The objectives of this dissertation are to examine the theoretical issues on reverse Logistics in the product supply chain and to make some suggestions and recommendations on developing reverse Logistics in Vietnam plastics supply chain by 2020, a vision to 2025.
1 C HAPTER 1 OVERVIEW OF THE STUDY 1.1 RATIONALE Over the past decades, with the strong economic development, expanding population and increasing living standards, the amount of waste to be treated in the world has gone up sharply. Shorter product life cycle leads to faster product replacement Many governments have issued regulations on corporate responsibility for the environment. The rapid development of ecommerce has also increased the rate of product recall as customers have no direct access to the goods like traditional trade. Therefore, reverse logistics to effectively recall and recycle used products and waste has drawn increasing attention in theoretical studies as well as business practice in many nations worldwide In theory, theories on reverse logistics have been established in developed countries like the U.S., European nations since 1990s, but it is still a fresh concept in Vietnam Studies on reverse logistics in Vietnam have mainly focused on the state management of solid waste in terms of legal regulations, planning and recycling technology. There have been a few studies on reverse logistics with the concentration on used electronic devices, home appliances and batteries. Therefore, in academics, the research and development of theories on reverse logistics in Vietnam is of significant importance In practice, there has been an official system for controlling and recovering solid waste operated by the State in Vietnam. However, while the nationwide volume of solid waste is approximately 28 million tons per year with the annual increase of 10%, the collection rate of around 83 – 85% in urban areas and 4050% in rural areas, the rate of recycle and reuse is only at 1012%. It is partly attributed to the lack of awareness of Vietnamese enterprises of reverse logistics in generating corporate competitive advantages and sustainable development. Moreover, limited management capability and poor infrastructure and technology have hindered Vietnamese enterprises from organizing, operating and controlling reverse logistics thoroughly Thus, it is vital for enterprises, sectors to develop reverse logistics nationwide Particularly in plastics industry, the development of reverse logistics is among the important solutions for the following reasons: First, plastics are one type of materials which can be effectively recovered, recycled and reused. The study of Graczyk and Witkowski (2011) showed that the average recovery rate of plastic products in European nations was 54%; especially in Switzerland (99.7%), Germany (96.7%) and Denmark (96.6%). Besides, plastics have replaced other traditional materials in most economic sectors. Therefore, plastic waste recovery, recycle and reuse are crucial for the plastics sector to save production costs and develop sustainably as well as for other business sectors using plastic products Second, the consumption of plastic products per capita in the domestic market has surged in recent years from 30kg in 2010 to 35kg in 2015 and 45kg in 2020 as estimated. Moreover, Vietnamese plastic products have been exported to 159 markets with the turnover of over USD2.5 billion in 2017 and forecasted to reach USD4.3 billion by 2020. Strong domestic consumption may lead to an increase in disposal and serious environmental pollution. Higher export turnover may result in the scarcity of resources. Thus, reverse logistics to recover, treat and recycle is essential for the sustainable development of Vietnam plastics industry Third, one of the greatest challenges to Vietnam plastics industry now is its strong dependence (7080%) on imported input In order to solve the insufficient input problem, the plastics industry has to better collect and treat plastic waste by developing the centralized hubs for recycling plastic waste for the sector with a closed loop model to minimize negative effect of uncontrollable import of plastic waste on the environment. However, the success of this model can only be achieved with the coordination of all participants in the plastic product supply chain in Vietnam in the recovery management. From the above analyses, theories on reverse logistics have not been widely applied in Vietnam; and it is vital to develop reverse logistics for plastic products which are highly beneficial from recovery, recycle and reuse in the coming time. Therefore, the dissertation entitled “Developing Reverse Logistics in Plastic Product Supply Chain in Vietnam” can provide both theoretical framework and practical application in the current context in Vietnam 1.2 PREVIOUS STUDIES AND RESEARCH GAP During the 1990s, reverse logistics was a fairly new concept in logistics and supply chain management Studies on reverse logistics have been undertaken in either of the following directions: Theories on reverse logistics: present different viewpoints and definitions of reverse logistics; the differences between reverse logistics and logistics; advantages and functions of reverse logistics; functional activities in