B440713.pdf American Journal of Multidisciplinary Research and Review

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American Journal of Multidisciplinary Research & Review (AJMRR)
Volume-04, Issue-04,
PP-07-13
www.ajmrr.com
Research Paper OpenAccess

Impacts of Global Supply Chain Shifts on the Information
Technology Services Sector in Bac Ninh Province, Vietnam

Bui Nhu Hien, Ngo Thi Huong Giang
Thai Nguyen University of Economics and Business Administration

Abstract: This study aims to analyze the factors influencing the development of the information technology services
sector in Bac Ninh Province under the context of global supply chain shifts. The authors conducted surveys with 235
participants, including 210 government officials (comprising leaders from the Bac Ninh Provincial People’s
Committee, People’s Council, and departments such as Planning and Investment, Industry and Trade, Transport,
Natural Resources and Environment, and industrial park management boards) and 25 IT company managers
operating in the province. The survey results were analyzed using descriptive statistics and mean evaluation, focusing
on five key factor groups: natural conditions, socio-economic conditions, infrastructure, investment attraction
policies, and administrative procedures. The findings highlighted that geographic location (3.85 points), economic
structure (3.89 points), transportation infrastructure (4.02 points), infrastructure development policies (4.03 points),
and licensing procedures (3.88 points) are the most prominent factors that strongly influence investment attraction
and supply chain development for the IT sector in Bac Ninh. Based on these findings, the article proposes solutions
that prioritize improving infrastructure, enhancing human resource quality, streamlining administrative procedures,
and adjusting investment attraction policies to effectively leverage global supply chain shifts and foster sustainable
growth in the IT sector in Bac Ninh Province, Vietnam in the coming period.

Keywords: Global supply chain shifts, information technology services, Bac Ninh, investment attraction,
infrastructure, development policies, administrative procedures, influencing factors.

I. Introduction
In recent years, the global economic landscape has undergone profound shifts due to trade wars, global
pandemics, and geopolitical tensions among major economies. These developments have led to significant
realignments in global supply chains, particularly in sectors involving high-tech products and services. Prominent
trends include relocating supply chains to geographically proximate countries to mitigate geopolitical risks,
restructuring supply chains to diversify risks, investing more heavily in high-value products linked to national
security and advanced technology, and moving toward greener, more sustainable supply chains.
Vietnam in general, and Bac Ninh Province in particular, are strategic destinations expected to benefit from
these global shifts due to their favorable geographical location near Hanoi—the country’s economic hub—and their
well-developed socio-economic infrastructure. Among these, the information technology services (IT) sector is
considered one of the most promising industries, leveraging these advantages to foster robust growth, increase added
value, and enhance competitiveness in international markets.
However, the extent and mechanisms by which global supply chain shifts affect Bac Ninh’s IT sector
remain underexplored. This underscores a critical need for empirical research to identify the most significant factors
influencing supply chain management and investment attraction in the local IT industry. Clarifying these factors
would provide a crucial scientific basis for Bac Ninh to design and refine policies and management mechanisms,
thereby capitalizing on the opportunities presented by global supply chain shifts.
Against this backdrop, this paper aims to conduct a thorough and comprehensive analysis of the factors
influenced by global supply chain shifts on the IT services sector in Bac Ninh. The findings are intended to offer a
scientific foundation to help Bac Ninh formulate effective investment attraction policies, foster sustainable
development, and strengthen the province’s competitiveness in an increasingly integrated international environment.

II. Theoretical Framework and Literature Review
Supply chains are interconnected networks comprising suppliers, manufacturers, distributors, retailers, and
end consumers, with all parties collaborating to produce and deliver goods and services efficiently (Chopra &

