Vietnam's logistics industry under pressure for green transformation

In the low-emission era, green logistics has become a 'life and death' line for Vietnamese businesses, both to meet global standards and to expand sustainable export opportunities.

Hai Phong City prioritizes investment and upgrading of inter-regional road traffic infrastructure, while synchronously developing seaports, waterways, and aviation, notably Lach Huyen Port and Cat Bi International Airport.

Unprecedented pressure

Vietnam’s logistics industry is under unprecedented pressure as the world enters a low-emission era. Major export markets such as the European Union (EU), the US, and Japan are tightening carbon standards, forcing businesses to demonstrate green supply chains from transportation to storage.

Meanwhile, the domestic infrastructure system is still lacking in synchronization, transportation costs are high, and the large proportion of roads causes emissions to increase sharply. The problem of reducing emissions has therefore become a boundary that forces logistics enterprises to transform, if they do not want to lose market share and opportunities to rise in the global supply chain.

According to Mr. Truong Tan Loc, Vice President of the Ho Chi Minh City Logistics Association (HLA), although Vietnam ranked 43/139 in the Logistics Performance Index (LPI), it still faces inherent weaknesses in the quality of infrastructure and services, leading to unnecessary waste and carbon emissions.

Notably, Europe is setting up new technical barriers through the carbon border adjustment mechanism (CBAM), which will come into full force from 2026.

This mechanism acts as a kind of “carbon tax” on imported goods, requiring exporting businesses to purchase and submit CBAM certificates corresponding to the emissions in their products.

At the same time, the Corporate Sustainability Due Diligence Directive (CSDDD) forces companies to take responsibility for environmental impacts throughout the entire supply chain and strictly apply ESG (environmental - social - governance) standards.

These regulations revalue global carbon, making green logistics no longer a socially responsible activity but a condition for Vietnamese goods to access the market.

According to Mr. Loc, compliance with international standards is both a challenge and an opportunity. Because, businesses that meet carbon standards will enhance brand value and increase their negotiating capacity with international buyers. Low emission data will become a trade passport.

Hai Phong's seaport and logistics systems are constantly being invested in and upgraded.

Early improvement of processes and application of technology

According to experts, logistics currently accounts for about 16 - 18% of Vietnam's total domestic budget (GDP), much higher than many countries in the region.

This is also one of the largest sources of carbon emissions. Therefore, shifting from roads to rail and inland waterways will bring about clear environmental benefits. At the same time, it is necessary to improve the delivery process and apply technology to optimize and reduce emissions.

Realizing this, Tan Cang Cat Lai applies 100% ePort electronic transactions, reducing delivery time to 15 - 20 minutes, saving 1.5 - 2 million USD in fuel costs each year and significantly reducing emissions thanks to the electric shore and yard crane system.

Similarly, Vietnam Post Corporation (Vietnam Post) is also an enterprise making efforts to switch to green development. Specifically, Vietnam Post is the first postal enterprise in Vietnam to cooperate with Honda Vietnam to put electric motorbikes into use in delivery activities, helping to reduce emissions in the market.

A representative of Interlog International Logistics Joint Stock Company shared: To develop green and sustainably, Interlog focuses on three main pillars: employee awareness, energy conversion and optimal solutions to cut costs.

At the same time, Interlog focuses on internal training from leaders to employees to increase awareness of green transformation; at the same time, promoting the application of technology and digital transformation to reduce paperwork in management and operation.

The company also offers solutions to help reduce carbon emissions for customers through advice on delivery routes, helping to reduce fuel and transportation costs.

According to Mr. Dao Trong Khoa, Chairman of the Vietnam Logistics Services Association (VLA), the journey towards green and adaptive logistics will contribute to the carbon reduction process of the Vietnamese logistics industry in particular and the world in general.

Vietnamese logistics enterprises need to take advantage of their advantages, turn the urgent need for greening into a driving force, improve competitiveness and brand image, and aim for sustainable and comprehensive development.

However, to do this, businesses must update new trends and standards of the world, aiming towards energy conversion with means of using energy-saving, renewable energy, and green energy. At the same time, optimize operating costs, digitize operations, improve performance and efficiency in providing logistics services.

Hai Phong city will have more room to develop seaport advantages, promote logistics development, import-export and sea tourism.

Comprehensive strategy needed

Currently, the Ministry of Industry and Trade is urgently completing the draft and submitting to the Prime Minister the "Vietnam Logistics Services Development Strategy for the period 2025 - 2035, with a vision to 2050," which includes many orientations to encourage the development of the logistics services industry, especially green logistics.

Mr. Tran Thanh Hai, Deputy Director of the Import-Export Department (Ministry of Industry and Trade) commented that when issued, the Strategy will set out the goal of developing Vietnam's logistics service industry sustainably, effectively, with high quality and added value, and competitiveness in the region and the world, promoting Vietnam's advantages in the global value chain.

The Ministry of Industry and Trade will coordinate with the Ministry of Construction, ministries, localities, and associations to deploy a master plan to bring logistics into life, helping businesses access it more easily.

Referring to the requirements and trends of green transformation in logistics, Mr. Tran Thanh Hai said that the draft Strategy has set a goal that by 2030, logistics services will develop effectively in the direction of reducing emissions and converting to green energy sources.

The goal by 2035 is for logistics services to continue to develop effectively towards emission reduction, contributing to bringing the country's net emissions to 0.

In addition to policy improvement, international connectivity is also being promoted. Hai Phong is cooperating with Gothenburg Port (Sweden) to expand the maritime transport network to Europe and build a multimodal logistics center, aiming for a green logistics model.

New generation trade agreements all require carbon footprint reduction, making green transition key to integration.

According to experts, developing modern, smart and green logistics will help Vietnamese businesses reduce costs, improve productivity, increase competitiveness and expand markets. With a strategic vision, synchronous policies and the initiative of the business community, Vietnam can completely rise to the position of the region's logistics center, becoming an important link in the global supply chain.

According to Vietnam+

Source: https://baohaiphong.vn/nganh-logistics-viet-nam-truoc-suc-ep-chuyen-doi-xanh-522589.html