Tóm tắt luận án tiếng anh digital transformation of coffee supply chain to boost exports in the central highlands provinces

MINISTRY OF EDUCATION AND TRAINING FOREIGN TRADE UNIVERSITY DOCTORAL DISSERTATION SUMMARY DIGITAL TRANSFORMATION OF COFFEE SUPPLY CHAIN TO BOOST EXPORTS IN THE CENTRAL HIGHLANDS PROVINCES Major: International Economics Code: 9310106 TRAN LUC THANH Ha Noi, 2023 The dissertation University (FTU) is completed at: Foreign Trade Academic supervisors: Assoc Prof Dr Tran Quoc Trung Assoc Prof Dr Nguyen Xuan Minh Reviewer 1: Reviewer Reviewer The dissertation will be defensed before the University Committee at Foreign Trade University Athour day month year The dissertation can be accessed at: - The National Library - The Library of Foreign Trade University LIST OF PUBLICATIONS Tran Luc Thanh & Nguyen Xuan Minh (2022), Factors affecting the Digital transformation of export coffee supply chains in the Central Highlands provinces, Proceedings: The 10” International Conference on Emerging Challenges: Strategic Adaptation in the World of Uncertainties, Thanh Nien Publishing House, ISBN: 9786043872064 Tran Luc Thanh & Nguyen Xuan Minh (2022), The Current situation of coffee export supply chains in the Central Highlands provinces, Proceedings: International Conference for Graduate Education: Business and Economics issues for building a more sustainable and socially responsible economy, Lao Dong Publishing House, ISBN: 9786043862164 Tran Luc Thanh & Tu Thuy Anh (2022), Applying digital transformation of export coffee supply chains of enterprises in the Central Highlands provinces, Journal of International Economics 2615-9848, No 151, page 37-54 and Management, ISSN Tran Luc Thanh (2021), Digital Transformation in the Coffee Supply Chain of the Central Highlands, Proceedings: Enhancing Adaptive Capacity of the Economy and Enterprises in the Context of the Covid-19 Pandemic, Foreign Trade University, July 2021 INTRODUCTION Rationale The robust development of Digital Transformation and the Fourth Industrial Revolution is fundamentally altering the entire landscape of production methods, the way humans create material wealth, exchange goods, and consume resources In this context, the global agriculture sector is also undergoing significant influence and a strong transformation, giving rise to an entirely new approach to agricultural production known as digital agriculture or Agriculture 4.0 A collection of tangible and intangible tools and resources is fostering a breakthrough development in agricultural production sectors and agricultural supply chains, collectively termed digital technology This encompasses the Internet of Things (IoT), Artificial Intelligence (AI), Cyber-Physical Systems (CPS), Big Data, Blockchain, and Cloud Storage Digital transformation (DT) is not a novel concept within the coffee industry Vietnam stands as the world's secondlargest coffee exporter by volume; however, the value derived from Vietnamese coffee products (value added) for Vietnamese enterprises remains relatively low To empower the coffee industry to grasp and keep pace with the technological advancements in coffee production, processing, and consumption on a global scale, and to effectively meet the consumption needs of markets such as Europe, America, Japan, and the EU, swift implementation of DT within the coffee export supply chain is imperative Based on the guidelines provided by the Ministry of Planning and Investment and USAID regarding DT for Vietnamese businesses, this study aims to explore the fundamental factors of DT in the coffee supply chain and analyze the interaction among these factors It seeks to establish a theoretical model and validate it using real-world data collected from the market The study aims to provide scientifically objective conclusions, which hold significance not only for the coffee industry but also for other agricultural products Research objectives and Research questions 2.1 Research objectives - Overall research objective: Research on digital transformation of the coffee supply chain for export promotion in the Central Highlands provinces - Specific research objectives: (i) Constructing a research model on the digital transformation of the export coffee supply chain, (ii) Analyzing the influences of digital transformation enablers in the coffee supply chain (IoT, AI, big data, applications) on the digital transformation process (DTP), the effects of the DTP on involved parties (suppliers, intermediaries, and customers) within the coffee export supply chain, and the current state of the coffee export supply chain in the Central Highlands provinces, (iii) Propose solutions to promote digital transformation within the coffee export supply chain in the Central Highlands provinces 2.2 Research questions (i) Which factors influence the DT of the coffee export supply chain in the Central Highlands provinces? (ii) How does the impact of the coffee export supply chain's DTP affect the involved parties (suppliers, intermediaries, and customers) within the coffee export supply chain of the Central Highlands provinces?? (iii) What is the current state of DT in the coffee export supply chain in the Central Highlands Provinces? (iv) What solutions can be suggested in order to promote the DTP of the coffee export supply chain to enhance coffee exports in the Central Highlands provinces? 