion.
In the common sense, “trade” is understood as the buying and selling of goods and the provision of services, and accordingly, "trade promotion" refers to activities that promote the purchase and sale of goods and the provision of services In the context of integration, commercial activities are formed not only in the relationship of buying and selling goods and providing services but also including investment relations and commercial relations in the field of intellectual property Therefore, trade promotion includes promotion of goods purchase and sale, promotion of service provision, promotion of investment
In the context of business activities, “trade promotion” is understood as the process of finding and promoting business opportunities by using different methods of persuasion to create links with the target market and the public The objective of trade promotion is to accelerate the business process and support to achieve maximum efficiency in business activities More specifically, according to Huong
Traditional trade promotion evaluations (2005) focused solely on participation counts in market surveys, trade fairs, and business matching activities, neglecting the depth of engagement and subsequent business outcomes This limited assessment overlooks the true impact of trade promotion initiatives and misguides resource allocation decisions.
According to Clause 10, Article 3 of the 2005 Commercial Law of Vietnam,
“Trade promotion is an activity to promote and seek opportunities to buy and sell goods and provide services, including promotional activities, commercial advertising, etc trade, display and introduce goods and services and trade fairs and exhibitions”
Thus, according to the above interpretations, trade promotion is only concerned with final activities in the production and consumption of goods and services, aimed at supporting and promoting the purchase and sale of already available goods and services on the market However, the above definition does not explain the role of government in trade promotion activities today and the reason why trade promotion has become an important part in the trade development policy of each country
Therefore, the most comprehensive and complete definition of trade promotion is provided by the International Trade Centre (ITC), stating that trade promotion encompasses all measures that can influence, support, and encourage the development of trade At the macro level, trade promotion essentially refers to activities undertaken by the government to support the trade activities of businesses and foster the development of the country's trade At the micro level, trade promotion encompasses the marketing activities of businesses aimed at achieving their business objectives.
1.1.2 Concept of information technology application
Information technology (IT) encompasses the use of computers, storage systems, networks, and infrastructure to manage electronic data in various forms IT primarily focuses on business operations, utilizing both computer technology and telecommunications to effectively leverage information resources for diverse human and social activities.
The term "information technology" was introduced by the Harvard Business Review to distinguish between specialized machines designed for specific functions an The IT industry has undergone significant advancements since the mid-20th century, with a continuous cycle of increasing computing capability, decreasing device costs, and reduced energy consumption This trend persists even today with the emergence of new technologies In today's world, information technology (IT) is widely regarded as an essential tool for enhancing the competitive capacity of a nation's economy It is now widely accepted that IT has significant impacts on the productivity of companies However, these impacts can only be fully realized when
IT is widely adopted and extensively utilized [ CITATION Oli11 \l 1033 ].
The Information Technology Law of Vietnam (2006) defines "information technology" as a compilation of scientific methods, technologies, and contemporary technical tools employed for the production, transmission, collection, processing, storage, and exchange of digital information.
2006 also emphasizes that “Information Technology Applications (ITA) is the use of information technology in economic, social, external, defense, security, and other activities to enhance their productivity, quality, and effectiveness”.
It can be affirmed that the application of information technology in businesses and operations involves utilizing information technology to serve production activities, business activities, and management activities, aiming to maximize resources and optimize operations to generate the highest benefits for the organizations.
IT encompasses various aspects related to the management and utilization of technology within an organization The IT department is responsible for ensuring the seamless connectivity and functionality of systems, networks, data, and applications The IT team typically focuses on three key areas:
- Deployment and maintenance: This involves the implementation and upkeep of business applications, services, and infrastructure such as servers, networks, and storage systems.
- Performance monitoring and optimization: IT professionals monitor, optimize, and troubleshoot the performance of applications, services, and infrastructure to ensure they operate efficiently and meet the organization's requirements.
Trade Promotion Activities
1.2.1 Trade Promotion Activities at the Government Level
Trade promotion activities at the government level typically encompass the following:
- Facilitating a favorable trade environment by engaging in negotiations and formalizing multilateral and bilateral trade agreements with foreign nations, thereby facilitating the flow of exports, imports, and foreign investment This is the crucial strategy of Governments to facilitate other trade promotion activities as well as of trade promotion organizations and businesses.
- Establishing an enterprise-friendly environment by formulating and implementing transparent, clear, and equitable trade policies Administrative procedures are reformed to streamline and simplify bureaucratic processes.
- Developing a network of international trade promotion organizations within and beyond the country.
- Providing financial support for export-related activities, which may include export subsidies, incentives, the establishment of support funds, and the implementation of export promotion programs.
- Calling for foreign direct investment for the production of export-oriented goods, thereby fostering the development of new export products with high added value.
- Organizing activities to promote imports that serve export-oriented production.
- Training and developing human resources for international trade promotion activities at both the micro and macro levels.
- Conducting research and offering support for market research and surveys in foreign markets.
