sưu tầm ENHANCING INFORMATION TECHNOLOGY APPLICATION AND DIGITAL TRANSFORMATION IN TRADE PROMOTION IN VIETNAM

MINISTRY OF EDUCATION AND TRAINING
FOREIGN TRADE UNIVERSITY
-------o0o------
MASTER THESIS
ENHANCING INFORMATION TECHNOLOGY
APPLICATION AND DIGITAL TRANSFORMATION
IN TRADE PROMOTION IN VIETNAM
FULL NAME: TA QUOC ANH
MAJOR: INTERNATIONAL ECONOMICS
Ha Noi - 2023

MINISTRY OF EDUCATION AND TRAINING
FOREIGN TRADE UNIVERSITY
-------o0o------
MASTER THESIS
ENHANCING INFORMATION TECHNOLOGY
APPLICATION AND DIGITAL TRANSFORMATION
IN TRADE PROMOTION IN VIETNAM
Major: International Economics
Specialization: Master of Research in International Economics
Code: 821116
Full name: Ta Quoc Anh
Supervisor: Assoc Prof, Dr. Hoang Xuan Binh
Ha Noi - 2023

Dịch vụ viết thuê luận án tiến sĩ, luận văn thạc sĩ, chuyên đề khóa luận tốt
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STATEMENT OF ORIGINAL AUTHORSHIP
I hereby confirm my direct involvement in the creation of this thesis under
the mentorship and oversight of Associate Professor Dr. Hoang Xuan Binh. I
validate that the content within this thesis are accurate and adhere to the principles
of research ethics. The data and illustrations included in this work have been
derived from the scrutiny, interpretation, and assessment of diverse sources, each of
which has been suitably acknowledged in the reference list.
In addition, I have duly recognized and referenced any external opinions,
assessments, or data procured from other authors and entities. The author assumes
full accountability for any deceitful actions that may be identified within the thesis.
Ha Noi,
Author
(signature and full name)

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ACKNOWLEDGEMENTS
I would like to express my profound gratitude to Associate Professor Dr.
Hoang Xuan Binh for his remarkable patience and insightful feedback on my thesis.
My journey would have been unattainable without the steadfast support and
expertise of my defense committee. I owe a significant debt of gratitude to the
Faculty of Graduate Studies at Foreign Trade University for their generous backing,
which has materialized this endeavor.
I am inclined to acknowledge my classmates and friends for their support in
editing, late-night feedback discussions, and unwavering moral reinforcement.
Additionally, I am appreciative of the university's librarians, research assistants, and
study participants, whose influence and inspiration have profoundly influenced my
work.
Furthermore, I would like to express my utmost appreciation to my parents,
whose unwavering support and continuous encouragement have been pivotal
throughout my years of study and the process of researching and composing this
thesis. Without their presence, this accomplishment would have remained beyond
reach. Thank you.

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TABLE OF CONTENTS
STATEMENT OF ORIGINAL AUTHORSHIP .........................................................i
ACKNOWLEDGEMENTS...........................................................................................ii
SUMMARY OF THESIS RESEARCH RESULTS..................................................vii
INTRODUCTION..........................................................................................................1
CHAPTER 1: THEORETICAL BASIS ON INFORMATION TECHNOLOGY
APPLICATION AND DIGITAL TRANSFORMATION IN TRADE
PROMOTION ..............................................................................................................13
1.1 Some related concepts...................................................................................13
1.1.1 Concept of trade promotion ....................................................................13
1.1.2. Concept of information technology application.....................................15
1.1.3. Concept of digital transformation ..........................................................16
1.1.4. Concept of Information technology application and digital
transformation in trade promotion...................................................................18
1.2 Trade Promotion Activities............................................................................19
1.2.1. Trade Promotion Activities at the Government Level............................19
1.2.2. Trade Promotion Activities at trade promotion organizations level .....20
1.3 Criteria for evaluating the level of enhancing digital transformation and IT
application in trade promotion activities.............................................................22
1.3.1. Criteria for evaluating mechanisms, policies, and state orientations ...22
1.3.2. Criterias for evaluating awareness and capabilities in digital
transformation and IT application of trade promotion organizations and
bussinesses........................................................................................................22
1.4 Factors influencing IT application and digital transformation in trade
promotion activities..............................................................................................26
1.4.1. Direction and Policy of the Government................................................26
1.4.2. Awareness and Capacity from Trade Promotion Organizations and
Businesses.........................................................................................................27
1.4.3. Technological Development...................................................................28

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1.5 International experiences from some countries in Information Application
and Digital Transformation.................................................................................29
1.5.1. Japan ......................................................................................................29
1.5.2. Korea ......................................................................................................31
1.5.3. Thailand..................................................................................................33
1.5.4. International lessons learned for Viet Nam ...........................................33
CHAPTER 2: CURRENT SITUATION OF INFORMATION
TECHNOLOGY APPLICATION AND DIGITAL TRANSFORMATION IN
TRADE PROMOTION IN VIETNAM .....................................................................38
2.1 Overview of information technology application and digital transformation
in trade promotion................................................................................................38
2.1.1. Mechanisms and Policies .......................................................................38
2.1.2. Technology Platforms.............................................................................39
2.1.3. Digital trade promotion ecosystem ........................................................42
2.2. Analysis of the current situation of information technology application
and digital transformation in trade promotion in vietnam ................................45
2.2.1. In Govermental trade promotion organizations.....................................45
2.2.2. In Business support organisations (BSOs).............................................52
2.2.3. In Businesses ..........................................................................................56
2.3. Assessment of information technology application and digital
transformation in trade promotion in vietnam...................................................67
2.3.1. Achievements ..........................................................................................67
2.3.2. Limitations and causes ...........................................................................71
CHAPTER 3: ORIENTATIONS AND SOLUTIONS TO ENHANCE
INFORMATION TECHNOLOGY APPLICATION AND DIGITAL
TRANSFORMATION IN TRADE PROMOTION IN VIETNAM........................82
3.1 Orientations to enhance information technology application and digital
transformation in trade promotion in Viet Nam.................................................82
3.2. Development goals for the period of 2023-2025 and the direction for the
year 2030 ..............................................................................................................82

