The Efficiency and the Performance of the Logistics Global Supply Chain Activities to Vietnam Exportation: an Empirical Case Study
DOI:
https://doi.org/10.26668/businessreview/2023.v8i4.1730Keywords:
Logistics Performance Index (LPI), Export, Gravity Model, OLS, Efficiency, UttAbstract
Purpose: This research paper aims to determine the factors affecting the efficiency and logistics performance index (LPI) of Vietnam's exports to foreign partners during 2018-2022 are due to the impact of the COVID-19 pandemic.
Theoretical Framework: Based on the primary factors affecting the efficiency and performance of global supply chain activities in logistics for Vietnam's exports, including practical impact and logistics results of enterprises in Vietnam. Based on the primary factors affecting the efficiency and performance of global supply chain activities in logistics for Vietnam's exports, including (1). Customs efficiency (speed, simplicity and predictability of customs clearance procedures) (2). Quality of infrastructure related to trade and transport, including Roads, railways, ports, airports, warehouses and information technology ...(3). The level of ease when arranging to transport import and export goods with competitive prices (costs such as warehousing fees, port fees, tolls ... ) (4). Capacity and quality of logistics service providers ... (5). Ability to track and trace shipments. (6). Timeliness of the shipment to the destination within the specified time limit. The practical impact and logistics results of enterprises in Vietnam.
Method: The panel approach allows the authors to explore the heterogeneity in data across countries. Fixed effects (FE) and random effects (RE) models were used to estimate the model. Then, the Hausman test is carried out to decide which model is appropriate. The data were collected from 240 observations from Vietnam and 80 major export partner countries of Vietnam.
Findings: The research results show that the cost, time and capacity of providing logistics services have the most significant impact on Vietnam's exports.
Practical & social implications: Overall, to increase the efficiency and logistics efficiency of enterprises. The Vietnamese Government needs to cooperate and propose ideas to partner countries to improve logistics activities for exports from Vietnam. Logistics is beginning to play an increasingly important role in the competitiveness of economies.
Originality values: This study also confirms the sustainability of the extended gravity model using OLS and RE methods by substituting different variables for the country's logistics efficiency and solving the endogenous problem in the model while applying the regression method to industrial variables. We find that an 1% improvement in Vietnam's logistics would increase Vietnam's exports by 1.443%, and an 1% improvement in a partner country’s performance would help promote Vietnam's exports to this country by 0.546%.
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