Luận văn thạc sĩ Quản trị kinh doanh: Business plan for green collector-bottles and cans collection system

SUMMARY OF MASTER’S THESIS This thesis sought to determine the viability of creating a solid waste collection and categorization business in Ho Chi Minh City, Vietnam.. LIST OF ABBREVIAT

INTRODUCTION

Vietnam’s environmental issues and business opportunity

Vietnam is one of the fastest-growing economies in Southeast Asia as well as in the world This is reflected in Vietnam's economic statistics in the last 10 years (2009 - 2019), according to which gross domestic product (GDP) reached about 266 billion USD, per capita reached 2,800 USD, from a growth rate of 5.40 percent in 2009 has increased to 7.02 percent in 2019, the highest in the past 10 years 2019 is also the second year, that Vietnam's GDP growth reached over 7.0 percent and exceeded the set plan (6.6 - 6.8percent) (People's Deputies Newspaper, 2020) In addition, international economic integration also has a strong impact on growth, contributing to promoting economic development and international trade activities in Vietnam The process of economic growth and rapid urbanization with the growing number of production and business industries, industrial zones, and urban services has created migration flows from rural to urban areas Economic development and urbanization on the one hand create millions of jobs for workers, but on the other hand, it also creates pressure on the environment, increasing the amount of solid waste generated especially domestic solid waste With a population of approximately 100 million, it presents significant challenges in terms of subsistence, living standards, economic growth, and environmental protection Currently, ecological hazards in our country are being influenced by industrialization, modernization, and climate change, particularly the contradiction between development and backwardness, which is a result of the strong influence of traditional thinking As a result, small farmer habits have not yet been perfected The following are some specific manifestations of Vietnam's environmental challenges today

In addition to being destroyed by continuous wars in the past, Vietnam’s natural environment is also harmed by unconscious behaviors, reckless attitudes, and a lack of planning in the exploitation and use of natural resources According to the General Department of Forestry, the ratio of trees per person in major cities in Vietnam is now only 2-3 square meters per person, and the index of trees per person in urban areas is limited The world's modern streets have a population density of 20-25 square meters per person (T Dung, 2021) The area of eroded arable land has expanded dramatically to approximately 13.4 million hectares The primary cause of this scenario is shifting farming, illicit logging, increased traffic, and hydropower development that do not follow a coherent plan The issue of irrational land use planning is squandering the country's most important resource

Ecological contamination is a significant issue in the modern-day Numerous factories release industrial and daily-life wastes and harmful substances directly into the environment, producing ecological contamination and human sickness folks According to Ministry of Natural Resources and Environment figures, the country today boasts over 5,400 craft villages, with over 1350 in Hanoi capital alone, but 95 percent of production activities degrade the environment, with more than half causing major pollution (Minh Thu, 2022) These are small businesses and manufacturing facilities that use generally obsolete equipment and have not made appropriate investments in the remediation of environmental pollution and waste In metropolitan places, dust concentrations are many times the permitted limit Carbon Dioxide emissions are 1.5 to 2.5 times higher than the allowed threshold, particularly in large cities and industrial zones Additionally, noise pollution is an issue in residential neighborhoods Additionally, the issue of mining, building materials, gold, and gemstones both legal and unofficial, has been wreaking havoc on the ecological environment Mines are upsetting the ecological equilibrium in a variety of fields

According to numerous international experts, Vietnam is today confronted with several major environmental issues, including deforestation, soil erosion, and overexploitation of coastal resources, all of which threaten ecosystems, biodiversity, and genetic depletion This environmental situation, combined with climate change and sea-level rise, poses significant challenges to Vietnam's rapid and sustainable development in the coming years In the next few years, to effectively undertake environmental protection activities under changing international and domestic conditions, it is believed that, in addition to the aforementioned orientations, the government should concentrate on the following major solutions According to the report by Associate Professor, Doctor of Science Tran Nguyen Tuyen, from the Central Theoretical Council, he claimed that

Ecological awareness is crucial, fostering a consciousness of the human-nature connection Through scientific advancements in the Industry 4.0 era, understanding natural laws and implementing them responsibly is essential By rediscovering humanity's role in the ecosystem, we can establish a sustainable societal foundation that values environmental preservation as a cornerstone of progress.

Technological innovation can take place in two ways: through technology transfer and through self-absorption of advanced technology with a high gray matter content and clean technology, which enables to achieve accelerated industrialization and modernization Simultaneously, it is the most effective method of achieving economic development and environmental conservation Science and technology development are inextricably linked to environmental protection and improvement and ensure rapid and sustainable socio-economic development Economic development at the expense of the environment also means that its future is doomed The goal of technology transfer must be to find a way to meet economic growth goals while also protecting the environment

Vietnam has already applied the technological aspect in handling waste in general and solid waste in particular The primary methods are landfilling, biofuel production, and incineration Vietnam was able to design and construct sanitary landfills in advance, ensuring compliance with Vietnamese norms and regulations However, according to reports from the Ministry of Construction in 2017, out of 660 landfills with a scale of over 1 hectare, only 120 are sanitary landfills with an area of about 977.3 ha, the rest of which is accounted for 73.5 percent unsanitary (Members of Committee on Science, 2019) These landfills are usually temporary, open- air landfills without a leachate collection and treatment system, which is a source of water and air pollution

Wastewater treatment facilities utilize aerobic or anaerobic incubation techniques for 40-45 days to create microbial fertilizers from domestic solid waste Several facilities using imported technology from Korea, Spain, and Belgium have adapted their processes to optimize waste treatment for unclassified domestic solid waste in Vietnam Notable plants include Nam Binh Duong (420 tons/day), Cam Xuyen (200 tons/day), and Trang Cat (200 tons/day).

The incineration technique has been utilized in several places, mainly cities, heavily populated urban regions, or some districts and communes with different sizes from 10 to 150 tons/day In which, largely small-scale non-fuel combustion technology of 10-12 tons/day Some areas have also engaged in heat recovery combustion technology to dry waste and forest products such as Thang Long Environmental Services Joint Stock Company, Waste treatment, and fertilizer production firm in Thai Binh city (News Agency Vietnam, 2019)

Although technology has been applied in the waste treatment process, generally, solid waste recycling remains modest and sporadic, carried out primarily by the informal sector in craft communities, resulting in environmental damage The management and control are deficient in environmental protection by municipal governments The majority of recycling plants are small in size and require little investment in technology The majority of technologies are obsolete, with obsolete gear and equipment that contribute to secondary environmental contamination The primary technique of treating solid waste is still burial The primary landfill sites have lasted for a long period, depleting the land supply; the rate of waste treatment combined with energy recovery remains low (Ministry of Natural Resources and Environment, 2019)

Furthermore, it can be seen that the majority of people are still unaware of the collection, classification, transportation, and treatment of solid waste, particularly plastic garbage, such as bottles, cans, and plastic bags People's habit of using non-biodegradable plastic bags persists because they are unaware of the negative effects of plastic waste on the environment and ecosystems; they are also unaware of the economic benefits of sorting, collecting, and recycling plastic waste, resulting in a low collection ratio relative to the amount generated

Understanding the current situation of solid waste treatment in Vietnam, the entrepreneur desire to find a solution or a business concept that would elaborate the consciousness among people.

Problem statement

According to Wikipedia, there are many types of solid waste, such as municipal, agricultural, domestic, medical, and industrial solid waste (EPA NSW, 2021) Municipal solid waste is generated by offices, households, markets, and schools, among others Agricultural solid waste includes straw, rice husks, packaging, maize cobs, and pesticide packaging Domestic solid trash generated in daily life includes all sorts of waste, including food, beverages, bottles, cans, and other domestic waste Industrial solid waste includes garbage from factories, industrial parks, and manufacturing facilities such as scrap iron, metal, plastic, rubber, paper, glass, etc Solid waste in urban areas accounts for more than 50 percent of the total amount of solid waste in the country, increasing from 32,000 tons per day in 2014 to 35,624 tons per day in 2019 (Environmental status report in 2019, 2019) According to Article 15 Decree 38/2015/ND-CP, domestic solid waste needs to be classified and stored in different containers And this activity is monitored, supervised, and inspired by both organizations and individuals to comply (Government, 2015) Although the Committee of Ho Chi Minh City (HCMC) has propagated the citizens to follow this policy, only a 74percent of the citizens are sorting the domestic solid waste Other ways of treating domestic solid waste are incineration and sanitary burying or landfilling Ho Chi Minh City has begun construction of a garbage incineration plant with a capacity of 2,000 tons per day in the Northwest Solid Waste Treatment Complex The investor is Vietstar Joint Stock Company The initiative is expected to alleviate HCMC's trash problem However, this plant is still required to classify garbage before processing, as the city's waste categorization at the source remains "stagnant" despite numerous implementation plans The purpose of plants equipped with contemporary technology is to process trash to create composite fertilizers for agriculture; however, composite fertilizers can only be created from solid food waste; all other substances, such as plastic, rubber, and nylon, must be recycled Meanwhile, recycling and treatment plants have fallen short of technological targets; just t 40percent of waste is recycled; the remaining is either buried, burned, or destroyed HCMC’s current waste treatment technology in total includes 31percent incineration, recycling composting; and 69percent sanitary landfilling By

2020, the rate of domestic solid waste processed with sanitary landfill technology should be no more than 50 percent and no more than20 percent by 2025 (Resource & Environment Paper, 2018)

Domestic solid waste in Vietnam in general, and Ho Chi Minh City in particular, is composed primarily of organic waste, has a high moisture content, and has a low calorific value, making it generally easy to eliminate

As a result, Mr Huynh Minh Nhut - Director of Ho Chi Minh City Urban

- Environment Company Limited - believes that the ideal option is to focus resources on educating people about waste sorting in their own homes (Minh Van, 2021) Therefore, the need of classifying solid waste in general and domestic waste, in particular, has provided the entrepreneur incentives to start the business model in collecting and categorizing plastic bottles and aluminum cans One typical type of this business is based on the container Deposit Return Scheme (DRS) system This container deposit return schemes work by adding a small deposit on top of the price of a beverage – such as those in plastic and glass bottles and aluminum cans – which is refunded to the consumer when they return the empty bottle or can for recycling Think of it as buying the beverage but borrowing the container These programs are also known as container deposit systems or bottle bills

To integrate this system, it is necessary to conduct studies and interviews to understand the business opportunity for applying DRS in Vietnam, then propose proper business models with a comprehensive business plan to establish a company in this field This thesis aims to complete the research in specific districts in HCMC because HCMC is one of the largest cities in Vietnam

Going through all the above idea, this thesis focuses on some key points to cover the following questions:

1) What is the consumer behavior toward the collecting and recycling of domestic solid wastes?

2) What are the business model and its benefit to the business toward the society in general and the consumer in specific?

3) What should be taken into notice in building the Green Collector business plan?

4) How should the entrepreneur analyze the sustainability factors such as risks, growth, or exit options?

Objectives of the thesis

Crafting a business plan is essential for startups seeking investment and stakeholder support It serves as a comprehensive roadmap, providing a clear understanding of the business's operations, goals, strategies, and plans The aim is to assist businesses in developing a plan that will guide their growth and activities, ensuring alignment with the expectations of investors and stakeholders.

