In Vietnam, Logistics 5.0 is not just a concept, but is gradually becoming a strategic development trend. In the context of the Government promoting the Logistics Development Strategy until 2035, Logistics 5.0 promises to become the new "framework" that helps Vietnam's logistics industry synchronize with the world—where technology, people, and the environment develop in parallel. Let's learn more about this trend in the article below.
1. What is Logistics 5.0?
Logistics 5.0 is a natural continuation of Logistics 4.0, but with a greater focus on sustainability and the human element. If the 4.0 generation focused on automation, Logistics 5.0 emphasizes the intelligent collaboration between people and technology. Businesses are not just deploying software or robots; they are designing an operating ecosystem that is smart, flexible, and human-friendly.
The foundation of Logistics 5.0 is built on three pillars: intelligent automation, human-centricity, and green development. Intelligent automation is not merely robots replacing manual labor, but the integration of AI, Machine Learning, RPA, IoT, and Digital Twin to predict demand, optimize transport routes, and simulate the entire supply chain in the digital space. Data is no longer just for storage, but becomes "digital intelligence" to help people make faster, more accurate, and more efficient decisions.
Contrary to the notion of "machines surpassing humans," Logistics 5.0 brings people back to the center of the value chain. Technology now serves to increase productivity without losing creativity, safety, and balance. Logistics workers are supported by AI systems to analyze data, optimize transport plans, and manage customer care, but they retain the core roles of leadership, direction, and emotional interaction.
Another notable point of Logistics 5.0 is its orientation towards green and sustainable growth. As ESG (Environmental – Social – Governance) goals and the Net Zero 2050 commitment become global standards, logistics businesses are forced to transition. Reducing carbon emissions, optimizing energy use, reusing packaging, and digitizing documents not only help cut costs but also enhance brand reputation and international competitiveness.
2. The difference between logistics 4.0 and logistics 5.0
Criteria
| Logistics 4.0 | Logistics 5.0 |
Core features |
Technology & Efficiency
|
People & Sustainability
|
Goal |
Automation, Cost Reduction
|
Harmony between Machines – People – Environment
|
Technology | IoT, Big Data, Cloud ERP |
Collaborative AI, Green Data, Transparent Blockchain
|
Value creation |
Increase productivity, Optimize costs
|
Increase Social, Environmental, and Brand Value
|
It can be said that Logistics 5.0 is not just a technological step forward, but a new operational philosophy, where people are placed at the center, technology plays a supportive role, and all activities are directed towards long-term social, environmental, and brand value.
3. The five core technologies of Logistics 5.0
AI and Machine Learning
AI (Artificial Intelligence) and Machine Learning are spearheading the new logistics revolution. Instead of merely collecting data, businesses can now predict transportation demand, optimize routes, and reduce inventory risk thanks to machine learning algorithms.
For instance, an AI logistics system can analyze millions of data points—from weather conditions, traffic status, to customer behavior—to automatically suggest the optimal delivery route in real-time, helping to save fuel and costs.
Furthermore, AI supports OCR (Optical Character Recognition) in document recognition, which shortens processing time for paperwork and reduces manual handling by 60%. This ushers in an era where humans and AI "co-create" in logistics operations.
Robotics & Automation – the foundation of automated warehousing
Warehouse robots, smart conveyors, automated sorting systems, and delivery drones are no longer distant visions. In Logistics 5.0, Robotics and Automation become the enterprise's second workforce, prized for being accurate, fast, and tireless.
Thanks to automation, distribution centers can shorten order processing time by 40–50%, reduce labor costs, and achieve nearly absolute accuracy. Notably, when integrated with ERP, AI, and IoT systems, robots can move, update, and synchronize warehouse data in real-time.
In Vietnam, many pioneering logistics businesses have begun piloting robots in warehouse management and internal transportation, marking a significant step toward an uninterrupted supply chain.
Blockchain – Building a transparent and trustworthy supply chain
One of the most persistent headaches in the logistics industry is the lack of transparency and the susceptibility to data fraud. Blockchain logistics technology definitively solves this problem by encrypting and storing every transaction on an unchangeable distributed ledger.
