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Asian Business Research Journal 
Vol. 10, No. 7, 60-66, 2025 
ISSN: 2576-6759 
DOI: 10.55220/25766759.496 
© 2025 by the authors; licensee Eastern Centre of Science and Education, USA 

 
 

 

 
Digital Transformation Strategy in the Logistics Sector of Emerging Markets: A 
Case Study of Indotrans, Vietnam 

 
Nguyễn Ngọc Dung1 
Phan Minh Duc2

 
 

 
 
 

1Operation Manager, ITL Corporation, Vietnam. 
2Academy of Journalism and Communication, Vietnam. 
Email: phanminhduc@ajc.edu.vn  
( Corresponding Author) 
 

 
Abstract 

The logistics sector in Vietnam plays a critical role in the national economy, contributing 
significantly to socioeconomic development and global competitiveness. With the advent of the 
Fourth Industrial Revolution and the COVID-19 pandemic, digital transformation (DT) has 
become a strategic imperative for logistics enterprises to enhance operational efficiency, reduce 
costs, and maintain competitiveness. Despite rapid growth in Vietnam’s digital economy and e-
commerce, the logistics industry faces challenges such as high logistics costs, limited financial 
capacity, outdated infrastructure, and workforce deficiencies. Indotrans Joint Stock Company 
(ITL), a leading logistics enterprise in Vietnam, has proactively embraced DT by developing 
proprietary digital solutions like the eTMS system, which optimizes road freight operations 
through automation, real-time data exchange, and integrated functionalities. ITL’s DT efforts 
have demonstrated clear benefits in operational productivity, cost management, and customer 
satisfaction, although challenges such as employee resistance, high investment costs, and complex 
tax procedures persist. The study highlights the importance of managerial leadership, workforce 
development, technological infrastructure, and innovation in driving successful DT. It also 
emphasizes the need for a cohesive strategy to build an integrated logistics ecosystem, leveraging 
mergers and acquisitions to expand resources and capabilities. Strategic recommendations include 
fostering a digitally skilled workforce, enhancing internal and external communication, and 
institutionalizing innovation to sustain competitive advantage. ITL’s case exemplifies the 
transformative potential of DT in Vietnam’s logistics sector, offering insights into overcoming 
systemic barriers and achieving sustainable growth in emerging markets. 

 
Keywords: Digital transformation, Emerging markets, eTMS system, Indotrans, Logistics sector, Vietnam, Workforce development.  

 
1. Introduction 

The logistics industry is widely regarded as the backbone of the economy, influencing all aspects of production, 
distribution, circulation, and consumption of goods. In Vietnam, logistics plays a pivotal role in the overall 
structure of the national economy, contributing to socioeconomic development and enhancing the country's 
competitiveness. In recent years, Vietnam’s logistics sector has experienced an annual growth rate of 
approximately 14–16%, reaching a market scale of around USD 40–42 billion. This expansion has been supported 
by substantial infrastructure investment, including USD 24 billion allocated during the 2016–2020 period, and 
ongoing public–private partnership (PPP) projects valued at USD 30 billion. In the context of increasing economic 
openness and deeper global integration, Vietnam’s total import–export turnover has surpassed USD 500 billion 
annually, with large-scale freight transportation conducted across road, sea, air, and rail networks. These dynamics 
present significant business and growth opportunities for the domestic logistics industry. 

In the era of the Fourth Industrial Revolution and the proliferation of digital technologies, digital 
transformation has emerged as a global phenomenon that is reshaping economies and industries worldwide. DT 
represents a continuous process of digitization and advanced applications that foster new operational methods and 
approaches at higher levels of performance. It has become a key enabler of organizational success, addressing key 
aspects such as customer experience enhancement, operational agility, innovation, and business model evolution. 
Notably, DT has shifted from being a strategic initiative to becoming indispensable for enterprise sustainability, 
particularly after the disruptions triggered by the COVID-19 pandemic. The pandemic exposed major 
vulnerabilities in traditional supply chains, reinforcing the urgency of DT to improve responsiveness, efficiency, 
and competitive advantage. 

