The Role of Infrastructure in Green Logistics Development: A Case Study of Vietnamese Logistics Enterprises

Faced with environmental and resource depletion issues, green transformation is seen as a crucial key to sustainable growth. Accordingly, greening the logistics industry is an inevitable trend globally and in Vietnam specifically. To achieve this goal, logistics infrastructure plays a pivotal role in ensuring, supporting, and promoting the green transformation path in this sector. In this article, the author focuses on clarifying the relationship between infrastructure and the green logistics development of businesses. Drawing from previous studies along with descriptive statistical methods, measurement model evaluation, and structural model evaluation through the application of SPSS and SmartPLS software, the research results show that the development of logistics infrastructure positively impacts the green logistics development of Vietnamese businesses. Consequently, some recommendations are proposed to contribute to the effective and sustainable development of green logistics.

Introduction

Logistics plays an essential role in the national economy and is the lifeline connecting production, business, and import and export activities. This service industry contributes greatly to the socio-economic development of the country. However, logistics activities not only create benefits but also bring about inevitable negative ecological impacts. From these concerns, the concept of “green logistics” was born.

The terms “Green Logistics,” “Sustainable Logistics,” or “Sustainable Green Logistics” first appeared in the 1980s. Research on green logistics has only just begun to receive attention in the literature in 1990 (Srivastava, 2007). This stemmed from environmental regulations as well as consumer demands that emerged in the early 1990s, forcing companies to incorporate environmental factors into their supply chain management (Srivastava, 2007; Wu & Dunn, 1995).

Karia and Asaari (2016) considered Green Logistics as a solution that strives to improve sustainable development in terms of ecology, economy, and society by cutting business operating costs and saving energy without causing unpleasant harm to the natural and social environment. In other studies, Green Logistics is pointed out as a set of solutions and management methods to minimize negative impacts on the environment. The goal is not only to reduce CO² emissions but also to limit other pollutants, protect natural resources, and optimize waste treatment (Centobelliet al., 2020).

In the current context of globalization, the development of green logistics is gradually becoming an inevitable trend. This is a necessary solution to protect the environment and aim for sustainable development. Infrastructure is considered one of the important factors in supporting, promoting, and ensuring the green operations of businesses, including logistics activities. In the world, there have been some studies indicating the role of infrastructure in logistics development, but the green aspect has not been fully explored. In Vietnam, research on green logistics is still relatively scarce, and there has hardly been any in-depth study clarifying the role of infrastructure in green logistics. This study fills the gap by proposing a model of 9 factors influencing green logistics, with infrastructure being the strongest influencing factor.

Overview

According to Min and Kim (2012), green logistics refers to environmental issues related to transportation, handling and storage of raw materials, inventory control, warehousing, packaging, and distribution decisions. Infrastructure has been shown to also participate in these activities in enterprises through research by Huoet al. (2021). Accordingly, in essence, high-quality infrastructure will enable the logistics sector to plan, control, and store products, services, and related information from raw material purchasing to finished products that meet consumer needs. There are many different approaches to studying infrastructure and related fields. For Maqsoomet al. (2022), infrastructure includes transportation networks for the import and export of goods, necessary telecommunications network systems to speed up information exchange, an appropriate system solution, an import tax handling system, and many other services. High-quality infrastructure can help increase efficiency when participating in the supply chain (Nawazet al., 2021). For the logistics sector, conventional logistics infrastructure is divided into two groups: transportation infrastructure and information and communication infrastructure (Nowakowska-Grunt, 2008).