To assess the opportunity, market research will be undertaken to understand the consumers’ behaviors toward the DRS in Ho Chi Minh City in Vietnam and then the market's attractiveness will be determined The thesis will create an appropriate questionnaire for market surveys based on the market's attractiveness to determine target market segments and the consumers’ reactions For instance, if the outcome is that some consumers never recycle, a question to them could be "Are you willing to recycle if there is an incentive reward?” By identifying the behaviors, a business model may be created that benefits all stakeholders involved in DRS For instance, the supermarket could have a chance to increase the sales of beverages when more and more people participate in the DRS A complete plan for marketing, sales, operations, and management will be prepared based on the business model Finally, a financial pack will be estimated to demonstrate the operating cash flow and return on investment for the project

To ensure that the thesis is completed on time and with acceptable results, all of the following surveys and market research will be undertaken in District 7, Ho Chi Minh City A group of random consumers will be asked to survey to ascertain their true desires (e.g., are they likely to recycle, and if yes then how often, do they prefer to use bottles or cans, etc.) Expert in waste treatment industry will be interviewed, to provide facts and experiences from his or her perspective compare to the business model, and how should the entrepreneur pursuit the success

In sum, the business scale is aimed only at a small number of supermarkets in District 7, in Ho Chi Minh City, to understand the consumers’ behaviors before expanding the business

The objectives of the thesis are:

• Defining the business model and analyzing the benefits of the business toward a society in general and toward the consumer in specific

• Conducting feasibility analysis to establish that the business proposal is financially viable through economic, industry, market, business, and financial analysis

• Conducting sustainability analysis through the plethora of factors such as risks, exit options for the business.

Scope of the study

The following describes the scope of the study for the business plan:

- Data was gathered and analyzed at the Department of Natural Resources and Environment of Ho Chi Minh City, solid waste market research, and public information on other Deposit Return Scheme in Vietnam and all over the world To understand the current market in deploying the project, as well as the potential market for further expansion to other districts or provinces in the near future

- Conduct both online and offline surveys of consumers’ behaviors and conduct interviews with waste treatment industry expert.

Research significance

The findings from this thesis can assist the author in conducting an efficient and synchronous analysis and evaluation of the business plan as well as give the investors a positive viewpoint in investing in the project

As Vietnam is one of the fastest-growing economies, and with certain encouragement from the authority in the environmental preservation industry, there are obvious opportunities for the “Green Collector” start- ups to capitalize on Additionally, this thesis also clearly defines the business strategy; growth strategy; operation plan; marketing plan; and financial projections and analysis Additionally, these findings aid identifying potential risks stand and growth for the project.

LITERATURE REVIEW

Start-up process and Business plan for a start-up

The term "start-up" was first used in 1976 in the magazine Forbes (Start-

Up, 2016), and has since become one of the world's most famous buzzwords However, what does the term "start-up" mean Numerous definitions are available on the Internet, for example:

• A start-up is a business that is in its infancy It is typically financed by its founder/entrepreneur, who attempts to capitalize on a developing product or service in the hope that sufficient demand exists for it Most of these small start-ups face long-term difficulties because of financial constraints caused by high initial costs or low revenue (Investopedia, 2018)

• (BusinessDictionary, 2018) defines a start-up as the period during which a business establishes its basic hierarchy and set-up This period can be defined as the period between the conception of an idea and the resolution of all financial concerns

Paul Graham, a prolific investor in startups, proposes a less conventional definition of a startup, emphasizing growth as its core characteristic Unlike traditional notions, startups need not be newly established, employ advanced technology, or rely heavily on external funding Growth is the defining trait, as evidenced by countless service-based businesses that lack rapid growth potential due to their intrinsic structure For a startup to succeed, Graham asserts that it must possess a unique identity from its inception.

There is even widespread agreement on the "age" of start-ups The preceding definitions refer exclusively to the early or initial stages of a business, but how long does this stage last? Some assert five years, while others assert three years A third group asserts ten years Other tensions are evident in the profitability and employee count of start-ups Once again, the precise edge is missing Finally, can the acquisition of a start-up be considered the conclusion? Additionally, there is no correct answer to this question Overall, Natalie Robehmed of Forbes magazine concludes the start-up debate with the following: "Similarly, if you've recently founded a small for-profit business to grow large enough to take over the world – even if you're still working from your bedroom – you're probably a startup founder." (Robehmed, 2013)

Mr Ries described an approach aimed at assisting firms in conducting tests and iterating when seeking a viable business model as the term "Lean Startup" (Ries, 2011) The steps in the lean start-up process are described (Chuong, 2020)

First, building the business vision: This stage, also known as ideation, is where the entrepreneur goes through the creative process of generating ideas and constructing the business that he or she wants to start Based on the problem statement, and the need for classification and recycling of solid waste, the entrepreneur has constructed the idea of the Green Collector project

Formulating a business model involves designing how value will be delivered to customers Key to this process is the development of hypotheses, which formalize assumptions about the model's characteristics Establishing a viable business model typically requires employing analytical tools such as the Business Model Canvas, PESTLE, SWOT analysis, or Porter's Five Forces These techniques aid in understanding the business environment, identifying key factors, and developing a sound business plan.

Third, building experiments is a scientific activity in which a researcher or entrepreneur observes the change of independent variables by manipulating controlled factors They're utilized to put business model hypotheses to the test Qualitative interviews, a/b tests, prototypes, launch pages, minimal viable product (MVP), smoke tests, and concierge are all examples of experiments In this thesis, qualitative interviews are mostly used to experiment with the hypothesis

Fourth, measuring results: the entrepreneur must analyze and monitor the results of their experiments using data analysis and statistical methods, and compare them to previously specified hypotheses

In the final step, learning is an important notion and goal for a startup in its early phases Experiments are used to either confirm or disprove hypotheses Validated learning, as defined by (Ries, 2011), has four outcomes: pivoting, iterating, escalating, and giving up Pivoting is the action of dramatically modifying one or more parameters of the business model after running an experiment and abandoning a hypothesis to construct a new hypothesis and test it through fresh tests Iterating is a more moderate alternative to pivoting It entails promoting one or more adjustments in the company model or product to test the new hypotheses, thanks to the knowledge gained Entrepreneurs who believe they have discovered a viable business model and are willing to invest more in it to build a working organization around it and achieve economies of scale are said to be escalating When tests and trials reveal that the company vision set is unable to develop a sustainable business model, it is time to give up After going through all the above steps, which lead to the learning decision of the entrepreneur

By definition, a business plan is a thorough document that outlines the startup's business strategy and details the nature and context of the company’s ideas and precise plans used to accomplish the objectives (Hayes, 2021) A business strategy can be thought of as the bridge between concepts and realities The purpose of the business plan is to provide a detailed explanation of the product or service, the entrepreneur's needs and capabilities, and the development and investment requirements Without a solid business plan, small enterprises frequently lack a feasible strategy that addresses investment and resources and hence are anticipated to fail to grow

A business plan compels entrepreneurs to meticulously outline all aspects of their venture, including market analysis, cost projections, and essential elements for success It serves as the foundation for establishing a business enterprise and offers significant advantages Notably, a solid business plan enables entrepreneurs to present their ideas to investors, fostering discussions and potentially securing funding for their business aspirations.

A business plan enables entrepreneurs to gain a thorough understanding of the obstacles their business ideas may face, as well as who they need to impress as a realistic assessment of their condition and analysis of their competitive advantages in the market

A well-crafted business plan is crucial, as its development fosters essential research and planning skills The plan's vision guides skill enhancement, and thorough research is paramount to identify and address key issues, enabling entrepreneurs to evaluate and refine opportunities This approach minimizes wasted resources and enhances the probability of success.

A business plan's essential components include cover sheets, tables of contents, summaries, a general company description, products and services, a marketing plan, an operating plan, management and organization, personal financial statements, start-up costs and capitalization, and a financial plan, and appendices The summary is the most critical of these sections and also the most difficult to write (Sellars, 2009) This section offers the necessary information to pique the interest of all readers.

Industry and competition analysis

2.1 The industry of waste collection and treatment process

In Vietnam, solid waste management involves three main methods: composting for domestic waste, biological composting and gas collection for industrial waste, and landfilling for large-scale waste disposal The Ministry of Construction has approved five solid waste treatment technologies, including bio-composting for organic fertilizer production, RDF pelletizing, and incineration technologies Despite the presence of numerous conventional solid waste incinerators, improper operation or inefficient technology can lead to toxic emissions such as dioxins As of 2016, Vietnam had approximately 458 solid waste landfills with capacities exceeding 1 hectare, in addition to smaller landfills in communes Composting remains a viable technology for treating organic waste in rural areas.

According to the Vietnam Environment Administration's 2019 National State of the Environment Report - Thematic "Urban Environment," approximately a 34 percent of domestic solid waste is directly buried in urban areas Around 42 percent of domestic waste is recycled at treatment facilities, while the remaining 24 percent of solid waste is waste from the landfill process (Environmental status report in 2019) Today, the practice of burying unclassified solid waste in concentrated waste dumps has demonstrated numerous shortcomings due to the enormous amount of land required, overcrowded landfills, and adverse effects on the environment, water resources, and air, most notably on human health Solid waste collection and treatment are also a financial burden on the state budget, as these activities are still largely subsidized by the state Cleaning fees collected at residences and businesses are insufficient to support on-site collection activities

According to the 2017 Economic Census, the entire country had 1,791 enterprises engaged in water supply, waste management, and treatment, employing more than 107 thousand people However, large enterprises accounted for only 6 percent of the total (107 enterprises), while small enterprises accounted for 30.5 percent (547 enterprises) Micro enterprises accounted for 60.6 percent (1,086 enterprises), while medium enterprises accounted for the remainder

From ocean plastic garbage and waste management expenses to government collection targets, more countries are prioritizing sustainable resource management An advantageous strategy that is currently being discussed is the notion of returning a small amount of financial value per amount of collected garbage to encourage people to keep collecting it for recycling This is a particularly popular solution for scattered and discovered seas things, like beverage containers Container Deposit Return Schemes (DRS) charge an additional deposit on the container in addition to the beverage price, which is refunded when the container is recycled

Deposit Return Systems (DRSs) charge consumers a deposit on single-use beverage containers, which serves as an incentive for recycling and is redeemed when the container is returned Consumers can return containers via various methods, including collection points, bottle rack stores, and reverse vending machines (RVMs) RVMs compress, sort, and scan containers to determine their value in terms of weight, material, and brand The processed containers are crushed, sorted, and stored for recycling, while collected materials are transported to recycling facilities for conversion into new products Estonia, one of the ten European nations to have implemented DRSs, has achieved an overall return rate of 82.7%, highlighting the positive outcomes of these systems.

Recycling, littering, and the environment has always been treated extremely seriously in the soft drinks and bottled water industries Along with increasing recycling rates, an effective DRS should improve the quality and amount of material collected for recycling and reuse as new packaging This will help many producers shift toward a more circular packaging model, enabling bottle-to-bottle and can-to-can recycling, and ultimately toward the circular economy that the world desires

There are two types of deposit return schemes, the multi-use sch me, e and the single-use scheme

2.1.1 Multi-use deposit return scheme

Multi-purpose DRS have been established a long time ago They operate in the following procedure: a beverage is bottled, transported, and consumed The bottle is then returned, cleaned, and re-used

Glass bottles can be reused over 50 times, whereas polyethylene terephthalate (PET) bottles can be reused up to 15 times (Simon, 2010) This conserves raw resources and energy and emits less CO2 than single- use bottles do Typically, multi-purpose DRS are the result of industry initiatives Several of these technologies have been in use for decades, for example, in the transportation of milk and beer bottles The deposit amount reflects the producer's economic interest in reclaiming its bottles Reusable bottles are often constructed of glass or PET and are occasionally packaged in crates that include a deposit

Multi-use containers are more environmentally friendly than single- use containers, as long as the transport routes are not very long; otherwise, the energy expenditures and CO2 emissions outweigh the benefits Containers with several reuse cycles conserve resources and release less greenhouse gas during the manufacturing process than single-use containers

The benefits of multi-use containers apply across the value chain (manufacturing, transportation, and disposal), and the benefits rise with the repeated use of uniform containers These advantages reduce as the number of bottle types increases and the logistics become more convoluted and costly

2.1.2 Single-use deposit return scheme

Single-use containers are less environmentally friendly than multi- use containers, at least when short transport paths are assumed The containers require additional resources and energy to manufacture For longer transport routes, these disadvantages can be offset by the benefits

Single-use DRAS systems promote environmental sustainability by achieving high collection rates for single-use containers, facilitating the recycling of valuable packaging materials This approach conserves resources and encourages the use of recyclable materials Moreover, single-use systems offer convenience and adaptability, with smaller bottles providing ease of use due to their reduced weight They also simplify international trade regulations by streamlining distribution channels.

