Transport-Logistics Industry Strives for Green Future

Mr. Tran Ngoc Liem, Director of VCCI-HCM, addressees the seminar "Green Revolution for the Transport Industry – Policies and Solutions for Environmental Protection and Cost Savings”

Mr. Tran Ngoc Liem, Director of the Ho Chi Minh Branch of the Vietnam Chamber of Commerce and Industry (VCCI-HCM), made this statement at the seminar "Green Revolution for the Transport Industry – Policies and Solutions for Environmental Protection and Cost Savings." The event was jointly organized by VCCI-HCM and INNO-F Global Co., Ltd.

Mr. Liem said that while the transport and logistics sector plays an important role in the economy, it is also a major contributor to environmental pollution. Freight transport alone generates significant carbon emissions, accounting for approximately 8% of total global emissions and greatly contributing to global warming. This has driven countries worldwide to implement strong policies and technological solutions aimed at reducing emissions, minimizing environmental impact and enhancing economic efficiency for businesses - particularly through green transport and green logistics solutions.

Keeping pace with global trends, Vietnam’s logistics industry has intensified efforts to reduce emissions through green transport and green logistics solutions, which include investing in modern transport infrastructure, adopting advanced technologies, optimizing transportation processes, using eco-friendly vehicles, and improving route efficiency. In particular, local governments and domestic businesses have made investments in infrastructure to support the adoption of environmentally friendly transport vehicles, reinforcing the country’s sustainable development.

"Amid the challenges of climate change and global geopolitical instability, green transport and green logistics are essential for businesses to enhance their competitiveness in the integration process, ensuring sustainable growth and environmental protection. This transition is also a necessary step for the transport industry to fulfill Vietnam’s commitment to achieving net-zero emissions by 2050," said Liem.

Addressing the necessity of reducing greenhouse gas emissions in the transport and logistics sector, Assoc. Prof. Tran Quoc Thinh from Ritsumeikan University (Kyoto, Japan) said that the transport sector alone contributes up to 22% of total greenhouse gas emissions - a concerning figure. To align with Vietnam’s Nationally Determined Contributions (NDC) under the "Unconditional Contribution" target, he proposed five key solutions: transitioning to clean vehicles powered by environmentally friendly fuels, such as electric vehicles (EVs), hybrid vehicles, and hydrogen-powered vehicles; encouraging the use of public transport that runs on electricity or renewable energy; enhancing fuel efficiency by adopting advanced technologies that reduce fuel consumption in traditional vehicles; developing alternative fuels, including biofuels, hydrogen and other renewable energy sources, to replace fossil fuels; and planning a sustainable transport network by prioritizing efficient public transport systems, reducing congestion, and promoting walking and cycling. He also emphasized the importance of stricter emission standards, financial support for green transport projects, and the development of sustainable infrastructure to accelerate the transition to low-emission transportation.

From a business perspective and as an industry expert, Mr. Nguyen Duy Minh, Vice President of the Vietnam Logistics Business Association (VLA), said that Vietnam has advantages in developing green transport and green logistics. These advantages include early access to modern, efficient management solutions and a well-developed information technology network. Vietnamese businesses, both logistics service providers and users, are increasingly committed to sustainable green logistics development, which is a highly positive trend for the industry.

Green transport and logistics are not just business responsibilities but important for global competitiveness

However, the green transition for businesses in the transport and logistics sector comes with numerous challenges, starting with the high investment costs of transitioning to and operating green vehicles. Other obstacles include a poorly developed public transport network, limited access to clean fuel sources and technology constraints. Securing financial resources for investment remains a major hurdle, as there is a lack of connection between transport businesses and investment funds or financial institutions. Small and medium enterprises (SMEs) particularly struggle to access preferential capital for green technology investments. Furthermore, there is no established cooperation mechanism within the supply chain to facilitate joint investment in green infrastructure. Beyond financial and technological barriers, businesses also face policy inconsistencies, shifting consumer purchasing behaviors driven by e-commerce, and transport infrastructure that has not kept pace with societal development needs, all of which further complicate the green transition process.

According to Nguyen Duy Minh, among the many subjective and objective barriers, infrastructure has the most significant impact on businesses' ability to implement green logistics solutions. To address this, he emphasized the need for government policies and measures to develop clean fuel supply infrastructure (such as electricity and hydrogen) to reduce dependence on imports. Support policies should also be introduced to enable small businesses to collaborate with larger companies in joint investments, sharing costs for green logistics development. From a state management perspective, he recommended implementing incentives for green transport businesses, such as reduced tolls and tax breaks for electric or clean-fuel vehicles. Restructuring the transport sector is also important, this includes increasing the market share of rail freight, inland waterways and coastal transport, as well as expanding public passenger transport in urban areas. He also proposed developing a platform to connect transport businesses with investment funds and financial institutions to facilitate funding for green projects. From an industry association perspective, he highlighted the importance of research projects that enhance industry-wide collaboration, establishing "rules of the game" to protect the interests of participating businesses. This would encourage stakeholders to actively engage in transport capacity-sharing networks, reducing inefficiencies such as empty return trips, thereby optimizing operational costs and improving overall logistics efficiency.

From a business perspective, Nguyen Duy Minh emphasized that the biggest difficulty for Vietnamese transport and logistics companies in their green transition is financial constraints. To overcome this, he stressed the need for businesses to leverage government support, incentives, and assistance from organizations to effectively utilize logistics infrastructure, thereby creating competitive advantages in production, operations and transportation. He said that businesses themselves must actively enhance their green initiatives to optimize operational efficiency. "Implementing green transport and green logistics is not just a responsibility for individual businesses; it is a key direction that will strengthen their competitiveness in the global market," Minh said.