In Vietnam, green logistics is becoming a requirement for purchasing raw materials, production, distribution, delivery, waste treatment, and the entire product life cycle.
According to Dao Trong Khoa, Deputy President of the Vietnam Logistics Service Business Association, a green, sustainable ecosystem will create competitive advantages and increase the adaptation, resistance, and recovery of businesses against market shocks.
“Green and agile requirements are two important components of any supply chain amid geopolitical instability and increasing requirements to ‘go green’ to reduce emissions around the world,” said Khoa, adding, “Transportation contributes 24% of global emissions. The journey toward green logistics and prompt adaptation will contribute to the decarbonization of Vietnam’s logistics industry.”
Logistics’ green transformation is closely linked to the Vietnamese Government’s commitment to net zero emissions made by the Prime Minister at the 26th United Nations Climate Change Conference (COP26).
But there remain many challenges to achieving this goal, says Le Quang Trung, Deputy President of the Vietnam Maritime Corporation.
He told VOV, “Although Vietnam is moving towards carbon emission reduction and environmentally friendly activities, seaport logistics and maritime transport are still facing investment, finance, and operational difficulties.”
To green logistics in the shortest time, the Government and functional ministries and sectors need to connect economic growth with sustainable development.
The Government is building a Logistics Development Strategy and Planning until 2030 with a vision to 2050, an urgent requirement of which will be to outline policies to encourage businesses, especially small and medium-sized enterprises, to develop green logistics.
In addition, there should be tax incentives to reduce costs for businesses and motivate them to use alternative energy sources in road transport, use a multimode transport model, and build carbon credits to protect and control greenhouse gas emissions.
Businesses are devising strategies in line with a green, sustainable development orientation in production and trading. Nguyen Quang Vinh, Deputy President of the Vietnam Chamber of Commerce and Industry, urged businesses to exchange more information and they need support in building their capacity and green management skills.
“VCCI has developed a tool – the Corporate Sustainability Index – which includes multiple indicators to measure an enterprise’s green level. This tool will support the green transformation process,” said Vinh.
In recent years, Vietnam’s logistics industry has made significant progress, with an average annual growth rate of 14-16%, and annual earnings of 40-42 billion USD. According to Agility’s assessment 2023, Vietnam was in the top 10 of the world’s 50 emerging logistics markets.
Vietnam is viewed as having many opportunities to develop its logistics service industry. Enterprises are urged to make the most of their advantages, turn greening into a driving force, improve their competitiveness, and enhance their branding toward more sustainable and comprehensive development in business, trade, and import and export activities.
(VOV World)