In today's market, various Reverse Vending Machine (RVM) models offer a range of capabilities to meet diverse needs The compact Mini RVM, designed for space optimization, is ideal for convenience stores and small businesses seeking an efficient recycling solution.

Figure 2 Mini Reverse Vending Machine (Source: Internet)

The second model is the middle-size RVM, which offers a medium to high volume capacity for medium and big stores that demand a custom recycling solution with increased storage space

Figure 3 Medium Reverse Vending Machine (Source: Internet)

The revolutionary model, designed for high-volume operations, features innovative modular counting and sorting systems These systems seamlessly integrate with beverage wholesalers, logistic centers, system operators, bottle depots, redemption centers, and industrial facilities, delivering exceptional efficiency and accuracy in counting and sorting processes.

Figure 4 Revolutionary Reverse Vending Machine (Source: Internet)

2.2.1 Political, Economic, Socio-Cultural, Technological, Legal, and

Opportunities may arise as a result of new technologies that enable the firms to reach new customers and new funding sources

New chances could urge firms to invest in better equipment, or changes in government policy which allow the firms to enter new markets On the other hand, threats may include deregulation, which exposes the firms to increased competition, a shrinking market, or interest rate increases, which can create difficulties if any business is heavily in debt (Corporate Finance Institute,

RESEARCH METHODOLOGY

Research Process

The research process used in this study begins with a review of the literature, surveys, and in-depth interview to provide both a solid theoretical and practical foundation for creating business plans in general and business plans for operating restaurants in particular Secondary and primary data were gathered to serve as a foundation for the entrepreneur to develop a viable proposal for constructing a Green Collector System in the

Ho Chi Minh area The below figure shows the research process of the thesis

Data collection

Qualitative research is a method of an in-depth examination of real- world phenomena to comprehend them It focuses on the "why" and "how" of social phenomena rather than the "what" and is informed by human people’s firsthand experiences as meaning-making agents in their daily lives (Jenna Crossley and Derek Jansen, 2021) It is a method of scientific inquiry used to collect non-numerical data Qualitative research examines human behavior from the perspective of the participants Individuals, societies and cultures, and language and communication – all of which are applied across academic fields, qualitative market research, media, and business, among others For the study of human phenomena, qualitative

Identi in met odolo y and business on ept

Re er to t e literature and previous studies

Analy in t e e onomi industry mar et related to t e re y lin and olle tin o aste Colle t se ondary data su as ne spapers aut ority reports in t e re y lin industry

Evaluatin t e onsumer be avior in dealin it solid aste

In dept intervie online survey uestion polls

Usin data olle ted to prepare

S OT analysis and usiness Canvas or reen Colle tor Usin t e met od o usiness anvas model or analysis repare t e business model mar etin operatin mana ement and inan ial plan uild usiness plan oin inan ial and ris assessment Projection

Re ommend potential ris and

STE researchers employ a variety of inquiry methodologies, including biography, case study, historical analysis, discourse analysis, ethnography, grounded theory, and phenomenology (John Adams, 2007)

According to Russell and Gregory (2003), qualitative data complements quantitative data by clarifying survey findings and validating their accuracy It also offers comprehensive insights into behavioral patterns This study utilized both secondary and primary data collection methods to effectively address its research goals.

Secondary data is information that has previously been gathered from primary sources and made accessible to academics for their research (Juneja, 2015) It is a type of data that has been previously collected Researchers may have gathered data for a specific study and then made it available to another researcher for usage Additionally, the data may have been collected for broad purposes without regard for specific study purposes, as was the case with the national census Secondary data can be either unprocessed (sometimes called raw data) or processed data The author gathered secondary data for this study, which included the following:

• Academic journals, peer-reviewed articles, and books on business plans and strategies for successfully developing a company plan

• Pricing in the recycling market through intermediaries

• Reports of state entities charged with the administration and management of Ho Chi Minh’s environmental issues

While secondary data has several advantages, most notably availability and diversity, it also has several disadvantages because it is acquired for a variety of purposes According to Bouma and Ling, the substance of secondary data is not always acceptable; material gathered before does not necessarily correspond to the study's current research aims (Bouma, 2004) Additionally, the volume of secondary data is insufficient; much of it is out of date, of poor quality, and inaccurate Copying, analyzing, and processing data for other reasons may diminish the accuracy of secondary data

When secondary data was insufficient to assist the entrepreneur in answering research questions, the author decided to collect additional data to self-resolve the research problem This type of self-collected data is referred to as primary data In other words, primary data are those that are obtained directly from primary sources by researchers using interviews, surveys, and experiments, among other methods Primary data are typically acquired directly from the source—the place where the data originated— and are widely recognized as the best type of data in research The author conducted in-depth interviews to gather primary data for this study In- depth interviews are repeated interactions between an entrepreneur and an informant (in-depth interviewee) to elicit knowledge about the study topic from the informant through his or her ideas or thoughts (Wallace Foundation, 2019) Primary data gathered through in-depth interviews can provide far more detail than numbers and data gathered through other approaches such as surveys Respondents to in-depth interviews are more at ease having a face-to-face chat than filling out a questionnaire The following are the details of the in-depth interviews conducted for this study

• In-depth interviews with expert in waste treatment solution company E-TECO

• Purpose: To assist the author in thoroughly understanding the waste treatment business market in Ho Chi Minh City, as well as interviewee’s reaction against the Green Collector business Another aspect of the primary data could be both online and offline surveys Survey research can be focused on a single group or used to compare multiple groups When doing survey research, the researcher must select a random sample of participants This results in more reliable conclusions when larger sample size is used The following are the details of the survey

• Online/offline survey with potential consumers who may use the Green Collector System in Ho Chi Minh City

• Number of participants: expected from 100 to 300 people

• Purpose: To understand consumer behaviors

According to (Kotler, 2002), the way individuals choose and use the company’s products and services is known as consumer behavior It's a holistic marketing idea that refers to how people act throughout the lifecycle of the product, from discovery to endeavor, usage, and disposal The survey shall include but not be limited to, first, when a person first uses the Green Collector system, what are their reaction and desire Secondly, product usage, such as how frequently consumers recycle with the Green Collector after their first time And finally, product disposal, such as how long consumers keep using the system and whether or not they quit the collecting and classification action

Consumer behavior research examines the complex mix of ideas, feelings, and behaviors that drive critical customer journey decisions such as making an initial purchase, repurchasing a favorite product, or posting an online review.

Data Analysis

Qualitative research necessitates ingenuity and adaptability (Russell, 2003) As a result, the author did not write any analysis or draw any conclusion based purely on the raw data acquired from interviews for this research Numerous analytical methodologies and techniques, including grounded theory, thematic analysis, and discourse analysis, were applied to decode this data In this thesis, the author used thematic analysis, one of the most prominent kinds of analysis in qualitative research and widely regarded as a versatile analytical tool due to its ability to accommodate a variety of theoretical backgrounds (Creswell, 2014) Due to this flexibility, thematic analysis enables the description of data to be richer, more detailed, and more complicated The entrepreneur designed questions around the theme of the business plan for in-depth interviewers to express their thoughts and help the new start-up Green Collector.

Financial issues

After completing the business model, there are still financial issues that must be taken into consideration for feasible analysis For instance, firstly, does the business have a steady or rapid growth in sales during the first three to five years Secondly, the ability to forecast the income and several expenses with a reasonable degree of certainty Some expected expenses could be listed below:

• Purchase of reverse vending machine

Thirdly, in case of an exit opportunity, such as an acquisition or an initial public offering, the entrepreneur shall consider the availability for investors to convert equity into cash or cash equivalent One of the financial feasibility analysis methods is based on the same ratios, such as the Net Present Value (NPV), Internal Rate of Return (IRR), Annual Equivalent Worth (AE), and Benefit-Cost Ratio (B/C) Another method to evaluate the financial feasibility is the potential check sheet (Jeffrey Whitten, 2006), shown in the below table:

1 Initial capital investment High Moderate Low

2 Number of the source of revenues 1 2-3 More than 3

3 Time for break-even More than 2 years 1-2 year Less than 1 year

4 Financial performance of similar businesses Weak Modest Strong

BUSINESS CONCEPT

Introduction of the business concept

The Deposit Return Scheme and Reverse Vending Machine project can mitigate environmental concerns, enhance consumer awareness through incentives, and improve recycling quality via self-sorting This innovative model presents lucrative business prospects for entrepreneurs The thesis will develop viable business models for the Deposit Return Scheme in Ho Chi Minh City and design a comprehensive strategy for establishing the "Green Collector" company, harnessing this economic potential.

Market segmentation

In this section, a set of stakeholders of the Deposit Return Scheme business model will be defined

The "Green Collector" should target all types of customers, not just those who care about the environment but also those who do not This means that potential clients span from children to the elderly without regard to their income They must reside in close proximity to the location where the business is conducted Because it would facilitate their participation in the

"Green Collector" program In addition, consumers in other regions will receive the same level of dedication and consideration

The suppliers of Reverse Vending Machine are mostly from foreign countries In Vietnam, there was a practical research project called

Tran Huu Huy and Pham Van Phat, two young engineers, invented "Automatic collecting plastic bottles and cans," a machine recognized in numerous competitions The duo aims to mass-produce this machine and incorporate it into a larger system, highlighting their commitment to environmental sustainability and innovation.

In the abroad countries, the RVM could be found on the famous business-to-business E-Commerce platform, Alibaba.com, with a variety of models and prices In addition, TOMRA – is a multi-functional corporation specializing in the waste management field TOMRA was formed in 1972 on innovation in the design, manufacture, and sale of reverse vending machines (RVMs) for automated beverage container collection TOMRA provides technology-driven solutions that enable the circular economy by optimizing resource recovery and minimizing waste in the food, recycling, and mining industries

There are many suppliers to be taken into consideration in purchasing the RVM for the business models

The Reverse Vending Machine will be placed at a high traffic place, which are crowded with people, such as gas stations, supermarkets, malls, convenient stores, etc The survey would help clarifying the most suitable places for the entrepreneur to make a final decision

Another partner of this business model is the recycling plants, where all the collected products will be transported and sold There are numerous providers in this industry, and market research would be of use in selecting the most suited plants

Finally, the third partner is the transportation vendors Initial investment in logistic is insufficient for a startup; consequently, hiring a logistic party is a more affordable choice There are also numerous companies that provide transportation vehicles, such as trucks, containers, and vans Again, market research would factor into the selection of logistic partners

The business model provides a drop-off location for consumers to dispose of some of their domestic solid wastes, as opposed to tossing them in the garbage This service differs from the conventional "Bottle scrap" of the past In fact, the middleman will ask everyone whether they have bottles or cans for sale Moreover, with the "Green Collector" service, residents can dispose of their trash containers whenever they have the time All beverages (both soft and alcoholic) come in PET plastic, aluminum Containers of these material types, sized from 330ml to 1.5 liters, inclusive, are acceptable in this business concept.