reverse logistics flows such as collection, transportation, warehousing, packaging and costing; drivers and barriers to its implementation, etc. However, most studies in the world have yet to examine reverse logistics in product supply chains, especially the roles, functions and relationship of participants in supply chains in managing reverse logistics flows Application and implementation of reverse logistics: describe attempts of reverse logistics application of many companies in automobile, steel, electrical, electronics, personal computer and commercial aircraft manufacturing, etc. Among these, there are two studies on reverse logistics in the plastics industry including “Reverse logistics in plastic recycling” by Pohlen and Farris (1992) with the focus on reverse logistics channels, affecting factors and future directions for reverse logistics flows; and “Reverse logistics processes in plastics supply chains” by Graczyk, Witkowski (2011) centering on the economic and environmental optimization of reverse logistics processes in plastics production enterprises In Vietnam, studies on theoretical framework on reverse logistics have not gained much concern. There have been only three studies on applying reverse logistics in the context of Vietnam but published in foreign countries including MORNE (2008) with “Study on building and evaluating model of collecting used battery in Vietnam” in collecting and recycling used batteries; Do Ngoc Quang (2008) with “Assessment of the recycling system for home appliances in Vietnam” in recycling home appliances; Pfohl and Nguyen Thi Van Ha (2011) with “Reverse logistics in Vietnam: The case of electronics industry” in electronics It is, therefore, certain that there is a lack of indepth studies on reverse logistics in product supply chains, especially in the supply chain for Vietnam plastics products. It is the gap in both theory and practice 1.3 RESEARCH OBJECTIVES, TASKS AND QUESTIONS The objectives of this dissertation are to examine the theoretical issues on reverse logistics in the product supply chain and to make some suggestions and recommendations on developing reverse logistics in Vietnam plastics supply chain by 2020, a vision to 2025. In order to achieve the stated aims, the dissertation has to fulfill three main tasks by answering seven research questions The tasks consist of (1) Establishing theoretical background on developing reverse logistics in product supply chain; (2) Examining, measuring and evaluating the development of reverse logistics in Vietnam plastics supply chain; (3) Providing feasible solutions for all members of Vietnam plastics supply chain in reverse logistics 1.4 RESEARCH SUBJECT AND SCOPE Research subject: is the reverse logistics in plastic product supply chain. The dissertation particularly studied reverse logistics parties, processes and flows in the product supply chain; participants in reverse logistics flows; factors affecting the development of reverse logistics in product supply chain and models to manage reverse logistics flows in plastics supply chain Research scope: In terms of research space, actual data in the dissertation was collected in 5 cities and provinces such as Hanoi, Hung Yen, Danang, Binh Duong and Hochiminh City accounting for over 80% of Vietnam plastics enterprises, so it can represent the whole plastics industry in Vietnam. In terms of research time, the author studied the current situation of reverse logistics in enterprises in Vietnam plastics supply chain during the period of 2013 – 2018; solutions to the development of reverse logistics in Vietnam plastics supply chain by 2020 were suggested, with a vision to 2025 based on the master plan for Vietnam plastics industry approved by the Government In terms of objects in reverse logistics flows, the dissertation only focused on reverse logistics for solid objects, liquid and air objects are out of the scope of the study. Besides, the dissertation centered on studying reverse logistics in the plastics supply chain in domestic market 1.5 RESEARCH METHODOLOGY For comprehension, objectivity and accuracy, the dissertation combined both primary and secondary data collection methods Secondary data was collected from printed and online resources of Ministry of Industry and Trade, Natural Resources and Environment, General Office of Statistics, Vietnam Plastics Association. Primary data was collected by two methods (1) Indepth interviews with General Secretary of Vietnam Plastics Association and leaders of plastics production and recycling enterprises; (2) Questionnaires on the sample of 156 plastics production and trading businesses and 62 recycling enterprises. From the collected data, the author applied both quantitative and qualitative methods to evaluate the situation of reverse logistics in Vietnam plastics supply chain. 