The Government of Vietnam has recognized the transformative potential of digital technologies in driving 
economic growth and improving national competitiveness. The National Digital Transformation Program, 
approved in 2020, sets out goals for developing a digital government, digital economy, and digital society by 2025, 
with a vision extending to 2030. Logistics has been identified as one of the leading sectors in this transformation 

mailto:phanminhduc@ajc.edu.vn
https://doi.org/10.55220/25766759.496


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effort. Vietnam’s digital economy has grown at an impressive pace, registering the fastest growth rate in Southeast 
Asia in 2023, with a value of USD 30 billion, and is projected to reach USD 45 billion by 2025. Concurrently, e-
commerce has expanded dramatically, with consumer behavior shifting toward online shopping, generating a 
market size of USD 32 billion in 2023—an increase of 25% compared to the previous year—underscoring the 
growing importance of electronic logistics (e-logistics) in enabling digital consumption. 

Despite substantial opportunities, the digital transformation process in Vietnamese logistics enterprises 
continues to encounter considerable challenges. Logistics costs in Vietnam account for 16.8% of the national 
GDP—significantly higher than the global average of 10.6%—which underscores the urgency of DT to streamline 
operations and maintain competitiveness. Most Vietnamese logistics firms (89%) are small and medium enterprises 
(SMEs) with limited financial capacity and outdated infrastructure, making it difficult to implement comprehensive 
digital solutions. Labor force deficiencies in technological readiness further constrain progress. In practice, only 
around 30% of firms have adopted digital technologies within their supply chain operations, compared to over 60% 
in developed economies, and approximately 70% of Vietnamese businesses have failed in their digital 
transformation efforts. These initiatives are often isolated, lacking system-wide integration, while 90.5% of 
logistics service providers remain in the initial digitization phase. At present, most domestic logistics firms operate 
as intermediaries for foreign companies, offering limited services such as customs declaration, vehicle rental, and 
warehousing. Merely 16% have integrated third-party or fourth-party logistics solutions, with high value-added 
services predominantly provided by foreign enterprises. 

As such, accelerating the digital transformation of logistics firms is a pressing imperative to enhance 
managerial capability, strengthen competitiveness, reduce costs, and drive operational efficiency. Digital 
technologies—including the Internet of Things (IoT), cloud computing, artificial intelligence (AI), big data, and 
blockchain—have been identified as foundational for modern logistics systems. These innovations enable service 
providers to optimize resources, reduce labor and transportation costs, improve cargo tracking, and ensure cross-
border security. 

In this context, Indotrans Joint Stock Company (ITL) has emerged as one of Vietnam’s leading private 
logistics enterprises, offering integrated logistics solutions to both domestic and international clients. Armed with 
strong financial capacity, advanced technology, and in-depth understanding of local culture, ITL has proactively 
invested in warehouse management software and integrated these systems into distribution centers. Furthermore, 
the company has made substantial investments in e-logistics to enhance service quality, operational productivity, 
processing speed, and reduce paperwork—all while maintaining cost-efficiency. ITL exemplifies the strategic 
efforts of Vietnamese enterprises striving to spearhead digital transformation within the logistics sector, thereby 
contributing to the nation’s goals of sustainable development and global integration. 
 

2. Literature Review 
Digital transformation has emerged as a critical focus for governments, enterprises, and academia worldwide, 

driven by the need to adapt to rapid technological advancements and shifting market dynamics.  It is not merely 
the digitization of resources but a holistic process that leverages digital technologies to develop new operational 
methods, business models, and approaches, thereby enhancing organizational performance and efficiency (Vial, 
2019). DT requires fundamental changes in organizational structure, corporate culture, and business processes, 
making it an imperative for maintaining competitiveness and ensuring long-term sustainability, particularly in the 
wake of disruptions caused by the COVID-19 pandemic (Ivanov, Dolgui, & Sokolov, 2019; Westerman, Bonnet, & 
McAfee, 2014).  

The DT process is commonly conceptualized through three evolutionary stages: digitization, digitalization, 
and full-scale transformation.  Digitization involves converting physical data into digital formats, serving as the 
foundation for subsequent stages.  Digitalization focuses on automating and interconnecting processes to improve 
operational effectiveness and governance.  Full-scale transformation represents a comprehensive shift across all 
aspects of the enterprise, emphasizing seamless integration of business systems, real-time information exchange, 

and cost-effective operations (Vial, 2019; Jović, Tijan, & Vidmar, 2022). These stages highlight the progressive 
nature of DT, requiring organizations to align their technological capabilities with strategic objectives.  