Business Canvas Model

In this section, the business model canvas is given to visually record the business model by describing the value proposition, partners, resources, customers, and finances of the Green Collector firm The objective of The Green Collector is to provide a simple and practical solution to encourage people to collect and classify solid waste at its source Therefore, it could assist safeguard the environment and decrease the administrative burden associated with household solid waste The table below illustrates the Business Canvas Model of the start-up:

-Classify the bottles/can and delivery them to the recycling facilities

-Give incentives and pay back to consumers who return the products after using

-Raise the consciousness among consumers in protecting the environments

-Provide methods to deal with waste treatment for the authorities

-Provide instruction when they are using the machine

-Monthly feedback survey to improve the quality of services

-Customers: Potential consumers who are using and willing to dispose the containers afterward

-Offline services -Online marketing -Phone / Email / Social media

Operation cost: Marketing, maintenance, transportation Products selling after usage

Initial investment costs in infrastructure

For the business to operate, there are many types of partners in this situation The first subject of the partnership is the supermarket and the convenience stores entity These partners will help businesses to arrange the setting space for the machine, and a warehouse in case of the revolutionary RVM is applied The second partner is the third-party logistic service provider This partner will be in charge of transporting the collected products from the consumer to the third partners, which are scrap collecting firms, or solid waste treatment plants The third partners need to be able to perform the recycling procedure of plastic bottles or aluminum cans, which are the recycling facilities And last but not least, the suppliers of RVM are also important strategic partners, who would provide the money earning tools to the “Green Collector”- the RVM

The operation of the Green Collector business model will be similar to a bottle rack business, but mainly focus on the bottles and cans, integrated with an automatic reverse vending machine

Collecting empty containers from consumers at each collection site, then sorting them into the appropriate category, would be a routine task for the company The last step is delivery to the recycling centers

Another essential activity is attracting the attention of consumers to this new business model through various marketing strategies

The principal assets of the company are the locations where the Reverse Vending Machines are stored, as well as the staff responsible for operating the machines, providing guidance, and managing the business

The Green Collector's value proposition takes into account not only end- user benefits, but also broader environmental, economic, and societal benefits This is congruent to address societal difficulties through solutions inspired and supported by nature that are cost-effective, provide environmental, social, and economic benefits, and contribute to resilience building Through locally adapted, resource-efficient, and systemic interventions, this solution increases the consciousness of protecting the environment among people by giving them incentives to collect, classify, and recycle plastic solid waste

In addition to consumer behavior, participants can take pleasure in the experience of using the machines When customers plan on shopping at the supermarket, the returned money could provide them with incentives and promotions for their purchases

For the society and authority, Green Collector business can perform the collecting, sorting, and reducing the amount of solid garbage generated, which reduce the workload of other environmental parties Therefore, the business brings positive outcomes for the authorities as well as the environment

According to Theodore Levitt, a prominent economist and Harvard Business School professor, the objective of all businesses is to "find and retain consumers." (Levitt, 1969) Marketing is critical in assisting businesses in accomplishing this goal and encompasses much more than advertising, selling items, and collecting money Marketing creates value by establishing connections between people and products, as well as between customers and businesses Therefore, the customers will have a chance to approach a green business

Another aspect relating to customers is customer service By providing proper guidance and helps in using the machine, the business could be able to collect feedbacks from customers that it can improve satisfaction and increase customer retention

There are numerous ways to reach mass consumers, including offline services, internet marketing via the machine's screen, telephone, mobile phone, email, and social media platforms like Facebook, Twitter, Instagram, Tiktok, etc

According to Osterwalder and Pigneur (Osterwalder, 2010) t, there are two types of cost structures businesses can choose from cost-driven and value-driven which can have four different characteristics: fixed costs (costs that remain the same from month to month), variable costs (costs that vary depending on the volume of sales), economies of scale (where is the more you buy the less the price), and economies of scope (where same activity can cover multiple purposes) The cost-driven cost structure model aims at minimizing costs wherever possible and its value proposition is to deliver low prices In the value-driven cost structure model, businesses aim for value meaning luxury, design, and a high degree of service The company's fixed costs include wage payments (salaries), machine maintenance, transportation, and marketing expenses A variable cost of the Green Collector is the number of incentive payments paid to consumers In addition, there are substantial investment costs at the commencement of the project

The business requires a stable and continuous cash stream to support daily operations, such as collecting and delivering

Revenue is generated primarily through sales activities, which include the selling of collected materials such as plastic bottles, aluminum cans, or glass bottles to recycling organizations The products will be transported directly to the recycling company's facility and sold there

The second source of revenue stream comes from the advertisement service on the RVM: stickers, LCD digital advertising, and posters

CHAPTER V ECONOMIC, INDUSTRY, AND MARKET ANALYSIS

Economic Environmental Analysis

PESTLE analysis is a fundamental tool for understanding the macroenvironment of a business It encompasses six key dimensions: Political, Economic, Socio-Cultural, Technological, Legal, and Environmental These elements provide crucial insights into market dynamics, business potential, and strategic decision-making By considering external factors such as government policies, economic conditions, consumer preferences, technological advancements, legal regulations, and environmental concerns, businesses can develop effective strategies to navigate challenges, seize opportunities, and maintain a competitive edge.

Deputy Prime Minister Le Van Thanh signed and issued Decision No 450/QD-TTG on April 13, 2022, which approved the National Environmental Protection Strategy to 2030, with a vision for 2050 (Moit, 2022) The main purpose of this strategy is to prevent the trend of increasing pollution and environmental degradation; solve urgent environmental problems; incrementally improve and restore environmental quality; prevent the loss of biodiversity; contribute to improving the capacity to actively respond to climate change; ensure environmental security; construct and develop models of circular economy, green economy, and low carbon; and strive to achieve the country's 2030 sustainable development goals As part of the strategy, several critical tasks have been laid forth In particular, environmental incidents such as economic development in the direction of ecology, circularity, production promotion, etc Sustainable production and consumption are included in the Strategy's proactive implementation to prevent, control, and prevent negative environmental impacts And one most important part is to reduce the amount of solid waste

Not only did the strategic announcement on environmental protection comes from the government, but the board of committees in Ho Chi Minh City also provides a firm plan to take the action (Nguyên, 2021) In addition, Ho Chi Minh City emphasizes the transfer of plastic trash to recycling units and supports the classification of plastic waste mixed with domestic solid waste at transfer stations or domestic solid waste treatment plants use recycling function If plastic garbage cannot be reused or recycled, other acceptable and effective treatment methods must be applied

Ho Chi Minh City will also arrange the deployment of technical solutions or movements and campaigns to collect solid garbage, plastic waste, etc from public areas, vacant land, rivers, canals, etc In addition, processes and policies will be devised to support organizations and individuals that collect, reuse, and recycle plastic trash, as well as production facilities Producing recyclable, eco-friendly items to replace plastic packaging that is difficult to biodegrade, disposable plastic products, etc

With the supportive information from the authorities, this should encourage not only small start-ups but also unicorns to enter into the environmental preservation business

Vietnam's economy has achieved remarkable strides in recent years, notably with a projected positive growth rate of 2.91 percent in 2020, and 2.58 percent in 2021, (Chiến, 2021) while the rest of the globe confronts unprecedented global recession rates as a result of the Covid-19 epidemic Nonetheless, alongside growth, every economy, including Vietnam, faces environmental and climate issues that force authorities to strike a balance and make decisions compatible between growth and the environment

The circular economy model is universally admired because it satisfies the prerequisites for addressing environmental pollution and climate change in pursuit of sustainable development Environmental protection is prioritized through the model's design, production, and servicing activities, which all help to extend the life of materials and remove negative environmental impacts Associate Professor Dr Truong Manh Tien also elaborated: "Green economy has a variety of meanings, but the end goal is a waste-free economy Countries view the circular economy as an intermediate step towards a green economy And of course, the circular economy incorporates as few raw materials from as few resources as feasible back into the production process as much as possible This is referred to as the circular economy.” (Thoa, 2021)

Vietnam is paying attention and implementing strategies to reduce negative environmental impacts and pursue sustainable growth This paradigm is exemplified by the recycling of a manufacturer's trash into raw materials for another factory, which minimizes environmental impact and approaches zero waste generation for economic progress This has significant ramifications for the economic and environmental sectors In addition to lowering the production costs of industrial parks, this concept helps to reduce waste and environmental damage Green economic development that does not hurt the environment constitutes a method for sustainable development

All socioeconomic classes, from individuals to corporations, must avoid using plastic cutlery in favor of more environmentally friendly alternatives Only in this manner will the reduction of plastic waste in Vietnam and the rest of the globe be accomplished Ministries, sectors, and localities have implemented guidelines, regulations, and a multitude of programs and projects to minimize plastic waste across the nation, with the unifying objective of achieving zero plastic waste in the natural environment by

2030 In June of 2019, the Ministry of Natural Resources and Environment began a population-wide effort titled "Against plastic waste." Since then, several towns and units have issued and implemented several "no" to plastic waste action initiatives Only one year after initiating the anti-plastic trash initiative in the region students, people, and companies across the nation have contributed to altering behaviors and raising awareness via their little efforts (Hung, 2021)

On the path of preserving the environment and combating plastic trash, numerous groups and individuals have undertaken concrete actions, thereby contributing to the transformation of the consciousness and habits of individuals and the entire society

In particular, the usage of organic, biodegradable, or reusable products is expanding the number of green stores that share a dedication to the environment across the nation Specifically, several beverage stores have switched from plastic cups to glass bottles, sugar cane, grass, paper, stainless steel, and paper cups for takeout products

Each citizen upholds a sense of duty, actively engages in anti-plastic waste activities, and organizes them through specific and actionable projects Change habits, say no to single-use plastic products and plastic bags in shopping, daily life, and work, and choose ecologically friendly alternatives

In the path of modernity, enough facilities and amenities in people's lives are being enhanced, but less attention is being paid to the quality of the surrounding living environment, leading to a growing environmental pollution problem alarm As part of the modernization process, technology has contributed to the improvement of daily living They should not be left outside in the effort to safeguard the environment if they hold significant potential

Concerning the use of new technologies, the Ministry of Natural Resources and Environment coordinates with appropriate ministries, branches, and localities to pick solid waste treatment technology suited to the country's actual conditions Vietnam in the direction of reducing the rate at which garbage is buried and increasing the rate at which waste is recycled and reused; establish and implement strategies and plans for waste separation at the point of generation Can Tho City, for instance, has operationalized a domestic waste incineration plant with a daily solid waste treatment capacity of 400 tons per day and electricity generation of approximately 60 million kWh per year; Hai Phong City has established Trang Cat solid waste treatment plant with technology to convert waste into organic fertilizer; etc (Anh, 2022) Or in Ho Chi Minh specifically, there are domestic waste treatment technology conversion from sanitary landfill to incineration to generate power at landfill No 3 - Phuoc Hiep waste treatment complex (Cu Chi District) or hazardous waste incinerator technology with a capacity of 200 tons/day at Phuoc Hiep Waste Treatment Complex (Cu Chi District)