This means businesses, customers, and partners can all track the origin of goods, delivery status, and document processing history with absolute clarity. Blockchain helps build trust, especially in import/export, cold chain logistics, and cross-border transport—where traceability is a mandatory factor.
IoT & digital twin – The digital replica of the physical supply chain
With the Internet of Things (IoT), every device—from containers, temperature sensors, and trucks to delivery drones—can connect and continuously transmit data. Consequently, businesses can monitor the condition, location, and status of goods throughout the entire journey, from the factory to the customer's hands.
Digital Twin technology takes this a step further by allowing businesses to simulate the entire supply chain in a digital space. Any real-world change—such as traffic jams, delivery delays, or demand fluctuations—is instantly reflected on the virtual model, helping managers predict risks and make more accurate decisions.
AI-integrated ERP and CRM systems
Finally, we must mention the comprehensive digitization of the entire operational system within an enterprise. If AI, IoT, and Blockchain are the power tools, then ERP, CRM, and AI are the central operating system for the entire Logistics 5.0 framework. Platforms like Sota ERP, SotaFMS, and Sota CRM, when integrated with AI, help Vietnamese businesses manage everything from warehousing, transportation, and accounting to customer care on a unified platform.
This system not only facilitates transparent data and rapid decision-making but also creates a closed loop between performance, experience, and sustainability, bringing businesses closer to the model of "green logistics" and comprehensive digital transformation.
4. The benefits of Logistics 5.0 for Vietnamese businesses
The emergence of Logistics 5.0 is not merely a technological trend, but a long-term development strategy that helps Vietnamese businesses enhance their competitiveness and meet the demands of globalization.
- Optimized Operations: Thanks to automation and AI OCR (Optical Character Recognition), businesses can reduce manual operations by up to 60%, shortening document processing time while minimizing errors in delivery and reception.
- Faster Decision-Making: Real-time data from IoT (Internet of Things) and FMS (Fleet Management Systems) allows managers to grasp the operational status immediately, predict market fluctuations, and adjust plans flexibly.
- Enhanced Customer Experience: Smart logistics CRM (Customer Relationship Management) enables customers to track orders in real time, receive quick responses, and get automated support—boosting satisfaction and loyalty.
- Promoting Sustainable Development: Logistics 5.0 is closely linked to green logistics, helping to reduce energy consumption, lower $\text{CO}_2$ emissions, and contribute to the ESG (Environmental, Social, and Governance) goal of Net Zero 2050.
- Increased Competitive Advantage: Businesses adopting the Logistics 5.0 model not only achieve internal efficiency but also meet international standards, expanding cooperation opportunities with global corporations.
From these factors, it is clear that Logistics 5.0 is no longer a "distant future," but an essential roadmap for Vietnamese logistics businesses—where efficiency, people, and the planet develop in harmony.
5. The current state and challenges of Vietnam on the road to Logistics 5.0
Vietnam is emerging as one of the fastest-growing logistics markets in Southeast Asia, contributing around 4–5% of the national GDP and being considered the "backbone" of the import-export economy. However, in the pursuit of the AI-driven Logistics 5.0 model, where technology, people, and sustainable development are integrated, Vietnam's logistics sector still faces multiple barriers related to infrastructure, human resources, and operational mindset.
- Non-Synchronized Digital Infrastructure: One of the biggest current challenges is the lack of synchronization in digital infrastructure. The majority of Vietnamese logistics enterprises, especially small and medium-sized enterprises (SMEs), still manage processes using Excel, email, or fragmented software. Data is siloed and lacks connectivity across departments—from warehousing and accounting to customer service—leading to information loss and difficulty in making real-time decisions. In a global context transitioning to the era of AI-driven logistics, maintaining outdated systems makes Vietnamese businesses susceptible to lagging behind.