To bolster the competitiveness of national brands globally, initiatives are undertaken to promote and develop them These encompass showcasing domestic products to international companies, offering tailored export guidance and expertise for specific market segments, aiding in the selection and execution of effective trade promotion strategies, and stimulating domestic consumption By empowering domestic businesses and enhancing their international reach, these initiatives contribute to the growth and success of national product brands in the global marketplace.
- Developing infrastructure to support trade promotion activities, such as establishing product introduction centers and trade promotion centers in foreign countries.
1.2.2 Trade Promotion Activities at trade promotion organizations level
Business consulting for enterprises: including information on markets, products, technology, and business management, with a special focus on small and medium-sized enterprises Additionally, providing support, advice, and guidance to foreign businesses interested in expanding their operations in the host country.
Business introductions, partner search, and trade connections: organizing trade sessions for Vietnamese business delegations with foreign counterparts and vice versa, particularly facilitating opportunities for foreign businesses to explore, survey, and seek business development prospects in the host country.
Information provision: through various mediums such as press, television, videos, and social media, disseminating two-way information about commodity markets, seeking partners to introduce new products, and establishing databases and commercial information banks.
Guidance and support for businesses: participating in domestic and international trade fairs, advertising and promotion, creating favorable conditions for manufacturers and companies to effectively introduce their products in domestic and international markets This includes establishing product showcase centers, organizing trade weeks, forums, and trade exchanges, and promoting products through the internet Also assisting in setting up representative offices, branches, or product showcase stores in foreign countries.
Surveys and opinion gathering: acting as a bridge to convey the opinions of domestic and foreign businesses to the government for timely adjustments in trade and economic management policies, aiming to maximize the potential of enterprises and ensure market vibrancy The activities of trade promotion organizations also serve as a tool for transmitting and managing trade and economic policies for the business community.
Training and coaching: building a capable, experienced, and knowledgeable
Vietnamese business workforce to meet the urgent requirements of domestic enterprises in the context of increasingly intense international competition and modern international trends.
Research, experimentation, and introduction of new trade forms for businesses to gradually improve their skills and keep up with the advancements in global trade techniques.
Criteria for evaluating the level of enhancing digital transformation and IT
1.3.1 Criteria for evaluating mechanisms, policies, and state orientations Leadership and guidance of the Government
In the context of Vietnam's socio-economic form, the Party and State's orientation and direction are considered prerequisites for implementing a common strategy for digital transformation and IT application in trade promotion activities. The more Decisions and Directives are issued with the goal of promoting digital transformation and IT application, the more it reflects the determination of the State to achieve the goal of change and development in the field of trade promotion.
For nationwide digitalization of trade promotion, a comprehensive legal framework is crucial, including regulations, provisions, and specific procedures These ensure accuracy, enforceability, and efficacy Additionally, detailed procedures facilitate efficient monitoring, review, and evaluation, enabling timely adjustments and improvements.
Coordination among government agencies: The effectiveness of inter-agency coordination, such as the Ministry of Science and Technology, the Ministry ofAgriculture and Rural Development, the Ministry of Information andCommunication, inter-level from central to local levels, from regulatory bodies to associations, and industry sectors, plays a crucial role in enhancing efficiency in implementation, execution, evaluation, reporting, etc.
1.3.2 Criterias for evaluating awareness and capabilities in digital transformation and IT application of trade promotion organizations and bussinesses
Leadership: Changes in the mindset and actions of leaders greatly influence the ability to digitalize and apply new technologies in enterprises/organizations. These changes include rapidly optimizing leadership decision-making processes through instant access to information and expanded data (Mazzei & Noble, 2017), adopting new communication principles (Bennis, 2013; Granados & Gupta, 2013), and changes in leadership learning and development (Sia et al., 2016) Furthermore, leaders need new digital thinking to lead the digital transformation journey of enterprises/organizations In the past, leadership training programs mainly focused on leadership and communication skills However, in the era of digital transformation, leaders must become technology-savvy and develop their adaptability Transparency in management and communication through media and the rapid spread of online data pose significant challenges for managers, demanding continuous learning and increased direct interaction.
Measuring the awareness and capabilities of leaders:
(1) Leaders are highly concerned about digital transformation.
(2) Leaders have a positive attitude towards the digital transformation of the organization.
(3) Leaders use new technologies in interactions with employees and partners.
(4) Leaders support proposals for digital transformation and IT application in overall activities of organizations and specifically in trade promotion activities.
(5) Leaders continually learn to develop the capacity to meet the requirements of digital transformation and IT application.
(6) Leaders are ready to address concerns arising from the risky aspects of digital transformation.
Digital transformation demands adaptable employees with capabilities to navigate innovative technologies They must possess the agility to execute tasks more efficiently and accurately Employees and managers must also develop astute perceptions and adaptability to leverage digital networks, fostering innovation Additionally, leaders should encourage exploration, evaluation, and implementation of novel business models and processes to drive organizational success in the digital age.