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3.2.1. General Objective for the period of 2023-2025 and the direction for the
year 2030..........................................................................................................82
3.2.2. Specific Objectives for the period of 2023-2025 and the direction for the
year 2030..........................................................................................................83
3.3. Some solutions to enhance information technology application and digital
transformation in trade promotion in vietnam...................................................85
3.3.1. Developing the Digital Trade Promotion Ecosystem.............................85
3.3.2. Enhancing Awareness and Capacity......................................................88
3.3.3. Improving Mechanisms and Policies .....................................................88
3.3.4. Other Solutions.......................................................................................89
CONCLUSION.............................................................................................................90
LIST OF REFERENCES ............................................................................................92

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LIST OF FIGURES
Figure 1. Applying technology platforms/social networks to trade promotion
activities, supporting trade promtion for businesses in the local area. ...........54
Figure 2. Level of Data Sharing and Connectivity for Trade Promotion .......55
Figure 3. Business Expectations in Digital Technology Application by Scale
(%)...................................................................................................................59
Figure 4. Investment Structure in IT Infrastructure of Businesses.................60
Figure 5. Commonly Used Software by Businesses.......................................61
Figure 6. Investment Levels in Various Digital Marketing Channels ............63
Figure 7. Number of Websites Verified by the Ministry of Industry and Trade,
2017-2022........................................................................................................63
Figure 8. Reported Issues on the E-commerce Activity Management Portal in
2022.................................................................................................................67
Figure 9. Prioritized needs to enhance IT application ....................................78
Figure 10. Challenges for Digital Transformation in Businesses and
Organizations ..................................................................................................80
LIST OF TABLES
Table 1. Evaluation of the importance and practicality level of IT application and
digital transformation among surveyed Cooperatives. ..................................................58

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SUMMARY OF THESIS RESEARCH RESULTS
Within the context of the fourth industrial revolution, marked by significant
technological advancements, and influenced by global occurrences like the Covid-
19 pandemic, various commercial undertakings, interpersonal connections, and
governmental services are progressively transitioning into the realm of digital
platforms. The process of digital transformation and the integration of information
technology into trade promotion endeavors have evolved from being pioneering
efforts to becoming indispensable and pressing responsibilities for pertinent
agencies and organizations.
The primary objective of the author is to meticulously examine and evaluate
the existing landscape of information technology application and digital
transformation concerning trade promotion within the context of Vietnam. Through
a thorough analysis, the research endeavors to propose strategic directions and
viable remedies aimed at fostering the implementation of information technology
and facilitating digital transformation in the sphere of trade promotion. These
proposed strategies encompass both short-term and long-term perspectives.

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INTRODUCTION
1. Rationale
The fourth industrial revolution (industry 4.0) has brought achievements in
various fields, particularly in technology, innovation, and fostering growth model
transformations. In this context, the application of information technology and
digital transformation is becoming an essential trend in all aspects of life, economy,
and society. Developing countries are not necessarily lagging behind in the process
of accessing and applying the industry 4.0 revolution. Due to unprecedented speed
and scale of development, industry 4.0 can interact with the process of international
economic integration and domestic policy-making.
During the period from 2021 to 2030, the global economy and the Asia-
Pacific region are projected to undergo significant and more uncertain fluctuations.
Despite the deceleration, overall international economic integration and trade
liberalization continue to be dominant trends worldwide. Some "like-minded"
countries are increasing their collaboration to support the recovery and reform of
the multilateral trading system, particularly the World Trade Organization (WTO).
Many countries are also transitioning their growth models by effectively leveraging
economic integration to achieve higher quality growth, increased labor productivity,
and competitive capacity through greater contributions from science and
technology. Throughout this process, the application of digital technology in
various stages of the value chain continues to gain popularity, such as the
implementation of blockchain in logistics, product traceability, and paperless trade
models.
In the field of trade promotion (TP), many countries and territories have been
and are accelerating the adoption of information technology and digital
transformation. Among them are several countries and territories geographically
close to Vietnam and with similar cultural characteristics, such as Japan, South
Korea, Hong Kong, Taiwan, Thailand, etc. Leading technology countries worldwide
have also been at the forefront of IT application and digital transformation in trade
promotion. The content and methods of IT application and digital transformation in

trade promotion are constantly changing and becoming more diverse, extending
beyond IT application infrastructure and skills to further develop CRM, digital
marketing, and other areas, aiming for a comprehensive ecosystem in trade
promotion.
The true driving force behind the aforementioned shift originates from the
reality that businesses of all types and sizes globally are facing a rapidly changing
market. Since the beginning of 2020, the COVID-19 pandemic has caused
disruptions and interruptions in global supply chains and trade, necessitating
fundamental changes and adaptations in traditional business models and
management approaches. In this context, the increased application of information
and IT application and advancements in Internet of Things, artificial intelligence,
and other technologies are no longer options but rather obligatory directions for all
organizations and enterprises to adapt to and leverage new opportunities in order to
maintain and expand their market presence. The number of technologies and e-
commerce application platforms, as well as production and sales management
systems, is increasing day by day, with an increasing number of domestic and
international businesses deeply and extensively implementing them over the years
to exploit timeless and borderless values.
To support the business community, government agencies and public service
providers must make efforts to keep up, and even stay one step ahead, of the digital
transformation process in enterprises, as well as the profound changes in society and
the economy associated with digital transformation in general. This requirement is
particularly crucial for trade promotion organizations due to certain specific factors.
Firstly, the target audience of trade promotion agencies (customers) consists of
businesses that must adapt to the trend and requirements of digital transformation in
order to conduct international and domestic trade activities. Secondly, the
establishment of services for trade promotion agencies partly relies on what
individual businesses cannot independently address, such as market information,
technological solutions, or difficulties in accessing technology changes in the
markets that businesses are targeting or will target. Thirdly, most trade promotion