1.6 NEW POINTS (1) In methology, the study combined both primary and secondary data collection, quantitative and qualitative research methods The dissertation presented a quantitative research model on factors affecting reverse logistics results in enterprises with 3 additional variables to ensure the reliability of the model apart from 23 variables adopted from previous studies. (2) In theory, the study supplemented and completed the theoretical framework on reverse logistics by suggesting a fairly new research direction, i.e. theoretical model for reverse logistics in product supply chain. (3) In practice, the study objectively and reliably analyzed and evaluated the situation of reverse logistics in Vietnam plastics supply chain on such issues as the organization of reverse logistics in the chain and enterprises; reverse logistics flows in the chain; reverse logistics activities in enterprises. It is the comprehensive description of reverse logistics situation in Vietnam plastics supply chain, which has not been researched previously. (4) In applicability, the author provided 3 highly feasible solutions for members of Vietnam plastics supply chain and 1 solution for external entities to facilitate the development of reverse logistics in Vietnam plastics supply chain. 1.7 RESEARCH DESIGN In addition to Acknowledgments, Table of Contents, List of Abbreviations, List of Tables and Figures (8 pages); General Conclusions (2 pages); References (6 pages) and Appendices (33 pages), the dissertation consists of 155 pages with 4 following chapters: Chapter 1: Overview of the Study; Chapter 2: Theoretical Background on Reverse Logistics in Vietnam Plastics Supply Chain; Chapter 3: Evaluation on Reverse Logistics Situation in Vietnam Plastics Supply Chain; Chapter 4: Solutions to Development of Reverse Logistics in Vietnam Plastics Supply Chain CHAPTER 2 THEORETICAL BACKGROUND ON REVERSE LOGISTICS DEVELOPMENT IN PRODUCT SUPPLY CHAIN 2.1 OVERVIEW ON REVERSE LOGISTICS IN PRODUCT SUPPLY CHAIN Reverse logistics 2.1.1.1 Definition There have been different definitions on reverse logistics since its initial stage. Based on the analysis of the existing concepts, the author defined reverse logistics as “the process of optimizing the movement flows of material objects in the opposite direction to ordinary logistics processes, i.e. from consumption destinations to starting points to recover remaining value or for the proper disposal of the products.” 2.1.1.2 Some concepts related to reverse logistics a Reverse logistics and green logistics “Reverse Logistics” is often seen identical to “Green Logistics” because both concepts have many similarities, even partially overlapping. That is, reverse logistics and green logistics also address the issues of reuse, recycle and waste disposal which are part of the green supply chain. Green logistics, however, only focuses on the environmental aspects of downstream logistics activities and attempts to minimize the impact on the ecological environment of logistics rather than trying to recover the value of the goods as in reverse logistics b Reverse logistics and waste management Reverse logistics and waste management are fairly similar in stages such as collection, sorting, transportation and recycling, reuse However, there are differences between them in the aims, the responsible entities for implementation, material objects to be treated and the time 2.1.2 Product supply chain 2.1.2.1 Definition 2.1.1 Many concepts of “supply chain” have, so far, been presented and analyzed from different approaches. In this dissertation, the author agreed and used the definition of product supply chain of Mentzer et al. (2001, p.4): “Supply chain a set of three or more entities (organizations or individuals) directly involved in the upstream and downstream flows of products, services, finances, and/or information from a source to a customer.” This concept is chosen as the basis for the research problem of the dissertation because in this concept, Mentzer and his colleagues specifically mentioned the reverse flow of products and services, information, and finance in the supply chain. In other words, the concept of Mentzer et al. describes the reverse logistics flow in the chain's operations 2.1.2.2 Advantages of the supply chain Businesses have recognized the value, role and key benefits of product supply chain such as speed, accuracy, flexibility and cost. Therefore, the focus on business development in the chain based on cooperation between organizations is an inevitable trend in the modern business. This shows that applying reverse logistics in the supply chains will not only help them better satisfy customer requirements, improve competitiveness and sustainable development, but also enhance their operation efficiency by taking advantage of the superior advantages of the supply chain 2.1.2.3 Structure of the supply chain a Flows in the supply chain According to Christopher (2005), any supply chain, whether simple or complex with development at high or low levels, consists of three basic flows throughout the chain, namely, materials, information and cash flow. These are core business activities conducted continuously among members to support trading transactions in the supply chain, resulting in seamless connectivity throughout the entire chain b Members in the supply chain The supply chain is created by the connection and collaboration between member organizations from suppliers to retailers; to resonate the power, high specialization of the members to create the competitive advantage for the chain. In the supply chain, each member has different roles and responsibilities for the stages of the