2.1 Introduction
Since domestic techniques for mining industry cannot meet the international quality standard, and some related technologies are not available in Vietnam, it requires implementing a new method of supply chain management as GSCM.
In considering why firms use green supply chains, a series of studies argue that compliance with regulations is a major driver that contributes to the implementation of green supply chains (An et al, 2008).
2.2 Traditional supply chain
Competition in the global market is becoming increasingly fierce pressure to the home producers, forcing them to cut costs, improve product quality, together with the increased level of customer service (Tseng, M.L., 2010). The maker of manufacturing techniques applied just on time (JIT), total quality management (TQM) to improve quality, enhance production efficiency, and shorten delivery times. In a production environment with the use of fewer JIT inventory buffer for production scheduling, businesses began to notice the potential benefits and the importance of relationships strategy and cooperation of suppliers who and customers. The concept of partnership or alliance increasingly the prominent as firms have to implement JIT and TQM (Melnyk et.al., 2009, Melnyk et.al., 2013).
Figure 2.1 illustrates the structure of the traditional supply chain.
Supply chain includes not only manufacturers and suppliers, but also companies transport, warehouse, retailer and its customers. For example, a supply chain starts with the mining enterprises materials from land such as iron ore, oil, wood and food - and sell them to businesses producing materials. These businesses, which acts as the order and after receipt of the request on specifications from the manufacturers of components, they will continue processing this material into suitable material (such as sheet steel, aluminum, copper, lumber and food checked). In turn, the manufacturer of components must meet orders and requests from their clients - manufacturers' end products. The output of this process is the detailed components or intermediaries (such as wire, fabric, printed circuits, the details you need ...).
2.3 Definition of Greening supply chains management
To address growing small and medium businesses do not grow or bankruptcy due to not finding solutions for sustainable development, require product innovation is seen as an important step for the business can survive and development.
Figure 2.2 Greening supply chains management (Sarkis, 2012)
Innovate "green" requires a combination of innovation development of new products (goods and services), production processes, organizational structures or marketing solutions to minimize the impact harmful to the environment by efficiently using natural resources. Not stopping there, the product innovation will help businesses proactively trends regulations. The regulations and standards become increasingly stringent (both aspects of resource use and control of business processes). By adopting innovative strategies, "green", companies will innovate by using the correct materials, technologies and processes of production and business efficiency and testing new solutions bring to their predecessors great advantages.
Innovation strategy of "green" also brought positive effects on corporate reputation and provide an opportunity to influence new regulations in the future.
2.4 The factor effect on Greening supply chains management
It was found that, in addition to activities related to environmental technologies such as wastewater treatment, dust filters, scrap recycling ... trends product innovation is also a common trend in the international market instructions. Choose to follow this trend will help enterprise customers, as well as wider export market, may even attract investment from foreign firms. With a model that helps effectively control operating costs, expansion opportunities both manufacturing and trading, it needed proper attention of domestic enterprises.
As for green public procurement (or green purchasing) Vachon and Klassen, (2007), find that it is a process whereby public authorities seek to purchase goods and services and work that minimize the environmental impact throughout the product lifecycle. This product when compared to goods, services and works together with the key functions usually shop. In terms of the current globalization, green supply chain management and green supply chain is considered to be a direct mechanism and effective to solve the environmental problems in the global value chain. By using purchasing power and consumer behavior of governments, big business and the community, green supply chain management is the market
mechanism to reduce pollution and increase energy efficiency as well as natural resources. When combined with the legal sanction of the national, regional and global, it can lead to a shift in the industry towards green (Sarkis, 2012).
2.5 The relationship between internal environmental management and greening supply chains management
We offer our first hypothesis.
H1: Internal environmental management (IEM) has a significant impact on GSCM practice in the VMI.
2.6 The relationship between the external environment and Greening supply chains management
Zhu et al. (2008) conclude that the success of eco-design requires internal, cross-functional cooperation within the company and external cooperation with other partners throughout the supply chain. According to the study by Vachon and Klassen (2007), it is better for corporations to establish long-term relationships with suppliers, which includes establishing requirements for product quality, following environmental regulations at the manufacturing level, having green packaging and distribution strategies and delivering high-quality products to customers. The discussion above leads to the second hypothesis.
H2: The external environment has a significant impact on the GSCM practices of the VMI.
2.7 The relationship between Environmental regulation and Greening supply chains management
In considering why firms use green supply chains, a series of studies argue that compliance with regulations is a major driver that contributes to the implementation
of green supply chains (An et al, 2008). Zhu and Sarkis (2006) divide the regulatory environment into three levels: regional environmental regulations, central government environmental regulations, and international environmental regulation agreements. According to a study by Cater and Rogers (2008), sustainability involves three components: environmental, social and economic performance.
Although governments aim to perform well in all areas, they pay the most attention to regulating environmental issues. To slow environmental degradation, sustainability is advocated. In considering this issue, developed countries took several measures, such as publishing certain laws and standards to control environmental impacts. However, in developing countries such as Vietnam, sustainability is still a new topic. Policies and approaches related to sustainability are incomplete, and the development of sustainability is at an early stage.
H3: Environmental regulation has a significant impact on the practice of GSCM in the VMI.
H4: There is difference between type of company in Willingness to apply GSCM.
Figure2.3. Research Framework