Several theoretical frameworks have been developed to explain the factors influencing DT.  The Theory of 
Planned Behavior (TPB) posits that human behavior is strongly driven by the intention to act, emphasizing the 
role of psychological commitment in adopting new managerial approaches (Ajzen, 1991).  The Technology-
Organization-Environment (TOE) framework offers an integrated perspective by examining technological factors 
(existing and available technologies), organizational attributes (resources, structure, scale), and environmental 
conditions (competitive pressure, regulatory landscape) (Tornatzky & Fleischer, 1990).  Additionally, the Resource-
Based View (RBV) suggests that a firm’s sustainable competitive advantage derives from resources and capabilities 
that are valuable, rare, inimitable, and non-substitutable (VRIN), such as digital assets, human capital, and 
managerial expertise (Barney, 1991).  

Empirical studies have identified key factors influencing DT, including managerial leadership, employee 
capabilities, organizational culture, technological infrastructure, and competitive pressure (Nadkarni & Prügl, 2021; 
Cichosz, Wallenburg, & Knemeyer, 2020). Managerial leadership is particularly critical, as it shapes strategic 
direction, commitment, and continuity of DT initiatives (Westerman et al., 2014). Leaders who demonstrate a 
proactive orientation toward change and possess the ability to align organizational goals with technological 
advancements are more likely to drive successful transformation (Ngo, 2024). Employee competencies, such as IT 
skills, adaptability, and growth mindset, also play a significant role in accelerating technology adoption.  However, 
organizational culture can either facilitate or hinder transformation, depending on its openness to change.  In East 
Asian contexts, Confucian-rooted norms often resist disruptive change, posing challenges for DT implementation 
(Ngo, 2024; Luong et al., 2024).  

Technological infrastructure emerges as the most substantial factor influencing both the intention and 
implementation of DT, serving as the technical foundation for system integration, data security, and operational 
efficiency (Le Viet & Dang Quoc, 2023).  However, competitive pressures and rising customer expectations may 



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produce negative effects if firms are inadequately prepared, leading to hesitancy or resistance toward 
transformation (Nguyen & Dang, 2024).  Financial constraints remain a significant barrier, particularly for SMEs, 
which dominate Vietnam’s logistics sector.  Approximately 70% of Vietnamese enterprises fail in their DT efforts, 
often due to limited financial capacity, outdated technologies, and a digitally unprepared workforce (Ministry of 
Industry and Trade, 2023; Nguyen et al., 2025).  

In Vietnam, the logistics sector has seen annual growth of 14–16%, amounting to USD 40–42 billion, with over 
3,000 active enterprises, 89% of which are SMEs (Ministry of Industry and Trade, 2023).  Despite this growth, the 
sector faces systemic challenges, including high logistics costs, poor system integration, and limited adoption of 
advanced technologies.  While 100% of logistics firms increased DT investment in the past year, only a small 
group of leading companies, such as DHL, FedEx, and Viettel Post, can execute full-scale transformation (Nguyen 
Canh Thao, 2024).  Approximately 68% of logistics enterprises have adopted technologies from Industry 4.0, 
enhancing service quality and supporting the emergence of smart logistics centers.  However, the overall DT 
process remains below expectations, with many firms struggling to develop clear strategies and select appropriate 
technologies (Nga Thanh Nguyen et al., 2024).  

The determinants of DT evolve across its stages.  During digitization, critical factors include IT infrastructure, 
financial resources, employee capacity, organizational pressure, and support services.  Managerial leadership and 
institutional frameworks show limited influence at this initial stage.  As DT progresses into digitalization—focused 
on process automation—executive leadership becomes crucial alongside existing drivers.  In the final stage of full-
scale transformation, leadership and human capital take on central roles, although external support services lack 
demonstrable influence in propelling progress at this level (Luong et al., 2024; Nguyen Canh Thao, 2024).  

From a theoretical perspective, the intention to digitally transform exhibits the strongest positive influence on 
actual DT outcomes, particularly among SMEs.  This underscores the TPB framework's emphasis on behavioral 
intention as a mediating mechanism more impactful than direct structural factors (Ajzen, 1991; Luong et al., 2024).  
However, systemic barriers such as financial constraints, skill deficits, cultural inertia, and cybersecurity risks 
continue to hinder progress, requiring strategic alignment and collaboration across stakeholders to achieve 
sustainable transformation (Nguyen et al., 2025).  