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Meindl, 2019). According to Christopher (2016), global supply chains span multiple countries, leveraging
advantages in production costs, labor, resources, and other factors. Recent international research highlights that
global supply chain shifts have become increasingly pronounced, driven by factors such as trade wars, the COVID-
19 pandemic, and geopolitical tensions (McKinsey & Company, 2021).
Studies by Grzybowska (2021), Grytsenko (2022), Dinh T. P. (2024), and Duong Minh Ngo (2020)
identify four primary trends in global supply chain realignments: (1) relocating supply chains to nearby countries to
reduce reliance on a single market or country, (2) increasing investment in high-value, technologically advanced,
and security-sensitive products, (3) diversifying supply sources to mitigate risks, and (4) transitioning to greener and
more sustainable supply chains.
According to Porter’s (1990) diamond framework, a locality’s or nation’s competitive advantage is
shaped by factors such as natural conditions, infrastructure, human resources, and government support policies. The
interplay and mutual reinforcement among these factors are critical to attracting investment and driving economic
development.
Empirical research also underscores the importance of infrastructure, supportive policies, human
resources, and administrative procedures in influencing investment decisions by multinational corporations and
large conglomerates, particularly in high-tech sectors (OECD, 2020; Asian Development Bank, 2021).
In Vietnam, recent studies have explored the impacts of global supply chain shifts on the national
economy and high-tech industries. Duong Minh Ngo (2020) asserts that Vietnam is poised to seize new investment
waves spurred by supply chain relocations from developed nations to Southeast Asia, particularly in manufacturing
and high-tech services. Research also points to the importance of infrastructure, skilled labor, and policy
frameworks as key conditions for Vietnam to fully capitalize on these opportunities.
In Bac Ninh, while there have been some studies on general economic development and investment
attraction, in-depth research on the effects of global supply chain shifts on the province’s IT sector remains lacking.
This shortage of targeted, empirical studies poses challenges for local authorities in formulating effective strategies
and policies to leverage the advantages of global supply chain realignments.
In summary, although there is extensive research on global supply chains and factors driving investment
in high-tech industries at the national and international levels, in-depth, empirical studies at the local level—
specifically concerning Bac Ninh’s IT sector—are still limited. Addressing this research gap is essential to provide
both theoretical and practical foundations that enable Bac Ninh’s authorities to develop effective policies and
management mechanisms to fully harness the opportunities arising from global supply chain shifts.

III. Research Findings and Discussion
In order to investigate and analyze the factors affecting the information technology services sector in Bac
Ninh Province under global supply chain shifts, the research team surveyed 210 government managers—including
representatives of the Bac Ninh Provincial People’s Committee, the People’s Council, and officials from provincial
departments such as Planning and Investment, Industry and Trade, Transportation, Natural Resources and
Environment, as well as industrial park management boards and district-level officials—and 25 corporate managers
from IT firms within the province. The findings focused on four global supply chain trends:
1. Shifting supply chains to neighboring regions to reduce dependence on single markets and avoid risks
associated with trade wars or sanctions among major economies.
2. Relocating supply chains that require high-tech production investments tied to strategic, high-value goods
linked to technological secrecy and national security.
3. Restructuring and diversifying supply sources by expanding supplier networks to mitigate risk.
4. Transitioning to environmentally friendly, green supply chains.
3.1. Natural Conditions of the Local Area
Table 1: Survey Results on the Impact of Local Natural Conditions on Supply Chain Management and IT
Investment in Bac Ninh Province
Factor
Total
Responses
Minimum Value
Maximum
Value
Average Value
Geographic location 235 1 5 3.85
Climate 235 1 5 3.30
Terrain 235 1 5 3.40
Vegetation 235 1 5 3.08
Natural resources 235 1 5 3.23
Geology 235 1 5 3.14
Source: Compiled from the research team’s survey results (2024)

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Geographic location: With the highest score (3.85), geographic location is the most influential natural
factor. Situated near Hanoi, Vietnam’s economic hub, Bac Ninh enjoys seamless connectivity with other regions
nationally and internationally. This advantageous location reduces logistics costs, fosters trade, and enhances supply
chain operations, making it attractive for IT companies. Proximity to major industrial hubs and technology centers
further boosts the province’s IT sector growth potential.
Climate: Although less influential (3.30), Bac Ninh’s stable climate helps reduce risks from natural
disasters such as floods and typhoons, ensuring a stable working environment for IT firms.
Terrain: With a score of 3.40, terrain has limited direct impact. However, favorable terrain simplifies the
development of critical infrastructure like data centers, office buildings, and industrial zones.
Vegetation: Vegetation, with a score of 3.08, plays a relatively minor role. However, a green and livable
environment can attract high-quality human resources, particularly those working in high-tech fields.
Natural resources: These are not directly critical for IT, as the industry does not heavily depend on physical
resources. However, certain resources (e.g., energy) can indirectly lower operating costs (3.23 score).
Geology: A stable geological environment (3.14 score) helps ensure reliable foundations for infrastructure,
including data centers and office complexes, but its direct impact on supply chain management and IT investment is
limited.
The survey results highlight the prominence of geographic location as the most influential natural factor for
supply chain management and IT investment in Bac Ninh. Although other natural factors—climate, terrain,
vegetation, natural resources, and geology—play supporting roles, they do not have as significant a direct impact as
economic and human resource factors. Geographic location remains the cornerstone for creating a favorable
environment for IT sector growth in Bac Ninh.
3.2. Socio-Economic Conditions of the Local Area
Table 2: Survey Results on the Impact of Local Socio-Economic Conditions on Supply Chain Management and
IT Investment in Bac Ninh Province