agencies operate within a national and international system with diverse partners,
involving collaborative processes between the state and private enterprises.
Therefore, effective management and coordination are necessary to ensure a
synchronized digital transformation of the entire economy. For example, in order to
comply with the General Data Protection Regulation (GDPR) of the European
Union (EU), trade promotion agencies and government bodies need to innovate
their operational methods, starting from data collection instead of relying on renting
or borrowing databases as before.
Within the country, the Party and the State have identified one of the key
socioeconomic development perspectives for the period 2021-2030 as rapid and
sustainable development primarily based on science, technology, innovation, and
digital transformation. They proactively seize timely opportunities and effectively
leverage the Fourth Industrial Revolution (Industry 4.0) to restructure the economy,
promote digital economy, and consider it as a decisive factor in enhancing the
productivity, quality, efficiency, and competitiveness of products, businesses, and
the economy. This perspective has been and is being concretized in a series of
documents, including the National Digital Transformation Program until 2025, with
a vision toward 2030, the Strategy for Developing the E-Government toward the
Digital Government in the period 2021-2025, with a vision toward 2030, etc.
Despite initial proactive efforts and positive transformations, IT application
and digital transformation in Vietnam's trade promotion activities is still at a
rudimentary stage, lagging behind the evolving trends and practical requirements of
trade promotion operations. One significant reason is the absence of a
comprehensive long-term strategic orientation specifically dedicated to IT
application and digital transformation in trade promotion activities. Furthermore,
many agencies, organizations, and enterprises have not fully grasped the
significance of IT and digital transformation in trade promotion activities and have
not prioritized investment and attention towards enhancing the capacity for IT
application and digital transformation in trade promotion.

2. Literature Review
Research on Trade Promotion
The research "Enhancing Promotion Activities to Boost Vietnamese
Enterprises' Exports to the EU Market" by author Do Thi Huong (2009) pointed out
that in the context of economic openness and international integration, exports hold
a central position in the foreign economic activities of many countries such as
Japan, South Korea, Singapore, Thailand, and China. In reality, our country still
lacks an effective national export promotion organization network, and export
promotion becomes increasingly important and necessary to support Vietnam's
export development. Therefore, Vietnam needs promotion activities by the
government and industry associations that are tailored to the specific characteristics
of the EU market and truly beneficial in supporting businesses' export activities to
the EU market.
Research on "Barriers and procedures for importing food products into some
markets with potential for development in order to expand the market in the future"
by the Vietnam Trade Promotion Agency (VIETRADE) in 2013 focused on
surveying barriers and procedures for importing food products for a number of
potential markets such as the US, EU, and Japan, and proposing measures to help
businesses overcome these barriers to develop and expand export markets. The goal
of the research is to meet the needs of business expansion in the future, while
understanding and analyzing specific regulations, processes and barriers in food
import activities of the aforementioned potential markets. In addition, this study has
identified the difficulties and challenges faced by enterprises when exporting food
products and from that, it has proposed measures to reduce barriers, improve
procedures and enhance the ability to export food products. competitiveness of
Vietnamese goods in the international market.
In the article "Enhancing the effectiveness of trade fairs and exhibitions in
Vietnam's export activities" published in the Journal of Industry and Trade in May
2020, Nguyen Thi Thu Thuy affirmed that in the context of economic integration,
alongside traditional trade promotion activities such as advertising and promotions,

trade fairs and exhibitions are effective methods widely used by Vietnamese
businesses and trade promotion organizations. The author also assessed the practical
situation and analyzed the enhancement of the effectiveness of trade fairs and
exhibitions in Vietnam's import-export activities by highlighting the advantages and
limitations in implementing and participating in trade fairs and exhibitions abroad.
"Research and propose solutions to promote exports of goods to the EU in
terms of EVFTA implementation" is a ministerial-level scientific research project
conducted by the Trade Promotion Agency in 2020. This study has shown that the
implementation of the EVFTA Agreement has created a strong impetus for the
growth of Vietnam's goods exports, while helping to diversify markets and export
products, especially those in which Vietnam has competitive advantage. To promote
trade promotion and export activities to the EU market, the study proposes a
number of important solutions. One of them is the selection of products and markets
to prioritize for export promotion, in order to create the necessary momentum to
increase access to and exploit the potential of the EU market for Vietnamese export
products. These solutions aim to increase the interest and support from the
government and related organizations, helping businesses to promote export and
access market information effectively. From there, the implementation of the
EVFTA and the promotion of goods exports to the EU will be promoted effectively
and sustainably, contributing to enhancing Vietnam's peripheral resources and
economic development.
In the article "Improving the effectiveness of national trade promotion in the
new situation" published in the Financial Review in April 2018, Nguyen Thuy Van
emphasized that trade promotion activities need to be improved in both quality and
quantity, deploying diverse coordination with many measures both at home and
abroad, towards the goal of maximizing professionalism and efficiency. In
particular, trade promotion activities play an important role in supporting
enterprises to boost export growth, contributing to the country's economic growth.
Clara Brandi's report entitled “Successful trade promotion - Lessons from
emerging economies” (2013) studied emerging economies such as China, India, and

Brazil to the activities that these countries have taken to improve and improve
efficiency in trade activities. The study analyzed how countries facilitate trade,
focusing on providing infrastructure, facilitating trade, which is an important driver
of economic development. According to Clara, focusing on investment in
infrastructure contributes to the success of trade promotion activities, creating high
efficiency in trade promotion activities. In addition, it is necessary to invest in the
development of roads, railways, seaports, energy and telecommunications
industries, and facilitate trade by improving rules and procedures in transactions.
Ellen Eichhorn and Ed Porter (2017) have shown that trade promotion tools such as
advertising, promotions, and exhibitions will help promote production and business
activities, increase sales and revenue and profits for modern retail businesses.
Retailers need to constantly innovate methods in trade promotion to suit each stage
of the business and meet the needs of consumers.
Research on Digital Transformation
Nowadays, digital transformation is a widely discussed topic because it is an
essential trend with a crucial role in the 4.0 Industrial Revolution. The Vietnamese
government also has placed special emphasis on digital transformation in the
context of the 4.0 Industrial Revolution and its application in various sectors of the
economy. According to Nguyen Thi Kim Ngan (2021), in Vietnam, the concept of
"digital transformation" is often defined as the process of transitioning from
traditional operating models to digital models by applying new technologies such as
big data, Internet of Things (IoT), cloud computing, etc., to change operational
methods, leadership, work processes, organizational culture, and increase the value
of organizational activities. Therefore, according to Ngan, digital transformation is
not only important for businesses but also for other sectors of the economy and
society, such as the government, mass media, healthcare, science, and education,
which should all strongly embrace digital transformation.
In business and trade activities, the majority of Vietnamese enterprises are
currently in the stage of exploring or just beginning to understand digital
transformation, and most of them have not yet been able to apply the strengths of

