Overcoming resistance, competing with "foreign" products

Talking about the fate that made him stick with the field of seaport digital transformation, Mr. Ta Minh Vang, Director of CEH Technology Solutions Company, turned back the clock to 2009, when he was still participating in the management of the CEH.vn Security Forum: “Our group had the opportunity to access a port management software (terminal operation system - TOS) worth millions of dollars, deployed at many seaports around the world. At first, it was just curiosity because the copyright value was too high, after a process of further research, the question began to appear: Why can't Vietnamese technology people do it?".

golden bee.jpg

Mr. Ta Minh Vang, Director of CEH Technology Solutions Company.

Starting out as an IT professional with little knowledge of port operations, in 2015, Mr. Vang and some of his colleagues applied to work as IT staff at a new port in Ho Chi Minh City to gradually accumulate knowledge and practical experience.

With the enthusiastic support from the brothers and sisters working at the port, Mr. Vang and his colleagues have many favorable conditions to conduct in-depth research on the TOS solution, and then expand the features to support port exploitation, apply high technology to automate management monitoring such as artificial intelligence (AI), optical character recognition (OCR), develop online trading platforms... Everything continues every day in the natural close relationship of people "in the same boat".

For a long time, in Vietnam, logistics has been considered one of the “slowest” sectors on the digital transformation journey because of many obstacles. In the port industry, the biggest obstacles are managers who are afraid of change, always vaguely worried about the risks when operating the system, while the unit/organization does not have enough personnel with the necessary technology skills.

Most seaports in Vietnam purchase foreign products/solutions such as Catos (Korea), Navis (USA), TOPS (Australia)… with high costs, complicated upgrading, maintenance, and operation processes, requiring a lot of high-tech human resources, and difficult to integrate and share data. Sometimes the investment activities do not bring about the desired results. Some units even have to return to traditional manual paperwork processes when the technology solution system malfunctions.

With the vision of “Affirming Vietnamese intelligence, bringing technology into exploitation activities, and elevating the port brand”, the CEH team quickly embarked on research and development (R&D) activities with the expectation of creating a large product that can compete with foreign products.

CEH Director is fortunate to have friends and colleagues in the logistics and banking industries who are willing to enthusiastically support him with knowledge, time, and even funding. Sometimes there are financial and personnel difficulties, but each of us sacrifices a little bit, and together we overcome them.

“A big challenge arose when the first version of the VTOS Port Exploitation Solution was launched. With little business knowledge, we tried to create documents, introduce the product, and contact several places to offer our products. The response was a blunt refusal from the port businesses, because in their eyes, although the price was very cheap, with zero experience, VTOS posed too many risks when applied to port exploitation and operation activities. After nearly a year of going back and forth to offer our products, our finances were exhausted, and some people had to find new jobs to make a living. The remaining four brothers, sitting at a coffee shop on the street corner, looked at each other wondering: How to sell, to whom? Should we continue or not?”, Mr. Vang thoughtfully recalled.

Phu My Bridge.jpg

For a long time, most seaports in Vietnam used foreign software products and digital technology solutions.

“The first customer was a big surprise for CEH,” Mr. Vang continued: “At that time, the TOS system of SP-ITC International Container Port (in Ho Chi Minh City) often had to stop operating when receiving 2 ships or when the vehicles and equipment were operating at maximum capacity. This reality did not meet the criteria of international shipping lines as well as the e-Customs integration process of the General Department of Customs. Realizing this was an opportunity for VTOS, we contacted the Port Board of Directors to present and test it. Based on the results achieved, in September 2019, SP-ITC International Container officially operated VTOS.”

After about 4 years, up to now, VTOS products with international standard design have become the leader in the domestic market, gradually replacing TOSs provided by foreign countries, joining hands to solve the difficult "problem" of digital transformation of the country's seaports.

Applying the latest technologies for “Make in Vietnam” products

According to Director Ta Minh Vang, from the very first days, CEH has been steadfast in its “Make in Vietnam” product direction, despite being harshly rejected by customers simply because they prefer “foreign” products over Vietnamese products.

“Ready to give up many opportunities to open businesses in the US, we always have faith in Vietnamese intelligence, in a tomorrow when Vietnamese technology affirms its brand, and the national flag will be present everywhere in the world,” Mr. Vang emphasized.

Dare to think, dare to do with great intelligence and ambition, CEH invests heavily in R&D activities, focusing on R&D human resources; willing to listen to users' requests, developing products suitable for Vietnamese people and culture.

CEH's "Make in Vietnam" products and solutions are continuously researched, developed and apply the latest technologies.

Seaport No. 5.jpg

CEH is a pioneer in applying AI to automate port delivery authentication.