Measuring the awareness and capabilities of employees and managers:
(1) Employees possess strong skills in using information technology applications.
(2) Trade promotion organizations have training programs and equip employees with the use of IT applications, digitalizing processes.
(3) Employees exhibit a positive attitude towards new technology applications in task execution.
(4) Employees in trade promotion organizations are empowered to make their own decisions.
(5) Trade promotion organizations have specialized employees in the field of IT.
Digital transformation and IT application strategy: Bharadwaj et al (2013) asserted that information technology is increasingly important in the activities of enterprises and organizations It is not merely a support function for management, but it has evolved into an essential element in constructing a business strategy. Developing and implementing business strategies and operations to achieve long- term objectives of the enterprise on a digital technology platform is called a digital business strategy.
Measuring the digital transformation and IT application strategy:
(1) Objectives for digital transformation are mentioned in the business strategy and operational plan of the businesses / trade promotion organizations.
(2) Trade promomtion organizations determine to establish an information technology department in their organizational structure.
(3) Trade promotion organizations deploy and use database systems.
(4) The strategy of the trade promotion organization is geared towards changing operational models to create new value.
Culture of Businesses and Trade Promotion Organizations: The digital transformation and application of IT are not only challenges driven by technology, but also require a profound cultural shift within businesses and trading organizations Everyone in the organization must be prepared with adaptive skills and digital knowledge Firstly, digital transformation demands a organizational culture that consistently validates and shares verified data (Dremel et al., 2017). Data must be seen as a valuable asset and a driving factor for digital transformation and IT application in businesseses This will necessitate a higher level of transparency in work processes and daily business operations, as well as a mindset focused on data sharing among employees.
Criteria for evaluating the culture of trade promotion organizations:
(1) Each individual in the organization is willing to share new knowledge and experiences with one another.
(2) A culture of mutual learning is consistently promoted.
(3) Businesses emphasize training in digital transformation skills and IT application for employees, encouraging mutual sharing.
(4) Information storage is considered a shared asset of the organization.
(5) Data in the organization is always verified before storage and sharing.
(6) Close collaboration is maintained to facilitate task execution.
1.3.3 Criterias for evaluating the development of technology
Technical Infrastructure: To assess and improve the outcomes of the digital transformation and IT application in trade promotion, evaluating the state of technical infrastructure is also a critically important factor Building a digital infrastructure must precede progress, developing at a rapid pace towards mastering core technologies As mentioned in the impact factor section, when evaluating the technical infrastructure of an organization or business, we need to consider: hardware, software, data, and telecommunications.
Criteria for evaluating the technical infrastructure of trading and commercial organizations:
(1) Investment in building and developing high-quality broadband infrastructure.
(2) Continuously upgrading to the latest mobile network technology to keep up with global developments.
(3) Providing conditions for all employees to use personal electronic devices, maximizing the use of organization's devices for work purposes.
An organization's technology foundation heavily influences its success in the digital trade promotion ecosystem This foundation can be assessed through specific metrics that evaluate its performance and capabilities These metrics provide insights into the organization's ability to effectively leverage technology to enhance its digital trade promotion initiatives.
(1) Active participation of businesses/organizations in the shared database platform for trade and commercial activities.
(2) Utilization of shared data management software by trade and commercial organizations.
(3) Adoption of cloud computing, artificial intelligence, machine learning, and the Internet of Things (IoT) by businesses/organizations in internal processes and operations.
CURRENT SITUATION OF INFORMATION
Overview of information technology application and digital transformation
The transformation of digitaliization has become an inevitable global trend, and Vietnam is no exception To adapt to this new situation, the Politburo issued Resolution No 52-NQ/TW on September 27, 2019, regarding certain proactive orientations and policies for participating in the Fourth Industrial Revolution, emphasizing the urgent requirement to accelerate the digital transformation process. Based on this, the Government issued an Action Program to implement Resolution
No 52-NQ/TW, and concurrently, the Prime Minister issued Directive No 01/CT- TTg on January 14, 2020, to promote the development of digital technology in Vietnam.
Especially, on June 3, 2020, the Prime Minister issued Decision No 749/QD- TTg approving the National Digital Transformation Program until 2025, with a vision toward 2030 The issuance of this Program marks Vietnam as one of the first countries in the world to release a national digital transformation program, positioning Vietnam as a nation that is aware of digital transformation and moving alongside advanced countries worldwide The goals of the National Digital Transformation Program are dual-fold: to develop digital government, digital economy, and digital society, while also nurturing Vietnamese digital technology enterprises with global capabilities.
In reality, over the past years, the digital transformation process in Vietnam has achieved noteworthy accomplishments Over 50% of ministries, sectors, and localities have formulated and commenced the implementation of programs,initiatives, and plans for digital transformation Many Vietnamese technology companies have mastered core technologies, developed digital transformation technology platforms, including around 40 "Make in Vietnam" platforms The application of digital technology and digital transformation within the business community has also been vigorously promoted In terms of administrative reform, the national document interconnection system and the National Public Service Portal have been put into operation, contributing to saving billions of Vietnamese dong and millions of hours of labor.
