Vietnam's logistics sector embraces green transition amid global pressure

The logistics sector, which has become an important service industry and played a role in supporting, connecting and promoting Vietnam’s socio-economic growth, is undergoing a rapid transformation as sustainability takes centre stage. With an estimated market size of 40-42 billion USD a year and over 40,000 firms operating in the sector, the stakes are high, and the need for change is urgent.
At the seminar (Photo: VNA)

At the seminar (Photo: VNA)

At a recent seminar hosted by the Trade and Industry Review, Dang Hong Nhung, a representative of the Ministry of Industry and Trade's Agency of Foreign Trade, highlighted the sector's impressive 15% growth rate and Vietnam's top-five ASEAN ranking in logistics performance. However, she warned that global trends are driving a shift toward sustainable practices, and Vietnam must adapt to keep pace.

The European Union's Carbon Border Adjustment Mechanism (CBAM), which will become effective in 2026, and similar initiatives in the US are set to impose carbon taxes on imported goods, pushing exporting countries to adopt greener production processes. As a critical link in the supply chain, the logistics sector is directly impacted by these sustainability requirements.

The green transition is both a challenge and an opportunity for Vietnamese logistics companies, she said, adding that by optimising processes and reducing costs, firms can gain a competitive edge and tap into new business avenues.

Tran Thi Thu Huong, Head of the Logistics and Supply Chain Faculty at the University of Commerce, underlined the urgency of this transition for Vietnamese logistics companies. With intense competition from foreign rivals, adopting sustainable practices is essential to remain competitive and capture market share.

As the sector stands at this critical juncture, the message is clear: embrace sustainability or risk being left behind in an increasingly eco-conscious global marketplace. The future of Vietnam's logistics sector depends on its ability to adapt and innovate in the face of these evolving demands./.

Source: VNS
en.vietnamplus.vn

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