In summary, DT is a multidimensional process shaped by technological, organizational, and environmental 
factors.  While Vietnam’s logistics sector has made progress, systemic barriers persist, requiring a cohesive 
strategy to align managerial leadership, workforce development, technological infrastructure, and innovation. The 
theoretical insights presented here provide a foundation for analyzing the challenges and opportunities in 
Vietnam’s logistics sector, offering a roadmap for sustainable transformation in emerging markets.  
  

3. Research Methodology 
The research employed a purposive sampling method, targeting a minimum sample size of 81 respondents, 

with 89 participants ultimately recruited to compensate for non-response in interviews. The study population 
included senior executives and departments directly involved in digital transformation implementation, such as the 
Digital transformation Division, Business Department, Finance - Accounting Department, and Communications 
Department, as well as ITL’s clients, primarily corporate customers and freight forwarding agents. The author 
emphasized that during the initial implementation phase, internal personnel played the most crucial role in shaping 
service experience and optimizing product solutions, accounting for 70% of strategic contributions, while client 
feedback provided valuable evaluative insights (30%). 

Regarding data collection, primary data were obtained using a structured three-step survey instrument 
distributed directly to key internal departments (with 5–7 members per department) and to 10 major clients, 
representing 80% of the company’s service revenue. Secondary data were gathered from government statistics, 
sectoral journals, official reports from ministries and state agencies, and internal enterprise data. These were used 
to analyze macroeconomic, industry-level, and organizational environments. The data analysis included 
comparative and interpretative processing of secondary sources, while primary data was subject to thorough 
accuracy and completeness checks, followed by analytical synthesis to generate evaluations and strategic 
recommendations—particularly highlighting feedback from end-users. 
 

4. Research Findings and Discussion 
Digital transformation has emerged as a strategic priority for governments, enterprises, and academia 

worldwide—particularly in Vietnam. Rather than simply digitizing resources, DT is a comprehensive process that 
leverages digital technologies to introduce new operational methods and approaches, thereby enhancing 
organizational performance. DT has become a vital prerequisite for sustaining competitiveness and long-term 
viability, especially considering disruptions brought about by the COVID-19 pandemic. In the Vietnamese context, 
the government views DT as a key enabler of economic growth, improved public service delivery, and national 
competitiveness in global markets. 

Vietnam’s current digital transformation trajectory reflects remarkable progress. The country’s digital 
economy was projected to be the fastest growing in Southeast Asia in 2023, reaching USD 30 billion and 
potentially expanding to USD 45 billion by 2025. By 2022, the digital economy had already contributed 14.26% to 
GDP, with an official target of 20% by 2025. Vietnam also consistently ranks among the top 50 countries on global 
innovation and postal development indices, placing 46th in 2023. 

Nonetheless, significant challenges remain. Fewer than 40% of small and medium-sized enterprises in Vietnam 
possess sufficient financial capacity to implement DT at a moderate or advanced level. Recent studies indicate that 
57.6% of SMEs struggle to execute DT initiatives. As SMEs comprise over 90% of all enterprises nationwide—and 
97.2% in Hanoi—limited resources, outdated technology, and a digitally unprepared workforce hinder timely 
adoption. While 62% of firms expect DT to boost performance and foster innovation, 56% perceive DT as essential 
for survival and growth, only 3% consider DT an substantial decline from 22% in 2019. 

In logistics, DT presents substantial breakthrough opportunities. The industry has seen annual growth of 14–
16%, amounting to USD 40–42 billion, with over 3,000 active enterprises, 89% of which are SMEs with capital 



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under VND 10 billion. Although 100% of logistics firms increased DT investment in the past year and 86% expect 
gains in productivity and efficiency, only a small group of leading companies (e.g., DHL, FedEx, Viettel Post, 
Vietnam Post) can execute full-scale DT. Approximately 68% of logistics enterprises have adopted technologies 
from Industry 4.0. These digital initiatives have enhanced service quality, supported the emergence of smart 
logistics centers, and strengthened engagement with international clients. However, the overall DT process in 
logistics remains below expectations, with many firms facing challenges in planning and technology selection. 
Notably, 28.95% of logistics businesses report difficulties in developing DT strategies, and nearly 70% of 
Vietnamese enterprises fail to achieve successful transformation outcomes. 