Digital transformation in trade promotion has revolutionized the industry, fostering positive outcomes and enhancing traditional methods To ensure seamless, secure, and private digital trade promotion transactions, emerging technologies play a pivotal role: Use of blockchain for secure record-keeping and data integrity; leveraging artificial intelligence (AI) and machine learning (ML) for personalized customer experiences, targeted marketing, and fraud detection; adopting cloud computing for scalability, flexibility, and cost-effectiveness These technological trends have immense potential but require ongoing refinement and implementation to unlock their full benefits.
Big data processing and analysis: The online world has become the largest marketplace for businesses worldwide, and big data has proven to be the most powerful tool for organizations and businesses to own and utilize Looking at the experiences and systems of countries such as Japan, South Korea, Hong Kong, Taiwan, and Thailand, they have recorded figures of hundreds of thousands or even millions of products and businesses Therefore, almost all digital platforms, digital ecosystems, e-commerce websites, and applications must be built upon large databases that can integrate advanced analytical features, such as user behavior tracking, and subsequently analyze user requirements and choices (e.g., Hong Kong Trade Development Council's HKTDC).
In trade promotion activities, big data technology needs to be researched to analyze and predict trends and market demand in specific regions; forecast production and products in each region; and provide support for trade promotion managers to formulate appropriate strategies and plans.
The Internet of Things (IoT) revolutionizes trade promotion in an era of interconnected devices To optimize trade promotion, IoT enables seamless connectivity and data transparency across the entire supply chain This necessitates establishing robust data linkages and communication between trade promotion organizations and businesses IoT devices facilitate the collection of valuable data from end devices, enabling monitoring of product quantity and quality throughout manufacturing and distribution processes As IoT becomes increasingly pervasive, it empowers trade promotion organizations to effectively manage and enhance their activities, leveraging data-driven insights to drive efficiency and customer satisfaction.
Consequently, the future holds great promise for a revolution in the interconnectedness of intelligent technology, smart factories, smart production, smart farms, and smart trade promotion Alongside systems that enable traceability and ensure the quality of the supply chain, other technologies like Virtual Reality (VR) are also being employed, particularly in situations where travel is restricted due to the effects of the pandemic The Fresh Plaza website, which promotes and connects agricultural products in Europe, has been utilizing VR technology since 2018-2019 to virtually facilitate survey trips to source regions and processing facilities for agricultural product exports An example of this can be found through the provided link.
Artificial Intelligence (AI): Artificial Intelligence, particularly machine learning and deep learning technologies, has played a crucial role in recent times. Machine learning can be seen as a branch of AI, with algorithms that enable computers to learn, analyze large datasets, and make highly accurate predictions. Therefore, AI will continue to be heavily invested in and applied in the foreseeable future In the field of trade promotion, AI will be further enhanced to build data analytics systems and provide recommendations to facilitate business connections and product consumption.
Specifically, AI's sentiment analysis field will see increased application in constructing systems for analyzing and evaluating the trustworthiness of organizations or businesses based on social media news and financial reports The field of Natural Language Processing (NLP) and machine translation will also be further researched and improved, and voice-enabled search and general search technologies will be enhanced and extensively applied in e-commerce Business matching will help in quickly and conveniently searching for products or connecting with potential partners, surpassing the limitations of text-based search The systems developed by Hong Kong HKTDC and KOTRA Korea have already started leveraging these technological capabilities.
Blockchain Technology: Blockchain technology holds significant significance and effectiveness for trade development, particularly in the application of origin traceability in supply chain management The distinctive features of Blockchain technology include decentralized management, high authenticity, consensus among participating parties, and the immutability and irreversibility of decisions or transactions These characteristics have led to the application of Blockchain technology in supply chain management, origin traceability, and transaction management among supply chain participants Therefore, as this technology advances and becomes more innovative, it holds great potential for application in trade promotion activities, signing contracts, utilizing Blockchain smart contracts, connecting and leveraging systems for export-related documents and bills of lading Singapore is an example of deploying Blockchain technology in the certification of origin (C/O) system since 2019.
Electronic Know Your Customer (eKYC): The electronic Know Your
The eKYC platform is designed to streamline the onboarding process for businesses and users participating in trade promotion platforms Utilizing advanced technologies like AI, Blockchain, and Biometric Identification, this platform accurately verifies, identifies, and extracts information from images and personal documents These capabilities enhance the efficiency and accuracy of user registration and verification, promoting a seamless and secure experience for all participants.
Data safety and cybersecurity: As digital transformation advances, the platform and its core - data - are increasingly threatened by various factors The current state of information security and safety is a concern not only for large corporations but also for small and medium-sized enterprises (SMEs) In recent times, cybercriminals have targeted the information security vulnerabilities of SMEs Meanwhile, SMEs account for 98.1% of businesses in Vietnam and often have lower IT budgets compared to large corporations and multinational companies.