With the identification of science and technology as a breakthrough factor, environmental protection resources have been increased; an automatic environmental monitoring system for early warning of environmental incidents has been completed, and environmental management capacity for early prediction of environmental pollution has been enhanced to enable prompt implementation of effective preventative measures

Industry Analysis

The firm's perspective on the market for solid waste treatment will be analyzed using Porter's five forces The "Green Collector" is not a waste treatment company that provides a whole solution, but rather a downstream company involved in the distribution, installation, and maintenance of the new technology Porter's five forces analysis will provide an overview of the market's status and conclude the market entry based on the analysis

"Ve chai" - also known as a middleman to collect used containers, and one of "Green Collector's" direct competitors - has always been a less transparent market, but according to analysis, people's trash trade is now mostly relied on the "army" that is present everywhere They must walk or cycle tens of kilometers per day to purchase scrap, but the outcomes are uncertain Using this reality to its advantage, "Green Collector" might offer a single location as a collection station, where citizens would collect and deposit items themselves

When there is a demand, persons who wish to sell containers are frequently unable to take the initiative and must instead wait for the middleman to pass by and call them In many instances, price pressure might result in a psychological unwillingness to sell In the meantime, the

"Green Collector" has announced the set location for collecting the container, along with transparent product lists and prices

This would offer a huge advantage to the people who are willing to sell or dispose the containers when they are not aware of who will be responsible for it

Threat level posed by rivals: Low

Substantial foreign suppliers/manufacturers engage substantially in research and development to produce an optimum RVM and distinguish themselves in the competitive manufacturing industry These investments result in the diversity the of RVM model in the market In addition, the lead times for specialist technology and components are predictable and it is simple to switch vendors Due to these factors, the bargaining power of suppliers in the solid waste collection sector is minimal

Threat level posed by suppliers: Low

2.3 New entrants to the industry

The advent of modern technology has significantly reduced the barriers to entering the residential solid waste treatment market Previously, obtaining licenses, investing in R&D, and acquiring efficient equipment were major obstacles However, in Ho Chi Minh City, these barriers have diminished due to technological advancements that have made it easier and more affordable to participate in this sector.

• Ho Chi Minh's board of committees has officially released a document relating to dealing with environmental issues and encouraging small and medium businesses to step in

• Ho Chi Minh's board of committees is aiming to use new technology, particularly as we enter industry 4.0, to bridge the power gap between supply and demand

In short, the barrier to new entrants in solid waste treatment system sales is low to medium, and the business environment is quite favorable

Threat level posed by incoming entrants: Moderate

In the “Green Collector” project, there are two types of targeted customers The first type is the potential consumers who are willing to use the service provided by the start-up The second sector of customers is the two lists distinguished group that would probably create the revenue stream for “Green Collector”: customers who want to place an advertisement on the RVM and the recycling facilities who will collect the used containers from the business

The customers of the DRS business are predicted to be all consumers in District 7, where the Reverse Vending Machine will be placed There are two reasons why the entrepreneur decided to choose District 7 as a marketplace The first reason is depending on the business scale of this model At the initial investment phase, the predicted scale would fit within the district itself, with three locations which are large retail supermarkets According to the results of the enumeration, the whole of District 7 has a total of more than 102,000 households with a total population of about 350,109 people, including 171,938 men and 188,217 women, accounting for 4 percent of the city's population (Lâm, 2019) These number of population would be appropriate for the business at its initial phase

Second reason is the investment flow focusing in District 7 Among the citizens, District 7 also accounted for 20 percent of foreigners living in Vietnam, along with District 1, District 2, and District 3, according to HCMC Real Estate Association (HoREA, 2020) The Association also recognizes that there is a trend toward redirecting foreign investment flows into Vietnam, potentially drawing a large number of international specialists and managers to concentrate their efforts in a few localities In addition, the foreigners in District 7, with their strong environmental consciousness, would constitute a large number of potential clients These overseas potential customers may urge other citizens to adopt this business model Although, there are many ways to recycle the used containers such as traditional middle man, or just basically dispose of them after use Nowadays, when the awareness of protecting the environment has risen in the society, and with the calling from the authority, people are urged to classify the waste at its source and recycle them This aspect could affect the number of future participants in the project

With the rise of online marketing, businesses now have diverse platforms to reach their target audience Social media giants like Facebook, LinkedIn, and Twitter once dominated the marketing landscape, but up-and-coming platforms like Pinterest, Google+, Tumblr, and Instagram have diversified the options for businesses This proliferation of digital channels has empowered advertisement seekers, giving them leverage to negotiate with online marketplaces Traditional marketing methods, such as print and broadcast advertising, have witnessed a decline as businesses shift their focus to online platforms On the other hand, recycling facilities possess moderate bargaining power due to the availability of multiple buyers for their collected materials.

Threat level posed by buyers or customers: Low

The apparent replacement for the "Green Collector" service would be the conventional method of handling unwanted containers: disposal or sale to a third party called “Ve Chai” And the substitute for the product is determined by consumer behavior In other words, instead of utilizing a single-use beverage such as a soft drink, people can until coffee-to-goo-go, juice, or fruit frappes on the street The likelihood of altering the product is minimal because Vietnamese plastic consumption is high, with an average of 41 kilograms per person, annually ranked 4 th in the world (Hiep, 2019)

On the other hand, the probability of switching services is more than moderate There are numerous explanations for this According to a market survey, people who oppose the "Green Collector" model state that they are either uninterested or find it awkward to transport the containers to other locations And the competitiveness of the traditional collecting business already analyzed in the previous Industry Competition part Therefore, the level of threat posed by substitutes is fairly moderate

Threat level posed a by a substitute: Moderate

The collection and categorization business market in Ho Chi Minh City shows promising trends, presenting a favorable entry point for businesses Diversification will prove crucial in the long run due to technological advancements.

Market Analysis

Market research systematically gathers, analyzes, and reports data to guide marketing decisions It addresses various product and customer inquiries For instance, the "Green Collector" project leveraged market research to understand market dynamics and customer preferences A customer survey focused on core issues, providing valuable insights for improving the product and marketing strategies.

• Determine the characteristics of prospective clients?

• Determine whether there is a need for the service?

• What is the customer's usage pattern for single-use beverages?

• What would the client do after consuming the beverage?

• How to improve consumer accessibility?

The primary market analysis data was derived from a customer market survey Consumers provide the source of primary data In the "Green Collector" scenario, prospective consumers were the focus of online questionnaires used to collect the primary data When the customer survey (Appendix 1) was designed, it was based on the above-mentioned questions to make well-informed decisions based on market segments, target markets, purchasing behavioral traits, benefits, and future market evaluation The survey was distributed under Google form from May 20 th and mostly to the people in District 7, including citizens of the apartment where the author stays, as well as colleagues of author’s previous company, also located in District 7 In addition, there are a few non-District 7 participants, although not many In total, three hundred online responses to the "Green Collector" market survey were collected

3.1 Characteristic of the surveyed group

In this section, the characteristic of the respondants will be discussed 56 percent of responders are female, 41 percent are male, and 3 percent are from other genders Thus, gender opinion can be considered balanced, although the answer may be altered if the subject mostly belongs to one gender

In terms of age, 51 percent of the population is over the age of 29, an age at which individuals are regarded as mature and aware enough to respond to inquiries intentionally and thoughtfully Moreover, this century is characterized by a focus on realism Moreover, 46 percent of the respondents were between the ages of 18 and 29 This is a young age, and it may be said that this is the age of the future generation in which society evolved es will depend greatly on how this generation thinks

From the occupation perspective, 55 percent of the respondents are office workers, 21 percent are students, 13 percent are self-employed, and the remaining 5 percent are small company owners such as salespeople At

From 18 to 29 years oldAbove 29 years oldUnder 18 years old supermarkets, markets, and for some individuals with other occupations, such as factory engineers and teachers,

The average consumption of beverages of each individual is 2-5 bottles/cans per week It can be shown that the average quantity of waste one individual releases into the environment per week is four plastic bottles/aluminum cans, and the monthly average is sixteen With a population of Ho Chi Minh City in 2022 is 14 millions, the number of average rate of use will be 224 millions containers per month, which is a huge amount (Top10tphcm, 2022) As a result, we recognize the significance of diverting people's attention toward collecting these bottles to a point where they may be easily categorized and recycled

Figure 15 Amount of beverages used in one week

Relating to the behavior of the consumer after using the beverage, up to

60 percent of users will dispose of beverage bottles In addition, the ratio of individuals who recycle and sell bottles to bottle collectors is nearly identical: 21 percent and 17 percent, respectively This result indicates that the percentage of individuals who are aware of recycling or not releasing waste into the environment is 39 percent, which is significantly less than the amount of waste released This response underlines the necessity to concentrate on collecting bottles in a single location

Amount of beverages used per week

Less than 2 From 2 to 5 From 5 to 10 More than 10

Dispose it Sell it to the recycling place Re-use it

Among 30 respondents who were asked about the plastic usage trend in the future, 55 percent of those surveyed believe that the tendency of using plastic bottles will diminish in the future, citing the environmental trend of green living However, 37 percent of those surveyed believe that the trend of using plastic bottles would continue to expand due to its convenience

This demonstrates that, in recent years, a greater emphasis has been placed on people's environmental consciousness, which is also reflected in they’re the awareness of people

When asked about the use of bottle collectors, 94 percent of respondents agreed, while 6 percent found it inconvenient This demonstrates that the people examined have a sense of accumulation, yet they may discard items if they are inconvenient Consequently, the application of this collector is crucial and significant for both the people and the environment

Figure 18 Opinion about the business model “Green Collector”

The market research conducted as part of this investigation is essential to comprehending customer requirements, needs, requests, desires, and objectives This exhaustive survey indicates that customers in Ho Chi Minh are aware of the new container collection technology advancement and its benefits The customer has shown an interest in a sustainable system that provides a convenient way to drop off used containers and, in the future, contributes to the improvement of the environment Even though the majority of consumers have expressed concerns about the lack of transparency, dependability, and efficiency of these new systems, the majority of customers have expressed interest in participating in the project

Conducting an interview with a waste treatment representative was crucial to understanding the market in Ho Chi Minh City The interview provided insights into the current market landscape and attitudes, as outlined in Appendix 2 Key takeaways from the interview included:

• The garbage business in Ho Chi Minh is expanding thanks to technological advancements, but there are still obstacles to overcome, such as a dearth of waste classification activities

• The green economy is growing thanks to an increase in the number of activities aimed at protecting the environment, such as the production of

Green Joy Straws produced from grass or rice

Green Collect has potential in Ho Chi Minh's market by leveraging the high population, practicing patience in early stages, and seeking an investor committed to environmental endeavors The large crowd offers a wide customer base for Green Collect's services, while exercising patience allows the company to establish a strong foundation and build a loyal customer base Furthermore, securing an investor with a genuine interest in the environmental sector can provide financial support and strategic guidance to enhance Green Collect's growth and impact.

• The Committee offers a wide variety of measures that are beneficial to the environmental industrial sector, such as low taxes, favorable fees and charges, and land support, among other things

• According to the interviewee, the operation of the "Green Collector" would be impacted by a wide variety of different conditions The first issue is striking a balance between making a profit and being responsible for your actions, and the second factor is the impact of circular and green economies And lastly, the awareness of the populace, specifically whether or not they are willing to recycle or simply dispose of all the containers

• In order for the business model to be successful, it is necessary to employ mass propaganda in order to raise the level of awareness among the general populace and to seek more assistance from either the committee or the government.

