Impact Of The 4.0 Revolution On Business Activities Of Import-Export Enterprises In Vietnam.docx

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I/ Research project title:
IMPACT OF THE 4.0 REVOLUTION ON BUSINESS ACTIVITIES OF
IMPORT-EXPORT ENTERPRISES IN VIETNAM
ABSTRACT
In the context that Vietnam is in the process of industrialization, modernization,
and deep integration into the world economy with participation in many free trade
agreements, it is important to proactively prepare the necessary foundations for the
future. Accessing new technological achievements from the industrial revolution 4.0
will help Vietnam's economy in general effectively participate in the global value chain,
which is an opportunity for Vietnam to accelerate the industrial process. modernization,
making positive contributions to the country's economic growth. The Industrial
Revolution 4.0 will certainly create many opportunities in improving technology levels,
improving production capacity, competing in product chains, creating attractive and
potential investment opportunities in the public sector. digital technology, Internet,
biotechnology. These are basic advantages and opportunities for Vietnamese enterprises
in general and import-export enterprises in particular. Import-export facilitates the
exchange of resources and minerals between countries. From one raw material, it is
possible to create more high-class goods, with innovations, science - technology and
techniques that each country has its own strengths. The study was conducted to assess
the impact of the 4.0 revolution on business aspects of import-export enterprises in
Vietnam. On that basis, identify advantages, difficulties and causes of difficulties, then
propose solutions to improve business performance of import-export enterprises in
Vietnam in the context of the 4.0 revolution.
II/ INTRODUCTION
1. Rationales and Problems statement
In Vietnam, the industrial revolution 4.0 is seen as an opportunity for economic
and social development. Prime Minister Nguyen Xuan Phuc affirmed that: "The 4.0
technology revolution is an opportunity to realize the nation's aspirations for
prosperity. Taking advantage of opportunities from this revolution is a key factor that
determines the success of the industrialization and modernization of the country."

Export is one of the important activities of the economy, contributing to
economic development in general and the growth of the business community in
particular. Export growth contributes to creating jobs and incomes for millions of
workers, balancing the trade balance, stabilizing exchange rates and stabilizing the
macro-economy.
With a deeply integrated and open economy like Vietnam, sustainable export
development is today's most important task. Sustainable export development requires
us to have a radical solution on production development, economic restructuring,
focusing on improving productivity, quality and value of export products, and at the
same time paying attention to export products. focus on saving resources and protecting
the environment.
In that context, the Industrial Revolution 4.0 with new technologies such as
artificial intelligence, robotics, Internet of things, nanotechnology, molecular biology
technology, genetic technology... opening up the possibility of achieving this
requirement. Industry 4.0 creates favorable conditions for the creation of “smart
factories” or “digital factories”, where intelligent machines and devices communicate
with each other using a network, continuously sharing information. information about
current stock, material quantities and changes in orders or about problems or errors.
As a result, the production supply chain achieves the highest efficiency in terms
of processing time, storage time, improving productivity, and saving costs and
materials. In addition, with many new products being formed, and export transactions
made entirely through the network environment, the mechanism and policies for
managing export and import activities also need to be adjusted to keep pace with new
situation, ensuring the objectives of promoting exports, controlling imports as well as
ensuring national security, environmental safety, labor safety and legitimate public
goals. in accordance with the international treaties that Vietnam has signed and acceded
to.
Being aware of the above issues, the author decided to choose the topic "Impact
of the 4.0 revolution on the business activities of import-export enterprises in
Vietnam" as the topic of his graduation thesis to investigate the impact of the 4.0
revolution on aspects of business activities of import and export enterprises, thereby