The core of digital transformation is data - a valuable asset for businesses. This is also the resource that cybercriminals are interested in Therefore, each business needs to proactively prevent and protect this valuable resource On another note, import-export businesses themselves need to proactively understand relevant regulations on information security, privacy rights, unauthorized access, etc It should be noted that the recently published Global Cybersecurity Index (GCI) report for 2020 by the International Telecommunication Union (ITU) shows that many countries have enacted new laws and regulations on cybersecurity to address issues such as privacy rights, unauthorized access, and online safety.
The business ecosystem is a network of organizations, including suppliers, distributors, customers, competitors, government agencies, etc., involved in providing a product or service through both competition and collaboration Each member of the ecosystem influences and is influenced by other members, creating a constantly evolving and interdependent relationship, where each entity must be flexible and adaptive to survive, much like in a biological ecosystem.
Analysis of the current situation of information technology application
2.2.1 In Govermental trade promotion organizations
The global economy has witnessed significant fluctuations in recent years, particularly with the outbreak of COVID-19 in many countries worldwide. However, thanks to the efforts of the Ministry of Industry and Trade, along with relevant departments, localities, associations, and businesses, particularly in the field of trade promotion and export promotion, our country has achieved highly positive results Specifically, Vietnam's total import-export turnover officially surpassed the milestone of $500 billion in 2019 and reached over $545 billion in
2020 Export activities have experienced strong growth in scale, rising from $176.6 billion in 2016 to $282.7 billion in 2020.
To enhance trade promotion and export activities, the Department of Trade Promotion, as the central trade promotion agency, actively utilizes Information Technology (IT) and leverages the advancements of the Fourth Industrial Revolution (Industry 4.0) This approach aims to sustain and foster trade and investment endeavors amidst evolving circumstances, contributing to economic progress, stability, and job creation Recognizing the significance of digital transformation, the Ministry of Industry and Trade has proactively proposed incorporating training, capacity building, and digitalization into Decree No 28/2018/ND-CP and other relevant legal frameworks, aligning with Decision No 749/QD-TTg.
According to the reports on trade promotion results from the Vietnam Trade Promotion Agency (Ministry of Industry and Trade) and the indices published in the White Paper on Information Technology and Communication in 2020, the intensified digital transformation and IT application in trade promotion activities, especially since the emergence of the COVID-19 pandemic that disrupted international trade promotion chains, have achieved several results, including the following:
- Enhancing the awareness of various levels, sectors, and business communities regarding the importance of building, developing, and protecting the brand and the national image
The Vietnam National Brand Program is a distinctive, long-term, and unique trade promotion program under the leadership of the Government assigned to the
Ministry of Industry and Trade, in coordination with other ministries, sectors, and organizations, implemented since 2003 to promote the image of Vietnamese goods and services' quality and competitiveness in the domestic and international markets. Over the years, the Ministry of Industry and Trade has collaborated with other ministries, sectors, and localities to promote and build the brand from traditional to digital communication Communication products, including digital communication products, have played a role in enhancing the general public's and business community's awareness of the important role of brand building and development in business activities, particularly in export activities of enterprises, towards achieving sustainable export growth for the country.
The brand and the national image are synonymous and require consistent presence in international trade events This awareness has been translated into specific actions with efforts to maintain presence at any given time and under any special circumstances, including during the COVID-19 pandemic since 2020 until now In a quick survey conducted with trade representatives at the VietnameseEmbassy in several countries worldwide, trade promotion organizations,associations, and national cooperatives, representing 100% of the respondents (a total of 101 opinions), expressed the necessity and important role of IT application and digital transformation in trade promotion activities, with 80% considering it very important and urgent.
Figure 1 Awareness and assessment on the significance of IT applications and digital transformation in trade promotion activities
Source: Vietnam Trade Promotion Agency (VIETRADE) ( August 2022)
- Contributing to the completion of IT application infrastructure in trade promotion
According to the practical survey conducted by the research team on the studied subjects and the indices published in the White Paper on Information Technology and Communications in 2022, the rate of IT application infrastructure in trade promotion by the group of government trade promotion agencies reached nearly 100% (excluding technical infrastructure for shared services such as servers, broadband connections, and information security).
- Emphasize the unique and irreplaceable role of the trade promotion system in maintaining connections with the international market by providing information, conferences, and workshops that facilitate domestic consumption and export through websites, portals, online platforms, electronic newspapers, and smart mobile applications
Due to the severe impact of the COVID-19 pandemic, numerous global trade promotion activities were cancelled and shifted to online platforms, demanding new professional requirements With a proactive and adaptive spirit, and in the early months of 2020, the Ministry of Industry and Trade coordinated and supported a wide range of trade promotion activities by transforming their organizational formats and employing technological platforms Training, workshops, and advisory activities to enhance online trade promotion capabilities were also ensured to have a solid legal basis, as the Ministry of Industry and Trade had provided recommendations to incorporate these contents into Decree 28/2018/NĐ-CP as early as 2018.
