UNIVERSITY OF FINANCE – MARKETING

FACULTY OF COMMERCE

VÕ THANH THÚY NGA

Student ID: 2121013265 Class: IP_21DKQ03

Class Code: 2421910016501

FINAL EXAMINATION

Ho Chi Minh City: 08/2024

UNIVERSITY OF FINANCE – MARKETING

FACULTY OF COMMERCE

VÕ THANH THÚY NGA

Student ID: 2121013265 Class: IP_21DKQ03

Class Code: 2421910016501

INDIVIDUAL PROJECT

Subject: Production and Logistics Management

Subject lecturer: Trương Thị Thúy Vị

Ho Chi Minh City: 08/2024

 UNIVERSITY OF FINANCE – MARKETING
FACULTY OF COMMERCE

FINAL EXAMINATION - INDIVIDUAL PROJECT

Subject: Production and Logistics Management
Class: 2421910016501
Time allowed: 3 weeks
(from 05/8/2024 – 25/8/2024)

Student’s Name: Võ Thanh Thúy Nga.………. Class: IP_21DKQ03...

Student’s Number: 2121013265..

Mark Examiner 1 Examiner 2

Marks in
Marks in words
numbers

Part 1: QUESTION SHEET

The landscape of production and logistics has been profoundly transformed by the
convergence of environmental factors, technological advancement, and ever-changing
consumer behavior. Concerns about the deterioration of the environment have spurred a
widespread adoption of sustainable practices, with an emphasis on greener transportation
methods and energy-efficient warehouse operations. Simultaneously, breakthroughs in
technologies such as Artificial Intelligence (AI), Internet of Things (IoT), and blockchain
have revolutionized supply chain management, offering capabilities like real-time tracking
and predictive analytics. In response to evolving consumer expectations and demand for
instant gratification, on-demand delivery services and last-mile innovations have
proliferated. This dynamic interplay has compelled the industry to prioritize adaptability,
resilience, and environmental stewardship, in navigating the challenges of a swiftly
evolving marketplace landscape.
In this project, you are tasked to answer or respond to the following pressing issues
that companies are facing today. Your answer should be approximately two and a half
pages each:
Questions:
1. Discuss how logistics companies are integrating sustainability into transportation
and warehouse operations.
 2. Describe specific advancement in Artificial Intelligence (AI), and Internet of
Things (IoT) that have impacted supply chain management particularly in order
processing and inventory management.
3. Explain how consumer behaviors have influenced the development of on-demand
delivery services and last-mile innovations.
4. Analyze the challenges faced by logistics companies in balancing speed and
convenience offered to customers with environmental sustainability. Suggest
solutions to overcome the challenges.
Report Structure: Your report should preferably be structured in the following manner:
- Introduction to the case.
- Please find the answer or response to the issues raised in question 1,2,3,4.
- Conclusion + format.
- Reference List.
Assessment Criteria: Your assignment will be graded taking into account the extent to
which you have fulfilled the following:
- Answered the question set, kept to the topic and covered only relevant issues;
- Expressed other people’s ideas in your own words and gone beyond what they have
said on the topic by adding your own ideas, opinions and experiences;
- Shown in the content of your essay that you have read sufficient relevant literature;
- Structured your essay into a clear flow of argument or reasoning that makes sense
and is persuasive;
- Text Demonstrating Requirements
o Font: Times New Roman size 13 of Unicode (compulsory)
o Normal word density, not allowed to narrow or widen the normal distance
between words.
o Format/Paragraph /Line spacing: 1.2 lines
o Page Margin: Top margin: 3 cm; Bottom margin: 3.5 cm; Left margin: 3.5 cm;
Right margin: 2 cm
o Header: No information; Footer: Page number (on the bottom left corner of the
page) (Do not write down the Name of Supervisor in the Header and Footer)
o Left Margin of a page of Table demonstrated with the Landscape Orientation
(Page Layout) will be the beginning point of that Table. Numbering the pictures,
graphs, diagrams and tables with the Justified (Center) Format
o Cited references using the Harvard or APA Referencing System.

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Approved Lecturer
 ASSESSMENTS RUBRICS
Your assignments will be marked according to the following criteria:
Criatical Rati Quality level Marks
o
Poor/ Weak Below Average Good Excellent
Average

1.Format/ 20% 1-4% 5-8 % 9-12% 13-16% 17-20%

organizati Very poor Minimal Acceptable Good Excellent
on organizatio level of level of organizatio organizatio
n and organizatio organizatio n n
presentatio n and n and and and
n: presentatio presentatio presentatio presentatio
introduction n: executive n: executive n: n:
, summary, summary, executive executive
body, introduction introduction summary, summary,
conclusion, , body, , body, introduction introduction
layout, conclusion, conclusion, , body, , body,
heading, layout, layout, conclusion, conclusion,
paging, heading, heading, layout, layout,
paragraphin paging, paging, heading, heading,
g, paragraphin paragraphin paging, paging,
margin, g, margin, g, margin, paragraphin paragraphin
tone of tone of tone of g, g, margin,
writing, writing, writing, margin, tone of
in-text in-text in-text tone of writing,
citation, citation, citation, writing, in-text
reference reference reference in-text citation,
list, list, list, citation, reference
appendices appendices appendices reference list,
. . list, appendices
appendices

2. Content 60% 1-12% 13-24 % 25-36% 37-48 49-60%

- No Lack Fair Good Excellent
coverage, understandi understandi understandi understandi understandi
synthesis, ng of ng of ng of ng ng of
critical concepts concepts concepts of concepts concepts
thinking, underlying underlying underlying underlying underlying
resourcefu the the the the the
ln assessment assessment assessment assessment assessment
ess task/questio task/questio task/questio task/questio task/questio
ns, ns, ns, ns, ns,
 understandi understandi understandi understandi understandi
ng of the ng of the ng of the ng of the ng of the
subject subject subject subject subject
matter and matter and matter and matter and matter and
the ability to the the the ability to the
describe ability to ability to describe ability to
the describe describe the describe
logistical the the logistical the
functions logistical logistical functions logistical
of a functions of functions of of a functions of
company. a company. a company. company. a company.
Did Did the Did the Did Did the
the student student student the student student
answer/cov answer/cov answer/cov answer/cov answer/cov
er the er er er the er
questions the the questions the
or questions questions or questions
pertinent or or pertinent or
areas of pertinent pertinent areas of pertinent
the areas of the areas of the the areas of the
assignment assignment assignment assignment assignment
? Did ? Did they ? Did they ? Did ? Did they
they execute it execute it they execute it
execute it well? well? execute it well?
well? Effective Effective well? Effective
Effective analysis analysis Effective analysis
analysis and and analysis and
and discussion discussion and discussion
discussion on the on the discussion on the
on topics/area topics/area on topics/area
the s. Style of s. Style of the s. Style of
topics/area writing, writing, topics/area writing,
s. flow, flow, s. flow,
Style of number number Style of number
writing, of of writing, of
flow, examples, examples, flow, examples,
number of implications implications number of implications
examples, and etc and etc examples, and etc
implications implications
and etc and etc

