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Vietnam’s Logistics Sector Focuses on Sustainable Supply Chain Development

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Vietnam’s Logistics Sector Focuses on Sustainable Supply Chain Development

by Giezel Garcia
07/18/2024
in Sustainable Logistics

Vietnam’s logistics sector is undergoing significant transformation with an emphasis on sustainable supply chain practices, in line with Government Resolution No 163/NQ-CP dated December 16, 2022. This resolution aims to enhance the country’s competitiveness and foster the development of logistics services, focusing particularly on green and sustainable practices.

The logistics industry is increasingly adopting environmentally-friendly methods, marking a shift from a trend to a requirement, with green growth and sustainability becoming central to the industry’s future. In this context, businesses are recognizing the necessity of incorporating green practices to align with global environmental goals. For instance, shipping lines and seaport companies worldwide have begun reducing emissions and utilizing green energy, with logistics players in Vietnam following suit.

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The transportation sector accounts for 24% of global emissions, and reducing the carbon footprint within Vietnam’s logistics sector has become an urgent goal. The move towards greener supply chains supports Vietnam’s commitment to achieving net-zero emissions, as outlined at the COP26 summit.

In addition to the environmental benefits, the Vietnamese logistics sector is addressing challenges related to transparency. Surveys indicate that a significant portion of customers lacks a comprehensive understanding of their supply chains, leading to potential issues such as production delays, slow freight shipments, and inefficient warehouse management. To combat these challenges, businesses are increasingly implementing digital transformation initiatives to enhance operational efficiency and minimize risks.

Saigon New Port Corporation is one example of a company embracing sustainable practices through waterway transport and technological advancements. The port has modernized its operations by adopting solar energy for its facilities, optimizing production processes, and reducing the need for paper in transaction processes. These efforts contribute to the overall goal of minimizing environmental emissions while improving operational efficiency.

While the shift towards green logistics presents a range of opportunities, challenges remain. With a large portion of businesses in the logistics sector being medium, small, and micro enterprises, there are concerns about the costs of implementing green logistics solutions. However, experts argue that these businesses can still achieve sustainability goals by applying optimization solutions, such as maximizing the utilization of renewable energy sources and reducing transportation emissions.

As part of the broader trend, the Vietnamese logistics industry is also promoting the adoption of renewable energy and efficient route planning, with government regulations playing a crucial role in supporting these initiatives. Industry leaders suggest that continued government support for green logistics and renewable energy will be key to fostering further growth in this sector.

The ongoing push towards sustainable logistics in Vietnam aligns with the global trend towards green growth, emphasizing the importance of integrating sustainability into business operations. With the adoption of innovative technologies and green practices, Vietnam’s logistics sector is positioning itself to meet the demands of both environmental goals and operational efficiency.

Find the latest updates in supply chain logistics news at The Supply Chain Report. Visit ADAMftd.com for free international trade tools.

#VietnamLogistics #SustainableSupplyChains #GreenLogisticsVN #VietnamTrade #EcoFriendlyTransport #LogisticsInnovation #SupplyChainSustainability

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