proposing solutions to improve business performance of import and export enterprises
in Vietnam in the context of the 4.0 revolution.
2. Significance of the study
Improving the business performance of import-export enterprises is a top priority
for the country in the context of the 4.0 revolution that is having an impact all aspects
from the economy to society of countries. Therefore, the topic “Impact of the 4.0
revolution on business activities of import-export enterprises in Vietnam” is carried
out with high scientific and practical significance.
2.1About the theory
The topic gave an overview of the theoretical basis related to the fourth industrial
revolution, the concept and role of import and export activities and provided a
theoretical basis for the factors affecting import and export business activities.
2.2About the practice
The research results can show a complete picture of import and export business in the
period from 2015 to 2020 and the impact of the 4.0 revolution on import and export
business in Vietnam. Research results can provide managers of import-export
enterprises with some solutions to improve business efficiency in the context of the 4.0
revolution.
The research results can be a useful reference for future studies related to the topic of
the 4th Industrial Revolution.
3. Research questions
The study was conducted with the aim of assessing the impact of the industrial
revolution 4.0 on the business activities of import-export enterprises in Vietnam,
thereby proposing solutions to improve business performance of import-export
enterprises in Vietnam in the context of the 4.0 revolution.
In order to achieve the common goal, the study focuses on addressing the following
questions:
(1) What is the status of import and export business in Vietnam in the context of the
4.0 revolution?

(2) What is the impact of the 4.0 revolution on the business activities of import-
export enterprises in Vietnam?
III/ Literature Review
1. Overview of the 4th Industrial Revolution
1.1 Concept of Industrial Revolution 4.0
The concept of “The 4th Industrial Revolution” first appeared at the Hannover
Industrial Fair in the Federal Republic of Germany in 2011. The concept of Industry
4.0, known as the “Fourth Industrial Revolution,” also known as “smart
manufacturing”, “internet of things” or “integrated industry”, is currently a hot topic.
discussed and received the attention of many researchers and many countries. Industry
4.0 is thought to have the potential to affect entire industries by changing the way it is
designed, manufactured, delivered and paid for (Stock and Seliger 2016; Hofmann and
Rüsch 2017).
Industry 4.0 is the next step in a long evolution, a revolution based on the use of
network-physical systems (Grieco et al. 2017). In fact, the consequence of the
development of the Internet of Things and Big Data is that the conception of Industry
4.0 is a consequence of their continued development (Witkowski 2017). The Industrial
Revolution 4.0 was formed on the basis of digital technology and integrated all smart
technologies to optimize production processes and methods; emphasizes that the
technologies that are and will have the greatest impact are 3D printing, biotechnology,
new materials technology, automation technology, robotics (Pfeiffer 2017). The key
ideas of Industry 4.0 originally announced by Kagermann were based on manufacturing
innovation and services supporting network physical systems during the 2011 Hannover
Fair, the result of an initiative related to strategy high-tech strategy for 2020 (Lee et al,
2014; European Commission, 2018; Zhou et al 2015) and the term “Industry 4.0” was
officially released in 2013 by the Academy of Science and Technology National
Technology Acatech (Druckversion 2018).
1.2 Some effects of the 4th Industrial Revolution
 Impact on the economy
In the context of the fourth industrial revolution, newly born Science and Technology
achievements are applied and converged for the purpose of optimizing production,

management and consumption processes such as smart infrastructure, Smart
construction, smart chain, smart products, smart management. According to UNCTAD
(2010), “Manufacturing is gradually shifting from countries/regions with a lot of
unskilled workers and natural resources to countries/regions with a lot of highly skilled
workers and close to the consumption market. Countries are looking to transition to a
growth model based on innovation and technological innovation.”
UNCTAD (2010) stated that in the context of the fourth industrial revolution, creative
industries have grown faster than traditional manufacturing and service industries. The
reason is that changing consumption patterns towards a more sustainable, economical
and humane direction has spurred creative economic growth. Tera Consultant (2014)
reported that the creative industry in the US is estimated to contribute 6.4% of GDP and
is a leading export industry. According to Richard Florida, et.al. (2015), in Europe,
creative industries account for 6.8% of GDP and 6.5% of the workforce; where in the
UK it is 9% GDP and labor force, in Germany it is 6.1% GDP and 7% labor To get that
result, many countries invest high in Science and Technology like Finland (3 0.84%
GDP), Korea (3.74% GDP), Sweden (3.38% GDP), Japan (3.26% GDP).
 Direct impact on the stages/stages in the production process of enterprises
According to PWC (2015), if in the past with traditional production methods, in order
to improve business performance, factories often tend to move to places with low labor
costs to assemble components, detail. However, in the context of the 4.0 revolution, the
problem of labor costs related to processing and assembly stages/stages is becoming
less and less important, the reason is that human resources are gradually being replaced.
completely replaced by robots - robots are smarter and less expensive. The average price
of a robot today is only half what it was in 1990, but with much greater speed and
reliability.
 Increased economic benefits
According to a survey by PwC (2015), the production of computers, alloys and
machinery that currently accounts for 10 - 30% of the value of US imports from China
could be produced entirely in the US by 2020. 2022, increasing US economic output by
20-55 billion USD/year. 3D printing technology can create products that current