- Enduring Weakness in High-Quality Human Resources: The shortage of high-quality human resources remains a perennial weakness. Many logistics engineers are not adequately equipped with knowledge of AI, IoT, ERP, data analytics, and digital supply chain management. Since these technologies are the pillars of Logistics 5.0, this human resource deficit—specifically the lack of personnel who understand technology and possess a digital mindset—hinders enterprises in their transformation efforts. According to surveys by the Vietnam Logistics Business Association (VLA), only about 40% of the industry's workforce receives specialized training, with the rest learning through practical experience. This is a modest figure compared to the current needs of digital transformation.
- Limited Investment Capital for Logistics Technology: Investment for logistics technology is still constrained. Implementing comprehensive ERP, CRM, or AI systems requires substantial initial costs. However, most Vietnamese logistics enterprises are small-scale, thinly capitalized, and lack specific financial incentive policies for long-term investment. Many businesses still view digital transformation as a "cost," rather than correctly recognizing it as a "growth leverage."
Despite the challenges, opportunities always exist. Vietnam is experiencing a "golden moment" for a breakthrough, especially as the Government has issued the Logistics Services Development Strategy to 2035. This strategy emphasizes two key orientations: nationwide digital transformation and development of green logistics. Policies prioritizing investment in port infrastructure, roads, smart warehouses, and national logistics centers are opening up a strong developmental space for domestic enterprises.
In particular, the trend of Green Logistics and ESG (Environmental – Social – Governance) is spreading rapidly. A growing number of Vietnamese enterprises realize that sustainable development is not merely a "social responsibility" but also a long-term competitive advantage. Applying AI and ERP logistics to minimize manual operations, save energy, and thus indirectly help optimize manual paperwork and reduce emissions clearly demonstrates the value that Logistics 5.0 brings.
6. Solutions and directions for Vietnamese enterprises
To catch up with this wave, Vietnamese enterprises need to follow four strategic transformation directions:
Digitalize operational capabilities with AI-integrated ERP and CRM platforms
This is a key step in the journey toward Logistics 5.0. Solutions like Sota FMS are proving their ability to comprehensively manage orders, inventory, transportation, and customers on a single, unified platform. Digitalizing the supply chain helps businesses save time, reduce manual errors, and gain a more holistic view of their operations.
Develop digital human resources
Training a team that is technologically savvy, capable of exploiting data, and operating ERP or AI logistics systems is a determining factor for success. Internal programs, specialized courses, or collaborative training with universities and technology centers will help shape a new generation of personnel—individuals who possess both traditional logistics skills and proficiency in digital thinking.
Promote green logistics
Enterprises should start with small but significant actions: reducing paperwork, digitalizing documents, optimizing transportation routes, reusing packaging, and conserving fuel. Each of these changes not only contributes to reducing operational costs but also helps businesses move closer to the Net Zero 2050 goal—the commitment to reduce carbon emissions that Vietnam made at COP26.
Foster public-private partnership and build an open logistics platform
The connection between businesses, startups, and state agencies will create a unified logistics ecosystem where data is transparently shared and processes are standardized. This is the foundation for forming the "green digital infrastructure"—the core objective that Logistics 5.0 is aiming for.
7. Conclusion
Logistics 5.0 is not just a newly emerging technological trend; it is a long-term vision for the future of the global economy. For Vietnam, this transition carries strategic significance, not only helping logistics enterprises enhance their competitive capacity but also contributing to the national goals of digital transformation and green development.
In the context of the global shift toward Industry 5.0, the application of technologies like AI, ERP, IoT, Blockchain, or Sota FMS is no longer an option but a prerequisite. Vietnamese logistics enterprises need to re-evaluate the role of technology in supporting people to work more efficiently, creatively, and safely. When artificial intelligence and real-time data are integrated into operations, businesses can cut costs, accelerate order processing speed, while ensuring accuracy and transparency across the entire supply chain.
Every transformation step, no matter how small—from digitalizing documents and optimizing delivery routes to reusing packaging—contributes to the Net Zero 2050 goal. This is not just a national commitment; it is also a "certificate of credibility" for businesses aiming to integrate into the global value chain.