3. 20% 1-4 % 5-8 % 9-12% 13-16% 17-20%

Quality/So No clear Lack of Fairly clear Good Execellent
ur developme clear developme developme developme
ces/Styles nt and developme nt and nt nt and
/Re organisatio nt and organisatio and organisatio
ferencing) n of organisatio n of ideas, organisatio n of ideas,
ideas, n of ideas, sources of n of sources of
sources of sources of data and ideas, data and
data and data and info, correct sources of info, correct
info, info, correct use of data and use of
correct use use of Harvard info, Harvard
of Harvard style correct use style
Harvard style referencing of referencing
style referencing and Harvard and
referencing and presentatio style presentatio
and presentatio n of referencing n of
presentatio n of supporting and supporting
n of supporting materials presentatio materials
supporting materials and n of and
materials and error-free supporting error-free
and error-free text and materials text and
error-free text and grammar. and grammar.
text grammar. Submission error-free Submission
and Submission of turn-it-in text of turn-it-in
grammar. of turn-it-in. and
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in
Part 2: ANSWER SHEET:
INTRODUCTION
● Literature Review
Production management is the process of controlling a company’s operations to provide the
services and products it wants to produce. It comprises organizing, carrying out, and
managing processes that transform raw resources into completed products and services.
The company’s production strategy, which calls for the use of certain technologies and the
accomplishment of pre-established goals relating to manufacturing mixes, unit costs,
quality, and production capabilities, should be successfully implemented, according to the
production management. It usually coordinates, supervises, and regulates the individuals or
teams in charge of the manufacturing process itself, equipment maintenance, quality
control, and inventory control. As a result, it is possible to state that product management
is concerned with acquiring resources, such as management inputs, natural resources,
manpower, capital, machinery, and so on, in order to create or produce completed goods.
Production management is the process between these two checkpoints. Production
management is the control and execution of the process that converts raw resources into
finished goods.
Meanwhile, logistics management refers to the comprehensive process of planning,
executing, and controlling the flow of goods, services, and information from the point of
origin to the point of consumption. This involves coordinating a variety of activities,
including transportation, inventory control, warehousing, material handling, packaging,
and security. The primary objective of logistics management is to ensure that products are
delivered to the correct location, at the right time, and in optimal condition, while
minimizing costs and maximizing operational efficiency. Achieving this balance often
requires optimizing the supply chain to ensure high levels of customer service without
excessive costs. Logistics management is crucial in various sectors, especially in
manufacturing, retail, and e-commerce, where timely delivery and efficiency are essential
for maintaining customer satisfaction and loyalty. It enables organizations to streamline
their supply chains, reduce expenses related to transportation and storage, and enhance
their competitive position in the market. A key principle in logistics management is the
concept of the “7 Rs” or “7 Rights”, defined by the Chartered Institute of Logistics &
Transport (U.K.). This principle emphasizes delivering the right product, in the right
quantity, in the right condition, at the right place, at the right time, to the right customer, at
the right price.
● Sustainable Development
In 1980, the International Union for Conservation of Nature (IUCN) introduced the
concept of sustainable development in its World Conservation Strategy. It was initially
defined in a narrow sense, emphasizing the protection of biological resources for
ecological sustainability.
In 1987, the UN’s World Commission on Environment and Development (WCED)
broadened the definition in its report, “Our Common Future”. Sustainable development
was defined as “development that meets the needs of the present without compromising the
ability of future generations to meet their own needs”. This concept focused on the
efficient use of natural resources and ensuring a livable environment during development.
The idea of sustainable development was further reinforced at the 1992 Earth Summit in
Rio de Janeiro and expanded at the 2002 World Summit on Sustainable Development in
Johannesburg. It highlighted the need for a harmonious integration of economic growth,
social progress, and environmental protection. Sustainable development was seen as a
balanced approach to growth that does not deplete resources for future generations.
The concept evolved from recognizing the importance of environmental protection to
addressing social issues as well. By 1992, sustainable development was officially
acknowledged as the global development agenda for the 21st century, emphasizing the
need to satisfy present needs without harming future prospects.
In essence, sustainable development operates across three dimensions: economic
sustainability, social well-being, and environmental preservation. These three pillars form
the ethical foundation for sustainable growth.
Vietnam adopted a Sustainable Development Strategy for 2011-2020, aiming for
sustainable and efficient growth, paired with social equity, resource conservation, and
environmental protection. The strategy also focused on political stability and national
sovereignty.
The strategy included monitoring indicators such as the green GDP, Human Development
Index (HDI), and environmental sustainability index. It set economic goals, including
achieving a 7% average growth rate from 2016-2020, increasing per capita income to
$3,200-$3,500, and maintaining inflation below 5%.
Social goals included sustainable poverty reduction, with poverty rates decreasing by 2%
annually, and improved access to social security. Average income reached $2,052 per
person in 2014, and life expectancy rose to 73.5 years by 2015. Environmental targets
focused on combating land degradation, conserving water and mineral resources,
protecting marine ecosystems, and reducing urban pollution.
Although Vietnam achieved notable progress during this period, including a 7% average
economic growth from 2006-2011, economic recovery in later years was slower, and
challenges remained in improving productivity and competitiveness.
● Trends of IT Application in Logistics
Since the 1980s, technologies such as barcoding, electronic data interchange (EDI), and
various forms of communication tools (satellites, fax machines, photocopiers, and
recording devices) have significantly enhanced logistics operations, improving efficiency
and establishing logistics as a critical function within businesses.
In the early 21st century, logistics experienced substantial changes due to the rapid
evolution of the global economy, with information technology, particularly the Internet,
playing a pivotal role. This transformation started in advanced logistics countries like the
U.S., Canada, Japan, and Singapore and spread to open economies, including Vietnam.
The computerization of logistics data management became widespread, with computers
playing an essential role in handling the complex, voluminous paperwork associated with
logistics. Computers have enabled rapid and accurate processing of vast amounts of data,
freeing logistics staff from routine paperwork and allowing managers to make timely,
informed decisions.
The use of network information connections with suppliers and customers has accelerated
and improved transaction efficiency. Research shows that companies successful in
managing logistics and supply chains are better equipped to adapt to business environment
changes. Many companies have invested in modern logistics information systems,
leveraging the Internet's speed and connectivity to meet rising customer expectations. The
use of Internet technology has enabled immediate connection between customer needs and
company capabilities, enhancing business operations and response accuracy.
New business models have emerged, including e-commerce and advanced supply networks
that use modern customer management methods. These innovations have created new,
efficient supply channels, such as Dell’s successful distribution model, which speeds up
supply and reduces transportation costs.
Additionally, modern information technologies are widely used in logistics. Barcoding
ensures product consistency and effective integration into supply chains. XML (Extensible
Markup Language) facilitates efficient data packaging and transmission over the Internet.
Artificial Intelligence (AI) provides expert-level problem-solving and advisory
capabilities. Radio Frequency (RF) technology is particularly beneficial for warehouses
and distribution centers, allowing for rapid inventory updates through electromagnetic
waves. RF systems, combined with barcoding, significantly enhance order accuracy and
shipping efficiency.
Table 1 Changes in Logistics Operation
Work Traditional Logistics E-Logistics