Factor
Total
Responses
Minimum
Value
Maximum
Value
Average Value
Economic growth rate 235 1 5 3.78
Economic structure and structural shift 235 1 5 3.89
Workforce structure and productivity 235 1 5 3.87
Capital mobilization, investment
utilization, and capital efficiency
235 1 5 3.86
Industry development 235 1 5 3.87
Population 235 1 5 3.66
Education and training 235 1 5 3.68
Healthcare 235 1 5 3.69
Workforce quality 235 1 5 3.86
Source: Compiled from the research team’s survey results (2024)
Economic structure and structural shifts (3.89): The transition from industrial production sectors to high-
tech industries has significantly contributed to attracting investment into Bac Ninh’s IT sector. This shift has opened
numerous opportunities to develop IT supply chains and underscores the province’s effective leveraging of
economic structural adjustments to grow its IT industry and attract investors.
Workforce structure and productivity (3.87): High-skilled, productive labor is a crucial factor in attracting
investment to the IT sector. Bac Ninh requires a quality workforce that can efficiently operate in a rapidly evolving
technological environment. High-quality human resources are instrumental in enhancing the operational efficiency
and sustainable development of IT firms.
Industry development (3.87): The robust growth of Bac Ninh’s industries—particularly manufacturing and
processing—creates substantial demand for IT solutions to optimize production processes and improve efficiency.
This, in turn, fosters IT supply chain growth and attracts investments in fields like software, cloud computing, and
artificial intelligence.
Capital mobilization, investment utilization, and capital efficiency (3.86): Effective mobilization and use of
investment capital are vital for IT development, especially for infrastructure and product research and development.
Efficient capital management helps IT enterprises grow sustainably and strengthens the sector’s supply chain.

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Workforce quality (3.86): High workforce quality plays a pivotal role in developing the IT supply chain and
attracting investment. Skilled personnel enable IT companies to innovate, optimize processes, and improve
operational efficiency. Investing in training and enhancing workforce quality is essential for attracting investors and
fostering IT sector growth in Bac Ninh.
Healthcare (3.69): Although not as impactful as other factors, a well-functioning healthcare system
indirectly supports IT development by maintaining a healthy workforce, ensuring stability and continuity for IT
companies.
Education and training (3.68): High-quality education and training are critical for developing a skilled
workforce for the IT industry. A strong educational system equips workers with the necessary skills, improving
supply chain management efficiency and attracting investment.
Economic growth rate (3.78): A stable economic growth rate creates a favorable environment for IT firms.
Although moderate in impact, sustained economic growth drives demand for IT solutions, software, and services,
thereby stimulating the IT supply chain and attracting investment.
Population (3.66): The population size indirectly influences the consumption market for IT products. While
a large population generates demand and attracts investors, its lower score indicates it is not as significant as other
factors.
Key factors such as economic structure, workforce structure and productivity, capital mobilization, industry
development, and workforce quality strongly influence supply chain management and investment attraction for Bac
Ninh’s IT sector. While economic growth, education, and healthcare play important supporting roles, their impact is
less pronounced compared to the more critical factors.
3.3. Infrastructure
Table 3: Survey Results on the Impact of Local Infrastructure on Supply Chain Management and IT Investment
in Bac Ninh Province
Factor Total
Responses
Minimum
Value
Maximum
Value
Average Value
Transportation infrastructure 235 1 5 4.02
Water supply and drainage systems 235 1 5 3.94
Power supply systems 235 1 5 3.94
Telecommunications infrastructure 235 1 5 3.92
Irrigation systems 235 1 5 3.66
Source: Compiled from the research team’s survey results (2024)
Transportation infrastructure: With the highest score (4.02), transportation infrastructure is the most critical
factor for IT development in Bac Ninh. Efficient transportation networks connect industrial zones, research centers,
and production facilities, creating a favorable environment for the movement of goods and personnel. Investments in
transportation infrastructure significantly boost the IT supply chain and attract investors, ultimately enhancing the
sector’s efficiency.
Water supply and drainage systems: Although slightly lower at 3.94, reliable water and drainage systems
maintain a stable production environment for IT companies. Effective drainage mitigates flooding risks and protects
technological infrastructure. This stability helps attract domestic and international investors to Bac Ninh’s IT sector.
Power supply systems: A stable power supply, also rated at 3.94, is indispensable for IT operations. IT
businesses rely heavily on uninterrupted electricity to run software development, provide online services, and
operate servers. An uninterrupted power system in Bac Ninh is a fundamental element in ensuring sustainable IT
growth and attracting investment.
Telecommunications infrastructure: Scoring slightly lower at 3.92, telecommunications infrastructure is
critical for linking IT businesses with markets and partners. Well-developed telecommunications networks facilitate
rapid data exchange, online operations, cloud computing, and other technological services. Enhancing
telecommunications infrastructure creates favorable conditions for IT companies to thrive and draws more investors
to the region.
Irrigation systems: Although rated lower at 3.66, irrigation systems indirectly influence IT development.
Efficient irrigation regulates water resources, prevents flooding, and safeguards the natural environment, which in
turn supports a stable economic and social setting. This stability indirectly promotes IT sector growth.
Infrastructure is a vital component in advancing Bac Ninh’s IT sector. Among these, transportation
infrastructure stands out as the most influential, enabling seamless connectivity across industrial hubs, research
centers, and production facilities. Water supply, power, and telecommunications infrastructure also play crucial
roles, ensuring continuous, stable operations for IT companies. Enhancing and investing in these infrastructure