DETAILED BUSINESS PLAN

Executive Summary

The business strategy for "Green Collector" entails a comprehensive SWOT analysis, marketing plan, business environment overview, and financial projections The SWOT analysis evaluates competitive advantages and disadvantages, while the marketing plan outlines strategies for reaching target markets The business environment section examines factors influencing the company's operations, and the financial projections provide estimates of revenue, expenses, and profitability.

Competitive Advantage

SWOT analysis is a vital tool for assessing factors influencing a company's performance It evaluates both internal strengths and weaknesses as well as external opportunities and threats Through comprehensive interviews and market research, SWOT analysis provides insights for strategic positioning, identification of growth prospects, optimization of operations, and effective resource allocation.

• Capable, well-trained, and strategically positioned team members to create "Green Collector" operations in a market that is rapidly changing

• Apply modern technologies in an ostensibly archaic business sector

• The containers gathered by "Green Collector" are adaptable and will supply a wide variety of products based on customer needs

• The suppliers of Reverse Vending Machines are numerous Chinese and Norwegian producers, which are close to Viet Nam in case of maintenance issues

• The company offers monetary and voucher incentives to consumers who engage in its recycling initiative

• The collection locations will provide citizens with a convenient way to recycle containers without having to wait or contact a middleman

• It's fine to take a tiny collection: 1 bottle for example Meanwhile, in traditional “Bottle Scrap”, buyers pay by weight, instead of quantity

• Less intermediaries: Without passing through numerous intermediaries, the containers will be transferred straight to the recycling factory

• Expansion of the business will necessitate a significant amount of bank and investor help

• May not be profitable in small scale, because of the requirement of collection rate, the more collected containers, will result in more revenue for the business

• "Green Collector" will borrow funds to pay for a large-scale collection system installation If for some reason the value of these systems decreases, the corporation must repay the difference There is no assurance that the company can borrow money

• Customers may disregard this promotion due to their laziness or discomfort when they have to travel to the collecting points

• "Green Collector" is a services company, not a manufacturer, and its supply chain may be vulnerable to swings with increased bargaining pressure from suppliers

• Due to the availability of funds, " Green Collector " is launching a small-scale business at first

• Logistics will be outsourced due to a dearth of personnel

• The Ho Chi Minh Committee is supporting and encouraging the environmental initiative (Committee, 2021)

• Lack of incinerator facilities and sanitary disposal land necessitates the development of novel solid waste treatment methods (Minh Thu, 2022)

• People are concerned about the environment, particularly about their health and standard of living

• Can acquire more machines, and technology, and enter into collaborative partnerships

• This type of business is new to the market in Ho Chi Minh City This can encourage the first-to-market spirit of the business Threats

• Traditional middlemen who gather used containers could be a risk to the firm, or other form of this business For instance, VECA, Revival Waste, etc

• Only large investors may obtain better operating from environmental businesses, like installation, maintenance, and distribution demand enormous investments

• Due to disinterest and hassle, some consumers are still reluctant to join the "Green Collector" program Some of them believe this paradigm is not much different from the conventional approach

• Included among currency risks are those associated with macroeconomic shocks, such as currency devaluation, inflation, and indexation of various tariff cost components

From the SWOT analysis, we can summarize that the “Green Collector” has the resource capacity, technological expertise, and state-of-the-art technology suppliers to deliver dependable services to a diverse client based on their needs Secondly, the success of "Green Collector" is contingent on market conditions, an effective marketing strategy, a distinguishing brand based on dependability, efficient customer acquisition, the provision of capital for business expansion, and the exploitation of the market using government or state incentives Thirdly, customers are willing to participate in the paradigm, but they require convincing and assurance that their requirements would be met Fourthly,

“Green Collector” must diversify its company portfolio to remain competitive in this industry And finally, strategic collaboration with partners will also provide a major consumer touch and sales point.

Marketing Plan

The SWOT analysis identified the primary obstacles for the "Green Collector" project that are directly tied to an efficient marketing strategy

Ho Chi Minh City's household solid waste treatment sector is still in its infancy, and a concerted effort is required to establish a stable foothold Gaining market share requires an efficient marketing plan This research implements the 4P marketing technique to design a dynamic marketing plan to reach the solid waste treatment market The marketing plan is based on two surveys, including a market study undertaken for this thesis and an interview with a waste treatment solution company representative Also, the 4P marketing is based on internet data regarding the demand and supply gap for solid waste treatment in Ho Chi Minh City

The "Green Collector" project is offering a variety of products and services to its customers The products are divided into three different types based on the result of the survey is the capacity of the RVM Meanwhile, the services, which related to the advertisements, are divided into three types: Stickers, LCD digital advertising, and posters

Figure 19 Type of containers frequently use

According to the data, the majority of individuals consume soft drinks in plastic bottles, with 46 percent of 500ml type, 8 percent of 1500ml type, followed by aluminum cans with 40 percent The remaining types are cartons with 2 percent, glass bottles with 3 percent, and other materials

The high collection rate of 94% for plastic bottles and aluminum cans indicates that installing Reverse Vending Machines aligns with the disposal habits of consumers To cater to customer demand effectively, the selection of containers to be collected should not only consider consumer preferences but also meet the technical specifications of the Reverse Vending Machines.

Machine There are two suppliers of this RVM, first one come from

TOMRA- a multi-functional Norwegian corporation specializing in the waste management field – and the supplier is INCOM RECYCLE - the biggest operator and supplier of Smart Municipality recycling solutions in

China The pictures of the RVM from TOMRA - S1 Rugged model and

INCOME – YC 104 model are below:

Plastic bottles (500ml) Plastic bottles (1500ml) Aluminum cans

Figure 20 TOMRA S1 RUGGED model (Tomra, Standalone Tomra

Figure 21 INCOM YC-104 model Table 3 Comparison between S1 Rugged and YC-104

Accepted containers Cans, plastic bottles, glass bottles Plastic bottle or can

Configuration Free-standing, front upload

Free-standing, front upload, internal bag rack

TOMRA FLOW (360o instant recognition - shape, smart barcode, weight, and metal detection)

Speed capability 45 containers per minutes

220,000,000 VND (Including installation and after service)

160,000,000 VND (Including installation and after-service)

The TOMRA model outperforms the Chinese INCOM model in terms of technological advancements, as evidenced by the technical specifications Despite this, a survey indicates that the most commonly collected containers are PET plastic bottles and aluminum cans Therefore, the YC-104 model from INCOM, which accepts 330ml aluminum cans, 500ml PET plastic bottles, and 1500ml PET plastic bottles, aligns well with the needs of the "Green Collector" industry.

Generally, the vending machine advertising concept is a new form of advertising that is evolving rapidly and becoming increasingly unique and intriguing In many nations, vending machines have both familiar and novel kinds of advertising that are widely used These shapes can be unlikelier to RVM machines:

• Decal on the machine is installed in prevalent forms The product's advertising image will be intelligently developed to fit the dimensions of the body of the vending machine The decal will be the focal point, making the vending machine more distinctive and appealing

• LCD screens: LCD, Frame advertising is a part of the digital outdoor advertising channel, which has expanded rapidly over the past few years and is utilized by numerous brands to contact people LCD and Frame displays are commonly utilized in public advertising sites such as buildings, flats, high-rises, shopping malls, grocery stores, airports, train stops, hospitals In addition, there are currently more forms of LCD and Frame advertising on taxis, buses, cars, airplanes, and trains

• Advertising posters: The majority of modern vending machines feature a tiny poster on the roof, with ample space, a decent area, and a high position that makes it easier to attract customers

Shopping mall and grocery store advertising is flexible in its implementation, making it an excellent choice for any and all businesses in any industry Advertisements for groceries, fast food, clothing, home goods, etc all work quite well in supermarkets

Movie, music, jewelry, travel, and food firms would all do well in this shopping mall because of its focus on leisure activities Luxury amenities in the home, such as spa treatment rooms and medical devices, should also be taken into account One content strategy could be to inform people about is the message of environmental conservation, since the Green marketing is on the throne (Nguyệt, 2022)

The "Green Collector" business is centered on providing a new technology to treat used containers and will attract customers by displaying this technology via Reverse Vending machines The "Green Collector" team members decided to rent a virtual office in District 7 to save on the initial investment and the fixed cost in the well-known virtual office supplier is Lam Hai An Investment Consulting Co., Ltd., also known as Arenal District 7's virtual office rental service was created in response to the requirements of the current economic period to assist businesses in expanding their operations with optimum cost savings In addition, the virtual office provides service packages ranging from basic to comprehensive depending on the needs For instance, location listed on the business license, mail or parcel address, mail or parcel forwarding on request, receptionist and telephone, broadband internet, placing a company logo in the building They also provide help with documentation associated with business registration assist and organize meeting room if needed

Figure 22 List of the companies using the virtual office of Arenal (Arental, 2021)

After finishing setting up the office, the next step is to set up the collecting points at the supermarket and convenience store The Reverse Vending Machines are placed at these collecting points, serve as a stand- alone machine to collect containers from consumers

According to the survey result, 37 percent of the attendants select supermarkets, which is the most compared to convenience stores (33 percent), markets (13 percent), petrol stations (7 percent) There are other answers such as residence places (8 percent), and all of the above areas (2 percent) The response indicates that people would select locations that are easily accessible and often traversed With a hectic lifestyle in a large city such as Ho Chi Minh City, every family is compelled to visit the supermarket at least once per week, thus it is not surprising that so many people choose this location Because they can combine trips to the store, it makes sense to drop off bottles before going shopping Moreover, the location of the collecting machine at convenience stores is close to that of the supermarket, indicating that customers prefer the collector to be placed in the most convenient location According to a Department of Industry and Trade notification of July 7, 2021, the city Ho Chi Minh City has 2,616 convenience stores in total (Zingnews, 2021) This demonstrates that customers can find convenience stores anywhere throughout the city, making it incredibly handy for them to drop off their used bottles or cans Based on the result of the survey, the team members decided to place the RVM at three supermarkets, which are Lotte Mart, GO! Market, and Co- op Mart; and two convenience stores from Winmart+ branding in District

7 in the initial phase Each collecting point will have a RVM and a warehouse to store the containers when they are on the transit to the recycling facility

Figure 23 Place the consumer wants to exchange the containers

SupermarketConvenient StoreGas StationMarketNear living placeAll of them

"Green Collector" intends to establish its online presence through the domain www.greencollector.net This website will act as a digital hub for showcasing products and services, facilitating communication with potential clients, and providing valuable information to enhance their understanding and engagement.

In this section, the “Green Collector” has two different pricing segments

Firstly, the price or also known as the deposit still be paid to the consumers who participate in this business And secondly, the advertisement service price

Not only do deposit prices vary from nation to country, but there are also varying charges for different containers within the same country (sizes or type of beverage) The figure below shows the example of deposit value in different countries all over the world, with the percentage of return rate As the result, the value of 0.25 Euro in Germany creates the highest return rate for the country, follow up by Netherlands and Finland Iceland and Estonia haves the least return rate, their deposit value only 0.11 and 0.3 Euro respectively

Figure 24 Deposit value of other countries in the year 2018 (Tomra,

Key elements of high-performing deposit return systems:#2 – minimum deposit value, 2018) Based on the pricing strategy of different deposit return scheme, the

“Green Collector” propose the collecting price as follows:

Table 4 Deposit value of "Green Collector"

This deposit value will be printed out under form of voucher with the money that consumers get when they exchange their containers

Figure 25 Deposit value voucher form in Iceland (Rvmsystems, 2022)

Because of the three different types of advertisement, the price is differ from each type:

Operation Plan

"Green Collector" cherishes its customers and intends to build long-term relationships to guarantee sustainable services with an efficient management system The rapid expansion of technology is reshaping the commercial sector, and only companies able to exploit the needs of customers through technological innovation can thrive in the marketplace The "Green Collector" operating strategy is based on the organization's strategic objectives of leveraging future innovation and effective integration of existing infrastructure to drive company expansion

During the startup phase, the organization will concentrate on the purchase and installation of the Reverse Vending Machine, the preparation of small amount of collection points in key locations such as supermarkets and convenience stores, and the establishment of market credibility The early customers are vital to the firm because they will function as sales references and statistics The company will import machines from dependable strategic suppliers and offer value for customers by demonstrating the "Green Collector" technique and educating citizens on the significance of categorizing and recycling discarded containers

The initial phase of "Green Collector" is anticipated to last three years, and its primary objective will be to provide a collection and recycling service based on a strong financial foundation After the initial period, the enterprise must be able to diversify its business portfolio and expand its scope by attracting new investors and utilizing its cash

According to E-TECO experts and the entrepreneur's research on competitors' human resource practices, Green Collector anticipates employing a specific number of personnel and paying them designated wages, as outlined in the provided table.