Order Forecast Change, remember

Timeframe for ordering By week Date or time

and receiving goods

Customer service Passive, fixed Fast and flexible response

Distribution strategy Push strategy Pull strategy

Demand Steady, certain Cyclical

Shipment volume Big Small

Destination Concentrate More distributed

Inventory control Week/month Continuously, according to

the rules

Link Handmade Automatic

 QUESTION 1
1.1 Concept of Green Logistics
The term “green logistics”, along with similar terms such as “sustainable logistics” and
“sustainable green logistics” emerged in the 1980s and has since evolved through various
interpretations by organizations and researchers. According to Kutkaitis and Zyperkiene
(2011), green logistics refers to a logistics system where energy is used efficiently,
environmental impacts are minimized, and labor productivity and competitiveness are
enhanced. This definition highlights the dual focus on both environmental sustainability
and economic performance, emphasizing the balance between reducing environmental
harm and maintaining or improving business efficiency.
In Vietnam, the concept of green logistics is relatively new, and there is not yet a unified
understanding of the term. The Vietnam Logistics Report 2022 defines green logistics as
logistics activities that aim to achieve sustainable, environmental. This definition aligns
with global perspectives but underscores the need for more awareness and education on
green logistics practices within the Vietnamese context.
Green logistics encompasses three primary goals: economic, social, and environmental.
These goals are interdependent and reinforce each other, contributing to sustainable
development. The focus of green logistics is on minimizing the negative impacts of
logistics activities to achieve a balance between these three goals. Solutions for “greening”
logistics are diverse, ranging from green transportation, green packaging, green warehouse,
green logistics data management, to reverse logistics.
● Green Transportation: Involves using transportation methods that produce lower
emissions, such as electric vehicles, water transport, and other forms of clean
energy-powered transport. For instance, electric vehicles (EVs) are becoming
increasingly popular due to their lower emissions compared to traditional fossil
fuel-powered vehicles.
● Green Packaging: Involves using materials that are recyclable, reusable, or
biodegradable. This reduces the environmental impact of packaging waste and
promotes a circular economy by encouraging the reuse of materials.
● Green Warehousing: Focuses on using energy-efficient systems, sustainable
building designs, and renewable energy sources like solar power to reduce the
environmental footprint of warehouses. These practices contribute to overall energy
savings and lower carbon emissions.
● Green Logistics Data Management: The use of technology in logistics data
management is crucial for improving efficiency and reducing environmental
impact. Advanced data management systems help in optimizing transportation
routes, reducing delivery times, and minimizing fuel consumption.
● Reverse Logistics: Involves the process of reusing products, packaging, and
materials. This includes remanufacturing and refurbishing products to extend their
 life cycle and reduce waste. By increasing the reuse of products, reverse logistics
contributes significantly to sustainability.
1.2 Benefits of Green Logistics
Green logistics involves the application of management and technical measures to reduce
fuel consumption and optimize logistics processes, offering numerous benefits for
businesses, individuals, and the environment. These benefits include:
● Reduced Transportation Costs: By optimizing transportation routes and reducing
fuel consumption, green logistics helps businesses lower their transportation costs.
This can be achieved through practices such as route optimization, the use of
electric vehicles, and the adoption of multimodal transportation.
● Increased Competitiveness: Companies implementing green logistics can
differentiate themselves from competitors by offering sustainable products and
services. This not only attracts environmentally conscious customers but also
enhances the company's reputation and brand value.
● Regulatory Compliance: Many countries have stringent regulations on emissions
and environmental impacts. Adopting green logistics measures ensures that
businesses comply with these regulations, avoiding potential fines and legal issues.
● Improved Environmental Impact: Green logistics reduces greenhouse gas
emissions, air and noise pollution, and other environmental impacts. This helps
protect the environment, mitigate climate change, and contribute to a more
sustainable future.
● Increased Efficiency: Green logistics practices optimize processes and minimize
waste, leading to greater efficiency in both transportation and production. This can
result in cost savings, improved resource utilization, and enhanced operational
performance.
1.3 Current Status of Green Logistics in Vietnam
Road Transport
Despite continuous government investment in road infrastructure, Vietnam’s expressway
network remains underdeveloped compared to other countries. The country relies heavily
on light-duty trucks, which are less efficient and result in higher emissions. To address
these challenges, Vietnam needs to improve its road transport infrastructure and increase
the use of heavy trucks, which are more efficient for freight transport.
Railway Transport
Railway transport is considered environmentally friendly but has not been fully developed
in Vietnam. The country’s railway infrastructure is outdated, and many freight cars are old
and inefficient. To enhance green logistics, Vietnam must invest in modernizing its railway
system and increase rail transport for freight, which would reduce the environmental
impact of logistics activities.
Sea Transport and Inland Waterway Transport
Vietnam’s seaports gradually embrace green practices, with Tan Cang - Cat Lai in Ho Chi
Minh City being recognized as a Green Port. However, inland waterway transport still
relies on outdated vehicles that emit high levels of pollutants. Developing greener inland
waterway transport and improving port infrastructure are essential steps towards a more
sustainable logistics system.
Air Transport
Air transport is the least environmentally friendly mode of transport, contributing
significantly to global warming. In Vietnam, air transport accounts for a small percentage
of overall emissions, but its impact on the environment is still considerable. To reduce the
environmental impact of air transport, Vietnam needs to explore alternative fuels and
technologies that can lower emissions.
Green Warehousing
The quality of Vietnam’s warehouse system lags other Asian countries. Many warehouses
do not use renewable energy, and the cost of implementing green energy solutions remains
a barrier for businesses. However, adopting solar energy and other renewable sources in
warehouses can significantly reduce energy consumption and environmental impact.
Green Packaging
Packaging waste is a major environmental issue in Vietnam, with large amounts of plastic
waste generated daily. Encouraging businesses to use environmentally friendly packaging
materials, such as paper and cardboard, can help reduce waste and promote sustainability.
Green Information Systems
The adoption of green information systems in Vietnam’s logistics sector is still limited.
Many businesses rely on basic IT tools, and investments in advanced logistics management
systems are fragmented. To enhance green logistics, Vietnam needs to increase the use of
technology in logistics operations, such as GPS tracking and advanced data management
systems.
Reverse Logistics
Reverse logistics in Vietnam is still in its early stages, with waste treatment and collection
processes managed by both formal and informal systems. To improve reverse logistics,
Vietnam must address the overlapping responsibilities of different government agencies
and promote better coordination in waste management and recycling efforts.
1.3 Integration of Sustainability into Transportation and Warehouse
Operations
1.3.1 Transportation Operations
Sustainability in transportation operations has become a priority for logistics companies as
they strive to reduce their environmental impact and comply with growing regulations. The
involvement of various supply chain actors, including raw material suppliers,
manufacturers, distributors, retailers, and customers, is crucial for successful sustainability
integration.
 ● Raw Material Suppliers and Manufacturers
Raw material suppliers and manufacturers contribute to sustainability by optimizing
transportation methods and reducing carbon footprints. They collaborate with logistics
companies to adopt eco-friendly transport solutions such as using electric vehicles (EVs) or
hybrid trucks. Additionally, they work to reduce packaging waste and maximize load
efficiency, ensuring that transportation resources are utilized effectively.
In Vietnam, several manufacturers in the country are opting for greener modes of transport,
such as using railways or inland waterways, to reduce the carbon footprint of moving
goods. The expansion of Vietnam’s railway network, as part of the government’s strategy
to increase the share of goods transported by rail, is an example of this shift. This helps
reduce the reliance on road transport, which is more carbon intensive. Companies in the
textile and garment industry, a major exporter, are increasingly using recycled materials in
their packaging to align with international sustainability standards and reduce the
environmental impact of their supply chains.
● Distributors and Retailers in Vietnam
Distributors and retailers play a pivotal role in green logistics by focusing on route
