Vietnam’s logistics sector is grappling with global economic shifts, from supply chain disruptions and soaring transport costs to carbon tax hurdles and stringent EU environmental, social, and governance (ESG) regulations.

This scenario presents both challenges and opportunities for businesses to green their operations, accelerate transformation, and reposition themselves in the global race toward sustainable development.

However, to realize this goal, companies require robust state support in areas such as sustainable infrastructure, green finance, and emissions management.

Opportunities and challenges

The logistics industry, particularly maritime transport, is a major emitter due to its heavy fuel consumption. As a result, the pressure to decarbonize is mounting.

The International Maritime Organization (IMO) has mandated a shift to low-emission fuels with a target of net-zero emissions by 2050. This presents an opportunity for Vietnam to pioneer a green and sustainable logistics model.

According to the World Bank, Vietnam’s logistics sector has grown by 16% annually, ranking 43rd in the 2023 Logistics Performance Index and among the top five in ASEAN.

Tran Thanh Hai, Deputy Director of the Import-Export Department at the Ministry of Industry and Trade, emphasized that green logistics - through fuel-efficient vehicles, smart containers, route optimization, and warehouse digitization - not only promotes sustainability but also helps firms manage long-term costs amid volatile oil prices and transport expenses.

Additionally, this shift aligns with export market standards, especially as the EU implements the Carbon Border Adjustment Mechanism (CBAM), which taxes high-emission imports. Thus, obtaining green certifications offers Vietnamese logistics firms a competitive edge in a fiercely contested market.

Greening and digitizing logistics

Vietnam's logistics sector has favorable conditions for growth, thanks to significant infrastructure investments by the government, particularly in transportation, which helps reduce delivery times and costs.

Furthermore, the booming e-commerce market - reaching USD 25 billion in 2024, up 20% from the previous year - provides strong growth momentum for logistics companies.

Still, the green transformation in Vietnam’s logistics sector remains challenging due to limitations in awareness, habits, and infrastructure to support eco-friendly transport solutions.

Luong Thi Thanh Mau, CEO of Phuc Khang Investment and Construction Corporation, noted that the commitment to net-zero emissions by 2050 places immense pressure on Vietnamese businesses, especially small and medium-sized enterprises, to green their supply chains.

Green technologies, energy-efficient transport, and emissions management systems demand substantial capital, yet many companies lack the financial resources and expertise to select technologies compatible with their operations.

A shortage of specialists with in-depth knowledge and implementation skills also hinders green technology adoption.

Need for multi-stakeholder collaboration

Any new transformation comes with obstacles, but going green is no longer optional - it is a mandate for sustainable economic growth. Rather than retreating, companies must develop suitable roadmaps for adaptation.

Tran Tien Dung, Chairman of Macstar Group, shared that since 2023, the company has invested in large vessels, formed an inland and coastal waterway transport group, and piloted a Haiphong-Ninh Binh route by waterway.

This shift has helped Macstar reduce costs, halve delivery times, and boost cargo capacity while building a "green" reputation with international partners.

The company is also collaborating on the development of larger, eco-friendly ships powered by solar batteries and green hydrogen, aiming to further cut logistics costs and carbon emissions.

However, to implement these technologies effectively, businesses need state support in technical standards and guidance for adopting new technologies.

Koen Soenens, Vice Chairman of the Transport and Logistics Committee at the European Chamber of Commerce in Vietnam (EuroCham), highlighted that Vietnam’s logistics infrastructure remains fragmented, with inconsistent policies and unclear regulations hindering green transition efforts.

A cohesive approach involving the government, businesses, and stakeholders is essential to create a sustainable logistics ecosystem.

Global decarbonization pressures will be a driving force for Vietnam to build a modern, sustainable logistics system and lay the groundwork for a green economy.

Sustainable logistics in the digital era

Pham Tan Cong, Chairman of the Vietnam Chamber of Commerce and Industry (VCCI), emphasized that green logistics could be a decisive advantage for Vietnamese businesses to move faster and rise higher in the global sustainable development agenda.

It is a critical survival strategy for Vietnam’s logistics sector to stay competitive amid ongoing global uncertainties.

With state support in policy, green finance, and technology, Vietnamese logistics enterprises can turn challenges into opportunities, redefine value, and elevate their position on the global economic map.

At the heart of green logistics lies the development of an integrated multimodal logistics model, paired with sustainable policy and financial frameworks.

To accelerate green logistics, the government must continue its role as an enabler, crafting effective policies and clear guidelines. This includes encouraging businesses to shift to waterway and rail transport to capitalize on their higher capacity, optimizing processes by scaling up transport, reducing empty trips, and developing smart warehouses and ports.

Companies should also partner with regulators to implement emissions reduction strategies, invest in clean technology and energy, pursue long-term sustainability plans, upgrade facilities, and prioritize eco-friendly transport such as electric, hydrogen, or LNG-powered vehicles.

PV