digital transformation in their production and business operations (Nhi, Phuong,
Quynh, Thanh, & Cong, 2023). Hence, the role of the government in general and
relevant organizations in particular is crucial in raising awareness and supporting
businesses in their commercial activities. PGS.TS Phan The Cong (2023)
emphasized that digital transformation is an integral part of Vietnam's economic
development, requiring coordination and mutual support between state management
agencies and businesses.
In their research article "EVFTA and Digital Economy in Vietnam," Binh and
Phuong (2021) highlighted that Vietnam has undergone over 40 years of
industrialization, modernization, and integration, where technology and innovation
have played a crucial role in the country's economic development. Specifically,
digital transformation has been studied and implemented in various sectors, ranging
from manufacturing and agriculture to finance, healthcare, education, and
commerce. According to Phuong's study, Vietnam possesses abundant IT human
resources, and many digital platforms have been developed, high-speed internet
services within the region. Therefore, it is essential and entirely feasible for digital
transformation to permeate all sectors of the Vietnamese economy.
According to Ćuzović (2022), with the development of technology, big data,
and the internet, the path to a digital economy is gradually opening up and
permeating every aspect of the global economy. Trade, being the oldest economic
activity and the most adaptable aspect of the economy, faces the challenges of the
modern world and needs to leverage artificial intelligence, digitalization, mobile
platforms, and social commerce to create new competitive advantages. Traditional
trade activities are gradually giving way to digital economic activities, hence
governments and businesses that do not adapt to the current trends will risk falling
behind and hindering their own development. Author Sadinovich (2022) also noted
that the outbreak of the pandemic has acted as a catalyst for the development of
contactless shopping, demonstrating the importance of online commerce. However,
some traditional retailers are still struggling with digital transformation and the
application of information technology.

In the article "Role of government to enhance digital transformation in small
service business," author Chen (2021) asserts that the government plays a
significant role in connecting, supporting, and creating conditions for small and
medium-sized enterprises (SMEs) in their digital transformation journey and
promoting digital tools and information technology applications. The government
can provide funding programs, establish training platforms, or build and operate
platforms for SMEs to participate in digital transformation.
Research gap
Currently, there are some domestic research works related to the research
topic, covering aspects such as the application of information technology and digital
transformation in the economy and overall state management. There are some
studies that focused on trade promotion, export promotion, and provide assessments
of the current situation of trade promotion for specific industries and markets.
However, it can be observed that there is no comprehensive published research
work evaluating the overall application of information technology and digital
transformation in trade promotion activities along with specific solutions and
innovations for this topic. Therefore, this study aims to analyze and evaluate the
status of information technology and digital transformation in trade promotion
activities from 2010 to 2022. Based on this analysis, the study will propose
objectives and effective solutions for the application of information technology in
trade promotion activities in Vietnam from 2021 to 2030.
Moreover, domestic studies on digital transformation and mechanisms,
policies related to digital transformation have mentioned research on theoretical
foundations and practical aspects of digital transformation, as well as policies and
management tools for trade promotion. However, these studies are not
comprehensive enough as they have not thoroughly researched and evaluated
mechanisms and policies for trade promotion in the new context of the Covid-19
pandemic, the Fourth Industrial Revolution, the U.S.-China trade war, the Russia-
Ukraine conflict, and other emerging situations. Therefore, there is still a research

gap that needs to be addressed regarding mechanisms and policies for trade
promotion in the new context.
3. Research Objectives
This Thesis focuses on evaluating the current situation of enhancing IT
application and digital transformation in trade promotion Viet Nam, in order to
propose solutions for this matter in Viet Nam.
4. Research tasks
To achieve the set objective, the thesis carries out the following research tasks:
- Systematize the theoretical foundation for enhancing the information
technology application and digital transformation in trade promotion
- Collect data and analyze various aspects of human resources in Quang Ninh
province to interpret the current situation, identify strengths and weaknesses, and
determine the causes.
- Research and evaluate the current situation of the information technology
application and digital transformation in trade promotion in Viet Nam and
worldwide.
- Present viewpoints, goals, orientations, and solutions.
5. Research object and scope of the research
Research Object
Enhance information technology application and digital transformation in
trade promotion in Vietnam.
Scope of the research
In terms of content, the Thesis will focus on analyzing the following aspects:
- Assessing the current status of IT application and digital transformation in
trade promotion activities at the governmental trade promotion organizations,
business support organizations, and businesses, cooperatives in Vietnam. The
evaluation will concentrate on assessing the capacities, processes, tools,
technological platforms, and internal organizational systems of each entity, as well

as their capacities, processes, and systems for connecting with other relevant
stakeholders in trade promotion activities.
- Researching activities and implementation plans to enhance the application
of IT and digital transformation in trade promotion activities at selected entities
within the trade promotion network.
- Studying documents, models, and global trends in the application of IT and
digital transformation.
The application of IT and digital transformation in trade promotion activities
is carried out in various government trade promotion agencies, including:
- The Vietnam Trade Promotion Agency (Ministry of Industry and Trade),
which is the central-level agency responsible for the state management of trade
promotion nationwide.
- Trade Offices, Trade Branches, and Trade Promotion Centers/Offices located
in different countries.
- Departments, boards, sectors, and centers with functions related to trade
promotion, aiming to provide direct support to local businesses.
Furthermore, the application of IT and digital transformation in trade
promotion activities is also implemented in trade promotion support organizations
as well as in enterprises, cooperatives, and individual businesses.
In terms of space and time:
- Investigating the current status of IT application and digital transformation in
trade promotion activities worldwide and in Vietnam during the period of 2010-
2022.
- Researching the trends in IT application and digital transformation in trade
promotion activities worldwide and in Vietnam from 2022 to 2025, with a focus on
the year 2030.
- Proposing solutions to enhance the application of IT and digital
transformation in trade promotion in Vietnam from 2022 to 2025, with a focus on
the year 2030.
6. Research methods

