AI, ESG, and Geopolitics: Three Pillars Shaping the Future of Supply Chains

As the world enters a phase of digital transformation and reshaping of production–business models post-pandemic, global supply chains are being influenced by various driving forces.

AI: A Technological Lever to Improve Operational Efficiency

No longer a concept of science fiction, AI is truly transforming how businesses manage their supply chains. From demand forecasting and big data analysis to route optimization, AI helps enterprises enhance responsiveness and reduce human errors.

Gartner's survey shows that more than 50% of supply chain leaders believe that AI and machine learning will be the technologies creating the most value over the next three years. Notably, many organizations have started applying AI not only in operations but also in strategic decision-making — such as simulating supply chain risks, assessing geopolitical scenarios, or optimizing procurement costs in real-time.

However, a common obstacle is the lack of internal skills to effectively implement AI. Many companies still rely on third parties or only use the technology at a pilot level. This is why comprehensive digital transformation initiatives must be accompanied by workforce training strategies and long-term investment plans.

ESG: Market Pressure Forcing Enterprises to Change

Whereas ESG used to be considered a voluntary activity — a “decoration” for annual reports — it has now become a compulsory element for business survival and development in the global value chain.

According to Gartner’s survey, 67% of managers believe that ESG regulations — especially those concerning carbon emissions and labor standards — are among the biggest pressures in modern supply chain management. Major markets like the EU, the US, and Japan are setting increasingly stringent barriers, forcing companies to make ESG processes and data more transparent.

In Vietnam, ESG is being promoted by the Government through a roadmap for circular economic development, greening of the value chain, and reforms in corporate governance. A national ESG standards framework is being studied to provide legal pathways for enterprise adoption and to enhance competitiveness in export markets.

This also opens new opportunities for small and medium-sized enterprises (SMEs) — which have long struggled to meet international standards — to engage more deeply in global supply chains if properly supported.

Geopolitical Volatility: Restructuring Supply Chains to Adapt

US-China trade tensions, the war in Ukraine, and international economic sanctions have all demonstrated the degree of risk that geopolitics can inflict on supply chains. Today’s companies are not only concerned with cost and quality but must also consider supply chain resilience amid uncertainty.

Gartner’s survey shows that 65% of enterprises are actively redesigning their supply chains to increase geopolitical flexibility, including strategies such as supply source diversification, nearshoring, and reshoring. These trends are reshaping global trade flows.

For example, many large technology corporations have relocated part of their production from China to Vietnam, India, or Mexico to reduce dependency on a single source. Vietnam, thanks to its strategic location and political stability, is emerging as a key alternative destination in the global technology supply chain.

Restructuring a supply chain cannot happen overnight. It requires coordination at the strategic level, infrastructure readiness, and investment attraction policies with long-term vision.

The rapid pace of technological change, societal expectations, and geopolitical uncertainties compel businesses to rethink how they design, operate, and manage their supply chains. AI offers technological advantages; ESG creates new standards of ethics and responsibility; while geopolitics remains an unpredictable risk factor that can turn into opportunity if properly leveraged.

Reshaping supply chains is not merely a risk mitigation strategy — it is a growth driver. Enterprises that proactively adapt, invest for the long haul, and embrace a sustainable mindset will secure a strong position in the global market — where the speed of change accelerates and adaptability is the key to success.