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Vietnam-Aims-to-Develop-Green-Logistics-for-Global-Market-Participation

Vietnam Aims to Develop Green Logistics for Global Market Participation

09/11/2024
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Vietnam Aims to Develop Green Logistics for Global Market Participation

by Giezel Garcia
09/11/2024
in Sustainable Logistics

Hanoi (VNA) — Vietnam is working to enhance its green logistics sector to boost the involvement of domestic businesses in the global logistics chain, experts say.

The logistics industry in Vietnam has experienced significant growth, with a rate of 13-15% annually, making it an essential service sector contributing to the country’s socio-economic development. Despite this, experts highlight that Vietnam’s logistics sector has yet to fully integrate into the global logistics network.

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According to Đặng Hồng Nhung, from the Import-Export Department under the Ministry of Industry and Trade (MoIT), Vietnam ranks as one of the top ten emerging logistics markets and holds the fourth position in the International Logistics Opportunity Index, underscoring the potential of the country’s logistics market.

Nhung further noted that the logistics sector has made substantial contributions to Vietnam’s growing import-export activities, which saw a significant increase in turnover, reaching over US$680 billion in 2023, compared to just $150 billion in 2010.

However, logistics is also a major source of emissions and energy consumption, and the sector faces pressure due to the global trend toward green transformation. Nhung mentioned that this green shift could impact the logistics industry in two ways: by creating regulatory pressures and opening up opportunities for Vietnamese businesses.

The growing demand for sustainability means that logistics companies will need to meet stricter government regulations and international standards to reduce waste and energy consumption. In the long term, adopting green practices could help businesses optimize operations, reduce costs, and unlock new market opportunities.

Trần Thị Thu Hương, head of the Logistics and Supply Chain Department at the University of Commerce, pointed out that Vietnam hosts nearly 30 foreign logistics firms and more than 34,000 domestic logistics companies. However, most Vietnamese companies are providing ancillary services to international firms rather than participating directly in the global logistics chain.

Experts suggest that to promote green logistics development, the Vietnamese logistics industry must align with sustainable development goals. This requires significant investment in logistics infrastructure and raising awareness among the business community and consumers. Increased customer demand for environmentally friendly services could drive companies to adopt green logistics practices.

Mai Trần Thuật, General Director of Đông Á Pharmaceutical Logistics JSC, emphasized the importance of training programs on green logistics to help businesses understand the benefits, including cost reduction, of adopting sustainable logistics practices.

The Vietnamese government is also taking action by offering preferential policies to support logistics companies in transitioning to green practices. For example, the government provides three years of exempt registration fees for electric trucks, with a 50% reduction for the following two years.

The Ministry of Industry and Trade is preparing a strategy to guide the development of the logistics sector over the next decade, with a focus on green logistics. Since the publication of the Green Logistics Report in 2022, the awareness of businesses regarding sustainable logistics has improved.

Nhung emphasized that businesses seeking long-term growth must integrate green transformation into their strategies, regularly updating plans to align with new regulations and government incentives.

Stay informed with supply chain news on The Supply Chain Report. Learn more about international trade at ADAMftd.com.

#Vietnam #GreenLogistics #SustainableTrade #GlobalSupplyChain #EcoFriendlyTransport #LogisticsInnovation #VietnamExports

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