optimization and delivery efficiency. By using advanced logistics management systems,
they can reduce the number of trips needed for delivery, thus cutting down fuel
consumption and emissions. Moreover, collaboration with logistics companies that
prioritize green transportation enables these actors to promote sustainable practices
throughout the supply chain.
Retailers are increasingly adopting sustainable delivery options, such as incentivizing
customers to choose slower delivery methods that consolidate shipments. This practice
reduces the environmental impact of logistics operations and enhances the overall
sustainability of the supply chain.
For instance, major logistics firms in Vietnam such as Viettel Post and Gemadept are
investing in technologies to improve delivery efficiency and reduce fuel consumption.
These efforts are particularly critical in urban areas like Ho Chi Minh City and Hanoi,
where traffic congestion contributes to higher emissions and delays. Companies like Tiki
and Lazada have introduced initiatives to promote sustainable delivery options by offering
customers the choice of consolidated shipments or slower delivery speeds, which reduce
the number of trips and, consequently, the carbon footprint.
● Customer
Vietnamese customers are becoming more environmentally conscious, driving demand for
sustainable logistics practices. This shift is particularly visible in urban centers, where
there is a growing preference for products and services that minimize environmental
impact. Logistics companies are responding by offering green delivery options, such as
using electric bikes for last-mile delivery in cities. Customers also participate in reverse
logistics, where they return used products for recycling or refurbishing, further
contributing to the circular economy and reducing waste.
An example is AhaMove, a local delivery service, that has started using electric
motorcycles for urban deliveries, reducing emissions and offering a greener option for
eco-conscious consumers. This aligns with the broader trend of adopting reverse logistics,
where customers can return packaging or used products for recycling, contributing to a
circular economy.
1.3.2 Warehouse Operations
Warehousing is another critical area where logistics companies are integrating
sustainability, with efforts focused on energy efficiency, green building practices, and
waste reduction. Sustainable warehousing operations involve not only logistics companies
but also suppliers, manufacturers, and retailers, who work together to minimize
environmental impacts throughout the supply chain.
Sustainability in Vietnam’s warehousing sector is gaining increasing attention as logistics
companies increasingly adopt green building practices and renewable energy solutions.
Industrial parks, particularly in southern areas such as Ho Chi Minh City, are incorporating
sustainable features such as LEED certification, energy-efficient lighting, and solar panels.
The Vietnam Singapore Industrial Park (VSIP) is a prominent example, leading the way
with green industrial parks that reflect the country’s commitment to reducing greenhouse
gas emissions under the Paris Agreement. This shift towards sustainability is further
supported by government incentives that encourage the use of renewable energy, helping
companies such as DHL reduce their dependence on fossil fuels by installing solar panels
at their warehouse facilities. Additionally, waste management is becoming an important
focus, with logistics companies reducing non-recyclable packaging and promoting
recycling efforts. Major industries such as electronics and textiles are aligning with the
global trend towards circular supply chains by standardizing packaging to ensure
recyclability, reflecting Vietnam’s growing emphasis on environmental responsibility in the
logistics industry.
1.4 Scope and Timing
Vietnam’s logistics industry is undergoing a significant transformation towards
sustainability. Initially focusing on pilot projects such as electric vehicle adoption for urban
deliveries, companies are gradually expanding their sustainable initiatives in response to
evolving government regulations and the competitive landscape of the global market.
Larger companies, especially those with international operations, are leading the way in
implementing comprehensive sustainability programs that encompass transportation,
warehousing, and other logistics aspects. Smaller companies may initially focus on specific
areas like waste reduction or route optimization before venturing into more advanced
sustainable practices.
The growing momentum towards sustainability in Vietnam’s logistics sector is driven by a
combination of internal and external factors. Regulatory changes, evolving consumer
preferences, and the need to remain competitive in the global market are all contributing to
this shift. As more companies embrace sustainable logistics, Vietnam is poised to play a
crucial role in the country's broader transition to a green economy.
QUESTION 2
2.1 AI in Supply Chain
2.1.1 What Is AI?
Artificial Intelligence (AI) in supply chains is transforming the way companies plan,
produce, manage, and optimize their operations. By processing vast amounts of data,
predicting trends, and performing complex tasks in real-time, AI can significantly enhance
decision-making and boost operational efficiency within the supply chain. The rise of
generative AI and tools like chatbots has further demonstrated AI’s potential, especially in
the wake of the COVID-19 pandemic, which exposed vulnerabilities in global supply
chains and highlighted the need for better management tools.
A key component of AI is machine learning (ML), which involves systems learning from
data rather than relying on pre-programmed instructions. This capability allows AI to
outperform traditional software by forecasting demand, identifying patterns, making
market predictions, interpreting text, and analyzing numerous factors to streamline supply
chain workflows. The potential applications of AI continue to grow as companies look for
ways to optimize their operations.
However, while AI offers substantial benefits, it is essential for manufacturers and logistics
providers to carefully consider the implications before implementing AI in their supply
chains. Introducing AI requires time, resources, and a clear understanding of both the
advantages and challenges that come with it.
2.1.2 How AI Works in the Supply Chain?
AI-powered supply chain systems are being used to optimize routes, streamline workflows,
enhance procurement processes, reduce shortages, and automate end-to-end tasks. For
manufacturers and logistics providers, AI helps maintain balance across the supply chain
by uncovering patterns and relationships that traditional systems may overlook. These
insights are crucial for optimizing logistics from the warehouse to cargo ships and
distribution centers.
AI also assists in forecasting demand and predicting production and warehouse capacity.
By utilizing data collected from Internet of Things (IoT) devices, AI can improve
inventory management, track market trends, and enhance supply chain visibility. AI also
helps automate documentation for physical goods and enter data when items change hands,
ultimately improving transparency and reducing costs. This transparency also aids
companies in meeting ethical and sustainability standards more efficiently.
2.1.3 What Are the Benefits of AI in Supply Chains?
AI offers numerous benefits for supply chain resilience and overall efficiency:
● Lower Operating Costs: AI can automate repetitive tasks, such as inventory
tracking, quickly and accurately. By identifying inefficiencies and mitigating
bottlenecks, AI can reduce operating costs.
● Advanced Real-Time Decisions: AI leverages historical and real-time data to make
decisions on the spot, helping companies address issues and find solutions
promptly.
● Reduces Errors and Waste: By detecting patterns, AI can identify flaws early, such
as employee mistakes or product defects, before they escalate into more significant
problems.
● Tailored Inventory Management: AI helps forecast demand and adjusts inventory
accordingly, aiding manufacturers and supply chain managers in making informed
decisions.
● Improved Warehouse Efficiency: AI optimizes warehouse layouts, routes for
machinery and workers, and overall warehouse management.
● Sustainability: AI’s predictive analytics optimize truckloads, delivery routes, and
reduce product waste, helping make supply chains more sustainable.
● Operational Optimization through Simulation: AI-powered simulations, often
paired with digital twins, allow managers to visualize disruptions and identify ways
to improve operations.
2.1.3 What Are the Challenges of AI in Supply Chains?
Despite its advantages, AI implementation comes with challenges:
● Training and Downtime: Introducing new technology requires training, which can
result in downtime. It is essential to prepare and schedule this downtime to
minimize disruptions.
● Startup Costs: AI systems require a financial investment in software, machine
learning models, and training data, which can be costly.
● Complexity: Even after implementation, AI systems require continuous monitoring
and adjustments to ensure optimal performance.
● AI Risks: AI depends on large datasets, which can introduce inaccuracies and
biases if not properly managed. It is crucial to have human oversight to review data
and ensure fairness.
● Over Reliance on AI: While AI can augment human intelligence, it cannot replace
it. Human expertise remains essential in managing and handling supply chain risks.
● Security and Privacy Vulnerabilities: The use of customer data in AI models
increases the risk of data breaches and cyberattacks. Companies must prioritize data
security and privacy to safeguard consumers’ information
2.2 IoT in Supply Chain