The factors influencing digital transformation have been extensively studied and are commonly categorized 
into six core dimensions: managerial capacity and attitude, digital transformation strategy, employee competency, 
organizational culture, technological infrastructure, and transformation-related pressure. Among these, the 
capabilities and proactive leadership of managers play a pivotal role, determining the level of commitment and 
direction-setting throughout the transformation process. A well-articulated digital strategy positively correlates 
with the intention to pursue transformation; however, empirical evidence suggests that the absence of a clear 
strategic roadmap among small and medium-sized enterprises in Hanoi diminishes its practical impact. 

Employee competency is recognized as a critical driving factor, especially where the workforce possesses 
technological proficiency, a growth mindset, and access to internal training programs. In contrast, organizational 
culture has yet to demonstrate a definitive link to either transformation intention or implementation—possibly 
influenced by Confucian-rooted norms in East Asian contexts that tend to resist disruptive change. Technological 
infrastructure emerges as the most impactful factor, both in intention formation and practical execution; 
nonetheless, IT capacity among Hanoi-based SMEs remains modest. Meanwhile, pressure from the digital business 
environment exhibits a negative correlation with transformation intent, indicating apprehension toward the 
complexity and financial burden associated with such change. 

A key finding is that the intention to digitally transform exerts the strongest positive influence on actual 
transformation outcomes among SMEs in Hanoi. This underscores the Theory of Planned Behavior (TPB), which 
posits that human behavior is primarily driven by the intention to act—reinforcing the importance of psychological 
commitment as an indirect yet powerful mechanism. 

Digital transformation within Vietnam’s logistics sector unfolds progressively across three evolutionary stages: 
digitization, digitalization, and full-scale transformation. In the initial phase, efforts focus on converting 
information into digital formats, reliant on IT infrastructure, workforce capability, and financial resources, while 
leadership and legal frameworks remain peripheral. As firms transition into digitalization—centered on process 
automation—executive leadership, policy structure, and enterprise scale become more prominent, enabling 
synchronized operational enhancements. In the final stage of comprehensive transformation, leadership and human 
capital take on central roles, although external support services lack demonstrable influence in propelling progress 
at this level. 

Despite significant strides, Vietnam’s digital transformation still confronts numerous systemic obstacles. These 
include financial constraints, outdated technologies, skill deficits, cultural inertia, incomplete legal frameworks, 
cybersecurity threats, and the absence of long-term leadership commitment. Such barriers hinder strategic clarity 
and delay implementation. To realize the full potential of Vietnam’s digital economy, it is imperative to foster 
alignment and collaboration across government, industry, and academia—toward a cohesive, resilient, and globally 
responsive transformation ecosystem. 

In terms of scale and strategic vision, Indotrans has established itself as a leading logistics service provider in 
the region, operating more than 90 offices and distribution centers across multiple countries with a workforce 
exceeding 1,800 employees. The company comprises eight subsidiaries and invests in strategic affiliates to offer 
comprehensive logistics solutions. Since 2017, ITL has developed a dedicated digital transformation division, 
aiming to build an intelligent logistics technology platform positioned at the forefront of the Indochina region. 

The implementation of DT at Indotrans has encountered both enablers and constraints. On the enabling side, 
ITL designated digital transformation as a core strategic priority, receiving support from senior leadership, 
investors, and strategic stakeholders, while also benefiting from modern infrastructure and a well-matched digital 
talent pool. Nevertheless, the company faces challenges such as intense competitive pressure from domestic and 
emerging market logistics providers, high investment costs required for continuous technological upgrades, and 
rising customer expectations for enhanced digital experiences and diversified service offerings. According to the 
Vietnam Logistics Report 2023, 90.5% of logistics service firms remain in the early digitization stage—focused 
primarily on informatization and basic connectivity—while supply chain readiness indicators remain low due to 
limited infrastructure integration and substantial capital requirements. 

