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Vietnam's logistics industry stands as a crucial pillar of its economic prosperity, contributing approximately 4.5% to the national GDP. Projections indicate substantial growth, with the sector anticipated to reach nearly $72 billion by 2030, exhibiting an annual growth rate exceeding 6% [1]. This expansion is primarily fueled by a burgeoning e-commerce market, significant foreign investments, and the increasing integration of Vietnam into international trade agreements. However, this promising trajectory is increasingly confronted by a new set of challenges: volatile fuel costs, an escalating stringency in environmental regulations, and a growing global demand for sustainable practices from consumers and businesses alike. In this evolving landscape, green logistics is no longer merely an admirable ideal; it has transformed into a strategic imperative for the sustained success and competitiveness of Vietnam's logistics sector [2].
The adoption of green logistics practices offers a direct pathway to substantial cost reductions and enhanced operational efficiency for Vietnamese logistics enterprises. By strategically integrating environmentally conscious approaches, companies can unlock significant savings that directly bolster their profit margins.
A fundamental component of green logistics involves the transition to cleaner, more fuel-efficient vehicle fleets. Companies that have embraced electric, hybrid, or biodiesel-powered vehicles consistently report impressive fuel savings, often in the range of 20–30% [3]. This reduction in fuel consumption directly translates into improved financial performance. Pioneering initiatives are already underway in Vietnam, with cities like Hue actively piloting electric trucks to mitigate their dependence on conventional fossil fuels [4].
Further demonstrating the viability and economic benefits of EV-based delivery services, innovative partnerships are emerging. Selex Motors, a prominent Vietnamese electric vehicle manufacturer, is collaborating with major delivery platforms such as BAEMIN, GrabExpress, and Lazada. These collaborations are effectively reducing emissions and operational costs through the strategic deployment of battery-swap stations and advanced smart technology [5, 6, 7]. This model addresses a key challenge of EV adoption by providing efficient and rapid power replenishment, minimizing vehicle downtime.
The integration of advanced technologies like Artificial Intelligence (AI) and the Internet of Things (IoT) is revolutionizing route planning within the logistics sector. AI-powered tools and IoT sensors enable companies to optimize delivery routes, thereby significantly reducing fuel consumption and minimizing waste [2]. These sophisticated platforms meticulously analyze traffic patterns, road conditions, and delivery schedules to identify the most efficient routes, effectively cutting down on idle time, unnecessary mileage, and the costly operation of empty trucks. The result is a notable improvement in efficiency, typically ranging from 15–25% [2].
Beyond transportation, the optimization of warehouse operations plays a critical role in achieving green logistics goals. Firms are actively upgrading their warehousing facilities by incorporating energy-efficient solutions such as LED lighting, advanced HVAC (Heating, Ventilation, and Air Conditioning) systems, and sustainable packaging materials [2]. These strategic modifications contribute significantly to reducing both energy consumption and operational waste, leading to a more environmentally friendly and economically sound warehousing infrastructure.
The global push towards environmental sustainability is manifesting in stricter regulations and new market access requirements, making green logistics a critical factor for Vietnamese companies seeking to remain compliant and expand their international reach.
Vietnam has formally committed to achieving "Net Zero by 2050," a national strategy that inherently includes the logistics sector [8]. This ambitious goal is being translated into concrete legislation, with new laws requiring comprehensive emission tracking and mandating the adoption of cleaner technologies. Non-compliant companies face the risk of penalties, financial repercussions, or the potential loss of access to various government benefits and incentives designed to foster sustainable practices [2]. Adhering to these national directives is not just about compliance but also about contributing to a broader national agenda for environmental protection.
The emergence of carbon border adjustment mechanisms, particularly from major trading blocs like the European Union (EU), presents a significant challenge and opportunity for Vietnamese exporters. These measures effectively impose a levy on the carbon emissions associated with imported goods [9]. To avoid incurring these additional costs and to maintain access to crucial international markets, Vietnamese exporters must demonstrate that their logistics operations are low-emission. This necessitates a proactive approach to greening their supply chains to ensure their competitiveness on the global stage [2].
Recognizing the economic and environmental benefits of green logistics, various governmental bodies and international organizations are actively providing support and funding. Programs from entities such as the United Nations Development Programme (UNDP), the Asian Development Bank (ADB), and the Green Climate Fund are channeling resources into initiatives like electric vehicle pilots and the establishment of essential charging infrastructure [4]. A tangible example of this support is the 2023 pilot program in Hue, which saw the deployment of electric waste trucks, directly benefiting from such international assistance [4]. These programs offer valuable financial and technical assistance, mitigating the initial investment burden for companies transitioning to greener practices.
Beyond regulatory compliance and cost savings, embracing green logistics offers a powerful avenue for Vietnamese businesses to build brand trust, enhance their market competitiveness, and meet the growing demand for Environmental, Social, and Governance (ESG) compliant operations.
In an increasingly conscious global marketplace, multinational corporations are placing a higher emphasis on transparent and eco-friendly supply chains. Vietnamese logistics firms that proactively adopt green practices gain a distinct competitive advantage, positioning themselves to attract more lucrative contracts and secure greater foreign direct investment [2]. This commitment to sustainability becomes a differentiating factor, appealing to partners who prioritize responsible business conduct.
The shift towards green practices is also being driven by evolving consumer preferences. A growing segment of online shoppers in Vietnam now actively seeks "green delivery" options and, crucially, demonstrates a willingness to pay a premium for such services [2]. This consumer demand is spurring innovation within the logistics startup ecosystem, with numerous venture-capital-backed logistics startups already offering carbon-neutral shipping solutions to cater to this niche and expanding market segment [2]. This signifies a clear market signal that sustainability is a valued attribute.
