Vietnam’s logistics industry is rapidly developing at an annual growth rate of 13-15%, becoming a crucial service sector supporting and promoting the country’s socio-economic development. Against the backdrop of complex global logistics market developments, green transformation has emerged as a new trend facing the industry. Recently, at a seminar on “Green Logistics Adaptation – Business Support Solutions” organized by the Industry and Trade Magazine, Ms. Dang Hong Nhung from the Import-Export Department of the Ministry of Industry and Trade presented the development of Vietnam’s logistics industry.
With the advancement of international economic integration and the prosperity of imports, exports, investments, and e-commerce, Vietnam’s logistics industry has achieved remarkable results. Currently, the industry’s market size ranges from $40 to $42 billion annually. Over 40,000 companies are active in the transportation and warehousing sectors, including global brands such as DHL, CJ Logistics, and Maersk Lines. Meanwhile, Vietnamese companies like Transimex, Sotran, and Saigon Newport have also demonstrated strong competitiveness.
According to the World Bank’s latest research report, Vietnam’s logistics efficiency index ranks 43rd among 154 countries and regions, second only to Singapore, Malaysia, and Thailand in the ASEAN region, and on par with the Philippines. Agility’s 2023 report even lists Vietnam as one of the top ten emerging logistics markets, ranking 4th in the international logistics opportunity index, indicating the enormous potential of Vietnam’s logistics market.
Ms. Dang Hong Nhung emphasized that the logistics industry has made significant contributions to Vietnam’s import and export growth. In 2010, Vietnam’s import-export value was just over $150 billion, but by 2023, this figure had grown 3.6 times to over $680 billion. Even during the difficult period of 2018 to 2022 due to the COVID-19 pandemic, Vietnam’s import-export growth rate maintained an average of 11.3% per year. Although import-export turnover slowed in 2023, the first seven months of 2024 have shown a recovery, achieving an import-export turnover of over $440 billion, a 17.1% increase compared to the same period last year.
However, the logistics industry also faces challenges in green transformation. As a high-emission, high-energy-consumption industry, logistics accounts for 8-11% of global carbon dioxide emissions. The International Maritime Organization (IMO) is tightening regulations on marine fuels, which will affect the entire global shipping industry, including Vietnam. Moreover, major importing countries such as the United States, the European Union, and Japan are increasingly demanding higher green standards, not only for products themselves but also covering the entire production process.
The European Union is set to formally implement the Carbon Border Adjustment Mechanism (CBAM) in 2026, which will impose carbon taxes on imported products. It is expected that the United States will adopt similar measures in the near future. These regulations require that the production processes of exported goods from exporting countries must be environmentally friendly, and logistics, as a crucial link connecting production to consumers, also faces corresponding requirements.
Although green transformation brings pressure, it also creates new development opportunities for the logistics industry. In the long run, green transformation will help companies optimize processes, reduce costs, and create new business opportunities, such as low-carbon transportation services or eco-friendly packaging services.
Dr. Tran Thi Thu Huong, Head of the Logistics and Supply Chain Department at the University of Commerce, pointed out that most Vietnamese logistics companies play satellite roles, participating in only a part of the global logistics chain. This means that Vietnamese companies must meet the green requirements of the entire logistics chain while also facing pressure to compete with foreign logistics companies.
Some Vietnamese companies have already begun to actively respond to green transformation. Mr. Mai Tran Thuat, General Director of East Asia Pharmaceutical Logistics Joint Stock Company, introduced their company’s practices, including using recyclable packaging materials, reducing carbon dioxide emissions, digitalizing warehouses, and optimizing transportation routes. However, to achieve a rapid and robust green logistics transformation, macro-policy support is still needed, especially in attracting and supporting companies to invest in green logistics.
Ms. Dang Hong Nhung emphasized that since the Ministry of Industry and Trade organized the Green Logistics Forum in 2022, the business environment and companies’ awareness of green logistics have changed. Green logistics is no longer a trend or choice but will become a mandatory requirement. Companies must incorporate green regulations into their business strategies and regularly review and update them to adapt to new regulations and preferential policies.
Key points:
- Vietnam’s logistics industry is growing rapidly, making significant contributions to the national economy.
- The industry performs well in international rankings, showing enormous potential.
- Green transformation has become a major challenge and opportunity for the industry.
- International regulations and customer demands are driving the logistics industry towards more environmentally friendly practices.
- Vietnamese companies need to accelerate their green transformation to enhance competitiveness.
- Some companies have begun implementing green measures, but government policy support is still needed.
- Green logistics will transition from a trend to a mandatory requirement in the future.