Applying quantitative research methods to analyze, statistically compare and
contrast secondary data to understand the current situation of trade promotion
development.
- Secondary data: Research data from reports of governmental organizations
such as the Ministry of Industry and Trade, General Statistics Office, General
Department of Vietnam Customs, ... and other internet sources.
- Synthesis analysis method: Synthesize and anaylize documents on the
conditions and current state of information technology application and digital
transformation in trade promotion from existing studies. Then, evaluate and process
sociological survey data.
7. Thesis structure
In addition to the introduction, conclusion, tables, list of abbreviations, and
references, the research paper is structured into three chapters:
Chapter 1: Theoretical basis on information technology application and
digital transformation in trade promotion
Chapter 2: Current situation of information technology application and
digital transformation in trade promotion in Viet Nam
Chapter 3: Orientations and solutions to enhance information technology
application and digital transformation in trade promotion in Viet Nam

CHAPTER 1: THEORETICAL BASIS ON INFORMATION
TECHNOLOGY APPLICATION AND DIGITAL
TRANSFORMATION IN TRADE PROMOTION
1.1 Some related concepts
1.1.1 Concept of trade promotion
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
(2005), trade promotion is market survey activities, organization and participation
in trade fairs and exhibitions, business matching activities, etc. With this
understanding, the evaluation of trade promotion activities’ effectiveness will only
be encapsulated in the number of businesses that go to market surveys, attend trade
fairs, and the number of contracts signed after each participation in fairs and
exhibitions. However, this assessment does not accurately reflect the effectiveness
of trade promotion activities as well as the allocation of resources of the
Government and enterprises for these activities.
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) refers to the utilization of computers, storage
systems, networks, and other physical devices, infrastructure, and processes to
create, process, store, secure, and exchange electronic data in all its forms. IT is
primarily employed in the context of business operations rather than personal or
recreational purposes. It encompasses both computer technology and
telecommunications with the purpose of organizing the effective exploitation and
use of information resources which are diverse and potential in all fields of 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 (Oliveira & Martins, 2011).
The Information Technology Law of Vietnam in 2006 provides the definition
that "Information technology is a collection of scientific methods, technologies, and
modern technical tools used for the production, transmission, collection, processing,
storage, and exchange of digital information". The Information Technology Law of
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.
- Security and governance: The IT team oversees the security measures and
governance practices associated with applications, services, and infrastructure. This
includes safeguarding data, implementing security protocols, and ensuring
compliance with regulations and organizational policies.
1.1.3. Concept of digital transformation
Digital Transformation plays a crucial role in the 4.0 Industrial Revolution,
however it is challenging to provide a clear and specific definition for digital
transformation because its application varies across different fields. According to
Bill Schmarzo, digital transformation involves applying digital capabilities to
processes, products, and assets to enhance efficiency, improve customer value,
manage risks, and explore new revenue opportunities (Bill, 2017).

According to Vial and Gregory (2019) (Vial, 2019), Digital transformation is
defined as the process of improving an entity by making significant changes to its
attributes through the use of information technology, computers,
telecommunications, and connectivity. This is an important process not only for
businesses and organizations of all scales and industries but also describes the
activities of an organization or enterprise in leveraging technology to optimize
current processes and enhance the customer experience, the target beneficiary. The
goal of digital transformation is to maintain competitiveness and readiness to adapt
in the new economy.
Based on the "Guidelines for Digital Transformation for Businesses in
Vietnam" designed by Ministry of Planning and Investment, digital transformation
in businesses can be described as the process of integrating and utilizing digital
technology to improve operational efficiency, enhance management effectiveness,
increase enterprise capabilities, competitiveness, and generate new values. The
Enterprise Project defines digital transformation as the integration of digital
technology across all aspects of a business, leading to fundamental changes in
operations and value delivery to customers. It also emphasizes the need for a
cultural shift that encourages organizations to constantly challenge existing norms,
engage in experimentation, and embrace failure as part of the transformation
process.
According to Microsoft, digital transformation is a business innovation driven
by the explosion of cloud computing, artificial intelligence (AI), and the Internet of
Things (IoT), providing new ways to understand, manage, and transform their
business operations. Digital transformation involves the application of digital
technology advancements such as cloud computing, big data, and more into every
aspect of an organization or business, aiming to achieve high efficiency, drive
revenue growth, and enhance the brand.
Digital transformation goes beyond simply changing the way tasks are
performed from traditional manual methods (such as manual record-keeping and
face-to-face meetings) to utilizing technology to minimize human effort. In reality,

digital transformation plays a role in changing business mindset, operational
approaches, and organizational culture. Digital transformation has permeated every
aspect of our lives including many fields such as healthcare, education, finance,
manufacturing, and many others, contributing to the development and progress of
society and the economy.
However, there is often confusion between 'digital transformation' and
'digitalization.' It is crucial to understand that 'digitalization' refers to the
modernization and conversion of conventional systems into digital formats, such as
transforming physical documents into digital files or transitioning from analog to
digital broadcasting. On the other hand, 'digital transformation' goes beyond
digitalization by utilizing the data obtained from digitalization processes and
applying technologies to analyze, transform, and generate even greater value. While
'digitalization' can be viewed as a component of 'digital transformation,' the latter
encompasses a broader scope of organizational change and innovation (Phương &
Bình, 2021).
1.1.4. Concept of Information technology application and digital transformation
in trade promotion
Commercial activities and the Trade Promotion System are constantly
evolving in terms of nature, scope, and methods. To keep up with new trends, based
on the research reference from the World Bank (2018), the Trade Promotion System
Project identifies the components of the Trade Promotion System at various
management levels and the processes being implemented within the system to
connect and operate commercial activities and trade promotion across the entire
system.
In this project, the application of information technology is defined as "the use
of information technology in economic, social, foreign affairs, defense, security,
and other activities to enhance their productivity, quality, and efficiency" (Section
5, Article 4 of the Information Technology Law (Law No. 67/2006/QH11) issued
by the National Assembly on June 29, 2006). According to the Digital
Transformation Handbook of the Ministry of Information and Communications,

"digital transformation is the comprehensive and overall process of individuals and
organizations changing their lifestyles, work methods, and production methods
based on digital technologies."
However, Vietnamese legal normative documents or other materials have not
provided official definitions for "IT applicatton" and "digital transformation" in
trade promotion. Therefore, this project proactively conducts research and proposes
definitions for "IT application" and "digital transformation" in trade promotion
based on reference to international research, documents, practices, and development
orientations of trade promotion in Vietnam. Specifically:
- The IT application in trade promotion refers to the application of information
technology in the activities of trade promotion to enhance their productivity,
quality, and efficiency.
- Digital transformation in trade promotion involves changing the operation
and organization of trade promotion services for businesses based on the
exploitation of big data, connecting the digital trade promotion ecosystem, rather
than merely applying new tools. The most important factors for transformation
include putting businesses at the center of service provision, utilizing big data,
updating and applying new tools and technologies, and the ability to connect and
operate continuously with supporting systems.
1.2 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.
- Building and promoting the national product brands, incorporating initiatives
that enhance the competitiveness of products in international markets. These may
include introducing domestic products to foreign businesses, providing guidance on
export procedures and experiences tailored to different market segments, assisting
in the selection and implementation of appropriate trade promotion methods, and
supporting consumption.
- 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.

