Digital Trade Transformation: From Requirement to Competitive Edge

Global trade is entering a phase defined by competition in data, processing speed, and supply chain transparency. For a highly open economy like Vietnam, where import-export turnover has long driven growth and made a substantial contribution to GDP, digital transformation has moved beyond administrative reform to become a requirement for maintaining and strengthening the country’s position in international value chains.

Vietnam’s total trade turnover reached a record US$930.05 billion in 2025, keeping the country among the world’s leading trading economies. Behind this figure is intense pressure to process large volumes of data, manage risk, optimize logistics, and comply with increasingly strict international standards. In this environment, technologies such as artificial intelligence (AI), blockchain, and electronic customs systems have shifted from support tools to core infrastructure for import-export operations.

Digital technology reshaping supply chains and cross-border trade

In recent years, Vietnam’s customs sector has been viewed as one of the leading areas of digital transformation in the public sector. According to the Department of Vietnam Customs, the entire core customs procedures system has been automated and implemented in electronic data form, linked to the National Single Window and other partners, making it easier for businesses to submit documents and clear goods.

The customs sector has also begun deploying advanced digital solutions to analyze risk and manage goods more effectively, strengthening oversight while facilitating trade. Average customs clearance times for export goods have fallen significantly compared with the period before comprehensive digitalization, helping companies lower storage costs and speed up capital turnover.

Alongside customs reform, the business community has gradually integrated technology into supply chain management. AI is being used to forecast market demand, optimize inventory, and plan transportation routes, while blockchain is being tested to trace agricultural and seafood products in response to transparency requirements from major markets. As the European Union has implemented the Carbon Border Adjustment Mechanism (CBAM), the digitalization of production and supply chain data has become more urgent to meet emissions reporting requirements.

Tran Thanh Hai, Deputy Director General of the Agency of Foreign Trade under the Ministry of Industry and Trade, said Vietnam’s trade is shifting from growth in volume to improvement in quality, with compliance with technical standards, environmental requirements, and traceability requirements in major markets becoming mandatory to sustain long-term growth.

Digital technology is reshaping the nature of trade, moving from a model dependent on paper documentation and manual inspection to one built on real-time data, intelligent analytics, and cross-border connectivity.

Vietnamese enterprises: significant opportunities, yet gaps remain

Although digital transformation has gained momentum, Vietnam’s business landscape remains uneven. Most companies have begun applying digital technology to varying degrees, but comprehensive transformation in supply chain and import-export management is still limited, particularly among small and medium-sized enterprises.

Nguyen Quang Vinh, Vice President of the Vietnam Chamber of Commerce and Industry (VCCI), underscored the need to renew management thinking and adapt to digital transformation, viewing it as the pathway to moving up the global value chain.

In practice, foreign-invested enterprises and large corporations tend to invest systematically in Enterprise Resource Planning (ERP) systems, integrated supply chain management, and big data analytics. Many smaller firms, by contrast, have adopted only accounting software or basic electronic customs declaration systems. If this gap continues, it will reduce their ability to participate deeply in higher value-added supply chains.

High upfront investment costs, shortages of technology talent, and resistance to change remain common barriers. Connecting internal data systems with foreign partners’ platforms requires standardized processes and strong data security, conditions that not all enterprises are ready to meet.

On the institutional side, business organizations such as VCCI have continued to call for improvements to the legal framework supporting enterprises in the digital economy, with attention to policy transparency and the flexibility to adapt to new business models in order to create a stable environment, attract investment, and strengthen competitiveness.

At the macro level, the Government has issued strategies on digital government and the digital economy, identifying e-commerce, smart logistics, and digital customs as key pillars. Telecommunications infrastructure, data centers, and the national electronic identification platform have been further developed, creating conditions for more effective use of trade data.

Over the long term, Vietnam’s competitive advantage in import-export will depend not only on costs or tariff preferences from free trade agreements, but also on the ability to operate smart, transparent, and sustainable supply chains. Digital transformation is therefore a forward-looking strategy to upgrade the country’s position within the global trade structure.

From the practical demands of a highly open economy, digital transformation is steadily shaping a new competitive advantage for Vietnam’s import-export sector, an advantage built on processing speed, information transparency, and flexible adaptation in the digital economy era.

By Giang Tu, Vietnam Business Forum