2.1.1 What Is IoT?
The Internet of Things (IoT) has had a transformative impact on supply chain management
by enabling businesses to track inventory and manage operations more efficiently. For
example, in a warehouse managing thousands of products for an e-commerce company,
IoT devices can automatically monitor stock levels and trigger alerts or orders to replenish
items when they fall below a predetermined threshold. This is just one of the many ways
IoT is revolutionizing supply chain and logistics management.
Several companies are successfully utilizing IoT technology. Amazon uses Iot-enabled
robots in its warehouses to scan packages and streamline operations. Volvo leverages IoT
to track components for its vehicles across different countries and to monitor vehicle
deliveries to customers worldwide. Nissan employs IoT to link its various industrial units.
IoT plays a critical role in supply chain management, offering businesses significant
growth opportunities. However, it comes with both advantages and challenges.
2.1.3 What Are the Benefits of IoT in Supply Chains?
The COVID-19 pandemic and global geopolitical events have highlighted vulnerabilities in
the supply chain, which IoT can help mitigate. As goods travel longer distances and
through multiple hands, IoT can help businesses manage disruptions.
● Real-Time Location Tracking: IoT devices allow companies to track the location of
goods continuously, whether inside a warehouse or on a shipment. If a shipment
goes off course, the system sends automated alerts to address the problem.
● Storage Conditions Monitoring: Some products are sensitive to environmental
conditions such as humidity, temperature, and pressure. IoT devices collect
environmental data from warehouses or transportation vehicles and can
automatically adjust conditions to protect the goods.
● Product Location and Inventory Management: In large warehouses, locating and
tracking product quantities can be a challenge. IoT increases operational efficiency
and improves employee safety. Combined with AI, IoT can fully automate
warehouse processes with minimal human intervention.
● Improved Contingency Planning: IoT, combined with data analytics, allows
managers to predict and plan for incidents such as traffic, weather, accidents, or
other delays. Real-time alerts and flexible contingency plans help reduce risk and
keep the supply chain running smoothly.
● Improved Supply Chain Performance: IoT sensors used for predictive maintenance
can prevent equipment failures that could disrupt the supply chain. These sensors
can schedule repairs before a problem arises, ensuring smooth operations.
● Better Product Segmentation: IoT data helps logistics managers segment products
throughout their lifecycle based on market demand or other criteria. This deeper
understanding of the market allows managers to develop more targeted strategies.
2.1.3 What Are the Challenges of IoT in Supply Chains?
Implementing IoT in supply chain management also brings its own challenges, which can
be addressed with the right technology and vendor support.
● Skills Gap: Warehouse workers and truck drivers need to be trained on security
measures and the use of IoT-based platforms to ensure successful implementation.
● Data Storage Issues: IoT systems generate huge amounts of data, which can strain
server capacity. Strong data governance policies are needed to process this data
efficiently and deliver actionable insights.
● Security Concerns: Fully connected IoT systems can be vulnerable to cyberattacks
and data breaches. Implementing machine learning and cryptographic hardware
monitoring can help mitigate these risks and enhance system security.
● Connectivity Issues: IoT platforms rely heavily on internet access and short-range
technologies such as Bluetooth and NFC. As internet coverage expands and 5G
networks are rolled out, connectivity challenges are expected to ease.
2.3 AI in Order Processing
Artificial intelligence (AI) has become a transformative force in supply chain management,
especially in ​order fulfillment. One of the most important applications of AI in this area is
demand forecasting. AI systems can analyze large amounts of historical sales data, market
trends, and consumer behavior patterns to accurately predict future demand. This allows
businesses to optimize inventory levels, reducing the risk of overstocking and shortages.
By predicting changes in consumer demand, companies can better align their inventory
with market demand, thereby minimizing storage costs and avoiding lost sales due to
stockouts.
In addition, AI also helps optimize delivery routes, which is another important
advancement in order fulfillment. AI-driven algorithms can analyze real-time traffic
conditions, weather data, and delivery constraints to determine the most efficient routes for
shipments. By calculating the shortest or fastest possible routes, AI reduces delivery times
and operating costs. This efficiency not only benefits businesses financially, but also
improves customer satisfaction by enabling faster and more reliable deliveries. Route
optimization reduces fuel consumption and carbon emissions, contributing to a company’s
sustainability goals.
Automated order sorting and fulfillment processes have also been revolutionized by AI.
AI-driven robots and automated systems now handle sorting tasks with speed and accuracy
far surpassing manual operations. For example, AI-enabled robotic arms can accurately
sort packages based on size, destination, and priority, minimizing human error. This
automation helps fulfill orders faster, reducing labor costs and increasing overall
operational efficiency. Additionally, these systems are scalable, allowing businesses to
handle increased order volumes without corresponding increases in costs.
Furthermore, AI has significantly improved real-time order tracking. With AI-powered
systems, companies can provide customers with up-to-date updates on the status of their
orders, from the moment they are processed to the point of delivery. This level of
transparency enhances the customer experience, as shoppers can track their packages
across every timeline. Such visibility is critical to building trust with customers, especially
in the e-commerce and retail industries, where on-time and accurate delivery is a top
priority. Integrating AI into order tracking systems also benefits companies by providing
them with insights into logistics performance, which can be used to fine-tune operations.
2.4 IoT in Inventory Processing
The Internet of Things (IoT) has revolutionized inventory management by enabling
real-time monitoring, automation, and data-driven decision making across the supply
chain. IoT devices, such as smart sensors, are now widely used in warehouses to
automatically monitor inventory levels. These sensors are connected to central
management systems that update inventory data in real time as items are added, moved, or
removed from the warehouse. By eliminating the need for manual inventory checks, IoT
reduces human error and labor costs while significantly improving the accuracy of
inventory management.
One of the major advances that IoT has brought to inventory management is the use of
RFID tags and GPS tracking devices. These technologies provide real-time inventory
visibility not only within warehouses but across the entire supply chain. RFID tags allow
companies to track products as they move through different stages of the supply chain,
from manufacturing to distribution and even during transportation. This real-time visibility
helps businesses manage warehouse space more efficiently, reduce the likelihood of theft
or loss, and ensure that inventory levels are optimized throughout the supply chain. GPS
tracking, on the other hand, allows businesses to track the exact location of shipments,
improving transparency and reducing uncertainty around delivery timelines.
Another major impact of IoT on inventory management is the development of automated
reordering systems. These systems are capable of monitoring inventory levels and
automatically placing orders for replenishment when inventory falls below a pre-set
threshold. This ensures that businesses maintain optimal inventory levels without manual
intervention. Automated reordering reduces the risk of stockouts and overstocking, helping
companies achieve a better balance in their inventory management. Additionally, these
systems can be integrated with demand forecasting models, allowing businesses to adjust
their reordering processes based on expected fluctuations in demand.
In Vietnam, logistics companies are starting to adopt IoT technologies to improve their
inventory management capabilities. For example, companies in industrial parks such as
Vietnam Singapore Industrial Park (VSIP) have begun using IoT to track and manage
inventory more efficiently. This shift is driven by the growing demand for real-time data
and the need to improve supply chain visibility to meet the growing e-commerce and
manufacturing activities in the country.
QUESTION 3
 3.1 Consumer Behavior Models
3.1.1 Traditional Behavior Models
Traditional consumer behavior models were created by economists to understand what
drives consumers to purchase products based on their needs and desires. The key
traditional models include:
● Learning Model: Inspired by Maslow’s Hierarchy of Needs, posits that consumer
behavior is driven by the need to satisfy basic survival needs (e.g., food) and
learned needs (e.g., status or comfort. For instance, consumers may prioritize
purchasing food before considering items that fulfill emotional desires, such as
trendy clothes. Businesses like Target exemplify this model by organizing stores so
that basic needs (e.g., groceries) are addressed first, followed by secondary desires
(e.g., clothing or beauty products).
Figure 3. 1 Maslow’s Hierarchy of Needs