1.3 Criteria for evaluating the level of enhancing digital transformation
and IT application in trade promotion activities
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.
Level of completeness of legal regulations: Since the digitalization of trade
promotion activities takes place at a nationwide level, there needs to be an internal
regulatory system including Regulations, Provisions, and specific Procedures to
ensure accuracy, strictness, and effectiveness. Building specific procedures also
assists in the rapid review, monitoring, and evaluation, with timely proposals for
modification and supplementation.
Coordination among government agencies: The effectiveness of inter-agency
coordination, such as the Ministry of Science and Technology, the Ministry of
Agriculture and Rural Development, the Ministry of Information and
Communication, 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.
Employee capabilities: To drive the digital transformation process, there are
elements that need to be supplemented and adjusted, both in terms of organization
and management. For employees and management levels, there needs to be a
process for conducting activities at a faster, more accurate, and effective pace when
it comes to digital transformation and IT application. Therefore, employees must
possess the necessary capabilities, be ready to access, develop, and use new
technologies in improvement and task execution (Bharadwaj et al., 2013).
Moreover, depending on business conditions such as industry, organizational
operating models, employees, as well as managers, need to develop the ability to
perceive and adapt in maximizing network systems and connectivity in the digital

environment (Kohli & Melville, 2019) to identify new ideas, evaluate, modify, and
ultimately introduce new business models and operations (Berman, 2012; Daniel &
Wilson, 2003).
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.
Technology Foundation: The technology foundation will be the determining
factor for the organization/business's penetration into the digital trade promotion
ecosystem. The technology foundation of organizations can be evaluated using the
following metrics:
(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.
1.4 Factors influencing IT application and digital transformation in trade
promotion activities
1.4.1. Direction and Policy of the Government
Decision No. 749-QD/TTg has indicated that the Government of Vietnam
has recognized that building an institutional framework and policies for digital
transformation and the adoption of new technologies is the first step in the process
of economic digitalization and must be taken before any further progress can be
made. The Government's direction will serve as a prerequisite for promoting the
development of digital technology in any sector of the economy. The process of
institution-building and policy-making reflects a controlled willingness to accept
and experiment with new things in a controlled manner; fosters a culture of
acceptance and experimentation with the new; implements pilot projects, progresses
rapidly, evaluates and scales up; and promotes the development of innovation.
In Prime Minister's Decision No. 1968-QD/Ttg, the Government recognized
that for the successful implementation of technology application and digital
transformation in trade promotion activities, there must first be strong leadership
and direction from state management agencies; a strong transformation of

awareness by top leaders of management agencies and trade promotion
organizations.
In addition to the general guidance of the Government, active engagement
and close coordination of the entire management and political system are essential
to ensure effectiveness, timeliness, and accuracy for the transformation process.. To
establish a comprehensive strategic direction for the technological advancement in
trade promotion activities, the specialized contribution of the Ministry of Industry
and Trade, the Ministry of Science and Technology, the Ministry of Agriculture and
Rural Development, and the Ministry of Information and Communications is
required.
1.4.2. Awareness and Capacity from Trade Promotion Organizations and
Businesses
David Lang, a digital transformation expert at Yellow Blocks, who has
consulted for leading corporations such as AT&T, Sony, and Toyota, stated that "If
a business starts using technology in its operations, it is considered a successful
digital transformation. However, the core of digital transformation is not in smart
technology, but in the human transformation, in mindset, and in the culture of a
business or organization." It can be seen that digital transformation and the
application of Information & Communications Technologies (ICT) in trade
promotion activities cannot be effectively achieved without active involvement
from businesses and trade promotion organizations, as they are the main entities in
this process.
Business leaders and trade promotion organizations need to clearly recognize
their roles and responsibilities in the digital transformation and technology
application process. They need to understand why those activities are necessary and
what benefits they will bring to the leaders themselves and their organizations. They
must realize that without proactive improvement of skills, professional expertise,
and adoption of new technologies, they will not be able to meet the capabilities of
communication, both specific and general, during the era of the 5.0 revolution. This
will directly affect the activities of businesses and organizations.

Information technology leaders and businesses worldwide are facing a
common challenge: a shortage of skills in new technology. According to Red Hat's
Global IT Trends & Priorities Survey, the technology skills gap is hindering efforts
to achieve success in the digital transformation of organizations. One reason is that
technology and digital processes are changing too rapidly, creating a skills gap in
information technology between organizations in various industries and around the
world. Therefore, it is necessary for businesses and trade promotion agencies to
enhance information and update knowledge about digital transformation and the
application of ICT in trade promotion activities.
1.4.3. Technological Development
Infrastructure
Leaders of many countries believe that digital infrastructure is a prerequisite,
the foundation for driving digital transformation and economic development.
Therefore, even within a business, any organization in any field must invest
significantly in information technology infrastructure to meet the requirements of
digital transformation. To build information technology infrastructure and apply
suitable technologies to digital transformation, attention must be given to hardware,
software, data, and telecommunications.
Technological Foundation
These are tools that support the acceleration of digital transformation.
Leveraging artificial intelligence, big data analytics, appropriate platforms, and
selecting suitable tools will help businesses achieve digital transformation more
quickly. Currently, digital technologies have become the foundation for recent
innovations worldwide and in Europe in terms of administration, policy, and
processes. These include AI, predictive analytics, robotics and automation, IoT,
eKYC, big data, geospatial data, blockchain, and open government data. To achieve
high efficiency, cost savings, and human resources, the Government, organizations,
and businesses need to select technologies that are suitable for the digital
transformation goals of trade promotion activities.

