Enterprises embrace green logistics

Greening economic sectors, including logistics, is an inevitable step for Vietnam in the process of global integration. By adopting green logistics practices, businesses can meet environmental standards, enhance competitiveness, and achieve sustainable growth.

Representatives of enterprises visit booths at Vietnam International Logistics Exhibition held in early August.

At the recent Vietnam International Logistics Exhibition 2024 in Ho Chi Minh City, Deputy Minister of Industry and Trade Phan Thi Thang emphasized the crucial role of the logistics sector in helping Vietnam overcome challenges during the COVID-19 pandemic and recent global disruptions. In the first half of 2024, Vietnam’s import-export turnover reached USD 369.6 billion, up 16% year-on-year, thanks in part to logistics development.

Green logistics is a key focus under Vietnam’s National Green Growth Strategy for 2021–2030, with a vision to 2050. The plan includes developing green logistics centers and eco-friendly ports. Experts note that as economies transition to greener models, green supply chains—including logistics—must follow. After implementing green production practices, businesses need green transport systems to deliver eco-friendly products to consumers.

Logistics enterprises are calling for government incentives such as tax breaks, support for renewable energy adoption in road transport, promotion of multimodal transport, and carbon credit mechanisms.

In Dong Nai, green logistics is also gaining attention. With Long Thanh International Airport set to open and an expanding network of highways, seaports, and rail lines, the province aims to become a major logistics hub in southern Vietnam by 2030.

However, logistics development still lags behind its potential. Infrastructure remains underdeveloped and fragmented. Most logistics businesses are small in scale, lack regional integration, and face high operating costs—logistics expenses account for about 18% of Vietnam's GDP. On average, each container carries around VND 9 million in infrastructure costs, and Vietnamese companies often face high freight charges from foreign shipping lines without clear recourse.

Despite these challenges, many logistics companies are adapting. According to Dao Trong Khoa, Vice Chairman of the Vietnam Logistics Business Association, green transformation is urgent. Without it, businesses will lose competitiveness and risk being excluded from domestic and global supply chains.

Some are taking the lead. In Do Tran JSC (Ho Chi Minh City) launched VELA, a one-stop digital logistics platform that integrates customs, warehousing, and transportation. CEO Bryan Tuyen believes digital transformation is key to sustainable growth in logistics.

Similarly, in Bien Hoa City, Cong ty CP Thong Quan is expanding its operations and moving toward a closed-loop logistics system. CEO Dang Van Diem shared that the company is investing in IT solutions aligned with e-commerce to support sustainable development and better serve customers.

Reported by V.G