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elements will foster a conducive environment for supply chain management and attract additional investment,
driving strong growth in Bac Ninh’s IT sector in the future.
3.4. Investment Attraction Policies
Table 4: Survey Results on the Impact of Local Investment Policies on Supply Chain Management and IT
Investment in Bac Ninh Province

Factor Total
Responses
Minimum
Value
Maximum
Value
Average Value
Policies and infrastructure development
planning
235 1 5 4.03
Market management policies and
competitiveness improvement
235 1 5 3.96
Policies promoting and applying
technology in operations
235 1 5 3.92
Financial support and access to funding
sources
235 1 5 3.99
Workforce development policies 235 1 5 3.99
Source: Compiled from the research team’s survey results (2024)
Infrastructure development policies: The highest-rated factor (4.03), these policies are critical for
developing IT in Bac Ninh. They ensure smooth construction and operation of essential infrastructure, such as
transportation, telecommunications, and electricity, creating a stable environment that fosters IT business growth.
Well-planned infrastructure investments optimize the supply chain and attract investment, driving sustainable
growth in the IT sector.
Market management policies: With a score of 3.96, these policies create a healthy competitive environment,
encouraging IT businesses to innovate and improve product quality. Trade promotion efforts further expand market
opportunities, enhance partnerships, and attract investors. Although slightly lower than infrastructure policies, they
still significantly contribute to IT sector development.
Technology application policies: Rated at 3.92, these policies drive innovation and process optimization in
the IT sector. By promoting new technologies in management and operations, businesses can increase productivity
and product quality, attracting more investment. While their score is slightly lower than infrastructure and market
policies, they still have a notable impact.
Financial support and funding access: With a score of 3.99, financial policies help IT businesses overcome
financial constraints. Easier access to funding enables investments in R&D, infrastructure improvement, and
production scale-up, ensuring sustainable growth and attracting additional investors.
Workforce development policies: Also scoring 3.99, these policies address the demand for high-quality
talent in the IT sector. By fostering a skilled workforce capable of adapting to rapid technological changes, these
policies improve efficiency and attract more investment.
The survey indicates that investment-related policies strongly influence IT sector development in Bac Ninh.
Infrastructure development policies, along with financial and workforce-related policies, have the most substantial
impact, creating favorable conditions for strengthening the supply chain and attracting investment into the IT
industry.
3.5. Administrative Procedures
Table 5: Survey Results on the Impact of Local Administrative Procedures on Supply Chain Management and IT
Investment in Bac Ninh Province
Factor Total
Responses
Minimum
Value
Maximum
Value
Average Value
Licensing processes 235 1 5 3.88
Certification and attestation processes 235 1 5 3.81
Business registration and practice
certificates
235 1 5 3.83
Contributions to state budgets and funds 235 1 5 3.72
Handling complaints and legal
violations
235 1 5 3.76
Source: Compiled from the research team’s survey results (2024)

