Greening and digitizing the logistics industry.

In the context of increasingly deep integration and constantly changing global supply chains, Vietnam needs to build a modern logistics ecosystem closely linked to global supply chains. In this ecosystem, the two strategic pillars of digital logistics and green logistics will be the levers that help businesses optimize costs, enhance competitiveness, and expand markets.

Loading and unloading goods at Phuoc An port, Nhon Trach district, Dong Nai province. (Photo: Cong Phong)

The Ministry of Industry and Trade is finalizing the Strategy for the Development of Vietnam's Logistics Services for the period 2025-2035, with a vision to 2045, aiming to reduce logistics costs to 12-15% of GDP and achieve an industry growth rate of 15-20% per year. Simultaneously, logistics will be integrated into the National Green Growth Strategy, with 30% of vehicles switching to clean energy and 80% of businesses adopting digital transformation.

Improve efficiency, reduce costs.

Assessing the current state of Vietnam's logistics industry, Dr. Bui Ba Nghiem, Senior Specialist at the Import-Export Department (Ministry of Industry and Trade), stated: The logistics industry has experienced rapid development in recent years, becoming an increasingly important service sector contributing to the country's economic growth. However, the logistics industry is also facing numerous limitations.

Although the logistics market has gradually expanded, it remains fundamentally focused on the domestic market, failing to develop in proportion to the country's potential and advantages. Logistics infrastructure is weak, inconsistent, fragmented, and lacks connectivity, hindering development and leading to high logistics costs, thus reducing the competitiveness of Vietnamese businesses.

Furthermore, while the number of logistics service businesses has increased rapidly, they are mostly small and medium-sized enterprises, limited in terms of capital, technology, and international operational experience. Meanwhile, the workforce for the industry is both insufficient and weak, with very few receiving professional training in logistics operations.

To develop the logistics industry in the coming period, according to Mr. Nghiem, it is first necessary to create breakthroughs in building and perfecting legal institutions to improve the investment and business environment and encourage economic sectors to participate in logistics development. Along with that, Vietnam needs to accelerate investment in building, forming, and developing a synchronous and modern logistics infrastructure. Businesses need to strengthen linkages; proactively restructure enterprises, promote the application of science and technology, digital transformation, and green transformation in logistics service business activities; and improve the quality of human resources and services.

Based on the company's operational experience, Pham Nguyen Thanh Quang, Director of LEX Vietnam (formerly Lazada Logistics), shared: In the current 4.0 era, logistics has become a high-tech service industry. LEX Vietnam has applied many new technologies such as artificial intelligence (AI), big data, the Internet of Things (IoT), and supply chain management systems to automate processes and enhance user experience. In particular, AI systems are integrated into all stages, from order forecasting and delivery route optimization to warehouse coordination and consumer behavior analysis.

Through AI and Big Data, LEX Vietnam has built accurate real-time order forecasting models, enabling efficient resource allocation during peak seasons or large promotional campaigns. The smart warehouse in the company's automated sorting center in Binh Duong is also 99% automated using the latest technologies to provide customers with fast and reliable delivery services.

It is evident that, thanks to new technologies focusing on AI, Big Data, and Machine Learning, many new business models such as instant delivery or scheduled delivery have emerged and been successfully implemented. Along with this, digital transformation helps logistics businesses accelerate order processing and packaging in warehouses, reduce errors, optimize delivery times, thereby increasing productivity, reducing costs, and optimizing operations.

"Vietnamese logistics businesses need to prioritize investing more in technology, while also focusing on developing digital logistics human resources through collaboration between businesses and training institutions," Mr. Quang suggested.

Thanks to new technologies focused on AI, Big Data, and Machine Learning, many new business models such as instant delivery or scheduled delivery have emerged and been successfully implemented.

Multimodal transport integration

Emphasizing that greening is an irreversible global trend and a mandatory condition for integration, Macstar Group Joint Stock Company General Director Cap Trong Cuong stated: Greening logistics is currently a matter of survival for Vietnamese logistics businesses, especially in the transportation, port, and warehousing sectors, which must proactively transition to green early to avoid being excluded from the global supply chain.

However, the challenges for green transformation are also significant. The legal framework, standards, regulations, sanctions, and mechanisms to promote green transformation remain unclear. Meanwhile, many Vietnamese businesses lack capital to invest in green technologies and vehicles; they lack specific solutions and, most importantly, human resources for green transformation due to a shortage of experts in emissions and environmental technology. Therefore, the State needs to develop a national green logistics criteria set and implement preferential financial policies such as green credit and tax and fee reductions to support businesses in their transformation.

According to Mr. Cuong, one solution to effectively promote the greening of the logistics industry is to leverage the advantages of waterway transport. Vietnam has a dense network of rivers and a long coastline, offering great potential for developing coastal and inland waterway transport. Water transport also helps relieve pressure on road transport and optimize costs, especially for containers and large-volume goods. Furthermore, according to research by Macstar, using waterway transport can reduce emissions by up to 70% compared to road transport.

According to Ms. Truong Thi Mui, Deputy General Director of Bac Giang International Logistics Company: In Vietnam today, road transport still accounts for an overwhelming proportion (70-75%), driving up logistics costs and making the logistics system vulnerable to fluctuations in fuel prices or traffic congestion. Conversely, other transport methods such as rail and waterway, which have great potential, have not been exploited to their full potential due to a lack of infrastructure linkages, fragmented planning, and outdated technology.

For example, the northern midland region has a significant advantage in connecting road, waterway, and rail networks for logistics operations, but currently these modes of transport are still developing in a fragmented manner. Integrating multimodal transport with smart warehouse systems and building multi-tiered supply chains will help reduce logistics costs by 10-15% for key industries such as e-commerce, textiles, and electronics.

Currently, the Bac Giang International Logistics Center is building a regional axis based on multimodal transport. Accordingly, the Center has directly connected with the key Hanoi-Bac Giang-Lang Son expressways, and is also implementing a full-journey logistics product from Nanning (China) to Yen Vien station (Hanoi) with a transit stop at Kep station (Bac Giang).

Unfortunately, the railway infrastructure at Kep station currently does not meet the requirements for developing a truly competitive rail transport product. In addition, the inland waterway port system on the Cau, Thuong, and Luc Nam rivers is also being studied for integration to form a water-land-rail logistics axis, opening up new avenues for inter-provincial and cross-border supply chains.

Ms. Mui suggested that the State should prioritize investing more in waterway and rail transport. Businesses themselves also wish to participate in systematic investment with support from relevant agencies to build modern multimodal logistics systems, bringing common benefits to the development of the entire industry.

With the support of the Government, ministries, localities, and the business community, Vietnam can absolutely build a green, smart, and fully connected logistics system, creating a leap forward in national competitiveness in the new era.

Source: https://baobinhphuoc.com.vn/news/4/172295/xanh-hoa-so-hoa-nganh-logistics