1.5 International experiences from some countries in Information
Application and Digital Transformation
1.5.1. Japan
IT application and Digital Transformation in Govermental trade promotion
organizations
Within the government's system of trade promotion and investment agencies,
the Japan External Trade Organization (JETRO) plays the most important and
reputable role. To implement the application of IT in trade promotion, JETRO has
implemented various activities, among which the website https://www.jetro.go.jp/
stands out as the most prominent and effective IT application, connecting and
supporting businesses in trade promotion. The website integrates multiple practical
information sections, including: (i) documents and reports on international trade,
business, and investment; (ii) databases on the economies and markets of different
countries; (iii) the Trade Tie-up Promotion Program (TTPP) database; (iv) the J-
Messe online trade fair database, etc.
JETRO has also carried out the "Japan Mall project and the BtoB online
platform: Japan Street". The Japan Mall project aims to develop overseas sales
channels for food products, daily necessities, cosmetics, etc., through foreign e-
commerce platforms and retailers. Additionally, JETRO has established J-Bridge
(Japan Innovation Bridge), which serves as a business platform for collaboration
and cooperation between foreign startups and Japanese companies.
IT application and Digital Transformation in Business Support
Organisations (BSOs)
The Small and Medium Enterprise Agency of Japan (SMRJ) is an organization
that implements support activities for 3.81 million small and medium-sized
enterprises (SMEs) in Japan. This organization has utilized IT application through
online conferences and the use of the online exchange platform "J-GoodTech" (an
e-commerce trading platform) to facilitate connections between Japanese SMEs and
foreign SMEs. Currently, there are over 20,000 Japanese businesses and more than
2,000 Vietnamese businesses using this platform.

IT application and Digital Transformation in Businesses
Japanese businesses are actively applying IT and undergoing digital
transformation. Specifically, seven companies in Japan have invested $20 million
into the TradeWaltz platform, a blockchain-based data platform. This platform is
estimated to reduce costs by 60% through optimizing data usage, exportation, and
storage of data, as well as relevant documents related to transportation, delivery,
banking, insurance, and more. TradeWaltz and the Nippon Automated Cargo and
Port Consolidated System (NACCS) have collaborated to further enhance the
digitalization process and improve the efficiency of international trade processes,
thereby increasing the competitive capacity of Japanese businesses.
Overall, the success of Japan's digital transformation in cross-border trade
relies on several crucial factors. Firstly, a data platform that is compatible with the
cross-border trade system has been developed. Japan External Trade Organization
(JETRO) has a platform and a database with a large number of businesses, their
corresponding products, and services. This data source is interconnected between
JETRO and cross-border trade organizations, facilitating convenient search and
connection for collaboration. Secondly, Japanese businesses demonstrate a high
level of consciousness regarding product registration, information updates, and data
sharing, ensuring data quality and reliability. They also have a strong awareness of
the role of digital transformation, enabling them to leverage technology to support
efficient search, connection, and smooth execution of transactions and official
contracts. These results have been achieved even though the technology used to
build JETRO's digital platform is not the most advanced, primarily relying on
PHP/NodeJS/React technologies with lengthy and detailed web forms for
information registration and a user interface that is not yet fully user-friendly and
convenient. Consequently, digital transformation has facilitated effective and
synchronized collaboration between JETRO, cross-border trade organizations,
associations, and businesses.

1.5.2. Korea
organizations
The Korea Trade-Investment Promotion Agency (KOTRA) is a government
organization of South Korea that functions to promote import-export activities,
investment promotion, and support technology and industrial cooperation. In
response to the current digital transformation trend, and to innovate the provision of
services for promoting trade and investment in both domestic and international
markets, KOTRA has developed and operates a global electronic B2B platform
called buyKOREA.org. This platform offers over 200,000 quality products from
South Korea, with new products being registered daily and online transactions being
conducted. Buyers can make purchases on buyKOREA using credit cards or PayPal,
and they can post inquiries for price quotations on the platform, to which Korean
suppliers directly respond and provide advice to the buyers. Additionally,
buyKOREA provides information on trade fairs, industrial exhibitions, and
commercial events in South Korea and around the world.
Since June 2019, KOTRA has initiated a big data platform project to apply
digital tools in supporting businesses in finding potential customers, conducting
market research, analyzing demand, as well as building, calculating, and
strategizing pricing. Utilizing Artificial Intelligence, the platform provides
"consultation" services to businesses regarding potential markets and increasing
demands in specific segments, automatically recommending lists of potential
customers/buyers. All the data is collected and cleaned by KOTRA from various
sources accumulated over 50 years of operation, along with its network of 127
offices in 84 countries worldwide.
The data platform was launched at the onset of the COVID-19 pandemic and
immediately proved to be effective and successful in supporting businesses. Within
one year, based on this big data-driven connection platform, KOTRA facilitated the
signing of 127 export contracts with a total value of $3.63 million USD. The
number of monthly accesses initially reached 2,260, but after a year, it increased to

35,000 accesses and searches per month. The integrated data includes 76,000 in-
depth market information sets, 300,000 comprehensive business profiles, and 1
billion global export statistical data, along with approximately 500 analyses and
consultations conducted each year.
KOTRA is continuing to enhance this platform in 2021 and aims to transition
30% of its total services for businesses to the digital environment within the next
three years.
IT application and Digital Transformation in Business Support
Organisations (BSOs)
The Korea International Trade Association (KITA) is the preeminent business
association in South Korea, boasting a membership of over 70,000 companies. It is
dedicated to representing the interests of South Korean traders on a global scale,
with a particular focus on assisting small and medium-sized enterprises (SMEs) in
expanding into foreign markets. KITA leverages IT application in the realm of
international trade and marketing to provide comprehensive support to businesses.
One of its notable initiatives is the establishment of tradeKorea.com, a prominent
B2B platform that showcases the latest products from Korean companies and offers
potential buyers detailed product information. Additionally, KITA operates
Kmall24.com, an online B2C platform, and facilitates online exhibitions of Korean
products, all with the aim of fostering global trade. Furthermore, KITA plays an
active role in arranging meetings between Korean companies and international
buyers or organizations, thereby maximizing the potential for business
opportunities.
South Korean enterprises have successfully integrated advanced IT application
into their global trading endeavors. This is demonstrated through their active
involvement in educational programs, workshops, and conferences designed to
enhance their understanding of the advantages associated with digitalization and
online exportation. Moreover, these businesses have proactively registered on
worldwide B2B platforms and actively collaborated with international B2B trade