Online trade promotion efforts have facilitated the timely provision of information on trade policies, markets, sectors, and import-export partners, connecting Vietnamese exporters with foreign importers, and Vietnam's commercial counselors abroad It has supported export-oriented enterprises in seeking stable sources of raw materials for export production, as well as accessing foreign import organizations and purchasing agents in Vietnam from major global distribution systems without the need to travel abroad Consequently, it has contributed to supporting local consumption of agricultural products, easing difficulties for farmers, and attracting investment in local agricultural processing and production. Online trade promotion has helped Vietnamese export businesses save costs in trade connections, maintain customer relations with foreign partners, negotiate export orders, and create momentum for direct trade promotion activities immediately after the pandemic is contained.
According to the preliminary compilation by the Ministry of Industry andTrade (Department of Trade Promotion), millions of businesses in Vietnam and abroad have been supported in online trade connections through these means.Among them are specialized networking conferences in various sectors such as textile and garment, leather and footwear, fruits and vegetables, wood products, handicrafts, and aquatic products The participating products range from export- oriented goods (pandemic response products, agricultural products, foodstuffs, consumer goods, interior and exterior decoration items, construction materials, footwear, sports products) to imported inputs serving domestic production needs.
Despite challenges posed by the pandemic, the Ministry of Industry and Trade (Vietnam Trade Promotion Agency) in collaboration with various stakeholders has organized over 500 online international conferences with more than 1 million online trade sessions since early 2020 These virtual events have connected Vietnamese businesses with foreign partners from major export markets (China, the United States, the EU, India, Japan, South Korea, Singapore) and emerging ones (Africa and Australia) Notably, the agency hosted the first-ever online Vietnam Foodexpo in December 2020, featuring nearly 300 virtual booths, and facilitated Vietnamese participation in multiple international trade fairs such as the China International Import Expo and China-ASEAN Expo (CAEXPO) in a digital format.
Recently, the Ministry of Industry and Trade has collaborated with SIPPO to conduct evaluation, review, and in-depth research with 12 leading entities (including some centers and associations) on the effectiveness of online trade promotion methods (based on 6 types of connections and 8 types of online activities) involving thousands of exporting businesses from various sectors The evaluation results indicate that, in addition to the effectiveness in terms of participation numbers and market information provision as mentioned above, the most significant achievement in recent times is maintaining connections with international markets, demonstrating a high level of awareness and initial IT application in trade promotion activities at a deep and wide scale.
Government trade promotion agencies, notably the Vietnam Trade Promotion Agency, have embraced digital platforms and guided local communities and businesses These initiatives have laid the foundation for fostering digital economic growth in Vietnam The agencies' proactive adoption of digitalization has enabled them to effectively promote and support the country's digital economy development.
According to the "Southeast Asia Digital Economy 2022" report, Vietnam's digital economic growth rate has consistently been in double digits, leading the region alongside Indonesia The digital economy in Vietnam increased from USD 3 billion in 2015 to USD 12 billion in 2019 and USD 14 billion in 2020 It is projected to reach a breakthrough of USD 52 billion by 2025.
Recognizing emerging economic models and trends worldwide, the Ministry of Industry and Trade (the Vietnam Trade Promotion Agency) has been at the forefront, actively promoting trade promotion activities and facilitating export through e-commerce platforms Notably, there have been collaborations with major domestic and international e-commerce platforms such as Amazon, Alibaba, Lazada, Tiki, Shopee, and Sendo These activities, initiated by the Ministry of Industry and Trade (Vietnam Trade Promotion Agency), aim to support businesses effectively by enhancing their capabilities through training programs (including 12 training courses on Alibaba e-commerce platform, 6 courses on Amazon e- commerce platform, and over 20 training and consulting courses on domestic e- commerce platforms) Furthermore, they assist in connecting businesses with e- commerce platforms, ensuring successful store operations The focus is on supporting product consumption through multiple channels, which contributes to boosting domestic consumption and export, promoting brand awareness, and enhancing competitiveness in the international market.
ORIENTATIONS AND SOLUTIONS TO ENHANCE
Orientations to enhance information technology application and digital
Building and developing a digital trade promotion ecosystem, with businesses at the center of service provision and benefiting from market access, is the measure of evaluating the success of applying information technology and digital transformation in trade promotion activities.
Promoting the application of information technology and digital transformation in trade promotion activities primarily involves strongly shifting the mindset of leaders in organizations, businesses, cooperatives, and individual traders, as well as the active involvement and resolute direction of management authorities.
Data is a core resource for building and developing the digital trade promotion ecosystem It is essential to organize, manage, and exploit trade promotion data in a synchronized and comprehensive manner Ensuring the information security of business operations when sharing data within the digital trade promotion ecosystem is considered crucial for the success of digital transformation in trade promotion activities.