CEH is a pioneer in applying AI to automate port delivery authentication. After the OCR system identifies the vehicle number, trailer number, customs seal number, citizen identification card, driver's license, vehicle registration, vehicle registration, then compares the electronic delivery order (EDO), lifting order, cargo information, and integrates customs clearance data, the AI ​​application system will make a decision for goods to enter/exit the port.

Solutions such as CFS Warehouse, Container Yard, Salan Monitoring, Empty Container Repair, EDI System... all use IoT to manage and optimize operations. Data is integrated on the cloud computing platform according to big data architecture.

CEH's research and implementation of new technology has many advantages when receiving support from partners such as Gemadept, Ministry of Information and Communications, General Department of Customs... Young Vietnamese engineers have a firm grasp of technology, are proficient in training, and quickly integrate AI into software.

Currently, CEH's main product portfolio is quite diverse, with: VTOS port management and operation software; CAS electronic customs software; CFS warehouse management software, bonded warehouse; Port asset and vehicle management software; Eport/Smartport online application; Ride-hailing application (similar to Grab, Uber models)...

CEH's "Make in Vietnam" products and solutions are highly appreciated for their outstanding advantages: Developed based on requirements and actual operations, on a new, modern technology platform; Easy to use, user-friendly; Staff with in-depth understanding of the business; Deployment time within 2 - 5 weeks (much faster than the average of 16 - 18 months of foreign products); High upgrade and customization capabilities, with API standards for easy integration and expansion with third-party applications; Deployment costs are only 10 - 20% of foreign products...

Seaport number.jpg

CEH's "Make in Vietnam" products and solutions have many advantages over foreign products.

Despite having many outstanding advantages, like many other Vietnamese technology enterprises, CEH still has to face the lack of trust of Vietnamese people in Vietnamese products and solutions.

“The belief in the “Make in Vietnam” product is probably the biggest obstacle in the negotiation process with our customers. Maybe because in the past, when mentioning mechanical, electrical, electronic products, etc., the brands of enterprises from developed countries were already present in the minds of many Vietnamese users. Taking advantage of the opportunity of being the first customer, CEH has professionally deployed and actively upgraded new features, contributing to improving productivity and value for the port. Thereby gradually creating trust among domestic seaport enterprises,” said Mr. Vang.

Promoting digital economic development

To date, 23 seaports, ICDs (dry docks), and depots have used CEH's solutions, achieving many positive results.

Typically, at SP-ITC International Container Port, CEH's "Make in Vietnam" solutions have digitally transformed 100% of operations, reducing 70 - 90% of personnel working on accounting, documents, reports, and statistics. The time for receiving and delivering goods through the gate has been reduced from 10 minutes to just 1 minute. Along with that, other features such as optimizing yard and ship operations; automatic data exchange EDI, EDO with shipping lines... have helped increase output from 60,000 Teus/year in 2018 to 800,000 Teus/year in 2022. In July 2023, impressed with the major changes in technology at SP-ITC International Container Port, MSC shipping line returned to use services at this port.

Another typical case is the Smartport platform used at 11 ports of Gemadept Group. Online interactions such as: Querying cargo information, bills of lading, ship schedules, making lifting orders, customs clearance and receiving legally valid electronic documents... have helped the operation process that previously had to go through 10-12 touch points and many moves, now only takes 2-3 minutes to complete online operations, bringing a positive experience to customers.

Or the applications of Calling container trucks, salan, Container Re-use, Online repair betting... help shippers reduce up to 50% of transportation costs, contributing to the development of Vietnam's digital economy.

Seaport No. 2.jpg

The Digital Seaport ecosystem helps all seaport activities take place online and throughout the process.

In particular, CEH's VSL Digital Seaport Ecosystem connects components in the logistics industry, operating 24/7, helping Vietnamese seaports improve their competitiveness and reach international standards.

VSL creates an intermediary control center, processes online logistics services in real time, operates on a cloud platform, authenticates the identity of each participant, issues legally valid electronic documents, integrates banking, insurance, and transportation services according to the sharing economy model. VSL operates based on a large data warehouse, selectively sharing data with state management agencies. The components of this ecosystem include: Seaports/dry ports/warehouses; shipping lines; road transport/water transport companies; state management agencies (customs, port authorities, border guards, etc.); banks; insurance companies.

“The maximum capacity of each port to receive ships is different. When a “super” container mother ship arrives, only a few ports can accommodate the ship. Normally, only one ship can be received at a time (other ships have to queue). This leads to overload for some large ports, while other ports may not operate at full capacity, causing waste of resources. Although it has a natural advantage in terms of waterways and can receive “super” ships, with the current organization, Ba Ria - Vung Tau province has not yet exploited the potential of Cai Mep Thi Vai port area to become a seaport of regional and international stature. If using VSL, the processing time of a ship will be shortened by mobilizing resources from other ports to handle the processing in parallel instead of one port handling customs clearance. VSL can integrate port clusters and means of transport to become a “super” port. Then it is possible to exploit and optimize the resources of the other ports in the port cluster, and can compete with transit ports in the region," Mr. Vang analyzed with great satisfaction about CEH's "trump card".