production methods cannot do, allowing a variety of materials to be used to produce
products in a way that was previously only possible with plastic materials. , which helps
to reduce waste products, save costs, thereby reducing waste and emissions into the
environment.
 Positive impact on global inflation
According to John Lee (2015), technological breakthroughs in the fields of energy
materials, IoT, robotics, and the application of 3D printing technology of the 4th
Industrial Revolution have greatly reduced the cost pressure that drives global inflation
by transforming transition to a more efficient, intelligent, and resource-efficient world.
 Impact on production and business activities of enterprises
According to Pham Xuan Dung (2018) in the presentation “The role of enterprises in
the fourth industrial revolution” it was pointed out that in the context of the strong 4.0
revolution, there will be a differentiation between enterprises in different industries. In
which, there will be industries that will have to shrink, but besides that, there will be
strong growth industries. Within each industry, including growth industries, the impact
is also different between enterprises; with the emergence and rapid growth of many
high-tech enterprises, innovation and the shrinking, even the elimination of, enterprises
that are out of step with technology. Industry 4.0 is redrawing the world economic map,
with the decline of power of countries that rely heavily on resource exploitation and the
sharp increase of countries that rely heavily on technology and innovation create.
2. Overview of import and export
2.1 The concept and role of export
Clause 1, Article 28 of the 2005 Commercial Law clearly stipulates that “Export is the
bringing of goods and services out of the Vietnamese territory or into a special area
within the Vietnamese territory which is considered a separate customs area. according
to regulations of the Law.”
According to Decree 57/1998/ND-CP issued on July 31, 1998, effective on August 10,
1998 detailing the implementation of the Commercial Law on export activities, “export
activities are activities that selling goods of Vietnamese traders with foreign traders
under goods sale and purchase contracts.”
The most basic activity in international trade is export. It first appeared very early in the

development of society and is growing and expanding rapidly in both width and depth.
Their most basic form was simply barter, but it evolved rapidly and manifests itself in
a variety of ways. The objective of export activities is to take advantage of a country in
the international division of labor to generate foreign currency revenue for the country.
Export activities take place in all fields and in all economic conditions, from consumer
goods to capital goods, machinery and high-tech equipment. All these activities are
aimed at bringing general benefits to the country in general and participating enterprises
in particular. Exports take place over a large space and over a long period of time. It
can be short-lived or last for several years, and it can happen within a country or across
many countries.
Export creates capital for imports, serving industrialization and modernization of the
country. To overcome the situation of poverty, backwardness and underdevelopment,
the most appropriate step for all developing countries is industrialization and
modernization of the country. On the other hand, industrialization requires a significant
amount of capital to import advanced technology and equipment. In fact, a country can
use mainly mobilized capital sources to earn domestic foreign currency such as foreign
investment, borrowing from aid sources, revenue from tourism and service activities,
income from export activities, to have imported capital.
Along with the explosion of the global economy, the trend of reaching out to the world
market along with the growth of the global economy is a common trend of all countries
and enterprises. Exporting is one of the popular methods for enterprises to implement
growth and market expansion strategies.
Exporting allows enterprises to expand their markets and increase the number of buyers
for their products. The company's brand name is not only known to domestic customers
but also to the international market thanks to export.
2.2 The concept and role of import
Dinh Thi Lien and Doan Thi My Hanh (2009), Import is an activity that plays a large
role in foreign trade activities of each country. Import activities can be understood
simply as the process of purchasing royal goods or services from foreign countries and
territories to serve domestic production and business activities or re-import for the
purpose of making profits.