Developing digital platforms and applications to support data exploitation and market connectivity, based on the achievements of the Fourth Industrial Revolution,should be implemented with a focus on priority areas Immediate deployment of effective models already utilized in foreign markets, which are suitable forVietnam's conditions, should be given emphasis and priority.
Development goals for the period of 2023-2025 and the direction for the
3.2.1 General Objective for the period of 2023-2025 and the direction for the year 2030
Promote the application of information technology and digital transformation in trade promotion activities to enhance the quality and efficiency of operations in government trade promotion agencies, trade promotion support organizations, enterprises, cooperatives, and individual businesses This aims to establish and develop a digital trade promotion ecosystem, improve awareness and capacity in the application of information technology and digital transformation in trade promotion activities, and contribute to the restructuring of the industry.
3.2.2 Specific Objectives for the period of 2023-2025 and the direction for the year 2030 a By 2025:
- Establish and develop the digital trade promotion ecosystem.
- Provide accounts on the digital trade promotion ecosystem for 100% of trade promotion organizations and over 200,000 enterprises, with 50% of them engaging in transactions and information sharing.
- Form and connect specialized databases for trade promotion and 10 key export sectors, linking them with databases of 10 priority export markets.
- Implement 50% of internal directive, operational, and administrative activities of government trade promotion agencies on digital platforms.
- Organize 25% of market connection services on a connected platform, supporting 100,000 businesses.
- Conduct 25% of trade fairs and exhibitions on digital platforms.
- Provide training, guidance, and support on the application of information technology and digital transformation in trade promotion activities and ensure information security for 100% of trade promotion organizations and over 100,000 enterprises, cooperatives, and individual businesses.
- Enable the usage, exploitation, and operation of shared platforms and data sharing by trade promotion organizations and over 100,000 enterprises, cooperatives, and individual businesses in the trade promotion system.
- Integrate 100% of eligible administrative procedures in the field of trade promotion into online public services at Level 3 and 4, integrated into the NationalPublic Service Portal, with 90% of businesses satisfied with the results of administrative procedure resolution on the electronic platform. b By 2030:
- Complete the digital trade promotion ecosystem.
- Provide regular accounts for 75% of trade promotion organizations and enterprises to actively search, provide, and share information on the digital trade promotion ecosystem.
- Conduct 50% of business market search and connection activities on the digital trade promotion ecosystem, supporting 1,000,000 businesses.
- Enhance and expand the specialized databases for trade promotion and 20 key export sectors, enabling connectivity, interoperability, and data sharing with databases of 20 priority export markets.
- Implement 90% of internal directive, operational, and administrative activities of government trade promotion agencies on digital platforms.
- Organize 60% of trade fairs and exhibitions on digital platforms.
To ensure successful digital transformation, comprehensive training, guidance, and support are provided to trade promotion organizations, enterprises, cooperatives, and individual businesses This support encompasses the application of information technology, digital platforms, and technology, while also prioritizing information security for all organizations The initiative aims to provide tailored assistance to over 1,000,000 businesses, ensuring they can fully leverage the benefits of digitalization and securely operate in the evolving technological landscape.
- Enable the usage, exploitation, and operation of shared platforms and data sharing by trade promotion organizations and over 500,000 enterprises,cooperatives, and individual businesses in the trade promotion system.
Some solutions to enhance information technology application and digital
3.3.1 Developing the Digital Trade Promotion Ecosystem a) Designing an overall architecture that is consistent with the VietnameseGovernment's e-Government Framework, meeting the prescribed standards,technological norms, and technical regulations. b) Ensuring comprehensive functions of reporting, statistics, analysis, forecasting, and visualizing data in the form of charts. c) Ensuring smooth operation, upgradability, scalability, connectivity, interoperability, and data sharing. d) Constructing, developing, and controlled testing (sandbox) of prototype models for the application of information technology and digital transformation in trade promotion activities, replicating successful models. e) Building, developing, and integrating the following platforms:
- A trade promotion management database, including domestic and international trade promotion networks, trade promotion enterprises, industries, markets, and other databases serving trade promotion activities.
- Establishing digital platforms for business connections, supporting information search, and business opportunities both domestically and internationally.
- Enhancing the effectiveness of fairs and exhibitions, providing opportunities for businesses to showcase products, search for information, and find business partners in the digital environment.
- Integrated online training (E-learning) with knowledge repositories, digital libraries, information retrieval support, and capacity building for trade promotion.
- Other specialized platforms serving trade promotion activities.