On October 10, 2022, VSL was honored as an excellent digital transformation product, and then quickly appeared on the list of national digital platforms.

“That evening, when we received the news that VSL was honored by the Government and the Ministry of Information and Communications, we were so happy that we couldn’t sleep. We were so happy. Somewhere, tears silently fell on our faces, weathered by nearly 10 years of working at the seaport,” the CEH Director was moved.

Prepare to go to sea

For about 10 years now, Director Ta Minh Vang has always dreamed of the day when CEH's "Make in Vietnam" products will enter the regional market and reach the world.

In 2023, CEH took the first steps on its journey "to the big sea": Approaching the two largest shipping lines in the world, Maersk Line and MSC.

Vietnamese digital technology enterprises are striving to realize the goal of deploying VTOS and VSL in the Southeast Asian region, first of all in countries with similar exploitation models to Vietnam such as Thailand, Indonesia, and Cambodia.

“The plan is that by 2025, CEH will export the deployment software for the first port in the region. And by 2030, the VTOS solution is expected to be available in the European market,” Mr. Vang revealed some highlights on the road ahead.

image 8.jpg

Determining that the journey to the "big sea" will have many "big waves", CEH has been preparing "luggage" to be ready to "cross the waves and go out to sea".

Along with constantly improving and upgrading products to stay ahead of competitors, the company also carries out many activities to search for and train a team of young engineers with good expertise and foreign languages. Notably, it has put into operation the Port Operation and Human Resources Training Center and implemented practical training for graduates who wish to work in the logistics industry.

“When deploying digital technology solutions for warehouse/port businesses, we realized the great need for digital human resources to effectively operate applications, helping businesses reduce pressure during the change process, minimize risks and costs. Through training and talent development activities, CEH wants to spread the inspiration of technological innovation to the next generation, encourage young people to be confident, dare to dream, dare to realize their dreams, and build a strong country,” Mr. Vang shared.

A big motivation for CEH is that Vietnamese businesses are not alone when entering the international market.

Mr. Vang happily said: “Every step we take has always been guided and accompanied by the Ministry of Information and Communications. Notably, within the framework of the Global Young Parliamentarians Conference held in mid-September 2023, National Assembly Chairman Vuong Dinh Hue created conditions for CEH to introduce its products to nearly 500 parliamentarians around the world. Currently, many Vietnamese businessmen abroad are willing to support CEH in doing business and approaching large seaport enterprises.”

Seaport No. 4.jpg

CEH Director hopes that relevant ministries and branches will encourage businesses to use domestic products instead of imported products.

When asked about specific proposals and recommendations to help Vietnamese products and Vietnamese intelligence make more beautiful marks on the world technology map, Mr. Vang expressed: “As a young and small-scale enterprise, CEH wishes to cooperate, integrate, and selectively share data with technology companies such as FPT, Viettel, VNPT, Nexttech, CMC, VNG ..., thereby taking advantage of resources to develop high-tech applications for the logistics industry. We hope that the Ministry of Transport, the Ministry of Industry and Trade, and the Ministry of National Defense will encourage affiliated enterprises to use domestic products instead of foreign products. In addition, we also hope that universities training in logistics and information technology will create conditions for CEH to share documents, technology products, and skills, helping students have the opportunity to access practical knowledge, while at the same time stimulating creativity from the energy of youth. From there, many "Make in Vietnam" products will be born, following the Vietnamese path, building a strong and prosperous country. world class

“The saying “When you want to build a ship, don’t start by looking for wood, saws, planks and assigning tasks, but orient yourself with the heart of a human longing for the vast and endless ocean” is part of my life and the CEH spirit. We start a small job with a great desire, overcome challenges with simple courage, always believe that there will be a way ahead, do not retreat in the face of hardship, do not let small benefits or personal thoughts overshadow the aspiration and dream of raising the level and bringing Vietnamese technology to the “big sea”, Director Ta Minh Vang confided before ending the story.

At the working session between Prime Minister Pham Minh Chinh and the leaders of Can Gio district in mid-July 2023, Minister of Information and Communications Nguyen Manh Hung reported to the Prime Minister that the Ministry of Information and Communications and related ministries and branches are promoting the Digital Seaport Platform built by Vietnamese enterprises and are being deployed well at many domestic ports with competitive prices, only 20% of the price of foreign platforms while still ensuring all similar features. The Ministry of Information and Communications is in charge of evaluating and ensuring technical criteria for domestic ports to deploy and replicate this Digital Seaport Platform.

Vietnamnet.vn