hubs to provide assistance to small and medium-sized Korean firms. Furthermore,
they have taken the initiative to create and disseminate relevant content concerning
import-export requirements and partnership searches via English-language websites
and blogs.
1.5.3. Thailand
organizations
The Department of International Trade Promotion (DITP), under the Ministry
of Commerce of Thailand, established the B2B e-commerce platform Thaitrade.com
in 2011. The main purpose was to consolidate Thailand's export products into a
single electronic marketplace, enabling global trading partners to easily find the
desired products from Thailand and thereby enhancing trade opportunities for Thai
exporters. Currently, Thaitrade.com has over 6 million registered members and
nearly 2 million active users. Thaitrade.com collaborates with major partners
worldwide such as Alibaba.com, Amazon.com, and tradekorea.com to assist Thai
businesses in effectively accessing export markets. Additionally, to support
customers who wish to test products before making large-scale purchases, DITP
launched the B2B2C website sook.thaitrade.com. This platform allows customers to
order small quantities of Thai products. Online payments are processed through a
secure system, and order status can be tracked at any time. Customers can also track
the delivery progress of their products. Demonstrating proactive efforts in trade
promotion, DITP is a pioneering organization that collaborates with industry
associations to develop online platforms and virtual exhibitions focused on specific
sectors. Examples include the Multimedia Online Virtual Exhibition held from May
25 to 27, 2020, which facilitated 354 online trade connections and generated 1.4
billion baht in revenue. Other notable exhibitions include the STYLE Bangkok
Telematching: Lifestyle Online Virtual Exhibition (L.O.V.E) held from August 11
to 14, 2020, and the www.thaigroove.com exhibition starting from September 2020,
featuring virtual booths for interior decoration product categories.

Currently, most Thai businesses have adopted online transportation and
payment systems, allowing people across the country to quickly and conveniently
engage in buying and selling. Specifically, notable systems include SCG Express,
Kerry, and Lalamove. Furthermore, Thai businesses have also embraced the use of
the electronic payment system PromptPay, aiming to reduce transaction costs and
facilitate money transfers between individuals, businesses, and the government.
Small and medium-sized enterprises (SMEs) in the Thai e-commerce market
are becoming more aware, adaptive, and proactive. They utilize digital marketing
strategies to establish strong relationships with customers and attract them through
advertising messages on digital platforms. With these services, e-commerce
marketplaces and online sellers can interact with a broader base of potential
customers and effectively target them in a cost-efficient manner. SMEs with limited
resources can leverage these services to benefit their businesses and strive for larger
objectives.
1.5.4. International lessons learned for Viet Nam
Based on the research conducted by various countries, it can be observed that
these nations have implemented information technology applications in IT
application and digital trade promotion as follow:
For Govermental trade promotion organizations
All countries are interested in and aware of the leading role of Govermental
trade promotion organizations in international trade activities, as well as the
significance of IT applications in international trade in order to diversify trade
operations and adapt to the ongoing global economic digital transformation. This is
particularly important in promoting the import and export of goods and products,
especially in the context heavily impacted by the current COVID-19 pandemic.
The trade promotion agencies of various countries have quickly embraced new
technological advancements to support the management and development of
customer services based on data exploitation. They have deployed and developed
technical infrastructure to facilitate the application of information and
communication technology (ICT) in foreign trade promotion, including:

(a) Building a digital ecosystem for foreign trade promotion to efficiently
integrate foreign trade promotion services for enterprises.
(b) Establishing an online B2B platform to promote and introduce each
country's export products to international markets and enhance domestic business
opportunities.
(c) Creating a platform for trade fairs and exhibitions organized and held
within their respective countries to promote and attract business participation in
such events.
(d) Developing a database system of domestic enterprises to assist foreign
businesses in searching for and connecting with local businesses.
(e) Establishing a national information portal that provides information on
imports and exports, industries, markets, and products.
The application and implementation of IT platforms and digital transformation
by government agencies and their networks have proven to be effective,
demonstrated by the number of participants, extensive data, and key performance
indicators (KPIs) related to trade efficiency. Looking at figures such as Japan's "J-
GoodTech," with over 20,000 Japanese businesses and more than 2,000 Vietnamese
businesses using the platform, or Thailand's "Thaitrade.com," with over 6 million
registered members and nearly 2 million active users, it becomes evident that
investments in platforms and foreign trade promotion efforts are necessary.
Government entities must take the lead in ensuring and promoting connectivity.
They should operate as actual commercial and technological service providers to
attract and achieve remarkable results as indicated by the impressive statistics
mentioned above."
For Business support organisations (BSOs)
The trend of applying technology to connectivity, using social media tools,
and the development of digital platforms has not only expanded trade channels and
promoted image and brand but has also changed the ways of approaching marketing
and trading activities. Many organizations and associations in various countries

have embraced this trend and actively applied information technology in marketing
and trading activities, such as:
(a) Collaborating and connecting with government ecosystems.
(b) Developing platforms to connect businesses with other businesses (B2B)
and facilitate online transactions between businesses and consumers (B2C).
(c) Building storage, analysis, and database exploitation systems for
businesses and customer data to support domestic businesses in updating
information and business connections.
(d) Collaborating and sharing data to optimize resources and provide services
to members.
For Businesses
In various countries and regions, businesses gain access to updated
information, receive guidance and training from basic to advanced levels, with the
aim of implementing information technology applications in international trade and
marketing. They step-by-step digitize documents and processes to achieve
successful digital transformation, such as registering for participation and utilizing
digital platforms provided by govermental trade promotion organizations, BSOs,
and other businesses for promotion, product introduction, and partner seeking. They
leverage B2B platforms deployed by govermental trade promotion organizations to
conduct operations and interact through digital platforms to stay updated with
information.

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