Table 6 Expected human resources at “Green Collector”

Position Condition Responsibility No Expected

Ability to well manage and arrange works, technical background

In charge of the general management, human resources, accounting position in the early phase

Has technical background in maintenance of vending machine or any relevant type of machine.

Responsible for managing the Reverse Vending Machine

Developing and executing processes for preventive maintenance

Performing routine quality inspections on the machine to verify that everything is up to par

Maintaining the equipment and supply inventory records

When the storages are full, collect and compact the containers

Bachelor's degree in English, marketing, or a closely related discipline

Experience developing interesting and powerful content

A knowledge of SEO best practices

Conducting research and interviews to get a deeper understanding of the subject's current trends, developments, and perspectives, and then contextualizing your results

Using social media to engage customers, reply to inquiries or complaints, and promote business ideas

Collaborating with internal departments to define campaign goals, perform activities, and identify and resolve issues

Keeping track of social media and website stats

The major activities of the “Green Collector” business is decribed in the below figure:

Step 1: This period is when the maintenance technicians start their shift in the morning at 8 AM and in the afternoon at 3 PM In the initial phase, there are total 5 technicians and the manager will divide the shift equally, with 3 people in one shift These 3 members would take care of 5 RVMs consequently

Step 2: During their shift, they will stay at the Reverve Vending

Machine to watch over it In any circumstances that the customers need help, the technicians shal provide instruction on using the machine

Another activity in this step is that the technician should check the capacity of the machine’s storage, to make sure that it is not full with containers

Step 3: At the end of their shift, the technicians should collect the remaining containers in the machine and compress them into one package

Step 4: After compressing the containers, the weight of the package should be measured The target weight is approximately 300 KG

Step 5: Whenever finish weighing the package in his or her collecting point, the technician should contact other collecting points in other places to confirm whether they have the same package If not then the technician could end the working day

Step 6: If all the collecting points have the same package of approximately 300 KG, then the technician shall contact with the logistic provider to collect all of them at the same time This method would save the delivery cost for the business The reason each package shall weigh 300

KG is that the capacity of the loading truck is maximum 2 tons, which has already calculated in the transportation fee

During this start-up phase of the company, the model would first be rolled out with only five Reverse Vending Machines serving as a trial run

At the end of each fiscal year, the decision regarding the company's long- term strategy will be made after taking into account the results of the firm

"Green Collector" aims to enhance recycling through collection stations.* It aims to reduce the impact of solid waste in daily life.* The project will incorporate advanced technology to improve the Reverse Vending Machine's usability.* From 2025-2028, "Green Collector" will expand its economic scale, providing services to a wider population.

To expand its operations, the company plans to invest in multi-function collection points by 2025 This investment will enable the collection of a broader range of materials, including containers, plastic, paper, cartons, and other recyclable items The company will also upscale its vending machines and seek government and private funding to support infrastructure development, including site acquisition, collection lines, personnel, and logistics.

In the foreseeable future, the "Green Collector" project will diversify its business portfolio Two primary aspects will be the focus of future operations The first goal is obtaining licenses for the technologies and experiences obtained in the prior two phases Last but not least, investing in web and mobile applications, as well as developing a platform where consumers can access information and dispose of used products remotely There will be information on the incentive price of each good as well as the nearest location where the product can be handed over.

Financial Plan

The initial investment required for "Green Collector" is outlined in Table

7 below As an initial investment, approximately 1.1 Billion VND will be required to cover the cost of establishment This investment value is calculated based on the market research and the ability to fund the project the author himself Initially, all startups are required to register their company license Therefore, the fees and legal costs associated with forming a business are included first From the mandatory fees such as fees for publication of business registration contents, company registration fees, business registration fees payable at the Department of Planning and Investment, opening a bank account and submitting financial statements of the bank account, declaration, and payment of license fees, to some optional fee like enterprise logos engraving costs, issuance of electronic invoices – Value-added Tax invoices The fees could be maximum 10 Millions VND depend on the needs of each corporation (Lawkey, 2021)

Establishing a "Green Collector" system necessitates infrastructure investments, including Reverse Vending Machines (collection points) and a central office The office requires refurbishment and interior furnishings, while the collection points need warehouses for container storage Furthermore, an Information Technology infrastructure supports business operations, document management, and adaptation to changing corporate environments These infrastructure expenses amount to approximately 150 million VND.

In addition to following up with the establishment, the firm also analyzes the marketing plan and logistic contract, therefore these two costs must be incorporated The detailed marketing plan and logistic contract mentioned in Part Three of this Chapter would cost the firm 140 Millions VND These marketing and logistic expenses are not only in the initial investment, but they will also include in the monthly expense However, the rates are different from the initial capital The investment in the company's most important technology asset the Reverse Vending Machine should also be mentioned in the table, with the value of 800 Millions VND for five machines in total

Table 7 Green Collector establishment costs

1 Business establishment fees and legal costs 10,000

5.2 Collection scenarios and profit, loss projection

In this section, three different collection scenarios will be brought into the discussion, which are the pessimistic, average, and optimistic cases The calculation will be shown in the following Tables with detailed information in eleven columns:

1 The first column describes the calculation time for generating the revenue, from the smallest scale: one machine daily to the largest scale: five machine in one month

2 The second column consists of containers are in the collection list of the company

3 The third column shows the percentages of collected containers This ratio is assumed based on the result in using the rate applied for each type of containers from Figure 19 Types of frequently used containers

4 The fourth column represents the number of collected containers In this column, the calculation formula is:

Collected containers =[Projected collection at the RVMs] x [Percentage of collection (%)]

In this formula, the Projected collection is an assumption value The survey result analysis in Chapter V part 3.1 show that one person would consume 16 beverages in one month in average This result shows the similarity with the market expectation in year 2020 that each Ho Chi Minh citizen would consume 7.5 litres of beverage per month in average, equivalent to fifteen 500ml bottles (Hà T , 2020) The population of District 7 in year 2022 is 360,155 (Top10tphcm, 2022) Therefore, the assumption of beverages used by entire Distric 7 in 1 day is:

According to figure 16, which shows the behaviors of consumers after use the beverages, there are 60 percent of them would dispose the containers, while 17 percent would sell it to the recycling place Before rolling out to the market, the author has done some researches about the collecting price of some “Ve Chai” owner The average collecting price for plastic bottles is 5,000 VND per 1 KG, while the aluminum cans is 10,000 VND per 1 KG The author has perform a comparision in the below table:

Table 8 Comparision pricing strategy between "Green Collector" and

Quantity of beverages in 1 KG

The table shows that the collecting prices of plastic bottles in general from “Green Collector” are higher than traditional “Ve chai” owner Meanwhile, the collecting price of aluminum can is similar to the direct competitor Therefore, with the introduction of the business model to the consumers, this advantage would attract the 17 percent of consumers, who are willing sell the used containers, would bring them to the “Green Collector” With that assumption, we will have the projected collection at the RVMs But each location would have a different characteristic of collecting beverages According to the representative of Co-op Mart, the average visitors of this supermarket is 20.000 people In some special occasion or holiday, the traffic would rise up to 50.000 people On the other side, convenience store traffic is far less than supermarket traffic “There are more than 2000 people visit my branch every day, with the most crowded hours are 9AM-10AM and 3PM-5PM”- said the Manager of Vinmart Go O Moi, District 7 Therefore, it could be assumed that the actual working time of the RVM at the convenience store is only 10 percent compare to the time at the supermarket As the result, the formula of projected collection at different places shown below:

Projected collection at Supermarket = Total beverages x A x 90%

Projected collection at Convenient Store = Total beverages x A x 10%

Factor A: The percentage of consumers who are willing to sell the containers after usage

90% and 10%: The percentages of traffic in each location respectively

Consider three different scenarios for factor A

• Pessimistic: With the new technology and new service, the consumers might not familiar with it at first Therefore the actual collected containers might not go as the projection, in this case, consider only 50 percent of factor A would participate in the business process, which is half of the result survey

• Average: In this average assumption, factor A will equal to 17 percent, which reflect the result of the survey

The anticipated increase in program participation stems from the optimistic outlook that as the service gains traction, more individuals will engage, including both recyclers and disposers The incentive payments for container returns will attract potential sellers, resulting in a projected 30% increase in customer involvement, raising the total participation rate to 17%.

5 The fifth column is the price per container that the company will paid to the customers as a reward when using service This pricing strategy was defined in section 3 Marketing plan of this chapter

6 Unit weight in column 6 represent the net weight of each type of container The PET plastic 500ml bottle has the small weight, with only 0.015 kg, the medium weight is the aluminum can 330ml, 0.03 kg, and finally, the heaviest container is the PET plastic 1500ml bottle, with 0.036 kg The mass of each product was weighed in reality by the author

7 In column 7, the total collected weight equal to the multiplication of column 4 (Number of collected containers) and column 6 (Unit weight)

8 This column shows the total price that the company paid to the customers based on the collected containers The value in this column is calculated by:

Money paid to customer = Number of collected containers (pcs) x Unit paid price (VND)

9 Unit selling price in column 9 describes the price that the company will sell to the recycling facilities This price is shown in the figure below, the company will sign contracts for a long-term supplement of the collected products This recycling facility is TOP VIET, a well-known recycling and collecting company in Tan Binh District After going through the recycling market, TOP VIET has proven the best collected price for the “Green Collector” project

Table 9 Collecting price from TOP VIET Company(Topviet, 2022)

Number Item Unit Unit Price (VND)

The final prices offer from TOP VIET, with condition of the minimum collecting weight is 1 tons, are:

• For plastic bottles: 20.000 VND / 1 kg

• For aluminum cans: 33.000 VND / 1 kg

If the supplier provides the containers independently, an additional charge of 2,000 VND per kg will be added for each container type Consequently, the revised earning prices for the business per container type are determined as follows:

• For plastic bottles: 22.000 VND / 1 kg

• For aluminum cans: 35.000 VND / 1 kg

10 Column 10 represents revenue generated by selling the containers The following formula for this is:

Revenues = Unit selling price (VND) x Total collected weight (KG)

After collecting the containers from the consumer, the company will collect, compress, and send them to the recycling facility Due to the vast quantity of containers, the facility only accepts containers based on their combined weight, not the quantity of containers

11 The final column represents the actual revenue generate by generated by collecting activities The following formula for this is:

Collecting Revenue = Revenues (VND) – Paid to the customer (VND)