3 Object and Scope of research 3.1 Object of research: Digital Transformation of the coffee export supply chain in the Central Highlands Provinces; Specifically, the impact of supply chain digitalization platforms (loT, AI, Big Data, Applications) on the DTP and the implications of DTP for the Participants (Suppliers, Intermediaries, and Customers) in the coffee export supply chain across the Central Highlands Provinces 3.2 Scope of research In terms of spatial scope: A study on coffee supply chain activities in the five Central Highlands provinces, namely Dak Lak, Gia Lai, Kon Tum, Lam Dong, and Dak Nong, and businesses engaged in coffee production and export activities from the Central Highlands in Ho Chi Minh City, Binh Duong, and Dong Nai In terms of temporal scope: The research covers the period from 2018 to 2022, which represents Vietnam's stage of DT marked by significant advancements These advancements are not only evident in the government's DT strategy, various ministries and sectors, and local authorities but are also detailed in the comprehensive guidebook published by the Ministry of Planning and Investment in collaboration with USAID Research methodology: The thesis combines both qualitative and quantitative approaches simultaneously Research contributions - Academic contributions: Firstly, to establish an analytical framework for the digital transformation (DT) of the coffee export supply chain in the Central Highlands provinces, specifically focusing on the influence of digital supply chain platforms (Internet of Things- IoT, Artificial Intelligence - Al, Big data - BID, Applications - APP) on the digital transformation process (DTP) and the impact of the DTP on participants (suppliers, intermediaries, and customers) within the coffee export supply chain Secondly, to confirm the correlated relationships among factors within the coffee export supply chain and the bidirectional effects between the core factor groups of the DTP, as well as the influence of the DTP on participants (suppliers, intermediaries, and customers) in the supply chain; the mutual influence among the participating entities in the supply chain by utilizing a structural equation modeling (SEM) framework - Practical contributions: Firstly, to analyze the current state of DT in the coffee export supply chain across the Central Highlands provinces The results of the experimental study reveal four core factors (loT, AI, BID, APP) of DT that impact the DTP of coffee export businesses The influence of the DTP on stakeholders (suppliers, intermediaries, customers) demonstrates the degree of digitalization within the coffee export supply chain of the Central Highlands provinces Specifically, a lower level of DT corresponds to less adoption by stakeholders, while a higher level of DT corresponds to more extensive adoption Secondly, to propose practical solutions for coffee export businesses, coffee farmers, and government regulatory bodies to implement supply chain DT, aiming to enhance coffee export in the Central Highlands provinces CHAPTER THEORETICAL FOUNDATIONS OF DIGITAL TRANSFORMATION IN THE COFFEE EXPORT SUPPLY CHAIN 1.1 Digital transformation and Supply chain 1.1.1 Digital transformation: Digital transformation (DT) activities can encompass a range of processes, from digitizing managerial and business data, applying digital technologies for automation and optimization of operational and management processes, production and business operations, reporting procedures, and collaborative efforts within the enterprise These activities can extend to a complete overhaul of the business model, generating new value for the enterprise and fundamentally altering its nature This contributes to the emergence of businesses in logistics, import-export, and other sectors, operating under new paradigms based on the integration of technological systems, data, and automated information processing 1.1.2 Supply chain: A supply chain is a system of organizations, people, information, activities, and resources related to the process of transferring products/services from suppliers to customers The activities of all entities involved in the chain, such as suppliers, manufacturers, warehouses, service providers, retail stores, and other elements, work collectively to ensure that products are produced, distributed as desired by customers, and achieve the organization's objectives 1.2 Digital transformation of the coffee export supply chain 1.2.1 Digital transformation of the supply chain Digital