Source: Saul McLeod at SimplyPsychology

● Psychoanalytic Model: Drawing on Sigmund Freud’s theories, the Psychoanalytic
Model suggests that purchasing decisions are influenced by conscious and
unconscious desires, including suppressed emotions and hidden fears. These desires
drive consumers to buy products that resonate with their inner motivations, often
without them fully understanding why. For example, companies selling glasses
might market their products by appealing to a desire for intelligence and
competence.
Figure 3. 2 Freud’s Psychoanalytic Model
 Source: Prep With Harshita
● Sociological Model: This model focuses on the impact of social groups on
consumer behavior. Individuals tend to make purchasing decisions consistent with
the norms and expectations of the social groups to which they belong, whether that
be family, friends, or professional groups. For instance, executives may purchase
formal business attire to meet the expectations of their professional environment.
Companies that target specific social groups can create experiences that are
consistent with the behaviors and norms of those groups.
Figure 3. 3 Sociological Model

Source: Jinall Bms Classes at BMS

● Economic Model: The Economic Model emphasizes that consumers aim to satisfy
their needs while minimizing their spending. This model predicts purchasing
 behavior based on consumer income and product pricing, suggesting that
lower-priced products generally attract more buyers. However, this model can be
limited, as some purchases, like prescription medication, are driven more by
necessity than price.
3.1.2 Contemporary Models
Contemporary models of consumer behavior emphasize rational and deliberate
decision-making processes, rather than unconscious or emotional motivations. These
models include:
● Engel-Kollat-Blackwell (EKB) Model: The EKB Model consists of four distinct
stages: Information Input Stage, Information Processing Stage, Decision Process
Stage, and Variables Influencing the Decision Process. But the central focus of the
model is on five basic decision-process stages that consumers go through before
making a purchase: problem recognition, search for alternatives, alternate
evaluation purchase, purchase, and outcome. This model is particularly relevant for
businesses in competitive markets, where consumers compare multiple options
before making a decision.
Figure 3. 4 Engel-Kollat-Blackwell (EKB) Model

Source: Product Mindset

● Black Box Model: Also known as the Stimulus-Response Model, the Black Box
Model suggests that consumers are influenced by external stimuli (e.g., marketing)
and internal processes (e.g., beliefs and desires). Consumers process these stimuli
in their “black box” (mind) to decide whether a product will meet their needs.
Businesses can apply this model by aligning their products with the lifestyle or
values of their target audience.
 Figure 3. 5 Black Box Model

Source: Investopedia
● Hawkins Stern Impulse Buying Model: This model posits that not all purchases are
driven by rational thought; impulse buying is common. There are different types of
impulse purchases, including pure impulse (unexpected purchases), reminder
impulse (triggered by in-store setups), suggested impulse (prompted by
recommendations), and planned impulse (purchases made when a desired item goes
on sale). Businesses can leverage this model by strategically placing products or
offering promotions to encourage impulse buying.
● Howard Sheth Model: The Howard Sheth Model emphasizes a rational and
methodical approach to purchasing decisions, with consumers moving through
stages of extensive problem-solving, limited problem-solving, and habitual
response behavior. Various factors, including marketing messages and social
influences, shape the decision-making process.
● Nicosia Model: The Nicosia Model focuses on the role of a company’s marketing
in shaping consumer behavior. It outlines four stages: company and consumer
attributes, search and evaluation, act of purchase, and feedback. The model
emphasizes the importance of a company’s messaging in influencing consumer
decisions.
 Figure 3. 6 Nicosia Model

Source: Neostrom
● Webster and Wind Model of Organizational Buying Behavior: This B2B model
identifies four key variables that influence purchasing decisions: environmental
factors (e.g., customer demands, competition), organizational factors (e.g., goals,
evaluation criteria), buying center variables (e.g., decision-makers), and individual
variables (e.g., demographics, psychographics). Businesses can use this model to
understand the complex decision-making process in B2B transactions.
Figure 3. 7 Webster and Wind Model

Source: Leena Barapatre at slideshare

3.2 The 7 Rights of Logistics
The 7 ‘Rights’ or 7 ‘Rs’ of logistics represent core principles that ensure the successful
movement of goods throughout the supply chain. Any deviation from these standards can
disrupt the entire shipment process, leading to negative consequences such as delays,
increased costs, and customer dissatisfaction. For a logistics manager, the ability to foresee
potential issues and implement preventive measures is crucial to maintaining smooth
operations.
 1. Right Product
Ensuring that customers receive the correct product is a fundamental requirement of
logistics. Errors in the picking and packing process can result in incorrect items being
dispatched, leading to returns, additional costs, reputational damage, and potential loss of
future business. Accurate picking systems, which range from traditional paper-based
methods to advanced technologies such as barcode scanners, are essential to minimize
these errors and ensure product accuracy.
Lazada Vietnam, a leading e-commerce platform in Vietnam, prioritizes accuracy in
product fulfillment to ensure customers receive the correct items. The company utilizes a
state-of-the-art fulfillment center, equipped with barcode scanning and automated sorting
systems, to minimize picking and packing errors. These technologies help reduce the
chances of incorrect products being shipped, thereby enhancing customer satisfaction and
operational efficiency.
2. Right Quantity
Delivering the correct quantity of goods is equally important. Errors in picking, packing, or
inventory management, as well as insufficient stock, can lead to customer dissatisfaction.
Such issues may result in product returns, increased logistics costs, and even canceled
orders. Implementing effective inventory management systems and demand forecasting
techniques is critical to meet customer requirements and avoid disruptions in the supply
chain.
Thế Giới Di Động, Vietnam’s largest electronics retailer, ensures customers receive the
correct quantity of ordered goods through advanced inventory management systems. By
maintaining accurate stock levels across its extensive retail network, the company
effectively minimizes picking and packing errors. Real-time inventory tracking and
demand forecasting tools help the company prevent stockouts and over-shipping, resulting
in more efficient operations and cost reductions.
3. Right Condition
Maintaining product integrity during transit is vital. Goods must arrive in good condition,
and this requires proper attention to storage, packaging, transportation, and handling
processes. The shipper is responsible for ensuring that products are packaged adequately to
prevent damage during transit. This is particularly important for fragile or perishable items,
where improper handling can lead to spoilage or breakage. Correct packaging, handling,
and labeling practices are essential to delivering goods in the right condition.
Vinamilk, the leading dairy company in Vietnam, exemplifies commitment to delivering
products in optimal condition. As a producer of perishable goods, Vinamilk places
significant emphasis on cold chain logistics, ensuring that products such as milk, yogurt,
and cheese are stored and transported in temperature-controlled environments. This focus
on maintaining product integrity throughout the supply chain allows Vinamilk to
consistently deliver fresh, high-quality products to its customers.
 4. Right Place
Delivering goods to the correct location is a critical aspect of logistics that should not be
overlooked. Clear communication between the seller and buyer, coupled with the use of
tracking systems, ensures that shipments reach their intended destination. Proactively
monitoring tracking information allows for timely interventions in case any issues arise
during the delivery process, thereby minimizing disruptions.
Tiki.vn, a major e-commerce platform in Vietnam, utilizes advanced logistics and tracking
systems to ensure that shipments reach the correct delivery location. The company
emphasizes customer satisfaction by providing real-time tracking information, allowing
both the seller and the customer to monitor the delivery process. Tiki's proactive approach
to resolving potential delivery issues helps ensure that products are delivered to the right
place, minimizing delays and disruptions.
5. Right Time
Timely delivery is a key element in logistics management. Understanding the customer's
required delivery timeframe and evaluating whether it can be met is essential. Delays in
delivery can have significant financial implications, particularly in cases where timing is
critical. Logistics managers must consider various factors, including time zones, potential
bottlenecks, and external disruptions, to ensure that goods are delivered within the required
timeframe.
Shopee Vietnam is committed to meeting delivery timeframes by partnering with a range
of local and international logistics providers. The company offers multiple shipping
options to cater to different customer needs, from same-day delivery for urgent orders to
more economical options for less time-sensitive deliveries. Shopee optimizes delivery
routes and schedules to ensure timely delivery, which is a key factor in maintaining
customer loyalty.
6. Right Price
The cost of shipping must be appropriate and aligned with the urgency of the delivery.
While higher shipping costs may be justifiable for urgent shipments, regular deliveries
must balance efficiency with cost-effectiveness. Logistics managers should explore various
shipping options and select the most suitable one based on the delivery requirements and
associated costs. Achieving this balance is key to maintaining both profitability and
customer satisfaction.
FPT Corporation, a leading technology and telecommunications company, balances
cost-effectiveness with delivery requirements for its products and services. FPT offers a
variety of shipping options based on urgency and budget, allowing customers to choose the
most suitable option. By leveraging its extensive supply chain network, FPT can provide
competitive shipping rates while maintaining service quality.
7. Right Customer
A deep understanding of the customer’s needs is crucial for ensuring that products meet
their expectations and are suitable for their specific market. Misunderstanding customer
requirements can lead to returns, dissatisfaction, and lost business opportunities. By
fostering strong relationships with customers and offering personalized support, companies
can enhance their service quality and reduce the likelihood of errors, ultimately ensuring a
more efficient logistics process.
Masan Group, a prominent Vietnamese conglomerate, tailors its logistics and customer
service strategies to meet the specific needs of its diverse customer base, which includes
individual consumers, retailers, and wholesalers. Masan's deep understanding of its
customers’ preferences enables the company to provide personalized solutions, reducing
the likelihood of returns and enhancing customer satisfaction. By delivering products that
align with customer expectations, Masan strengthens its relationships with key
stakeholders and fosters long-term loyalty.
QUESTION 4
 Challenges Cause/ Situation Recommendation