Zhanget al. (2020) have confirmed that logistics infrastructure has an impact on the implementation of green logistics development policies. Research shows that improving logistics infrastructure not only includes building a logistics transportation network but, more importantly, the use of green logistics infrastructure on a large scale, such as smart storage centers and logistics recycling stations. The construction of these facilities can improve logistics and transportation efficiency, save resources, and reduce waste emissions, which in turn can improve logistics enterprises’ awareness of the application of green logistics policies. Similar to the perspective of the above study, Aronsson and Huge Brodin (2006) described how companies contribute to environmental improvement through the development of their logistics infrastructure. Research results show that infrastructure has a positive impact not only on the environment (reducing emissions) but also reducing costs. Typical changes involve new distribution structures with fewer nodes, larger warehouses, or switching shipping modes. According to Hove-Sibandaet al. (2018), poor infrastructure and roads are found to be common external barriers to the adoption of green logistics in small and medium-sized enterprises. One of the important factors in the field of logistics is transportation, where the expansion of global transportation infrastructure is known to have played a vital role in unifying nations with the world economy. By developing green logistics infrastructure projects, negative impacts on the environment can be minimized. Improving logistics and planning, as well as material transportation, can reduce noise, be energy efficient, and reduce dust generation (Gharehbaghiet al., 2019). This shows that the performance of the green logistics industry and infrastructure plays an important role in economic development (Yingfeiet al., 2022). Therefore, countries should focus on identifying key issues in the field of infrastructure and green logistics efficiency to reap trade benefits from globalization (Haoet al., 2020).

Research Methodology and Model

Qualitative Research

Qualitative research is used to explore, adjust, and supplement observed variables that measure research concepts. Qualitative research uses expert interviews and group discussions to draft the questionnaire. Experts and lecturers are knowledgeable about the logistics industry, and senior managers are working in the logistics industry. Next, there will be a preliminary interview using the convenient sampling method to revise the questionnaire to make it easier to understand and complete before the official survey.

Quantitative Research

Quantitative research is used to collect and analyze survey data, confirm the components as well as the value and reliability of the scale, and evaluate the theoretical model. Evaluating a research model includes two parts: (1) evaluating the measurement model and (2) evaluating the structural model. Evaluation of the measurement model to consider the reliability of the scale. The scales will be tested for unidimensionality, reliability, convergent validity, and discriminant validity. The evaluation of the structural model includes: (1) evaluating the multicollinearity problem of the structural model; (2) evaluate the significance and relevance of relationships in the structural model; (3) evaluate the coefficient of determination R².

Research Hypothesis

H1: Information technology has a positive influence on the development of Green Logistics in Vietnam.

H2: Infrastructure has a positive influence on the development of Green Logistics in Vietnam.

H3: Legal policies and administrative procedures have a positive influence on the development of Green Logistics in Vietnam.

H4: Financial capacity has a positive influence on green logistics development in Vietnam.

H5: The need for improving the competitiveness of enterprises has a co-marginal effect on the development of green logistics in Vietnam.

H6: Efficient use of energy has a positive effect on green logistics development in Vietnam.

H7: Human resources have a positive influence on the development of Green Logistics in Vietnam.

H8: Environmental awareness of businesses has a positive influence on the development of Green Logistics in Vietnam.

H9: Partners/Customers of logistics businesses have a positive influence on the development of green logistics in Vietnam.

Research Model

From inheriting factors such as legal policies and administrative procedures, infrastructure, and information technology, which have been the focus of most previous studies in Vietnam, we also consider new factors, including financial capability and partners/customers, human resources, the need for improving the competitiveness, efficient use of energy and environmental awareness of businesses. Thus, the proposed model consists of 9 factors (Fig. 1) and the abbreviations of the variables of the model Table I.

Fig. 1. Research model (Source: Author’s proposed research model).

Table I. Variables of Model

Symbol	Meaning	Reference research
IT	Information technology	Kim and Rhee (2012)
		Gacuru and Kabare (2015)
IFT	Infrastructure	Zhang et al . (2020)
		Hove-Sibanda et al . (2018)
		An et al . (2021)
LPAP	Legal policies and	Zhang et al . (2020)
	administrative procedures	Lai and Wong (2012)
FC	Financial capability	Lee (2008)
		Lin and Ho (2011)
NIC	The need for improving	Ittmann (2011)
	competitiveness	Jazairy et al . (2021)
EUE	Efficient use of energy	Lee (2014)
HR	Human resources	Denisa and Zdenka (2015)
		Lin and Ho (2011)
EA	Environmental	Zhang et al . (2020)
	awareness	Lee (2008)
PC	Partners customers	Elkington (1994)
		Seroka-Stolka (2014)
		Hall (2000)
GLD	Green logistics development

Results

Sample Information

Data were collected by the authors through surveys of 420 subjects, comprising logistics service providers and users in the cities of Hanoi and Ho Chi Minh City Table II. A total of 352 valid survey responses were obtained for analysis. The following is sample information:

Table II. Sample Information

Classification criteria		Frequency	Ratio (%)
Sex	Male	163	46.3
	Female	189	53.7
Age group	From 18 to 25 years old	5	1.4
	From 26 to 35 years old	174	49.4
	From 36 to 45 years old	145	41.2
	From 46 to 55 years old	27	7.7
Education	Over 55 years old	1	0.3
	College	26	7.4
	Bachelor	219	62.2
	Master	84	23.9
	Doctor	23	6.5
Experience	Under 5 years	90	25.6
	From 5 to 10 years	114	32.4
	From 11 to 15 years	82	23.3
	From 16 to 20 years	45	12.8
	Over 20 years	21	6.0
Area	Hanoi City	247	70.2
	Ho Chi Minh City	105	29.8
Total		352	100.0

Testing the Measurement Model

The observed variables CSHT_5, KNTC_5, NLCT_5, NLHQ_4, NNL_5, NTMT_5 have factor loadings less than 0.7 and are removed from the research model. The remaining variables all have factor loadings greater than 0.7, so these variables are satisfactory.

Table III shows that after eliminating variables with factor loading less than 0.7, the results show that all factors achieve reliability with CA coefficients greater than 0.7. In addition, composite reliability (CR) is used to analyze internal consistency reliability. The results show that the composite reliability of the variables is more than 0.8. The total variance extracted (AVE) coefficient of the factors is greater than 0.5 and meets the testing requirements, ranging from 0.652–0.739. Therefore, each construct exhibits good convergent validity.

Table III. Construct Reliability and Validit

Factor	Cronbach’s alpha	rho_A	Composite reliability	Average variance extracted (AVE)
IT	0.866	0.882	0.903	0.652
IFT	0.839	0.840	0.893	0.676
LPAP	0.886	0.892	0.916	0.686
FC	0.813	0.818	0.877	0.640
NIC	0.841	0.848	0.894	0.679
EUE	0.847	0.850	0.897	0.685
HR	0.843	0.851	0.895	0.681
EA	0.883	0.887	0.919	0.739
GLD	0.894	0.896	0.919	0.654
PC	0.856	0.867	0.896	0.633

Table IV shows that the scale’s discrimination is very good, showing that all HTMT values are much smaller than the threshold of 0.85. Thus, all factors meet the requirements of discriminant value.

Table IV. Formell-Larcker Criterion

Factors	IT	IFT	LPAP	FC	NIC	EUE	HR	EA	GLD	PC
IT	0.808
IFT	0.420	0.822
LPAP	0.339	0.391	0.829
FC	0.464	0.369	0.316	0.800
NIC	0.248	0.339	0.297	0.188	0.824
EUE	0.362	0.296	0.197	0.319	0.194	0.828
HR	0.246	0.312	0.374	0.195	0.467	0.218	0.825
EA	0.330	0.320	0.331	0.404	0.215	0.291	0.117	0.860
GLD	0.511	0.578	0.480	0.509	0.296	0.380	0.376	0.371	0.809
PC	0.442	0.303	0.288	0.559	0.167	0.273	0.112	0.527	0.447	0.796

Evaluation of the Structural Model

The model does not exhibit multicollinearity as the VIF values are less than 5.

The analysis results in Table V have evaluated the multi-additive phenomenon route through the use of the variance inflation factor (VIF)

Table V. Inner VIF Values

Factor	GLD
IT	1.565
IFT	1.468
LPAP	1.408
FC	1.686
NIC	1.379
EUE	1.250
HR	1.439
EA	1.535
PC	1.804

The model’s fit is tested by the R-squared value. The analysis results show that the adjusted R-squared value is 0.527 Table VI.

Table VI. R Square

Factor	R2	R2 adjusted
GLD	0.539	0.527

The research results Fig. 2 have indicated that the infrastructure factor has the greatest impact on the development of green logistics, with the strongest regression coefficient (standardized β = 0.292 and p-value = 0.000) Table VII. Thus, it can be concluded that when the infrastructure factor increases by 1 unit, the likelihood of green logistics development increases on average by 0.292 units, assuming that other factors remain constant.

Fig. 2. Research findings model (Source: Author’s proposed research model).