Fundamental components of the digital trade promotion ecosystem
This Thesis aims to construct and propose a group of key tasks and solutions,primarily focusing on the comprehensive development of applications and digital platforms that synchronize and meet the needs of trade promotion support for enterprises, cooperatives, individual businesses, and enhance the quality and efficiency of activities carried out by government trade promotion agencies and trade promotion support organizations Some directions for building a shared database and testing the development of a common platform include researching practical approaches that have been successfully demonstrated in certain countries and territories, including:
- Trade Promotion Management Database System: This system tightly integrates all partner management and operational deployment processes, including interactions with foreign offices The information obtained from the system is used to collect feedback on partner satisfaction and continuous improvement of provided services As a result, operational staff can closely monitor the system, while management and leaders can assess the effectiveness of personnel and the trade promotion system This is a successful experience of the Foreign Trade Promotion Organization (PROCOMER), the government trade promotion agency of Costa Rica Consequently, PROCOMER has consistently been ranked among the top positions by the International Trade Center among over 60 global trade promotion agencies participating in the annual ranking from 2015 until now.
Harnessing big data and digital tools, market research platforms empower small and medium-sized enterprises in their search for customers, market research, and demand analysis Artificial intelligence (AI) allows these platforms to provide consulting services, suggesting potential markets and demand segments to businesses KOTRA has been implementing this approach since 2019 and aims to digitalize 30% of its business services within the next three years, continuously improving the platform to meet the evolving needs of businesses.
- The trade connectivity platform with AI technology and big data to store and synchronize commercial information on a data infrastructure The Hong KongTrade Development Council (HKTDC) has achieved significant success with theHKDTC Sourcing platform, which currently operates with a database of over 2 million buyers and 130,000 reputable suppliers, facilitating over 24 million transactions annually through the integrated Click2match platform HKTDC initiated this platform in 2000 and from 2019 to the end of 2020, they collaborated with IBM to upgrade and optimize operational efficiency, leveraging technology to seize every opportunity The platform has employed cloud computing, artificial intelligence, machine learning, and enhanced user experience design.
- The digital exhibition and trade fair platforms in Hong Kong and Thailand have served as effective tools for countries to respond promptly to the COVID-19 pandemic Numerous European trade promotion agencies, especially European exhibition centers, have developed and begun utilizing these platforms in
2020 and 2021 The ongoing trend of developing combined physical and online digital exhibition and trade fair platforms is set to be a prominent and essential direction in trade promotion activities in the near future.
Global B2B electronic platforms, such as HKTDC Sourcing, www.buyKOREA.org, B2B Thaitrade.com, and TaiwanTrade.com, connect businesses online These platforms provide access to millions of products, eliminating the need for individual website development By utilizing these platforms, small and medium-sized enterprises can optimize their efficiency and investment performance, with 81.6% reporting successful utilization.
3.3.2 Enhancing Awareness and Capacity a) Promoting awareness of the importance of strengthening the application of information technology and digital transformation in trade promotion activities; disseminating regulations, mechanisms, and policies related to such applications. b) Establishing and developing a network of advisors to support the promotion of digital trade and digital transformation in trade promotion activities. c) Organizing training activities, providing guidance on the application of information technology and digital transformation in trade promotion activities; conducting training courses, drills, and information security incident response exercises.
3.3.3 Improving Mechanisms and Policies a) Reviewing, proposing amendments, and supplements to legal regulations that promote the application of information technology and digital transformation in trade promotion activities. b) Issuing implementation plans for each phase and annually. c) Establishing evaluation criteria for the level of application of information technology and digital transformation in trade promotion activities.
3.3.4 Other Solutions a) Strengthening domestic and international cooperation in promoting the application of information technology and digital transformation in trade promotion activities. b) Reviewing and simplifying administrative regulations and procedures in the field of trade promotion to implement online public services at level 3 and 4.
In the context of the 4.0 technological revolution along with the impact of global events such as the Covid-19 pandemic, commercial activities, connections, and government services are gradually shifting to the digital environment Digital transformation and the application of information technology in trade promotion activities are no longer pioneering but essential and urgent tasks for relevant agencies and organizations.
Applying the features of digital transformation and information technology helps improve efficiency, save time, and significantly reduce costs in trade promotion activities Currently, thanks to the attention and proactive initiatives from the government, particularly the Ministry of Industry and Trade, the application of information technology and digital transformation in trade promotion work in Vietnam has achieved some positive results These include raising awareness among all levels, sectors, and the business community about the importance of building, developing, and protecting brands and the national image.
Trade promotion agencies under the government, especially the Trade Promotion Agency (Ministry of Industry and Trade), have proactively accessed digital platforms, provided guidance to localities and the business community, thereby contributing to the foundation for promoting digital economic development in Vietnam Conferences, workshops, domestic consumption, and export connectivity have been facilitated through websites, information portals, electronic newspapers, and smart mobile applications.
Furthermore, in this thesis, the author has identified some limitations in the deployment of information technology and digital transformation in Vietnam, such as the initial implementation primarily at the central level trade promotion agencies, a few local trade promotion agencies, support organizations, and very few businesses The capacity to apply information technology and digital transformation in government trade promotion agencies is still limited, and the development of platforms to serve the application of information technology and digital transformation in trade promotion is not yet fully realized The resources for applying information technology have not met practical needs.