CRITIAL RISKS MANAGEMENT AND EXIT OPTIONS

A solid risk management plan is one of the most crucial aspects of effectively managing the business plan To effectively manage risks, they must be ranked according to their total impact on the project If any item that offers a possible risk to the project is deemed high-priority, then nothing is regarded high-priority because everything is treated equally Any occurrence, regardless of its size, may pose a risk to the business if there is a probability that it could affect the project's scope, schedule, or budget It is essential to assess the potential effects of all concurrent company operations Frequently, board management veterans identify potential future hazards by examining the past, beginning with lessons learned Typically, the lessons learned list includes topics that may not have been addressed during the previous project's planning but had an impact on the project's outcome Creating a business is comparable to initiating a project And because each project is unique, the priority of particular risks will vary Three straightforward methods can be utilized to generate a Risk Matrix for a project in order to prioritize risk occurrences It is essential that all stakeholders participate in this process so that all perspectives are considered To effectively manage risks, the matrix should be reviewed and updated on a regular basis

• Identify: Similar to recognizing risk, it is vital to list every potential project risk before conducting any assessments Even events with a low probability of occuring must be addressed when constructing the initial Risk Matrix

• Assess the probability: Each identified risk should be ranked based on its likelihood of occurring The management team determines the scale for this ranking, which might range from 1 to 5, with 1 being unlikely and 5 being likely, or it could be based on a percentage of likelihood Each risk on the list must be evaluated and discussed with the relevant parties

• Evaluate impact: Using the same criteria established for calculating probability, the management team ranks the impact of various risks

• Calculate the overall Risk Depending on the scale used to evaluate likelihood and impact, a formula can be developed to calculate the overall risk associated with a particular event From there, the risks can be rated as low, medium, or high, allowing the team to identify which hazards are of the utmost importance

After calculating the overall risk for each occurrence, the team must assess the urgency of each type of risk

When cash runs out and total current liabilities (i.e., bills due now) surpass total liquid assets, a company reaches a standstill Innumerable forms of uncertainty afflict firms, but Business Insiders (Carlson, 2009) has categorized the majority of company-killing factors as follows:

• Market Risks: Market risk, often known as systemic risk, refers to the unpredictability of any financial choice Price volatility is frequently caused by unanticipated fluctuations in elements that affect the financial market as a whole Systematic risk has nothing to do with the firm or industry in which one invests; rather, it depends on the performance of the entire market, for instance, natural disasters, weather events, inflation, changes in interest rates, war, even terrorism On the other hand, unsystematic risks can be listed as strikes, mismanagement, or shortage of a necessary component in the manufacturing process

• Competitive Risks: If other major corporations decide to enter this industry, "Green Collector" would suffer significantly Eventually, the large unicorn with its substantial funding would dominate the market The primary benefit of "Green Collector" is that it is introduced to the public as an industry pioneer However, the strategic management and business operations of a company determine its ability to compete in a rapidly changing environment

Operational risks can arise in the form of technical malfunctions, transportation incidents, or changes in store location by the landlord These factors can disrupt daily operations, leading to potential interruptions in productivity and revenue generation.

• Financial Risks: The financial forecast indicates that the business will be lucrative from the outset, but if unanticipated circumstances arise, the founding members will be able to forego their salaries in the interest of the company's development In addition, the original members will need to consider obtaining more funds through loans Additionally, this business has the issue that the revenue from collected containers and marketing leasing is insufficient to cover all expenses In such a circumstance, the team members would need to consider alternative methods for attracting customers, such as big promotion or increasing the incentive pricing award This may result in a decrease in revenue, but it is preferable to have something than than nothing

Analyzing the probability of a given risk event and the event's impact on the project constitutes the next phase in the risk management process Probability analysis often employs a quantitative assessment yielding a discrete number, a qualitative assessment yielding an ordinal ranking, or a combination of the two Historically, determining impact has centered on the two most important factors: budget and timetable All seasoned managers are aware that a number of other effect areas must be evaluated to provide a more complete picture of a risk event Other considerations for inclusion include quality, customers, resources, associated projects, market share, procurement, and vendors (West, 2002) The matrix is constructed based on the list of hazards identified with various impact areas deemed crucial to the project Utilizing the table functionality enables the team to take use of automated features such as adding risks later in the project, sorting the risks based on scores, integrating the calculation function to automatically estimate the score and so on

The first stage in the analysis is to ensure that the scoring procedure and the meaning of the two scoring scales are understood As a preliminary step in establishing the severity of the risk event, the score range must be defined as part of the scoring procedure The impact score is rated with the range from 1 to 3, which are: 1 is low, 2 is moderate, and 3 is severe The probability score is also rated from 1 to 3, whereas 1 is low (40% chance),

2 is moderate (41% -70%), and 3 is high (>70% chance) The maximum attainable score for each of the three-point criteria (severe impact) is 6 The greatest possible probability score is 3 18 would be the maximum possible score for a single danger (6 x 3) Conversely, the lowest possible score is

2 Each element is assigned a value of 1 and the probability is also 1 Consequently, the range of scores will be from 2 (lowest) to 18 (highest) Determine what score represents a high danger and what score represents a low risk The hazards in the middle will be moderate

Following a comprehensive assessment, risks can be prioritized based on their scores in the scoring column Table 17 presents a completed matrix with risk event scores, indicating that financial risk is the most significant with a score of 15 The next critical risks are competitor and operating risks Market risks, including systematic and unsystematic risks, are identified as the least essential.

There are three fundamental exit plans, each of which has a significant impact on the company and its founders (Harris, 2006) The preferred exit plan is to sell the company in the form of a trade sale to a larger company because the alternatives, a buyout or putting the shares on the stock market, are influenced by competition, which in most circumstances brings down the price

CONCLUSION

Appendix 1

a Online survey link: https://forms.gle/dLaREbE71LGg3n2s5 b Summary of the result

Appendix 2

1 Please introduce shortly about yourself:

Hello, my name is Bui Thi Thao I am 34 years old I was formally worked as a representative of E-TECO Asia in Binh Duong Province - a pioneer in the total waste treatment system - who has effectively grown the market for both municipal solid waste treatment (old dumping house solid waste) and renewable energy across Asia, including Korea,

2 Ho do you vie t e urrent state o Ho C i Min City’s solid aste treatment solution with your experience in this field?

Ho Chi Minh City has incorporated technology into solid waste treatment stages, including the Northwest Solid Waste Treatment

Complex (Cu Chi District) and Da Phuoc Solid Waste Treatment

Complex (Binh Chanh District) In addition, there is a waste-incineration facility that generates power I had chances to visit these facilities when I was working in E-TECO, the managers complain that because waste segregation at the source of the city has not yet been established, the challenge experienced by this plant throughout operation was that it continued to have to separate the trash prior to treatment

Currently, Ho Chi Minh City has not created a network to collect recyclable garbage; thus, the majority of recyclable waste is buried with solid waste (domestic solid waste), resulting in a loss of resources, money, and environmental impact A portion of this recycled garbage is collected, purchased, sold, and exchanged by the force of bottles, which is modest, does not guarantee environmental sanitation, and does not fulfill the requirements of big recycling models

3 Is it true that classifying the solid waste at source would help the authority in the environment activities? Do you apply it in your daily life?

Due to limitations in waste management infrastructure, community participation in waste sorting is crucial Within my own organization, waste sorting is emphasized both in the workplace and at home, instilling it as a fundamental practice Regular waste sorting has become an integral part of my daily routine.

4 How do you see the business environment for start-ups related to environmental business?

Environmental pollution and climate change are escalating in severity, therefore the general and unavoidable tendency of future growth will be to protect the living environment I can tell you that youngsters these days all prefer minimalism lifestyle to prevent wasting resources Smart city and green development will likely be the future trend Consequently, I believe environmental business concepts will garner interest and support

When the media stresses the slow destruction of the environment, many people become aware of the benefits of eco-friendly products In response to the trend of favorable customer developments, manufacturers have been doing research on a variety of products Not only does it supply vital products, but it also has significant environmental repercussions For me, I truly like the concept of Green Joy Straw's "grass straws" when they can replace plastic straws This straw is biodegradable and suitable for human consumption In addition, the preliminary processing of this output of grass straw leads to the creation of steady employment opportunities in the Mekong Delta Or similarly, rice straws offer all the same benefits as grass straws, and they can also be consumed, which ensures that they are no longer discharged into the environment I greatly value these concepts

5 Ho do you see t e potential o t e “ reen Colle tor” business in Ho Chi Minh City?

Community awareness of waste categorization is increasing, with initiatives like "Exchange Recyclables" and "Let's Clean Up the Sea" attracting significant youth participation However, the lack of specialized collection equipment often leads to mixed waste types, despite source segregation efforts The introduction of accessible waste collection machines could provide convenience and income-generating opportunities for individuals, while simultaneously promoting environmental responsibility As stated, "Earning money is enjoyable, but there is nothing more lovely than earning money and being happy."

I also see that the majority of organizations dealing with trash nowadays are losing money Therefore, it is difficult to attract investments and repay the initial cost of the equipment You must persuade investors who care about the environment and are open to non-profit work

But you should not be disheartened by this, as I am aware of a firm with the similar concept of collecting scrap, where garbage is sorted at the source and sent directly to a recycling facility, which was created in 2018 and is doing well so far You may find information about “Revival Waste” on the Internet; I believe they did an excellent job

6 How well does the Government in general and the Ho Chi Minh in specific support the business?

Environmental protection operations do not constitute corporate investment The Vietnam Environmental Protection Fund, the Environmental Protection Fund of the provinces, and the Vietnam Development Bank will provide incentives and support in the form of investment capital to enterprises on this list; preferential tax, fees and charges, and land support will also be provided My former company also benefit from this

Investment incentives are available for sectors involving concentrated waste collection, treatment, recycling, and reuse Companies established through investment projects in these areas will receive tax incentives, import tax exemptions, and reductions in agricultural land usage taxes, among other benefits.

7 Which factors can affect the environmental-related business?

In recent years, there have been a large number of corporate projects including the creation of environmentally conscious goods, technology, and business practices However, there are still few start-ups in the sector of environmental protection, enterprise market penetration confronts numerous obstacles, and product certification and product standards remain minor obstacles

The greatest challenge for businesses in this industry, particularly small and medium-sized businesses, is the tension between two goals: profit and environmental responsibility

Second, the current focus of business assistance policies is only on production development, with the aim of promoting the circular economy and green procurement in production and consumption

Environmental protection consciousness plays a crucial role in waste management Individuals with this awareness are inclined to segregate their waste and engage in responsible disposal practices, such as recycling and proper waste disposal They are also willing to invest in eco-friendly products and advocate for environmental preservation, promoting sustainable behaviors within their communities These actions reflect a deep understanding of the impact human activities have on the environment and a commitment to reducing their ecological footprint.

8 How would competitors affect the “ reen Colle tor” business?

Buying bottles at home, also known as buying scraps, is one of the fields of commerce in which many individuals get wealthy However, there are also many individuals who have given up in the middle of the race because the competition is so intense In addition to individuals who often purchase bottles on the street, they may also contact scrap firms if the quantity of bottles is large and to ensure a higher price Each organization pays a different price for its consumers, and their services adhere to various criteria

I know that there is an mobile application, called VECA, that offer purchasing bottles at home with a fairly simple, convenient way and low price Various three of the afore mentioned methods have the benefit of being able to gather all sorts of scrap from individuals' houses, instead of bringing it to the collecting machine like “Green Collector”, this item is now highly desirable Additionally, while selling to scrap collectors, individuals can get the payment instantly

9 What is the possibility of success in the Green Collector business?