[Research Contribution] The impact of sustainable supply chain perception on the purchase intention of young people in Ho Chi Minh City

Keywords: The influence of customer perception of sustainable supply chain on purchase intention; Sustainable supply chain; Young people; Ho Chi Minh City.

Many businesses in Vietnam have faced supply chain disruptions due to the Covid-19 pandemic, trade conflicts, and environmental pressures. At the same time, the shift toward green consumption trends, focusing on social and environmental values, has forced businesses to prioritize building sustainable supply chains. Based on this reality, a research team from the University of Economics Ho Chi Minh City (UEH) conducted the topic: "Research on the impact of sustainable supply chain awareness on the purchasing intention of young people in Ho Chi Minh City," aiming to examine the level of awareness among young people, analyze the impact of sustainable factors in the supply chain on purchasing intention, and propose appropriate recommendations for businesses.

Numerous international studies have highlighted the crucial role of sustainable supply chains in enhancing operational efficiency and corporate social responsibility. However, in Vietnam, empirical studies are still limited, especially for the young customer group in Ho Chi Minh City - a dynamic consumer force with a significant impact on market trends. Therefore, the study by the UEH student group was conducted with the aim of evaluating the impact of eight components in the sustainable supply chain on purchase intention, including: procurement, design, transportation, information sharing, collaboration, packaging, lean manufacturing, and human-activity management.

Important factors influencing purchase intention

The study focuses on 08 key factors in the sustainable supply chain: procurement, design, transportation, information sharing, collaboration, packaging, lean manufacturing, human resource management, and operations.

Sustainable procurement is considered the first foundation in the supply chain. When businesses choose environmentally friendly raw materials, suppliers with green certifications, or those that meet social responsibility standards, it increases consumer trust. Young people tend to value products from transparent sources that limit harmful resource exploitation, thereby strengthening their positive feelings toward the brand.

Next, sustainable design is a factor that has a very strong impact on purchase intention. Products designed for easy recycling, reuse, extended lifespan, or reduced resource waste are often seen as symbols of innovative design linked to social responsibility. This aligns with the consumption characteristics of young people, who are willing to pay more for products that demonstrate a commitment to environmental protection.

In the distribution phase, sustainable transportation also plays an important role. Green logistics, such as route optimization, using fuel-efficient vehicles, or adopting clean transportation technologies, helps reduce CO₂ emissions. Young consumers often pay attention to the friendliness of the shipping process and tend to support brands that prioritize reducing their carbon footprint.

Simultaneously, transparent information sharing within the supply chain is considered a key factor in building trust. Young people want to know more about the production process, the origin of the raw materials, and the social and environmental impact of the product. The more transparent and clear a business is, the higher the consumer's intention to purchase.

Another factor is sustainable collaboration throughout the entire supply chain. When partners share technology, innovate processes, or commit to environmental standards, businesses are valued more for their reputation and commitment. This collaboration also creates a ripple effect, making consumers believe that the product is not just merchandise but also the result of a network of social responsibility.

Sustainable packaging has emerged as the most visible symbol that consumers can directly observe. Recyclable, biodegradable, or reduced single-use plastic packaging often has a strong impact on young people's purchasing intentions. This is also the most easily recognizable aspect of the product's "greenness."

Additionally, lean manufacturing helps reduce waste, optimize resources, and increase energy efficiency. Young consumers are often highly aware of resource conservation, so they positively evaluate businesses that adopt lean manufacturing methods.

Finally, human and operational management also contribute to shaping a sustainable brand image. ESG (Environmental, Social, and Governance) standards are a set of criteria used to evaluate companies based on three aspects: environmental, social, and governance, thereby reflecting the company's level of sustainable development and social responsibility. Fair human resources policies, occupational safety, and social welfare aligned with ESG standards are considered one of the important factors in building trust. Young people, especially Gen Z, are not only interested in the product but also pay attention to how businesses treat their employes and the community.

The research results show that cognitive factors related to sustainable supply chains all have an impact on young people's purchase intentions, but the degree of impact varies. Some factors, such as information sharing, packaging, and operational management, have a clear positive impact, while others have a weaker effect. This reflects that young people in Ho Chi Minh City tend to be interested in transparency, social responsibility, and innovation in businesses' sustainable activities.