reverse logistics process. Their level of responsibility is divided into three categories: primary, partial and unrelated. In particular, in the reverse supply chain, there are many members who are not involved in the downstream logistics 2.1.3 Reverse logistics in the supply chain 2.1.3.1 Definition Based on the concepts of reverse logistics and the position of reverse logistics in the supply chains, the author proposed the fundamental concept in the dissertation as “Reverse logistics in the supply chain is logistics activities to manage the reverse flow of physical objects sent from one member to any member in front of it in the supply chain in order to restore product value and reduce the amount of waste to be treated.” The concept of reverse logistics in the supply chain proposed in the dissertation emphasizes on the following issues: (1) Material objects of the reverse logistics flows are quite diverse (collectively referred to as “recovered products”) including raw materials, fuels; parts, components or products that fail meet the requirements, need to be repaired, or disposed; packaging, etc. (2) Scope of the reverse logistics flow in the supply chain is only from the retailer to the distributors, producers or suppliers as the end users are not considered a member of the chain. (3) Objectives of reverse logistics in the supply chain are to mostly restore the economic and environmental value of the products and to minimize the amount of waste disposal so as for the chain members to achieve cost reduction goals, better meet the needs of customers as well as fulfill their corporate social responsibility 2.1.3.2 Roles a Roles of reverse logistics for the whole supply chain Before reverse logistics, traditional supply chains had developed into Closedloop Supply Chain (CLSC). The closed loop supply chain is an attempt to coordinate the downstream and upstream operations of the product, thus ensuring sustainable development goals while achieving both effectiveness and efficiency in the supply chain. In other words, the emergence and development of reverse logistics has promoted the development of reverse supply chain, then combined with traditional one to create closed loop supply chains with many advantages b Roles of reverse logistics for members in the supply chain Reverse logistics gives the supply chains more benefits and superior advantages. Therefore, as a supply chain member, reverse logistics is considered one of the most important ways for businesses to (1) facilitate the process of downstream logistics; (2) better satisfy customer requirements; (3) save costs; (4) create a “green” image for the business. This requires businesses to make adequate investments in this activity 2.1.3.3 Basic characteristics In comparison with downstream logistics, reverse logistics has seven basic characteristics as (1) Push mechanism; (2) Convergent flow direction; (3) Limited speed; (4) Difficulties to forecast; (5) Nonidentical quality and value of recovered products; (6) Complex process with the involvement of many members who are not included in downstream logistics; (7) Costs more difficult to calculate and higher 2.2 REVERSE LOGISTICS DEVELOPMEN IN THE SUPPLY CHAIN Definition The dissertation stated “Reverse logistics development in the supply chain is the completion of the reverse logistics organization among supply chain members and the increase of reverse logistics flows and activities to optimize the reverse movement of material objects from one member to any member in front of it in the supply chain.” In the current context of Vietnam, the term "reverse logistics development in the supply chain" consists of three basic issues as follows: (1) Development of reverse logistics organization: at each member enterprise in the chain as well as reverse logistics organization throughout the chain on the basis of enhancing the collaboration between the members for reverse logistics. (2) Development of reverse logistics flows: Diversifying reverse logistics flows for different material objects; Moving from passive implementation of reverse logistics to recover products that fail to meet customer requirements to proactive application of reverse logistics flows for both byproducts and production scraps of the production process; Endofuse products, product packaging, etc (3) Development of reverse logistics activities: Increasing the deployment of reverse logistics activities which can restore the maximum value of products, particularly to limit landfill and incineration but enhance reuse and recycling 2.2.2 Issues 2.2.2.1 Development of reverse logistics organization in the supply chain a Definition The study defined the reverse logistics organization as “a process of designing, arranging and using resources of the supply chain to achieve the strategic reverse logistics goals of member enterprises as well as the whole chain in certain period.” b Organization plans Reverse logistics organization in enterprises: Reverse logistics can be organized in enterprises in the supply chain in two ways, namely (1) Inhouse operating reverse logistics, i.e. using internal resources to implement reverse logistics; (2) Outsourcing reverse logistics, i.e using external resources to implement a part or the whole