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Licensing processes (3.88): The ease and speed of obtaining licenses significantly affect investment in the
IT sector. Efficient licensing procedures reduce waiting times, enabling IT businesses to operate more quickly and
adapt to market demands, thereby enhancing supply chain performance and industry growth.
Certification and attestation processes (3.81): These processes play an important role in IT transactions and
contracts. Prompt and accurate certifications foster trust among businesses and investors, contributing to sector
stability and growth.
Business registration and practice certificates (3.83): Transparent and straightforward registration
procedures create a conducive business environment. These processes ensure legal compliance and operational
readiness, making it easier for IT companies to deliver their services and attract investment.
Contributions to state budgets and funds (3.72): While necessary, complex tax procedures and high rates
can negatively impact IT companies’ profitability. Simplified tax policies and streamlined procedures would help
attract investment and improve supply chain efficiency.
Handling complaints and legal violations (3.76): Efficient handling of complaints and legal issues is vital
for maintaining stability and transparency in the business environment. A fair dispute resolution system builds
confidence among IT companies and investors, ensuring compliance and reducing legal risks.
Administrative and legal factors significantly influence IT sector development in Bac Ninh. Licensing and
certification processes have the most pronounced impact, while issues related to state contributions and handling
legal violations play a more modest yet important role in maintaining stability and transparency.

IV. Conclusion and Proposed Solutions
4.1. Conclusion
The research findings indicate that global supply chain shifts significantly impact the development of Bac
Ninh’s information technology (IT) sector, with several local factors playing a key role. The province’s strategic
location, modern transportation infrastructure, high-quality human resources, and well-coordinated investment
support policies stand out as the most critical contributors. These factors not only attract major companies to the
region but also create favorable conditions for local IT businesses to scale up, optimize supply chains, and enhance
their competitiveness.
Although natural factors such as climate, terrain, and resources are not decisive, they do exert a certain
level of influence by contributing to a stable business environment that supports sustainable production and
operations. Additionally, administrative policies, including business licensing, certification procedures, and related
processes, though not primary drivers, play a vital role in maintaining a transparent, stable, and efficient business
environment. If these policies are implemented more consistently, transparently, and conveniently, they will better
support IT sector development amid increasing international integration and competition.
Overall, the study suggests that Bac Ninh must focus on developing and refining its key factors to fully
leverage the opportunities presented by global supply chain shifts. Enhancing administrative policies, upgrading
infrastructure, improving workforce quality, and increasing financial support are essential steps for the IT sector’s
sustainable growth and to attract both domestic and international investors.
4.2. Proposed Solutions
Based on the research findings, several key solutions are proposed to foster IT sector development in Bac
Ninh.
First, the province should focus on improving workforce quality through intensive training programs
aligned with the practical needs of the IT industry. Establishing courses in artificial intelligence, big data, cloud
computing, and cybersecurity will help local workers adapt to rapid technological advancements. Collaborating with
international organizations and offering technical exchange programs will also enable the local workforce to access
cutting-edge technologies and advanced work processes.
In tandem, investing in infrastructure upgrades is crucial. Expanding and modernizing transportation
infrastructure will reduce logistics costs and increase connectivity between industrial zones, research centers, and IT
companies. Stable and continuous power, water, and telecommunications systems must be ensured to prevent
operational disruptions. Additionally, developing high-tech industrial parks with fully equipped facilities, smart
offices, and creative spaces will serve as a catalyst for the IT sector’s growt h.
On the policy front, the province should implement tax incentives and preferential loans for IT businesses,
particularly those investing in new and environmentally friendly technologies. Simplifying investment registration
and licensing procedures will save businesses time and reduce costs. Furthermore, intensifying investment
promotion and showcasing Bac Ninh’s potential to leading global technology firms can attract both capital and
international experts.
Finally, to capitalize on the trend toward sustainable and green supply chains, Bac Ninh should support
businesses in adopting international standards for renewable energy, production optimization, and emissions
reduction. By simultaneously improving workforce quality, infrastructure, administrative procedures, and support

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policies, Bac Ninh can not only seize the opportunities arising from global supply chain shifts but also establish a
strong foundation for the long-term sustainable growth of its IT sector.

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