transformation of the supply chain is the process of leveraging technology to address business challenges, establishing a vision for how digital applications can enhance service levels, cost efficiency, flexibility, and inventory management It simultaneously optimizes control and management operations, enhances transparency of information from suppliers to end consumers throughout the supply chain 1.2.2 Coffee export supply chain In the coffee industry, the coffee export supply chain typically involves the participation of members such as input material suppliers, manufacturers, and distributors Throughout its operation, the supply chain not only provides favorable conditions for business activities but also assists enterprises in establishing a strong competitive position in the international market, driving production, and generating substantial profits 1.2.3 Digital transformation of the coffee supply chain The supply chain begins with coffee bean growers and harvesters, encompassing warehouses, transportation teams, coffee bean roasters that transform green coffee beans into an array of delightful flavors spanning from light roasts to espressos, as well as various retail activities involving packaged and hot coffee A selection of applications for each IoT technology within entities of the coffee supply chain can be listed as follows: (i) coffee growers employ device monitoring and soil sensors; (ii) coffee transport companies utilize temperature monitoring and geolocation services; (iii) coffee storage warehouses use temperature monitoring; (iv) coffee roasters and grinders employ temperature monitoring and automation; (v) retail entities such as cafes and restaurants utilize device monitoring and temperature tracking; (vi) grocery stores use device monitoring and temperature tracking 1.3 Overview of research status on digital transformation of export supply chain 1.3.1 Global studies Agricultural cultivation can be replaced with data-driven cultivation strategies Farmers can make better assessments by analyzing and evaluating data related to weather, different seed types, soil quality, disease risks, historical data, market trends, and prices (De Clercq et al., 2018) Data is also essential for the future of businesses New technologies have a significant impact on reducing uncertainty as they allow for real-time accurate data collection When combined with automated and_ intelligent decision-making capabilities, these technologies enhance efficiency, sustainability, and adaptability, thereby fostering flexibility throughout the entire supply chain from farm to table (Lezoche et al., 2020) Information management is becoming an_ increasingly challenging task for farmers, especially given the volume of data and complexity of processes in crop management (LiopaTsakalidi et al., 2013) One of the most demanding functions is data collection and traceability of agricultural products' origins Panahifar et al (2018) research model serves as a critical foundation for the author to develop a model and propose collaborative solutions for information sharing in the DT of the coffee export supply chain in the Central Highlands provinces 1.3.2 Studies in Vietnam Van Nguyen et al (2017) identified core factors in the management of the coffee export supply chain that create competitive advantages, including factors such as coffee production, pricing, coffee quality, customer satisfaction, and international competition The study by Nguyen & Sarker (2018) on sustainable coffee supply chain management in Buon Ma Thuot introduced a model with six key factors: 1) Sustainable farms: Effective management of chemical fertilizers, pesticides, disease control, product quality assurance through registration and testing for safe and clean products for producers and consumers; 2) Supply chain management, including supply chain innovation and management, cost reduction, energy consumption reduction, provision of information systems, and rapid feedback 10 CHAPTER THE CURRENT STATE OF DIGITAL TRANSFORMATION IN THE COFFEE EXPORT SUPPLY CHAIN IN THE CENTRAL HIGHLANDS PROVINCES 2.1 An Overview of Coffee Production and Export Situation in the Central Highlands Provinces 2.1.1 An Overview of Coffee Production in the Central Highlands Provinces Coffee is the main crop and the key economic sector in the Central Highlands provinces Currently, the total coffee area in the focal region exceeds 539,800 hectares, of which Dak Lak province accounts for over 201,340 hectares, Lam Dong province has 145,700 hectares, and Dak Nong province has more than 116,350 hectares Dak Lak is the province with the largest area and coffee output in the country Coffee is the main agricultural export product of the province, contributing to over 80% of the annual export turnover, providing stable employment for over 300,000 direct producers and nearly 200,000 individuals involved in coffee cultivation 2.1.2 An Overview of Export Situation in