Table VII. Mean, STDEV, T-Values, P-Values

Relationship (R)	Original sample (O)	Sample mean (M)	P values	Evaluate
IT → GLD	0.138	0.136	0.010	Accept	4
IFT → GLD	0.292	0.290	0.000	Accept	1
LPAP → GLD	0.169	0.168	0.002	Accept	2
FC → GLD	0.162	0.166	0.006	Accept	3
NIC → GLD	−0.020	−0.017	0.679	Reject
EUE → GLD	0.100	0.100	0.023	Accept	7
HR → GLD	0.130	0.130	0.011	Accept	5
EA → GLD	0.009	0.011	0.844	Reject
PC → GLD	0.115	0.113	0.029	Accept	6

The results of the descriptive statistical analysis scale indicate that the observed variables within the infrastructure factor range from 3.80 to 3.97 in terms of average values. This suggests that the majority of surveyed businesses perceive that infrastructure has a significant impact on the development of green logistics activities in Vietnam.

T-test of Infrastructure Between Businesses in Ho Chi Minh City and Hanoi

Table VIII shows the significance value of the F-test is 0.00 < 0.05, indicating variance differences between businesses in Ho Chi Minh City and Hanoi. The significance value of the t-test is 0.00, indicating mean differences in the evaluation of infrastructure factors between businesses in different regions. In conclusion, there are significant mean differences in the evaluation of the infrastructure factor between businesses in Ho Chi Minh City and Hanoi. Specifically, the mean evaluation score of the infrastructure factor for businesses in Ho Chi Minh City is 4.60, and for Hanoi, it is 3.7. This indicates that businesses in Ho Chi Minh City perceive the importance of the infrastructure factor for the development of green logistics more than businesses in Hanoi.

Table VIII. Testing the Difference Between Regions

Independent samples test
		Levene’s test for equality of variances		T-test for equality of means
		F	Sig.	t	df	Sig. (2-tailed)	Mean difference	Std. error difference	95% Confidence interval of the difference
									Lower	Upper
IFT	Equal variances assumed	14.437	0.000	−15.036	350	0.000	−0.90750	0.06036	−1.02620	−0.78879
	Equal variances not assumed			−18.449	318.777	0.000	−0.90750	0.04919	−1.00428	−0.81072

Discussion

From the inheritance of previous studies, the study proposed a new model demonstrating 9 factors influencing the development of green logistics in Vietnam, among which the factor with the greatest impact was identified as infrastructure. In the context of previous research, although there has been an emphasis on the importance of infrastructure for logistics in general, no study has identified this as the most significant factor in the development of green logistics.

Previous studies have highlighted the importance of infrastructure for logistics development (Banomyonget al., 2015; Yingfeiet al., 2022). Dang and Ta (2021) pointed out that Vietnam’s logistics infrastructure still has many limitations and requires appropriate solutions to enhance the nation’s logistics capacity, contributing to fast and sustainable economic growth. Regarding the aspect of green logistics, previous studies such as Zhanget al. (2020) discussed the implementation of green logistics development policies under the influence of logistics infrastructure; Hove-Sibanda's et al. study (2018) indicated that poor infrastructure or roads inevitably lead to less efficient fuel usage and higher carbon emissions. In Vietnam, Vietnam Logistics Report 2022 illustrated the relationship between logistics infrastructure and the implementation of green supply chains. Specifically, logistics infrastructure supports green logistics activities, and greening logistics enhances the sustainability of logistics infrastructure. Overall, previous studies have demonstrated the positive impact of infrastructure on the development of green logistics. However, studies delving into infrastructure and the development of green logistics in Vietnam are still incomplete because the concept of “green logistics” is still relatively new, and awareness of the issue of developing logistics infrastructure in Vietnam is still limited. The research team has been pioneering in proposing a model of factors influencing the development of green logistics in Vietnam and identifying infrastructure as the most impactful factor.

The research team has also pioneered in comparing differences in the assessment of the role of infrastructure in the development of green logistics between businesses in Vietnam’s two key cities, Hanoi and Ho Chi Minh City. As a result, the authors concluded that businesses in Ho Chi Minh City highly value the impact of infrastructure on green operational activities more than those in Hanoi. The explanation for this conclusion is that Ho Chi Minh City is the largest economic center in Vietnam with a higher population density and urban traffic compared to Hanoi. Businesses in Ho Chi Minh City often face a large volume of goods needing to be transported into and out of the city, creating a high demand for efficient and sustainable logistics services. Good infrastructure can improve efficiency and reduce transportation time while supporting cleaner and more efficient vehicles.

