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The Gradual Realization of Green Logistics

(News Portal – Dong Nai) - Greening economic sectors, including logistics services, is an inevitable issue for Viet Nam as it integrates with global economic development trends. Greening the logistics sector and applying green logistics in business will help enterprises meet environmental criteria, enhance competitiveness, and ensure sustainable growth.

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Businesses visiting booths at the Vietnam International Logistics Exhibition 2024 held in early August 

Previously, both the government and service-providing enterprises have made numerous efforts to gradually realize green logistics.

Implementing the National Vision

For Viet Nam, the National Strategy on Green Growth for the period 2021-2030, with a vision to 2050, has set goals to "green" economic sectors, promote economic restructuring linked to innovative growth models, and ensure environmental sustainability and social equity. Logistics is one of 18 key themes of the National Action Plan on Green Growth for the period 2021-2030. Accordingly, the development of green logistics centers and green ports is emphasized.

Experts highlight that for a sustainable economy, the supply chain must also develop in a green direction. Forming a green supply chain involves several stages, with green logistics being one of them. To build a green supply chain, after green production stages, resource-saving, pollution-limiting, and the use of green materials, green logistics is the next phase. Businesses then establish and apply green transportation systems to deliver green products to consumers.

At the Vietnam International Logistics Exhibition 2024, held in Ho Chi Minh City, Deputy Minister of Industry and Trade Phan Thi Thang assessed that the logistics industry plays a crucial role in helping Vietnam's economy overcome difficulties during the Covid-19 pandemic and global geopolitical fluctuations. The development of logistics also contributes to the growth of Vietnam's total import-export turnover, which reached 369.6 billion USD in the first half of 2024, an increase of 16% compared to the same period in 2023.

In line with the general trend, Dong Nai is also attracting and developing commercial and logistics services to serve local businesses. Dong Nai's advantages include the upcoming operation of Long Thanh International Airport, an inter-regional highway system, and seaports with significant handling capacity. The province aims to become the gateway for the entire southern region by 2030, with dynamic, comprehensive, and flexible infrastructure, including roads, railways, aviation, waterways, and maritime systems. With these advantages, Dong Nai is expected to become an international logistics hub.

The Inevitable Need for Change

The aspiration to develop green logistics is a long-term story; however, the current development of logistics services is not yet commensurate with existing potential and outlined goals. Transportation and service infrastructure are slow and lack synchronization, creating bottlenecks that prevent the logistics industry from developing as expected.

Most logistics service providers are small-scale, lacking major players and large centers; inter-regional connections are weak, and infrastructure connections between seaports, airports, warehouses, and industrial zones remain limited. The logistics cost-to-GDP ratio in Vietnam is still high (about 18% of GDP). On average, each container bears about 9 million VND in infrastructure costs, and Vietnamese businesses often face high price pressure from foreign shipping companies without effective solutions, adding to the cost burden.

Challenges also serve as motivation for service providers to change. According to Mr. Dao Trong Khoa, Executive Vice President of the Vietnam Logistics Business Association, if businesses do not quickly and immediately implement criteria to green the logistics sector, they will face many difficulties in the future, gradually being excluded from domestic and global business, trade, and import-export activities.

For In Do Trans Logistics Corporation (Ho Chi Minh City), the company launched VELA (One-Stop Logistics Platform), which integrates all logistics services (customs procedures, warehousing, international and domestic transport) into a single digital logistics platform. Mr. Bryan Tuyen, CEO of VELA, stated that this digital platform opens a new era for the logistics industry. The company is always committed to sustainable and prosperous development for the entire logistics sector in Vietnam.

Similarly, at Thong Quan Corporation (Bien Hoa City), the company strives to become the leading logistics solution provider favored by customers. Mr. Dang Van Diem, the company's director, shared that the company has established additional branches and subsidiaries, expanded services, and built a closed logistics chain. For sustainable development, the company is also promoting information technology in conjunction with growth on the e-commerce platform. ​

Author: Bao Nguyen

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