reverse logistics process. The current trend is the development and diversification of reverse logistics outsourcing Basis for plan selection: Each plan of reverse logistics organization has certain advantages and disadvantages. It is important for enterprises to take into consideration the following factors: (1) Characteristics of recovered products; (2) Volume and continuity of collection; (3) Core competitiveness; (4) Policies and resources of enterprises; (5) Complexity and uncertainty of logistics flows; (6) Collaboration among members of the supply chain 2.2.1 Options of reverse logistics organization in the supply chain Models for return channel in the supply chain: It is commonly accepted that producers are mainly responsible and capable of implementing reverse logistics. Therefore, the first important decision is to select a model of return channel for product returns to producers There are three typical return channels such as (1) Direct return from consumers; (2) Returns through retailers; (3) Returns through the third parties. Models for treatment of returned products: The recent studies have divided reverse logistics network into two models including (1) Centralized reverse logistics, i.e. creating a center for returning and treatment of the whole network for the economy of scale to reduce costs; (2) Decentralized reverse logistics, i.e initial collectors perform the testing, evaluating and sorting products instead of the treatment center and then deliver returned products to relevant treatment points for time advantage 2.2.2.2 Development of reverse logistics flows and activities in the supply chain a Development of reverse logistics flows in the supply chain Each reverse logistics flow is predetermined by a certain material object. In the supply chain, there are 5 common reverse logistics flows as follows: (1) Reverse logistics flow for endofuse products; (2) Reverse logistics flow for commercial goods, i.e the returns between any two members in the supply chain that are in a direct business contract; (3) Reverse logistics flow for guaranteed goods, i.e. the returns of defect products during the use of consumers; (4) Reverse logistics flow for production scraps and by products; (5) Reverse logistics flow for packaging b Development of reverse logistics activities in the supply chain Reverse logistics activities take place in the flows Thus, the implementation of the activities can have great influence on the operation of revers logistics flows. Previous studies described four major reverse logistics activities such as (1) Collection; (2) Testing, sorting; (3) Treatment and (4) Redistribution 2.2.2.3 Evaluation on the development of reverse logistics in supply chain a Levels of reverse logistics development in the supply chain The study used “Reverse Logistics Maturity Model” (RLMM) jointly built by Craneld University and Deutsche Post DHL and CE100 companies. RLMM model describes 5 development levels of reverse logistics such as (1) Informal reverse logistics; (2) Project reverse logistics; (3) Standardized reverse logistics; (4) Quantitative reverse logistics and (5) Optimizing reverse logistics c 10 Evaluation criteria for reverse logistics development in the supply chain Based on the features of levels presented in RLMM and the results of in depth interviews during the primary research, the author developed indicators to measure and evaluate the development of reverse logistics in the supply chains based on the following aspects: Organization of reverse logistics: The organization of reverse logistics in the supply chain is evaluated based on two criteria such as (1) management (formal and informal) and (2) network (structure, collaboration among members). Reverse logistics organization in member companies is evaluated in two ways (1) Inhouse operation and (2) Outsourcing. Implementation of reverse logistic flows and activities: (1) Structure of returned objects in reverse logistics flows; (2) Volume and rate of returned and treated products; (3) Ratio of disposition methods for returned products 2.2.3 Factors affecting reverse logistics development in supply chain Based on reviewing previous studies, the author extracted group factors affecting the development of reverse logistics in the supply chain including (1) Environment (Legal regulations on environment, financial policies, environment management certificates, extended responsibility of producers; Globalization and environmental pollution; Information technology); (2) Market (Customer awareness and demand; Competitive supply chain); (3) Supply chain (Collaboration among members; Support of top management, corporate policies, crossintegration of functional department, current resources for reverse logistics) b EXPERIENCE IN REVERSE LOGISTICS DEVELOPMENT IN THE SUPPLY CHAIN 2.3 Experience in reverse logistics development in the supply chain On the basis of the collected secondary data, the dissertation analyzed the experience in developing reverse logistics in the supply chains for plastics (the research subject) and electronics (composed of plastics components) The context of research was in three country groups including (1) Developed countries which lead the application of reverse logistics in Europe; (2) Developed