the Central Highlands Provinces The export of agricultural commodities from Vietnam in general, and coffee from the Central Highlands provinces in particular, still faces many difficulties, barriers, primarily stemming from limitations within the supply chain system Currently, the agricultural supply chain linkage remains loose Among these, logistics services are responsible for packaging, cold storage, and transportation of agricultural products from farmers' fields to cooperative warehouses, from cooperative warehouses to company warehouses, and from company warehouses to the global market, yet there are still constraints 11 2.2 Overview of Coffee Export Supply Chain, Agricultural Transformation, and Digital Transformation in Central Highlands Provinces 2.2.1 General Overview of Coffee Export Supply Chain Weaknesses in the global coffee supply chain; the coffee supply chain involves numerous intermediaries leading to increased costs; lack of tight and coordinated linkages for unified operations within the chain The primary limitations in the coffee export supply chain of the Central Highlands provinces persist across various stages, processes, and participants in the supply chain 2.2.2 Digital transformation on coffee plantations In Vietnam, agricultural regeneration is integrated and implemented within the framework of the NESCAFE Plan - a sustainable development program launched since 2011 After 12 years of implementation, the NESCAFE Plan has supported over 21,000 farming households in the Central Highlands to access and practice coffee production based on the 4C criteria It has conducted sustainable coffee cultivation training for over 330,000 farmers, distributed more than 63.5 million disease-resistant and high-yield coffee seedlings, enabling farmers to save 40% of irrigation water, reduce 20% of fertilizer usage, and lower production costs while maintaining crop yields Consequently, this contributes to improving farmers’ income and reducing greenhouse gas emissions Nestlé Group has invested around 1.2 billion CHF (~1.4 million USD) by 2025 to promote the establishment of continuous agricultural regeneration throughout the supply chain 2.3 Analysis of the Digital Transformation Model for the Export Coffee Supply Chain in the Central Highlands Provinces 12 2.3.1 Research Process and Scale Development 2.3.1.1 Research Process Research Issue Research Objectives Research Tasks Linkages and cooperation $p| within the | | liquid coffee | | supply chain | | Studying the | | Factors fo] Influencing the | | Digital Transformation | | have not yet | | of the Coffee | | Supply Chain: | | created significant The Involvement | | value for coffee | | of Stakeholders | | exports in the Coffee | | Export Supply Slow digital | | Chain, transformation, the risk of | | Analyzing Research ‘Methods Research Results Conducting an | | Data: Clarify the Aifirmative |4| Survey through LÍ research Faeter Analysis {| questionnaire objectives: to Determine the Influence | | Analysis: Propose Level of | | KMo recommendati fons to promote on | | Cronbach's Factors Supply Chain | | alpha, andCFA | | supply Digital Transformation @ the | | Analyzing chain digital transformation and enhance coffee export the | | Data: jrifficiency for falling behind, | | Current State and | | Current State of | | General ‘ve Central and failure to | | Process of | | Supply Chain | | statistics ¬-ighlands capitalize on | | Digitdizing the | | Digital Office and | Ì Zšwinees ‘opportunities Supply Chain | | Transformation | | survey through | from Free Trade jg) Steps, and | Based on $3| questionnaires ‘Agreements Proposing Guidelines and Solutions Foster to | | Suggesting Digital | | Solutions ‘Transformationin | | Promote : to | | Analysis: n ‘Comparison, E————] the Coffee Export | | Digitalization in | | cross-reference the Supply Chain Coffee | | based on the Supply Chain | | handbook 2.3.1.2 Scale of Factors Influencing Transformation of Export Coffee Supply Chains Factor Code loTI loT ° Internet the Digital Variables integrated into production, logistics, and service to consumers Cloud computing for big data management, IoT2 | data transmission layer, and data network layer : IoT3 | are used at the enterprise All have sensors that receive and transmit digital signals to the processing management system in the enterprise 13 Factor Code loT4 Intelligent Variables production ca : applied in the enterprises systems have been The Internet system provides the foundation IoT5 | for business activities in coffee production and trading Enterprises are using Artificial Intelligence in ARII AR2 AI ARI3 ARI4 ARIS ARI6 BIDI BID APP sóc : services and decision-making processes The system for recognizing and perceiving | : images has been applied at the enterprise A speech recognition system has been applied : to the enterprise = R Language programming has been used in the : management system of the enterprise Machine learning (self-learning robot) has : been implemented in enterprises Intelligent data processing has been applied to enterprises Large volumes of data are being exploited and used in enterprises The speed for automatic data processing and BID2 = storage have been implemented in enterprises BID3_| Enterprises have many types of data now BID4 | The data has gained accuracy BIDS _| Business data is precious Big data has boosted supply chain planning in BID6 : the enterprise Advanced Mobile Information System has APPI : been applied to the enterprise | APP2 Agricultural Database Server is already in use at the enterprise APP3 Traceability Server has been applied to the enterprise 14 Factor Code APP4 APPS DTPI DTP2 DTP SUP DTP3 Variables Enterprises have implemented applications with Decision Support System Website and mobile services and_ social : : networks used in the business Leadership has become aware of the benefits of DT Leaders are aware of the DT trend of the business Leaders have been aware of the degree of digital integration into business operations Leaders have grasped the DT process and DTP4 cày applied it step by step at the enterprise Leaders are aware of the level of digital DTPS | technology application in measuring and forecasting business performance SUPI Suppliers ability to meet the enterprise’s demand is perceived to be good Flexibility in product delivery and planning is SUP2 ; considered to be good SUP3 The ability to master technology and use digital devices are perceived to be good SUP4 Competence in coordination and information sharing are good SUP5 Resources in production and supply are well available SUP6 SUP7 MID MIDI MID2 | Supplier’s marketing and commercial capacity : are perceived to be good Supplier’s willingness to cooperate is well considered Intermediary’s executive management capacity is good Intermediary’s collaborative attitude and 15 Factor CUP | Code Variables information sharing is good MID3 | Intermediary’s financial capacity is good Intermediary has good knowledge of MID4 technology and market MIDS | Intermediary has good connectivity CUP1 | Consumer has confidence in product quality CUP2 | The supply chain is able to meet their needs Consumer has capability in receiving CUP3 | technology, information and sharing information CUP4 | Service convenience is very good CUPS | Customer loyalty to the business is very high Source: Summarized by author 2.3.2 Designing questionnaires, collecting data, and describing the research sample 2.3.2.1 Designing questionnaires Part General Information; Part Questionnaire Content The scale used for evaluation is a 7-point Likert scale 2.3.2.2 Data collection Secondary data sources are extracted from reports, government guidelines on supply chain management, research works published in reputable books and journals by both domestic and international authors Primary data sources are collected through expert group discussions and surveys using questionnaires targeting stakeholders involved in the coffee export supply chain management 2.3.2.3 Research Sample Description - Research Respondents: These are individuals working in coffee producers, coffee purchasing and processing businesses; logistics companies; coffee export companies; intermediary companies 16 - Time and Location of the Study The information was collected from December 2021 to March 2022 The number of collected questionnaires was 476 (achieving a response rate of 79.7%) Prior to data analysis, data cleansing was performed, and questionnaires with no valid responses were removed as a mandatory requirement As a result, 17 survey samples were deemed invalid due to excessive missing values and were excluded The total usable sample size for the study was 459, meeting the required sample size - Sampling Method: Sampling based on convenience or accessibility of the subjects, in places where the author can conduct the survey using the questionnaire 2.3.3 Data analysis techniques - Reliability analysis of the measurement scale: Cronbach’s Alpha test Kaiser-Meyer-Olkin (KMO) test Confirmatory Factor Analysis (CFA), Structural Equation Modeling (SEM) study Bootstrap validation 2.3.4 Results Relationship HI: loT positive | DTP impact H2: AI positive | DTP impact H3 BID positive Unstandardized | PStandardized | Tests of Coefficients value | Coefficients | Hypotheses 0.183 0.026 0.136 0.185 0.007 0.151 Approval | pip 0.433 wees | 0409 DTP 0.136 0.002 : 0.140 impact Ha APP 17 Relationship Unstandardized Coefficients value Standardized Coefficients Tests "of Hypotheses positive impact HS DTP eK SUP 0.372 0.343 positive impact H6 DTP eK MID 0.171 0.223 positive impact H7 DTP eK CUP 0.148 0.210 positive impact H§ SUP eK MID 0.303 0.296 positive impact H9 SUP CUP 0.147 0.024 0.110 positive impact HI0: MID eK CUP 0.254 0.269 positive impact CHAPTER STRATEGIES AND SOLUTIONS TO ENHANCE THE DIGITAL TRANSFORMATION OF COFFEE EXPORT SUPPLY CHAINS IN THE CENTRAL HIGHLANDS PROVINCES