According to Doan Thi Hong Van (2015), another definition of import is provided,
specifically, import is the process of adding goods that cannot be produced domestically
or whose production costs are too high, or production that cannot meet domestic
demand. Another purpose of import activities is to strengthen economic facilities,
advanced technology and enhance technology transfer, saving production costs and
labor time, making an important contribution to the economy. Focus on developing
social production in a highly efficient manner.
Another aspect presented when referring to imports is that import activities create
competition between domestic and imported goods, thereby creating an impetus for
domestic manufacturers to optimize optimize production organization, organizational
apparatus to compete with foreign manufacturers.
2.3 The necessity of international trade
According to Dinh Thi Lien and Doan Thi My Hanh (2009), trade activities between
countries are basically the process of allocating and exploiting the use of resources
between economic actors and between countries through the exchange of goods,
services and financial resources to meet the different consumption needs of people
around the world. Furthermore, international trade assists the parties in improving their
economic performance.
International division of labor, conditions for maximum use of human resources and
efficient use of national economic resources based on the comparative advantages of
each country, specialization in the production of products have comparative advantage,
implement division of labor according to qualifications, use the entire production of
products to exchange with other countries.
Firms can improve efficiency by scaling up production specialization (producing fewer
items). Enterprises only focus on a few specialized products to produce, and the more
items they produce, the lower the fixed costs per product, leading to economies of scale.
Balance supply - demand of the economy in the most effective way. When supply and
demand are equal, equilibrium price occurs. If a product does not satisfy the need, it can
be imported, and vice versa, to ensure the highest satisfaction of consumer needs. In
short, international trade is important not only for the economy of each country but also
for the global economy. According to Dinh Thi Lien and Doan Thi My Hanh (2009),

that importance is reflected in the following aspects:
International trade aids in improving a country's economic position globally.
International trade relations (along with international investment and international
financial relations) are one of the three pillars of foreign economic policy that contribute
to promoting industrialization, modernization and development. economy and maintain
sustainable economic growth.
3. Factors affecting import-export business activities
3.1 Objective factors
 Political - legal environment factors
The political environment includes the legal system and the policies of the State. It
reflects the impact and intervention of macro-management subjects on business
enterprises and their competition. The legal system stipulates what goods enterprises
are allowed to trade in, what goods are prohibited from trading, what standards must be
met, whether they are controlled or not... Policy tools related to encourage or restrict
both production and consumption in the economy. Laws and policies of the State can
both create opportunities for enterprises to do business in the market, but they can also
bring risks, challenges, and disadvantages to competitiveness of the enterprises.
Therefore, the State needs to make policies suitable to the conditions of the State as well
as to the development trend of Vietnamese enterprises in the context of integration into
the market economy.
 Natural conditions
It determines investment location, timing of marketing activities, choice of scale
and seasonal factors. It includes: geographical location, climate, landscape, rivers,
natural resources, level of environmental pollution... These are factors that can create
disadvantages or business opportunities for enterprises.
 Socio-economic factors
Economic growth and development of domestic production will create favorable
conditions for export production, improving export competitiveness in terms of design
and quality in the world market. The more developed a country's economy is, the more
competitive its exports are in the international market.
The fluctuations of the global economy will have a direct impact on the domestic

and international commodity markets, thus having a significant impact on the export
activities of enterprises.
Import and export activities are also greatly influenced by the banking and financial
system. Import and export activities are closely linked with international payment
activities between countries through the banking system. The more developed the
banking and financial system is, the easier and faster the payment will be, creating more
favorable conditions for the units involved in import and export activities.
In international payments, currencies of different countries are often used, so the
exchange rate has a great influence on export activities. Exports will be stimulated if
the domestic currency depreciates against commonly used payment units such as USD
, GBP,... And conversely, exports will be more restricted if the domestic currency
appreciates relative to foreign currencies.
The development of infrastructure, communication and transportation systems also
greatly affects export activities from market research to contract execution, freight and
payment. The developed infrastructure system will help reduce costs for export business
units, creating favorable conditions for export activities.
In addition, the integration with the economy of the region and the world.
Participation in trade organizations such as AFTA, APEC, WTO will greatly affect
import and export activities.
 Technological factors
This is the main factor to improve the competitiveness of enterprises. It can create
competitive advantage, create high-quality, low-cost products with many outstanding
features, allowing enterprises to implement cost strategies or differentiate benefits in a
competitive position. When a company fails to keep up with technology trends and keep
pace with technology trends, and competitors have developed technology courses, the
company will be on the verge of bankruptcy. Accordingly, enterprises constantly
improve their science and technology level, grasp advanced technology trends, consider
this as the core competitiveness to improve the competitiveness of enterprises.
3.2 Subjective factors
 Enterprise management organization mechanism
A reasonable organizational mechanism will support managers to better use the