countries in Asia which got reverse logistics models transferred from Europe with relevant adjustments to specific situations, namely, Japan, South Korea and Taiwan; (3) Developing countries with similar characteristics to Vietnam like China and Thailand 2.3.2 Lessons for reverse logistics development in Vietnam plastics supply chain Successful stories applicable to Vietnam plastics supply chain, consist of (1) Three lessons on reverse logistics organization including Expanding reverse 2.3.1 13 Figure 1: Vietnam plastics supply chain (Source: Author’s research findings) Participants of Vietnam plastics supply chain include material suppliers (domestic and foreign), producers (housewares, packaging, construction, and industrial plastics), distributors and retailers, individual customers (consumers) and corporate customers (enterprises in electronics, automobile, etc.) 3.1.3 Overview on solid waste collection and treatment system in Vietnam At present, Vietnam's solid waste collection and treatment system operates both formally and informally. In particular, the formal solid waste collection and treatment system involves staterun Urban Environment Companies (URENCOs) or private contractors. In contrast, the informal solid waste collection and treatment system is characterized by small, spontaneous, dispersed activities with no legal contract between participants in the system. While formal systems have yet to meet the requirements for collection and disposal of waste and disposed products, the informal sector is considered to be the most effective solution in Vietnam today. The integration of these two systems can be seen as an opportunity to develop formal reverse logistics in Vietnam ANALYSIS AND EVALUATION ON SITUATION OF REVERSE LOGISTICS IN VIETNAM PLASTICS SUPPY CHAIN 3.2 Case studies on reverse logistics at typical enterprises In this section, the author studied the reverse logistics situation in two enterprises representing two important groups of members in the reverse supply chain for Vietnam plastic products, namely plastic production and recycling enterprises. These two case studies formed an important foundation for the author to continue with more generalized studies of the overall situation of reverse logistics in Vietnam’s plastic product supply chain 3.2.2 Situation of reverse logistics in Vietnam plastics supply chain 3.2.2.1 Reverse logistics management in Vietnam plastics supply chain Management of reverse logistics in Vietnam plastics supply chain is conducted based on two following forms (1) administrative management related to solid waste collection and treatment of ministries and agencies on both formal and informal systems and (2) operation management related to the participation of members in Vietnam plastics supply chain as collectors, processors and redistributors 3.2.2.2 Reverse logistics network in Vietnam plastics supply chain 3.2.1 Network structure: Plastic waste collectors and recyclers play important role in the reverse logistics network in Vietnam plastics supply chain with 14 similar functions of a regional center for collection and treatment of disposed plastic products and scraps from wholesalers, retailers, producers and urban environment companies in their areas Figure 2: Reverse logistics network in Vietnam plastics supply chain (Source: Author’s development from model of Hochiminh City Fund for Plastics Recycling) Collaboration among network members is relatively low with the average point of under 3.0 Accordingly, the collaboration with retailers, material suppliers, wholesalers is very low at 1.5; 1.6 and 1.9 points respectively. The collaboration with producers, logistics service providers and plastic scrap collectors is higher at 2.7 and 2.9 points, respectively. Collaboration with plastic recyclers has the highest responses but only averagely at 3.0 Management of reverse logistics network involves three entities, namely, Plastic scrap recyclers (35.9% of corporate responses); Producers (28.8%) and plastic scrap collectors (23.7%). Accordingly, plastics producers are responsible for managing reverse logistics flows for production scraps, byproducts and returned products which fail to meet customer’s demand. Plastic collectors and recyclers manage reverse logistics flows for scraps from production and consumption 3.2.2.3 Reverse logistics in chain member enterprises The survey in enterprises in plastics supply chain showed that 62.2% of enterprises conducted inhouse operation of reverse logistics. Accordingly, those who operated reverse logistics over 5 years accounted for 48.7% and 26.9% under 5 years; 11.5% planned to operate reverse logistics in the near future and 12.9% had yet any plans for reverse logistics due to limited resources. At the 15 strategic and planning level, enterprises tended to underestimate their capacity of reverse logistics but evaluated more positively in implementation. Enterprises outsourced a part of reverse logistics accounted for 28.2% and 9.6% for the whole process They tended to outsource more with collection, transportation, testing, sorting, trading and recycling respectively at 89.1%; 72.4%; 57.1%; 82.1% and 91.0% of the total responses Other reverse logistics activities including repairing, chopping