In summary, the study approached the issue from new perspectives to provide significant and unique contributions to the research field on the role of infrastructure in green logistics in Vietnam.

Conclusion and Recommendations

Research results showed that there are 7 factors affecting the development of green logistics. Of the seven factors, infrastructure is the most influential factor. From the research results, although there are many opinions from experts and businesses expressing confidence in the quality of transportation-related infrastructure, there are still some limitations or problems related to transportation and seaports that participants feel need to be improved or do not meet the requirements of the logistics industry. Logistics infrastructure in Vietnam is underdeveloped due to many reasons, including lack of master planning, transportation infrastructure that does not meet demand, insufficient and low-quality warehouse systems, and logistics information systems. underdeveloped, human resources are lacking and weak, policies and laws are incomplete, and business awareness is limited. Therefore, to promote green logistics development, it is necessary to invest in and develop synchronous and sustainable infrastructure. Recognizing the importance of developing infrastructure to serve logistics activities in Vietnam, the research team proposed a few solutions to promote the synchronous development of infrastructure, creating a premise for the development of green logistics.

Firstly, it is necessary to build a legal corridor for logistics activities with the goal of sustainable development. According to Nguyen and Pham (2023), the legal system in Vietnam is still overlapping, lacking unity, and failing to meet the strong and diverse development of logistics services. Therefore, it is necessary to continue to improve legal regulations on logistics and amend the Commercial Law on logistics-related content. Additionally, alongside improving legal regulations, it is essential to supplement policies for the development of environmentally friendly transportation means and infrastructure. With an important role in the national economy, such as logistics, along with completing and supplementing 8 Articles in the 2005 Commercial Law, it is deemed necessary to consider building a Vietnam Logistics Law in the near future (Dang & Ta, 2021).

Secondly, it is crucial to develop synchronized logistics centers. According to (Dang & Ta, 2019), synchronously build logistics centers, including logistics industrial parks, logistics clusters, etc., to promote sustainable economic development according to the Green Logistics model (Seaport → Railway → Logistics centers → Motorways → Customers) and develop city Logistics. Currently, logistics operations are still fragmented, lacking synchronization and connectivity with different types of transportation. Therefore, logistics centers need to be strategically planned and invested in from the outset, with connecting roads built to the centers as key nodes connecting different modes of transportation such as roads, railways, and waterways. In addition, centers need to be built on a scale equivalent to current industrial parks in our country to attract regional and global logistics corporations, as well as domestic logistics enterprises, for investment and business. It is necessary to plan and construct logistics industrial parks as logistics bases for industrial zones in economic regions and localities, rather than concentrating on building small-scale logistics centers of 2–3 hectares within industrial parks as currently practiced.

Thirdly, there needs to be a standardized process and system for data management. Standardization is an important solution to improve Vietnam’s logistics information system. According to the Ministry of Industry and Trade (2022), currently, 89% of Vietnamese businesses are managing their own logistics information system. This can cause many difficulties, such as a lack of resources in terms of facilities and equipment, unprofessional personnel, inadequate quality, and lack of consistency between businesses. By establishing standards for data management, communication protocols, and operational processes, Vietnam can ensure seamless integration and interoperability between different logistics units. This will facilitate the development of logistics infrastructure, reduce costs, and improve industry efficiency.

Fourthly, it is necessary to raise the level of awareness about green logistics in the business community by developing preferential financial policies and support for businesses implementing green logistics. In addition to financial incentives, providing support, such as providing guidance and resources to businesses when transitioning to green logistics, is also important. This can help businesses understand and navigate the complexities of green logistics, as well as create a platform for knowledge sharing and collaboration between businesses. Thereby building a solid industry business community capable of operating advanced logistics centers.

Fifthly, it is essential to strengthen research and learn from the experiences of countries with developed logistics industries, especially in the construction and operation of logistics centers and clusters. In many countries, the logistics industry always plays an important role in the economy, and logistics activities always bring high economic efficiency and are a large source of revenue for the state budget. In the current development stage, researching and learning from countries with developed logistics industries is highly necessary (Dang & Ta, 2019).