Policy implications

In the context of young consumers increasingly concerned about social and environmental responsibility, businesses need to pay special attention to transparency in their supply chains. Clearly disclosing information about raw material origins, production processes, or sustainability certifications not only helps build customer trust but also creates a long-term competitive advantage. When this information is transmitted transparently, consumers tend to trust and choose the product more, as they feel they are contributing to a responsible value chain.

Alongside information transparency, investing in sustainable design and packaging is an important strategic direction. Product designs that prioritize a longer lifespan, recyclability, and eco-friendly packaging not only meet the market's green demands but also demonstrate the company's commitment to sustainable development. Packaging is the first point of contact with customers, so using recycled or biodegradable materials will directly impact perception and purchasing decisions, especially among young people who are sensitive to environmental issues.

Additionally, green logistics plays an essential role in reducing a company's carbon footprint. Applying digital technology to optimize transportation routes, save fuel, and combining this with the use of environmentally friendly transportation vehicles can significantly reduce emissions. This not only helps businesses save on operating costs but also enhances a sustainable brand image in the eyes of customers. For young consumers in Ho Chi Minh City, it is very significant for businesses to demonstrate efforts to reduce emissions during transportation, as it shows responsibility not only in the final product but throughout the entire supply chain.

Equally important, supply chain collaboration needs to be strongly promoted. Businesses are unlikely to achieve sustainability goals if they operate in isolation. Instead, sharing technology, experience, and best practices among parties in the supply chain will help reduce costs, increase efficiency, and create sustainable, widespread value. This collaborative relationship also makes it easier for businesses to achieve international ESG standards, thereby enhancing their reputation in the global market.

Finally, to connect all the above factors with consumers, businesses need an ESG-linked marketing strategy. Beyond just promoting products, marketing activities need to convey messages about social responsibility, the environment, and transparent governance. Especially as the younger generation becomes increasingly interested in sustainable values, an ESG-based marketing strategy will help businesses both win over current customers and build long-term loyalty.

Thus, the combination of information transparency, sustainable design and packaging, green logistics, supply chain collaboration, and ESG marketing is not just individual solutions, but a closely linked strategic system. When implemented synchronously, these factors will not only increase purchase intent among young consumers but also solidify the company's pioneering position in the transition to a sustainable development model.

The research paper has indirectly contributed to SDGs 8, 12, and 13. See all “The impact of sustainable supply chain perception on the purchase intention of young people in Ho Chi Minh City” HERE

Authors: Hoang Yen Nhi, Tran Mai Duyen, Pham Thi Minh Thu, Bui Nguyen Anh Minh, Doan Ha Vy - University of Economics Ho Chi Minh City.

This article is part of the Green Research Community series with the message "Research Contribution for UEH Living Lab Green Campus" UEH sincerely invites the community to follow the next Green Research Community newsletter.

*To create maximum conditions for the development of the "UEH Green Researcher Community," members of the community will be able to attend scientific research methods classes related to the topics of Living Lab and Green Campus. Additionally, upon meeting the standards, the research team will receive a certificate from the UEH Sustainable University Project Board and financial support for a standard-compliant project.

Additional information: 

SDG 8 – Sustainable Economic Growth and Decent Work focuses on promoting sustainable, inclusive, and continuous economic growth while ensuring full, productive, and decent employment for all. This goal emphasizes the balance between economic development and social equity, by increasing labor productivity, fostering innovation, expanding employment opportunities, and protecting workers' rights. At the same time, SDG 8 also aims to reduce unemployment, eliminate forced labor and child labor, and ensure a safe and equal working environment.

SDG 12 – Responsible Consumption and Production focuses on ensuring sustainable production and consumption patterns, thereby reducing pressure on natural resources and minimizing waste and environmental pollution. This goal emphasizes the importance of effective waste management, optimal resource utilization, and promoting changes in individual and community consumer behavior, particularly thru education and awareness.

SDG 13 – Climate Action calls for urgent action to combat climate change and its negative impacts, thru reducing greenhouse gas emissions, enhancing adaptability, and raising public awareness. This goal not only includes national-level policies but also requires changes in individual and community behavior in daily life, especially in areas directly related to waste generation and management.

News, Photos: UEH Green Campus Project, UEH Youth Union - Student Association, UEH Communications and Partnership Development Department

Voiceover: Thanh Kieu