resources of the enterprise and improve business efficiency. If the organizational and
management apparatus is inefficient, it will waste resources and reduce the business
efficiency of the enterprise.
The company's board of directors is the central hub of operations, a place to develop
business strategies, set goals, and oversee the implementation of those plans. The
production and business activities of enterprises are directly influenced by the
management level of the business leaders. It will be the foundation for enterprises to
effectively carry out their production activities if they have the right strategy, suitable
to the current market and business situation, along with good management of the
leaders. Leadership will be the basis for enterprises to effectively carry out their
production and business activities.
 Factor on Human
A reasonable organizational mechanism will help managers better use the resources
of the enterprise and improve the business efficiency of the enterprise. If the
organizational structure is cumbersome, it will waste resources and reduce the business
efficiency of the enterprises. The Board of Directors of the company: is the central part
of the enterprise and the place to develop business strategies for the enterprise, set goals
and supervise the implementation of the set plans. The level of management of business
leaders has a direct influence on the production and business activities of enterprises. If
the enterprise has the right strategy, in line with the actual situation of the market and
the enterprise, together with the good management of the leaders will be the basis for
enterprises to effectively carry out their production and business activities.
 Factor on Capital and material and technical equipment of the enterprises
Capital is an indispensable element in business. The larger the business capital, the
better the chances of winning attractive contracts in business. In addition to the capital
of the enterprise, the source of mobilized capital also plays a huge role in business
activities. Equipment, material and technical facilities are actually capital sources of
enterprises (capital in kind). If equipped with modern technical facilities, suitable for
production, it will contribute to increasing the efficiency in business of enterprises.
 Enterprise competitiveness

The more competitive the enterprise, the faster its ability to sell products. The
competitiveness depends on the brand of the business, the financial capacity of the
business, the quality of the product, the price of the goods, the marketing strategy, the
accompanying services, etc.
IV/ Methodology
1. Research Design
To achieve the set objectives, the study uses qualitative research methods with
specific sets of methods as follows: Descriptive statistical method on Vietnam's import
and export turnover, thereby providing analysis and assessment of trends and impacts
of the 4.0 Revolution. The comparative method is used to assess the growth rate of
import and export turnover of Vietnamese import and export enterprises in the period
from 2015 to 2025, thereby reflecting the impact of the 4.0 Revolution.
2. Data collection
The study was carried out using the data collection method. Information
collection is an important stage for research, so it is necessary to grasp the methods of
collecting such subject information as a basis for scientific planning, in order to achieve
effective results highest in this period
Collecting the provided secondary data inherited from theoretical researches
related to the 4.0 revolution, import and export activities, scientific articles,
presentations in conferences, reports of the General Statistics Office, the General
Department of Customs, the Ministry of Industry and Trade...
After collecting the information, the thesis proceeds to analyze and synthesize
the analysis to give a general picture of the current status of import-export business
activities in Vietnam and the impacts of the 4.0 Revolution on the business activities of
import-export enterprises in Vietnam.
The main variables of this study are the business activities of import-export
enterprises in Vietnam in the context of the Industrial Revolution 4.0 and the impacts
of the 4.0 revolution on the business activities of import-export enterprises in Vietnam
3. Research Process
The steps performed in the study are summarized according to the following procedure:
- Step 1: Identify the research topic.

- Step 2: On the basis of an overview of the theoretical basis, the actual situation of
business activities of import-export enterprises in Vietnam in the context of the 4.0
revolution and synthesize and analyze the impact of the Revolution 4.0 to the business
activities of import and export enterprises in Vietnam.
- Step 3: Apply research methods.
- Step 4: Implement research
- Step 5: Implement research through information collection and information synthesis
and analysis.
- Step 6: Determine the research results.
4. Information processing methods
4.1 Descriptive statistical method
In this study, the descriptive and statistical method is firstly used by the author to
make statistics and describe the research works related to the research, thereby
providing theoretical and practical gaps that the thesis needs to continue to research.
In addition, the author also uses statistical and descriptive methods to make
statistics about import and export turnover of Vietnamese import and export enterprises,
from which to make analysis and evaluation. on the impact of the 4.0 revolution on
4.2 Comparative method
Applying comparative method, the author will use basic functions in Excel
software to calculate volatility levels such as determining the weight of the research
target, using the absolute and relative criteria to consider the rate of change. average
growth rate, growth rate, and decrease rate of the following year compared with the
previous year. From there, make a comparative analysis table over the years to see the
level of increase and decrease and analyze the causes of that increase or decrease.
Thereby also predicting the changes of the research target in the next period.
The comparative method is used to determine the trend and volatility of the
analytical criteria over time and space.
The author uses this method in the following way:
- Original for comparison: is the data of previous years, comparing the
performance results at the end of the period with the set targets. For a comparison to be