Air pollution ● Cause - Diversify transport modes: promote rail and water transport,
from vehicles Imbalance in transport structure develop integrated transport networks.
exhaust Lack of coordination in operations - Enhance operational efficiency: implement route
● Vietnam’s situation optimization, consolidate shipments.
Road transport in Vietnam accounts for 85% - Adopt green technologies: invest in cleaner vehicles,
of the total CO2 emissions from support alternative fuels.
transportation activities. The reliance on road - Improve public awareness and education: promote
transport makes these emissions much sustainable practices, encourage corporate responsibility.
higher compared to other modes of transport. - Invest in infrastructure: build green facilities, upgrade
CO2 emissions from the transport sector are transport networks.
expected to rise at a rate of 6-7% per year.

Packaging ● Cause - Implementing sustainable packaging solutions: use

waste The growth of the packaging market in eco-friendly materials, promote reusable packaging.
Vietnam. - Improve recycling programs: set up in-house recycling,
● Vietnam’s situation partner with recycling firms.
About 1.8 million tons of plastic waste are - Optimize packaging design: design for easy recycling,
discharged into the environment in Vietnam, reduce packaging waste.
and only 27% are recycled or treated. - Advance circular economy practices: develop take-back
In big cities like Hanoi and Ho Chi Minh City, programs, support circular supply chains.
about 80 tons of plastic waste are discharged - Invest in technology and innovation: utilize smart packaging,
every day, but the recycling rate of plastic explore new materials.
- Educate and train staff: conduct training, raise awareness.
 packaging is very low, causing great - Advocate for policy changes: support regulations, participate
environmental impact and economic waste. in initiatives.
Consumers are increasingly turning to green
packaging to improve their health and living
environment, and companies in the
packaging industry are adjusting their
strategies to meet this demand.