In execution, ITL has pioneered the integration of an API-based service portal into its trucking operations. 
This initiative has delivered multiple benefits, including increased operational productivity through automation, 
real-time information exchange, improved data accuracy, and alignment with industry trends toward integrated 
logistics information systems. The eTMS (electronic Transport Management System) was deployed early in the 
digital transformation roadmap, with emphasis on overland cargo transport. The platform incorporates a range of 
core features, such as ribbon-style interfaces like Microsoft Excel, enabling multi-departmental access to shipment 
lists, vehicle and driver inventories, and itemized order contents. Operational modules include pricing 
management, route planning, dispatch coordination, documentation, trip reconciliation, and transport cost 
reporting. Additional functionalities encompass full-cycle expense breakdowns, vehicle asset management, route-
based cost estimation, fuel procurement oversight, and receivables monitoring based on credit limits. Integrated 
with CRM capabilities, eTMS facilitates customer relationship management with controlled data access and real-
time order tracking. Its KPI dashboard enables monitoring of shipment-level and client-level profitability, 
benchmarking against performance targets, and informed managerial decision-making. 

Evaluation results of eTMS functionality have been overwhelmingly positive. For business departments, the 
system contributes to time and cost efficiency while facilitating distribution performance assessment. For 
operations, customer service, and accounting units, it improves information update cycles, accelerates client 



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interactions, and streamlines settlement procedures. For management teams, eTMS delivers actionable insights via 
dashboards and reporting tools, supporting timely strategic adjustments. Survey findings on eTMS features show 
average ratings ranging from 3.14 to 4.32 out of 5, with the highest score for recurring costs (4.32), attributed to 
lower implementation and maintenance expenses compared to third-party applications. The lowest score (3.14) 
pertained to system accuracy and stability. Notably, no respondents rated any feature below 3, resulting in a 0% 
dissatisfaction rate, suggesting strong alignment between eTMS functions and actual operational needs in road 
freight logistics. Regarding overall user satisfaction, no participants assigned scores below 3, and indicators such as 
“continued use of eTMS in the future” and “willingness to recommend the software to others” received the highest 
evaluations, reflecting its utility and appropriateness for ITL’s service environment. 

The achievements attained by Indotrans in implementing digital transformation initiatives include the 
development and deployment of business software applications featuring rich user interfaces, high scalability and 
storage capacity, rapid data retrieval, and seamless integration with third-party platforms. ITL has successfully 
integrated its logistics systems with major partners such as Vietranstimex, Vietranslink, Sotrans, Dash Logistics, 
Sowatco, and MLC. These applications are built on modern technological foundations and utilize MicroService-
based architecture, which enables modular updates and system enhancements without interrupting operational 
continuity. The company has consistently been recognized in the Top 10 Reputable Logistics Enterprises by 
Vietnam Report and received the 2022 Sao Khue Award for its eTMS and eWMS solutions. 

Survey results on the functional performance and user satisfaction of eTMS show highly positive responses. 
The author notes that, while the product may not be the most sophisticated or universally optimal solution, based 
on user feedback, it is the most suitable system at the current stage for logistics enterprises with ITL’s operational 
model. Its tailored design effectively meets the specific demands of Vietnamese logistics service providers operating 
in road freight. The comparative evaluation of ITL’s proprietary solution versus off-the-shelf third-party 
software—typically offered by technology vendors on the market—is presented and analyzed by the author as 
follows: 
 

Table 1. Comparison between ITL’s eTMS System and Third-Party Logistics Software. 

Criteria ITL’s eTMS Third-Party Software 

Level of Customization 
High – tailored to ITL’s specific 
transportation model 

Low – typically standardized across industries 

User Interface 
User-friendly, multifunctional, aligned 
with internal workflows 

Possibly more modern but may require training 
to operate 

Internal Integration 
Integrates CRM, accounting, customer 
service, dispatch 

Depending on API capabilities or additional 
customization 

Installation and 
Operating Cost 

Low – no external licensing or support 
fees 

Generally higher due to licensing and service 
costs 

Responsiveness & 
Updates 

Flexible – maintained by internal technical 
team 

Subject of provider schedule and support 
roadmap 

Process Compatibility 
Highly aligned with ITL’s operational 
reality 

Moderately compatible – may require 
adjustments 

Accuracy & Stability 
Good overall – with areas for 
improvement 

Often strong due to mature technical platforms 

User Satisfaction 
High – no negative ratings below 
threshold 

Varies depending on implementation context 

 
Despite notable achievements, Indotrans continues to face limitations and persistent implementation challenges 