or remanufacturing are less commonly outsourced at respective rate of 19.2%; 21.2% and 15.4% 3.2.3 Situation of reverse logistics flows in Vietnam plastics supply chain The most significant reverse logistics flows in Vietnam plastics supply chain include (1) reverse flows of commercial products with 59.6% of companies, mainly suppliers, producers, distributors; (2) reverse flows of production scrap and byproducts with 50.0% of companies; (3) reverse flows of endofuse products with 22.4% of companies through collectors and recyclers Figure 3: Reverse logistics flows in Vietnam plastics supply chain (Source: Author’s illustration) 3.2.4 Situation of reverse logistics activities in Vietnam plastics supply chain According to the survey results, 81 over 156 corporate respondents had over 40% of production scraps and byproducts return rate and only 2 among those had the rate of lower than 5%. Similarly, 75 respondents had over 40% of commercial returns and 5 with under 5%. “Recycling” and “direct resale to 16 other customers” are the most common options with respectively 71.8% and 60.9% of responses. “Repair” and “remanufacturing” were less frequent at 50.6% and 37.2% of responses. “Direct reuse” only accounted for 16% of corporate responses while “incineration” and “landfill” had the smallest proportion as the returned items still contain recoverable value Reverse logistics for endofuse returns (plastic waste) were mainly undertaken by collection and recycling stations In the study at 62 plastics recyclers, 58.1% bought scraps from collectors; 32.3% from plastic plants; 25.8% bought directly from residential areas. Among those, packaging accounted for 64.5%; housewares 32.3%; industrial and construction were the least common types at only respectively 14 and 4 recyclers. In terms of products, 35.5% of companies recycled to plastic pellets; 32.3% to packaging; housewares, plastic pipes, agricultural and construction films, plastic strap, etc accounted for relatively low rate of respectively 9.7%; 6.5%; 6.5%; 9.5% Recycling technologies are mainly blowspray with 52.0%, extrusion with 36.0%, and only 12.0% with casting technology as it requires large investment and capabilities QUANTITIVE MEASUREMENT OF FACTORS AFFECTING REVERSE LOGISTICS DEVELOPMENT IN VIETNAM PLASTICS SUPPLY CHAIN 3.3 3.3.1 Research model and hypotheses Figure 4: Research model (Source: Author’s illustration) Based on previous studies review and interviews, consultation to mangers at enterprises in Vietnam plastics supply chain, the author made 5 hypotheses with independent variables with proportional impact on 1 17 dependent variable. In addition to previous studies, the dissertation proposed 3 additional observable variables in the research model 3.3.2 Analysis of factors affecting reverse logistics development in Vietnam plastics supply chain The scale reliability test showed that the Cronbachs Alpha coefficients were >0.6 and the correlation coefficients were >0.7 (satisfactory), so the scales were reliable and retained in the model of Exploratory Factor Analysis (EFA). The results revealed that the independent variables had fairly high KMO (greater or equal to 0.645); variances explained were >56%; Bartlett's test had pvalue = 0.00 1.7, so the scale of these factors is convergent; The five independent variables and one dependent variable can be extracted from the total 26 variables. Next, the dissertation analyzes correlations among variables in the model by Pearson's Correlation coefficient to quantify the degree of correlation between the independent variables and dependent variable. The results showed that the dependent variable correlates with all independent variables with the correlation coefficient from 0.276 to 0.410 and is significant at 99% confidence level. It is certain to conclude that independent variables can be put in the model to explain the dependent variable The author, then, put the above 6 variables to regression to evaluate the fit of the multiple regression model by Enter. Table 1 showed that the regression model is valid with the data (adjusted R2= 0.358) at p=0.05. The model fit is 35.8%; in other words, 5 independent variables could explain 35.8% of the variation of dependent variable Table 1: Model Fit Evaluation Model Summaryb Model R2 R 615a Adjusted R2 378 358 Standard Error of the Estimate 801 DurbinWatson 2.057 a Predictors: (Constant), LPCS, UDCN, YCTT, MDCT, CSNL b Dependent Variable: KQRL (Source: Author’s findings) Finally, to answer the question about the relationship between variables in the research model, the author used the multiple regression analysis to find the best equation for the set of variables, and tested the hypotheses with 95% 18 confidence. The results showed that the level of technology application (UDCN) had the significance level sig. = 0.095, so H2 hypothesis has only 90% reliability (lower than 95%) but the author retained this factor in the model as technological constraints are essential in developing countries like Vietnam. The remaining four factors including (1) Legal regulations and Policies, (2) Market Demand, (3) Degree of Collaboration, and (4) Corporate policies and resources are correlated and statistically significant in the analytical model with sig.