Adoption of Green Logistics is Prerequisite for Vietnamese Global Integration
The adoption of Green Logistics is no longer simply a developing trend but is now an essential prerequisite for Vietnamese companies seeking to achieve deeper and more sustainable integration into complex global supply chains, experts affirmed at a recent seminar in HCM City.
Trần Phú Lữ, Director of the Investment and Trade Promotion Centre of HCM City (ITPC), emphasized in his opening remarks that environmentally conscious logistics is fast becoming a key international criterion for assessing a sector’s long-term sustainability.
He noted that “by adopting green logistics, businesses can expand their customer base, increase revenue, reduce costs, and strengthen competitiveness in the long term.”
Việt Nam possesses strong inherent potential to evolve into a leading regional logistics hub.
The country’s strategic location, boasting a 3,260km coastline, numerous deep-water ports, international airports, and a rapidly expanding manufacturing and e-commerce economy, provides significant geographical and economic advantages.
The logistics sector itself has recorded impressive average annual growth of 14–16 per cent, with its market value estimated at a substantial US$45–50 billion.
Globally, Việt Nam ranks 43rd out of 139 countries and territories in the Logistics Performance Index and holds the fifth position among ASEAN members.
Despite these considerable strengths, domestic logistics costs remain notably high.
Domestic enterprises are often fragmented, lack necessary operational linkages, and rely heavily on carbon-intensive road transport.
Furthermore, logistics activities currently generate substantial environmental impacts, including significant emissions, noise pollution, and industrial waste.
Against this backdrop, the adoption of Green Logistics is transitioning from a mere choice to an urgent, mandatory requirement for the industry’s future.
Regulatory Hurdles and the Green Logistics “Trade Passport”
New, stringent environmental regulations from key markets, especially the European Union, are fundamentally redefining global trade and making the practice of Green Logistics an essential “trade passport” for Vietnamese exporters seeking to maintain market access and avoid severe penalties.
Trương Tấn Lộc, Vice Chairman of the HCM City Logistics Association (HLA), highlighted the pressing challenges posed by these new EU environmental regulations.
Specifically, the Carbon Border Adjustment Mechanism (CBAM), which is scheduled to take full effect in 2026, will require exporters to purchase certificates to cover the embedded carbon emissions generated during the production of certain goods imported into the EU.
Furthermore, the Corporate Sustainability Due Diligence Directive (CSDDD) will legally oblige firms to assume direct responsibility for environmental impacts across their entire supply chains and to adhere to strict Environmental, Social, and Governance (ESG) standards.
According to Lộc, these comprehensive rules are already redefining the global framework for carbon pricing.
Consequently, Green Logistics has rapidly become a vital “trade passport” that allows Vietnamese exporters to maintain their crucial access to international markets.
Compliance is now seen as essential not only to avoid heavy penalties or outright bans but also because building transparent, sustainable, and low-emission supply chains is what increasingly convinces international buyers to choose Vietnamese suppliers over competitors.
Moreover, he projected that formalized Green Logistics data will soon function as a critical performance benchmark that enhances a company’s brand value and significantly strengthens its negotiating power with foreign partners.
Systemic Challenges and Policy Recommendations
Despite the undeniable benefits and urgent requirements for Green Logistics, major systemic challenges remain, prompting the HCM City Logistics Association to propose comprehensive policy changes, including green finance incentives and infrastructure acceleration, to support the sector’s transition.
Several domestic examples already illustrate the operational and financial benefits of adopting Green Logistics.
At Tân Cảng Cát Lái Port, the full adoption of electronic transactions via the ePort system has successfully cut typical cargo handling times from hours to a mere 15–20 minutes, leading to an annual saving of US$1.5 million–2 million in fuel costs and a significant reduction in CO₂ emissions through the use of modern electric cranes.
Artificial intelligence (AI) has also been successfully applied to optimize delivery routes, helping to reduce fuel consumption by up to 15 per cent and shorten delivery times by 25 per cent.
However, the country still faces major hurdles, primarily its continued heavy dependence on road transport and the persistent limited connectivity between different modes of transport.
To overcome these issues and advance Green Logistics nationwide, the HLA has proposed developing unified national criteria to accurately measure and certify green logistics performance.
The association also strongly urged the government to implement breakthrough green finance policies, including preferential credit lines, tax reductions for investments in electric trucks and energy-saving equipment, and corporate income tax incentives for companies achieving green logistics certification.
A finalized legal framework for the carbon credit market is also deemed necessary to create new revenue streams that can be reinvested in clean technologies.
On the infrastructure front, HLA called on the Government to accelerate key national projects, prioritizing locations best suited for multimodal transport links to effectively ease existing road congestion.
A final, important recommendation is the creation of a shared Port Community System for the Southern Key Economic Region to optimize port-related operations.
Digital Transformation in Customs and Future Outlook
The customs sector is proactively supporting the Green Logistics transition through comprehensive digital transformation efforts, which significantly reduce clearance times and enhance efficiency, though businesses must actively adapt to leverage these advancements.
Bùi Tuấn Hải, Deputy Head of the Customs Sub-Department of Region II, provided insight into the customs sector’s role in facilitating the green shift.
He highlighted the implementation of major digital initiatives, including the Việt Nam Automated Cargo Clearance System (VNACCS), the National and ASEAN Single Window systems, 24/7 e-tax payment systems, and the Vietnam Automated System for Seaport Customs Management (VASSCM).
These digital tools have dramatically shortened the clearance times for “green lane” goods to an almost instantaneous one to three seconds.
Looking ahead, the customs sector is aiming to fully implement its “Smart Customs” initiative by 2030, which will involve applying advanced technologies like Artificial Intelligence (AI), Big Data analytics, and Blockchain to further enhance efficiency and transparency.
Hải emphasized that businesses themselves must remain proactive by diligently keeping up with all new regulations, ensuring their documentation is accurate and complete, thoroughly training their staff on using the new digital systems, and working closely and transparently with customs authorities.
This proactive approach is essential for avoiding costly errors and unnecessary delays, ensuring smooth operation within the increasingly digital and Green Logistics framework.
The seminar was organized by ITPC and the International Market Development Department as part of the Vietnam International Sourcing 2025 and Export Forum 2025 event.
