Digital technologies as enablers of supply chain sustainability in an emerging economy

Abstract

Vietnam is a country with significant potential for growth as a global centre for manufacturing, as supply chains look to reduce their over-reliance on China in the aftermath of COVID-19. The objective of this study is to better understand the current adoption rates and growth potential of emerging Industry 4.0 (I4.0) digital technologies and ascertain their potential to drive successful future sustainability initiatives amongst Vietnamese supply chain firms. These technologies offer a wide range of sustainability benefits, from a potential to reduce waste production and lower energy consumption to increased opportunities for recycling and industrial symbiosis. This empirical study surveys 223 Vietnamese supply chain experts to learn how digital technologies are being utilized in that region, what levels of future investment are expected, what preparatory measures are being taken to leverage new technologies, and what scope for improved supply chain sustainability exists. The findings indicate a low level of I4.0 digital technology adoption amongst Vietnamese supply chain firms, with the Internet of Things (IoT) currently being the most prevalent (48 percent adoption rate). Drones, Big Data Analytics and IoT are the I4.0 digital technologies expected to have the greatest future impact on Vietnamese supply chains. Whilst I4.0 digital technology adoption is still at this early stage, that may present a greater opportunity for driving future sustainability outcomes, than interrupting and retrofitting solutions to already-established networks and infrastructure.