in its digital transformation efforts. Tax declaration procedures, including fees and surcharges, remain complex due 
to the need for frequent updates and multiple interface operations, posing difficulties for operational departments. 
Moreover, during the rollout of digital applications, cross-functional collaboration has been hindered by employee 
resistance to change and the pressure of routine workloads, resulting in a preference for familiar systems. This 
situation increases the risk of employee turnover, as staff must simultaneously meet core business requirements, 
learn to operate new platforms, and work with IT teams to troubleshoot system errors that significantly impact on 
the enterprise’s digital transformation trajectory. 

Looking toward 2025 and with a vision to 2030, Indotrans aims to pursue and enhance its strategic 
development of an integrated ecosystem of supply chain management solutions (eSCM), a model recognized as a 
target direction for many corporations and large-scale enterprises. This strategic roadmap is intended to establish 
a resilient digital foundation, increase customer value, advance Vietnam’s logistics sector, and enhance global 
competitiveness. In expanding the ecosystem, ITL has augmented its resource base through key mergers and 
acquisitions, such as acquiring a 97% stake in Sotrans Group in August 2020 and gaining full ownership of ITL 
Keppel Logistics Vietnam in July 2022. These transactions significantly boosted ITL’s warehouse capacity, fleet 
size, and service diversification. The digital logistics ecosystem is expected to reduce customer acquisition costs 
through automation and integrated procurement workflows, while generating enterprise and client value via data 
analytics, strengthening customer relationships and retention, and increasing enterprise valuation and market 
competitiveness. 

From a managerial perspective, although survey results indicate positive outcomes, ITL's technological 
products are not necessarily the most advanced, but they are deemed the most appropriate given the company's 
specific logistics business model and operational maturity. ITL’s internal solutions demonstrate competitive 
advantages over third-party software products in several dimensions, including the capacity to scale and input data 
instantly, seamless integration across functional units—enabled by deep understanding of internal requirements, 
higher initial investment but greater long-term cost stability, and lower B2B client integration expenses. For 
Indotrans to fully realize its digital transformation objectives, leadership must address several strategic 
imperatives. First, regarding organizational awareness, DT must be understood not only as a technological 
investment but as a comprehensive shift in workforce mindset, requiring exemplary leadership engagement. 
Second, in terms of human capital, there must be an informed appreciation of DT’s strategic role to guide resource 



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allocation, especially through enhanced managerial education for technically proficient logistics personnel. Finally, 
concerning financial investment, DT demands considerable expenditure and technological autonomy to mitigate 
the risk of obsolescence and financial loss—necessitating a staged and well-structured investment roadmap over 
time. 
 

5. Conclusion 
The impact of the COVID-19 pandemic has catalyzed new consumer awareness, behavioral trends, and 

business models, creating opportunities for market realignment, value chain restructuring, and the formation of 
new partnerships. It has presented a critical juncture for Vietnamese enterprises to reassess their operational 
capacity, resilience, and adaptability in the face of market disruptions, while enabling them to restructure more 
sustainably and effectively. McKinsey & Company—an international management consulting firm—has noted that 
“Corporate leaders worldwide are increasingly shifting toward ecosystem-based business models to achieve top 
priorities such as scaling core enterprises, generating revenue from new products and services, and creating novel 
value pools.” Building ecosystems is thus not only the responsibility of industry-leading firms but also a strategic 
pathway for exponential growth, enabled by resilient platforms that optimize operational costs and enhance 
profitability. Moreover, a successful ecosystem allows a firm to expand its domestic influence while simultaneously 
meeting international standards and partner expectations. 

In alignment with this perspective, the leadership at Indotrans has also affirmed that developing a logistics 
ecosystem is the strategic destination for major enterprises seeking to establish a robust foundation, delivering 
greater customer value, and advancing sector-wide progress. Accordingly, ITL will continue to pursue its strategy 
of constructing an integrated ecosystem of supply chain management and logistics solutions. This ecosystem—
centered on technological platform development—serves as the digital foundation for connecting diverse logistics 
business models currently operated by the company. It also aims to amplify ITL’s influence within the logistics 
sector, improve the Logistics Performance Index (LPI) for domestic firms, and bolster Vietnam’s competitiveness 
against regional leaders such as Thailand, Malaysia, and Singapore. Drawing from this analysis, the article 
proposes a set of strategic recommendations to guide Indotrans’ digital transformation efforts during the 2022–
2025 period, with a long-term vision toward 2030. 