meaningful, it is a prerequisite that the criteria used are identical. In practice, it is often
the condition of comparability between economic indicators that should be taken into
account both in terms of time and space.
- In terms of time: indicators calculated in the same accounting period must agree
on the following three aspects:
+ Must reflect the economic content.
+ Must have the same analytical method.
+ Must be the same unit of measurement.
- In terms of space: the criteria need to be converted to the same scale and similar
conditions.
- Comparative technique:
The process of technical analysis of the comparative method is carried out in two
forms:
* Compare absolute numbers: Compare the increase and decrease of the analytical
data over the years to find out the cause of that change, thereby making assessments
and solutions.
* Compare relative numbers:
R∆y (%) = [(Yt - Yt-1)/ Yt-1] x 100
In which:
+ Yt : Data for the period of analysis.
+ Yt-1: Base period data.
+ R∆y (%): Rate of change between the analysis period and the base period.
- Average rate of change: Measured as a percentage (%), is the average rate of
change between the analysis period and the base period, consecutively during the
analysis period. Calculate the average growth rate of the analyzed data in the period
2018-2020 to make a general assessment in the whole period.
4.3 Analytical-synthetic method
In the analysis-synthesis study, the author also used the analysis to determine the
theoretical framework of the impact of the 4.0 revolution on the business activities of

The synthesis method applied in this study aims to make comments and assessments
about the achievements, limitations and its causes in business activities of import-export
enterprises in Vietnam in the context of the strong 4.0 Revolution.
References
1. Hofmann, E and M Rüsch (2017). Industry 4.0 and the current status as well as
futureprospects on logistics. Computers in Industry, 89, 23–34.
2. Stock, T and G Seliger (2016). Opportunities of sustainable manufacturing in
industry 4.0.Procedia CIRP, 40, 536–541
3. Witkowski, K. (2017). Internet of Things, Big Data, Industry 4.0 – Innovative
Solutions in Logistics and Supply Chains Management.
4. Grieco, Antonio, Pierpaolo Caricato, Doriana Gianfreda, Matteo Pesce, Valeria
Rigon, Luca Tregnaghi, and Adriano Voglino. 2017. An Industry 4.0 Case Study
in Fashion Manufacturing. Procedia Manufacturing 11: 871–77
5. Pereira, A. C., and Fernando Romero. 2017. A review of the meanings and the
implications of the Industry 4.0 concept. Procedia Manufacturing 13: 1206–14
6. Pfeiffer, Sabine. 2017. The Vision of “Industrie 4.0” in the Making—A Case of
Future Told, Tamed, and Traded. Nanoethics 11: 107–21
7. Zhou, Keliang, Taigang Liu, and Lifeng Zhou. 2015. Industry 4.0: Towards
future industrial opportunities and challenges. Paper presented at 2015 12th
International Conference on Fuzzy Systems and Knowledge Discovery (FSKD),
Zhangjiajie, China, August 15–17, pp. 2147–52.
8. UNCTAD, 2010
9. John Lee, Disrupting Asia, Tạp chí The National Interest, tháng 5 – 6/2015, tr.53
– 54
10.Strategy & PwC: Industry 4.0 – Opportunities and challenges of the industrial
Internet, năm 2015.
11.Dinh, T, L. & Doan, T, M, H. (2009). Development of logistics services in Our
country in international conditions.
12.Doan , T, H, V. (2015). Export Import Management. General Publisher
13.Pham, X, D. (2018). The role of enterprises in the fourth industrial revolution.
high-tech science magazine

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