Low green ● Cause - Improving warehouse infrastructure: upgrade facility design,

energy usage Lack of systems and infrastructure. adopt eco-friendly construction materials.
rate for Lack of investment and resources. - Increasing use of renewable energy: invest in renewable
warehouses Limit application of technology. energy sources, energy efficiency programs.
● Vietnam’s situation - Enhancing technological integration: adopt advanced
68.6% of businesses have not used warehouse management systems (WMS), integrate IT
renewable energy in their warehouse solutions.
operations or have not rented warehouse that - Optimizing warehouse operations: implement green logistics
use renewable energy. practices, enhance waste management.
Current warehouse design and construction - Pursue environmental certifications.
do not meet environmental standards.
Warehouse space planning has not been
optimized, which increases the amount of
movement in the warehouse.
 4.1 Air Pollution
With the global shift toward a greener economy and growing consumer preference for
eco-friendly products, green logistics is gaining increasing attention and professional
investment. Trade experts highlight that green logistics aims to generate sustainable value
for businesses by balancing economic performance with environmental protection.
Specifically, green logistics integrates environmentally conscious practices into supply
chain management, such as minimizing air pollution, noise, and waste. By optimizing costs
and enhancing transportation efficiency, green logistics promotes environmentally friendly
solutions. For example, companies can implement green transportation strategies by
consolidating orders on the same trip and selecting efficient routes that ensure trucks are
fully loaded in both directions. This reduces the number of empty or partially filled trucks
on the road, saving fuel, cutting transportation costs, and alleviating traffic congestion and
pollution.
However, Vietnam’s transport services are imbalanced and unsustainable, with road
transport dominating over rail, inland waterways, maritime, and air transport. Road
transport's greenhouse gas emissions are significantly higher—21.95 times more than air
transport, 19.94 times more than sea transport, and 245.49 times more than rail transport.
According to the World Bank, transportation activities in Vietnam produce over 50 million
tons of CO2 annually, with road transport contributing 85% of this total. These emissions
are expected to increase by 6-7% per year, with Vietnam’s greenhouse gas emissions
projected to surpass those of many developed and developing countries. CO2 emissions
from the transportation sector are forecast to reach 60 million tons by 2024 and 90 million
tons by 2030.
To mitigate the environmental challenges posed by Vietnam’s transportation sector and
transition towards sustainability, a comprehensive strategy is essential. Firstly, expanding
the use of diverse transportation modes is vital. Increased investment in rail and inland
waterway infrastructure will help reduce the reliance on road transport, which is currently a
major source of greenhouse gas emissions. Rail and water transport are more eco-friendly
options due to their lower emission rates. Developing a seamless transport network that
integrates various modes can further improve efficiency and environmental performance.
Additionally, leveraging advanced technologies to boost operational efficiency is critical.
The use of route optimization software can cut fuel consumption and emissions by
streamlining delivery routes. Moreover, consolidating shipments to ensure trucks are fully
loaded for both outbound and return trips will decrease the number of empty or partially
loaded trips, saving fuel and reducing emissions. Embracing green technologies is also
crucial; promoting the adoption of electric and hybrid vehicles, along with alternative fuels
such as compressed natural gas (CNG) or hydrogen, can significantly reduce the carbon
footprint of road transport. Enhancing emission standards and offering incentives such as
subsidies and tax breaks for green technologies will encourage broader adoption. Effective
policy and regulatory measures are key to this transition; developing and enforcing robust
sustainable transport policies and stricter emissions regulations will lead to notable
improvements in environmental performance. Raising public awareness through education
initiatives about the advantages of green logistics and sustainable transport practices will
encourage both businesses and consumers to adopt eco-friendly habits. Furthermore,
investing in infrastructure that meets green building standards and utilizes renewable
energy sources will aid in the creation of sustainable logistics centers. Upgrading transport
networks to boost efficiency and minimize environmental impact is also necessary. By
implementing these combined measures, Vietnam can reduce the environmental impact of
its transportation sector, align with global sustainability goals, and make significant strides
in lowering its greenhouse gas emissions.
4.2 Packaging Waste
Currently, the packaging industry plays a crucial role in preserving, transporting, and
distributing goods. According to Market Research Future, the global market for plastic
packaging is expected to grow at a compound annual growth rate (CAGR) of 3.6%, while
paper packaging is projected to grow at a CAGR of 4.7% from 2023 to 2030.
Mordor Intelligence estimates that the market size for paper packaging in Vietnam will
reach approximately USD 2.6 billion by 2024 and is expected to grow to USD 4.14 billion
by 2029, with a CAGR of 9.73% from 2024 to 2029. In addition to paper packaging, the
metal packaging market in Vietnam has also seen significant growth in recent years, driven
by the expansion of the food and beverage sector. The market size for metal cans in
Vietnam is projected to reach USD 2.11 billion by 2024 and USD 2.45 billion by 2029,
with a CAGR of 3.07% from 2024 to 2029.
However, Vietnam faces serious challenges related to plastic waste. According to data from
the Ministry of Natural Resources and Environment, approximately 1.8 million tons of
plastic waste are generated annually in Vietnam, with 0.28 million to 0.73 million tons of
this waste ending up in the ocean. Only 27% of this waste is recycled or processed by
facilities and businesses.
In major cities like Hanoi and Ho Chi Minh City, around 80 tons of plastic waste are
generated daily, but the recycling rate for plastic packaging remains very low, leading to
significant environmental impacts and economic waste. Packaging waste is among the
most common industrial and household waste currently produced.
In response to the growing environmental pollution caused by plastic waste, consumers are
increasingly turning to green packaging alternatives to ensure health and improve living
conditions. The packaging industry is undergoing significant changes in both quality and
quantity. Companies in this sector are rapidly adapting to new trends and adjusting their
strategies to meet market demands. Current packaging solutions must address multiple
needs, including effective transport and storage, extending product shelf life, ensuring
safety, and transitioning to environmentally friendly materials that are easy to recycle.
To tackle the issue of plastic waste, logistics companies should implement a multi-faceted
approach focused on sustainability and efficiency. First, adopting sustainable packaging
solutions is crucial; companies can transition from traditional plastic to biodegradable or
compostable materials and encourage the use of reusable packaging systems, such as
returnable pallets and containers, to reduce single-use plastics. Enhancing recycling
programs is also essential; establishing in-house recycling stations and partnering with
local recycling firms will help manage and process plastic waste effectively. Furthermore,
optimizing packaging design by working with suppliers to create easily recyclable
packaging and reducing excess material use can significantly cut down on waste and
improve logistics efficiency.
Promoting circular economy practices, such as developing take-back programs for used
packaging and supporting circular supply chains, can help create a closed-loop system
where materials are continuously recycled and reused. Investing in technology and
innovation, including smart packaging solutions and alternative materials, will advance
environmental performance and waste management. Educating and training staff on proper
waste management and recycling procedures will foster a culture of sustainability within
the organization. Additionally, advocating for stronger regulatory measures and
participating in industry initiatives can support broader efforts to reduce plastic waste and
promote sustainable practices across the sector.
4.3 Low Green Energy Usage Rate
The state of warehouse infrastructure in Vietnam currently lags other Asian countries, with
many facilities lacking proper concrete flooring and being built on sand with uneven
surfaces, leading to potential damage to goods. Energy use in these warehouses is
primarily limited to lighting and temperature control. According to the 2022 Vietnam
Logistics Report, 68.6% of companies have yet to adopt renewable energy sources in their
operations or lease warehouses that utilize such energy. The primary reasons are a lack of
resources for system design (65.3%) and high costs associated with renewable energy setup
(29.2%). Among the 31.4% of companies using renewable energy, the majority (81.8%)
use solar power, while a smaller percentage employ hydro (18.2%) and wind energy
(12.1%).
Survey data also highlights that warehouse management practices are not yet scientifically
advanced, with limited use of modern technologies and information systems for
coordination and inventory management. Distribution centers and CY/CFS warehouses
often lack integrated information networks with customers, making it difficult to track and
manage energy consumption effectively.
Addressing these issues requires several strategic measures. Upgrading warehouse
infrastructure is essential, including replacing inadequate flooring with concrete and
incorporating design elements that ensure proper storage conditions and environmental
compliance. Utilizing eco-friendly construction materials and technologies, such as green
roofs and solar panels, can enhance the sustainability of warehouses.
Increasing renewable energy usage is another critical step. Warehouses should invest in
solar panels, wind turbines, and other renewable sources to decrease reliance on
conventional power and reduce their carbon footprint. Implementing energy management
systems and conducting regular audits will help optimize energy consumption and identify
efficiency improvements.
Technological advancements are crucial for modernizing warehouse operations. Adopting
advanced warehouse management systems (WMS) with real-time tracking and inventory
management can enhance efficiency and reduce energy use. Integrating IT solutions for
better communication and data exchange with customers and suppliers can improve supply
chain coordination.
Optimizing warehouse operations involves designing efficient layouts to minimize
unnecessary movement and using energy-efficient equipment like LED lighting and
low-energy forklifts. Establishing robust recycling and waste management programs and
promoting reusable packaging materials can further reduce environmental impact.
Pursuing environmental certifications and adhering to green building standards will
showcase a commitment to sustainability and ensure high environmental performance.
Training staff on energy-efficient practices and sustainability can foster a culture of
environmental responsibility.
Supporting green policies and participating in industry sustainability initiatives can further
drive progress. By implementing these measures, logistics companies in Vietnam can
tackle existing challenges and make significant advancements towards greener and more
sustainable warehouse operations.
 CONCLUSION
The shift towards green logistics represents a critical step in addressing the environmental
challenges associated with supply chain and logistics activities. By focusing on reducing
emissions, minimizing waste, and improving efficiency, green logistics not only aligns
with global sustainability goals but also offers tangible benefits to businesses, consumers,
and the environment.
In Vietnam, the concept of green logistics is still emerging, with varying levels of adoption
across different sectors. The country faces challenges such as outdated transportation
infrastructure, high emissions from road and inland waterway transport, and limited use of
advanced green technologies in warehousing and packaging. However, there is a growing
momentum towards integrating sustainability into logistics operations, driven by both
regulatory pressures and increasing consumer demand for environmentally friendly
practices.
Key areas for improvement include enhancing road and rail infrastructure, expanding green
practices in sea and air transport, and adopting energy-efficient and waste-reducing
technologies in warehousing and packaging. The adoption of advanced technologies such
as AI and IoT can play a significant role in optimizing logistics processes, improving
inventory management, and fostering more sustainable practices.
As Vietnam continues to develop its logistics sector, embracing green logistics offers a
pathway to not only meet international sustainability standards but also to enhance
competitiveness and operational efficiency. The gradual integration of sustainable practices
across various facets of logistics will contribute to a greener economy and support the
country’s broader environmental and economic goals. Moving forward, a concerted effort
from businesses, policymakers, and consumers will be essential in advancing green
logistics and ensuring a sustainable future for Vietnam’s logistics industry.
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