First, the solution involves workforce development. In pursuit of a digitally integrated business model, ITL 
requires a substantial digital workforce. Building a core transformation team drawn from functional departments 
and IT units is a top priority, especially equipping mid-level managers with digital skills and mindsets to serve as 
structural anchors. Simultaneously, the enterprise must proactively secure a reliable talent pool to prevent 
disruptions to its transformation roadmap. Specific measures include leveraging corporate reputation to attract 
prospective candidates from universities and expert panels; offering internships to logistics students to develop a 
recruitment pipeline; assigning clear KPIs to management for mentoring successors; launching talent programs for 
outstanding employees and young leaders with dedicated investment from senior executives; developing 
competency frameworks for technical roles directly involved in building, testing, and operating digital systems; and 
utilizing internal e-learning platforms to assess professional competencies, thereby informing training, capacity 
development, and tailored incentives. 

Second, the communication solution emphasizes both internal and external engagement. Internal 
communication serves as the critical "touchpoint" between the enterprise and its workforce, shaping and 
reinforcing corporate values and culture. ITL has effectively promoted a “Ownership Spirit” during the initial 
phase of its digital transformation. In the next stage, internal communications should be enhanced to promote 
clarity, transparency, and multidimensional messaging—ensuring employees understand objectives and act with 
greater agency. Communication must also cultivate unity, reinforce organizational cohesion, and support 
recruitment and retention by projecting a positive and aspirational work environment. External communications 
play a vital role in capturing market attention, shaping brand perception, and fostering long-term customer trust. 
ITL’s communications team has actively conveyed the organization’s digital agenda and improved brand 
positioning. Moving forward, it is essential to maintain momentum in public outreach, align messaging with 
strategic objectives, and coordinate closely with executive leadership to ensure consistency across all channels. 

Third, innovation is essential. In a fast-paced, highly competitive market, fostering innovation is a key strategic 
differentiator and a source of long-term advantage. To cultivate a culture of innovation, efforts must be properly 
guided and institutionalized. Employees, being closest to daily operations, have unique insights and are well-
positioned to propose meaningful product improvements. ITL can encourage cross-functional innovation by 
hosting periodic contests focused on management applications, allowing departments to submit enhancement ideas. 
These proposals often identify specific areas for improvement, leading to greater product utility and performance. 
Moreover, this approach reinforces a culture that continuously generates and implements new ideas—an intangible 
assets of high value for the organization. 

In conclusion, ITL’s digital transformation journey underscores its pioneering efforts in independently 
developing technology platforms tailored to digitalizing logistics processes. These initiatives have demonstrated 
clear benefits in optimizing operations, managing costs, and enhancing productivity, while receiving positive 
feedback for their applicability and growth potential.  By establishing a solid foundation for an integrated logistics 
ecosystem, ITL has reinforced its competitive advantage in emerging markets and positioned itself as a leader in 
the sector.  

The case of Indotrans is particularly relevant to the logistics industry in emerging countries, where systemic 
challenges such as limited financial capacity, outdated infrastructure, and workforce skill deficits often hinder 
digital transformation efforts. ITL’s ability to overcome these barriers through strategic investments in 
proprietary technology platforms and ecosystem development provides a replicable model for other enterprises in 
similar contexts. Furthermore, its success highlights the critical role of managerial leadership, tailored 
technological solutions, and innovation-driven strategies in enabling logistics firms to compete effectively in global 
markets while addressing the unique constraints of emerging economies. Strengthening both internal and external 
communication strategies will be crucial for fostering organizational cohesion, enhancing employee engagement, 



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and amplifying corporate branding. Additionally, structured initiatives such as innovation competitions can serve 
as a strategic tool to encourage cross-functional collaboration, generate creative solutions, and build a valuable 
repository of internal intellectual assets that drive continuous improvement and innovation.  

 
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