Developing green logistics businesses, aiming for a sustainable supply chain

Cat Lai Port in Ho Chi Minh City will be built a large-scale logistics center. Photo: T.H

Green logistics is an inevitable trend

According to experts, in the context of increasingly high demands on exported products, as well as the commitment of countries to no longer emit greenhouse gases by 2050, green logistics activities are considered one of the inevitable trends and requirements. According to Associate Professor, Dr. Ho Thi Thu Hoa, Director of the Vietnam Institute of Logistics Research and Development, to improve export performance, in addition to strengthening control, ensuring product quality and promoting digital transformation of production , businesses are interested in proposed information technology trends including smart logistics, tracking, tracing and green logistics. Therefore, it is necessary to improve logistics infrastructure, enhance environmentally friendly transportation, and connect between organizations to promote the development of green logistics for agricultural products in Vietnam.

Sharing this opinion, Ms. Phung Thi Lan Phuong, International Trade Expert, former Head of FTA Department, WTO and Integration Center (VCCI) informed that 90% of Vietnamese consumers support ethical and social responsibility, and 43% of them appreciate environmentally friendly brands and businesses. According to Ms. Phuong, thanks to implementing important policy changes, Vietnam is in the top 3 developing countries (after India and the Philippines) with a high Pioneer Technology Readiness Index (green technology) ranking, much higher than expectations based on GDP per capita (44 levels higher than expectations).

Mr. Phan Huy Duc, Vice Principal of Ho Chi Minh City College of Transport, said that Vietnam is one of six countries severely affected by climate change, implementing a sustainable development strategy and commitment to COP26. The pressure to green the supply chain, especially in the export economy, along with awareness of the large pollution impact from logistics activities, has driven the need for rapid and sustainable development. Vietnam's development perspective focuses on the combination of science and technology, innovation and digital transformation, in which digital transformation is considered one of the important factors promoting sustainable development.

As one of the enterprises with the most developed logistics services in the country, aiming for green ports and green logistics, Mr. Bui Van Quy, Deputy General Director of Saigon Newport Corporation shared, to achieve green port criteria, With convenient services and cost reduction, Cat Lai port has now replaced diesel lifting equipment with electric equipment, saving 1.5 - 2 million USD in fuel costs/year. Strengthening water transport with a capacity of 3,000 TEUs at a time, replacing about 2,000 container trucks. At the same time, applying electronic documents helps reduce the time for vehicles to wait at the port gate from 13 minutes to 6 minutes, eliminating about 30,000 - 50,000 pieces of paper documents at the port/day; Plant trees along the docks and roads...

Reduce logistics costs

Experts in the field of agricultural exports say that the Vietnamese Government has currently made efforts to build many connecting roads to raw material areas... helping to shorten transportation time a lot. However, the Government needs to further promote investment in building road transport infrastructure with good connections from raw material areas in the Mekong Delta region so that farmers and cooperatives have the opportunity to bring their products to the agriculture export markets with the best quality. At the same time, it is necessary to plan and build agricultural logistics centers, including cool warehouses for classification, preservation, and preliminary processing, thereby improving quality and stabilizing prices. Increase investment in logistics infrastructure for agricultural products, especially in key agricultural production areas, reducing logistics costs.

Ms. Nguyen Tu Uyen, Director of CMU Logistics Company, said that exporting Vietnamese agricultural products has many advantages but also faces many disadvantages when exporting agricultural products is dependent on foreign airlines and increased transportation costs. Lower depending on the company. Also transported by rail, road, waterway... fruits are easily damaged, reducing competitiveness.

Regarding the field of green logistics development, Associate Professor Dr. Ho Thi Thu Hoa informed, according to a survey from goods owners and logistics service providers conducted by the Vietnam Logistics Research and Development Institute since August. /2023 to October 2023 shows that, in the field of green logistics for agricultural products, businesses are strongly committed with 44.23% rated very good, 25% rated good. Agricultural enterprises and logistics service providers proactively implement green policies and processes. However, businesses face many difficulties when exporting, such as high costs and receiving policies... From this reality, Ms. Ho Thi Thu Hoa proposed solutions to develop green logistics towards the sustainable supply chain of Vietnamese agricultural products for export. Specifically, to improve export performance, businesses need to strengthen quality control, employee training, ensure product quality and promote digital transformation in agriculture. In addition, it is necessary to improve infrastructure, strengthen environmentally friendly transportation and connections between organizations to promote the development of green logistics for agricultural products in Vietnam.

To develop green logistics services, Mr. Le Duy Hiep, Chairman of the Vietnam Logistics Services Business Association, said that businesses need to take advantage of new generation FTAs to expand the market for providing international logistics services, focusing on Focusing on ASEAN, Middle East, Africa and Latin America markets in addition to traditional markets. At the same time, promote innovation, creativity, and digital transformation, focusing on implementing highly effective projects for members. Striving by 2030, 100% of members will achieve results in digital transformation and serve business effectively. Strongly deploy green logistics, smart logistics and logistics to effectively serve the import and export of agricultural products. “In particular, logistics businesses strive to exceed the targets set by the Prime Minister in Decision 221/2021/QD-TTg dated February 22, 2021 on the action plan to improve competitiveness and development. Developing Vietnam logistics services until 2025" - Mr. Le Duy Hiep emphasized.