Abstract
his paper investigates the relationship between delay in international/domestic logistics and export reduction by using unique data from Vietnamese manufacturing firms obtained from the Vietnam Chamber of Commerce and Industry (VCCI) when conducting a survey on the situation of digital transformation at enterprises in the context of the Covid-19 epidemic in July-August 2020 (VCCI, 2020). An export reduction is a partial de-internationalization in which firms decrease overseas sales. Estimation results from the instrumental variable probit method show that if enterprises have troubles with international/ domestic logistics, reduction of exports becomes more severe. This result is more evident for small and medium enterprises and FDI enterprises. The Vietnamese government should identify logistics as an important service sector in the overall structure of the national economy, and introduce comprehensive measures to support enterprises to prevent supply chain disruptions.
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