Aligning with globally recognized ESG principles offers Vietnamese companies multifaceted benefits. By adhering to these standards, businesses can significantly improve their ESG ratings, which in turn facilitates access to "green finance" – specialized financial instruments designed to support environmentally sound projects [2]. Furthermore, it enhances their international recognition and reputation. Companies that move swiftly to integrate ESG principles into their logistics operations stand to gain a valuable "first-mover advantage," establishing themselves as leaders in sustainable practices within the region [2].
Despite the compelling advantages of green logistics, Vietnam faces several infrastructure and innovation challenges that need to be addressed to accelerate widespread adoption.
While Vietnam is actively expanding its highway networks, the accompanying development of electric vehicle charging stations and electrified depots remains a critical bottleneck, particularly outside of major urban centers [10]. This limited infrastructure poses a significant hurdle for the widespread adoption of electric trucks and vans, as companies need reliable and accessible charging options to ensure efficient fleet operations. Addressing this gap requires strategic investment and coordinated efforts.
The upfront capital investment required for green technologies, such as electric vehicles and smart, energy-efficient warehouses, can be substantial, often 2-3 times higher than traditional alternatives [2]. This significant initial outlay presents a formidable barrier for many small and medium-sized enterprises (SMEs) in Vietnam, who may struggle to secure the necessary funding despite the clear long-term operational and environmental benefits. Bridging this financing gap is crucial for democratizing access to green technologies.
The transition to green logistics demands a highly skilled workforce, but Vietnam currently faces a shortage of qualified professionals in key areas such as logistics engineering, ESG expertise, and data analytics [11]. This talent gap hinders the effective implementation and optimization of green logistics practices. Addressing this requires robust training programs and strategic partnerships between academic institutions and businesses to cultivate the "Logistics 5.0" talent necessary for a sustainable future [11].
Overcoming the existing challenges and fully realizing the potential of green logistics in Vietnam necessitates a multi-faceted approach, characterized by strong collaboration and strategic interventions.
Successful green logistics initiatives often emerge from effective partnerships between public and private sectors. The pilot program for electric waste trucks in Hue, supported by the UNDP and Japanese assistance, exemplifies how public backing can catalyze private innovation, leading to tangible environmental and economic benefits [4]. Similarly, the collaborations between Selex Motors and major logistics players like GrabExpress and Lazada are instrumental in scaling EV solutions through smart technology and efficient battery-swap systems, demonstrating the power of private sector innovation and collaboration [5, 6].
To alleviate the burden of high initial investment, the widespread adoption of green financing tools is paramount. Mechanisms such as green bonds, low-interest ESG loans, and targeted tax benefits can significantly reduce the financial barriers for companies looking to invest in sustainable technologies [2]. Enhancing local policy support and awareness of these global financing instruments can accelerate their uptake within Vietnam, making green investments more accessible and attractive.
Digital innovation is a cornerstone of efficient and transparent green logistics. The strategic deployment of new technologies, including AI, blockchain, and the Internet of Things (IoT), can optimize delivery routes, enhance supply chain traceability, and foster greater collaboration across the logistics ecosystem [2]. National initiatives like the "Smart Port" program are actively promoting the adoption of these technologies, driving efficiency and sustainability within port operations [12].
Investing in workforce development is non-negotiable for the long-term success of green logistics. Upskilling initiatives through university programs and vocational training centers are essential to equip the workforce with the necessary expertise [11]. Focused training in areas such as logistics engineering, ESG principles, and digital systems will prepare the next generation of logistics professionals to navigate and lead the green transformation of the sector [11].
Tangible examples within Vietnam underscore the viability and effectiveness of green logistics in practice.
In 2023, the city of Hue, with support from the UNDP and Japan, successfully deployed six electric garbage trucks [4]. These trucks not only significantly reduced emissions but also demonstrated their cost-effectiveness in real-world operations, providing a compelling case study for the broader adoption of electric utility vehicles.
Selex Motors has established a robust electric scooter and battery-swap station network that is now powering deliveries in major Vietnamese cities [5, 6]. Partnerships with prominent companies like Lazada and Viettel Post have yielded demonstrable savings in fuel and maintenance costs, alongside improved fleet uptime due to the efficient battery-swapping system [5]. This model showcases a practical and scalable solution for urban last-mile delivery, contributing to both environmental sustainability and operational efficiency.
Vietnam's journey towards a greener logistics sector presents a significant opportunity to establish itself as a regional leader in sustainable practices. This will require strategic focus on several key areas.
Moving beyond two-wheelers, Vietnam must prioritize scaling its electric vehicle infrastructure to support the widespread adoption of EV trucks and vans nationwide [10]. This includes developing comprehensive policies that prioritize EV subsidies, expanding charging networks, and providing incentives for fleet conversion. A robust charging ecosystem is fundamental to encouraging greater EV uptake.
To overcome the initial investment hurdles, Vietnam needs to cultivate a thriving green finance ecosystem [2]. This involves promoting green bonds, establishing innovative leasing models, and exploring "Pay-as-You-Save" schemes that allow small businesses to afford the transition to green technologies by paying for them through the savings generated.
Addressing the skills gap is paramount. Universities and vocational training centers should forge stronger partnerships with businesses to develop targeted "Logistics 5.0" talent pipelines [11]. This includes curriculum development that integrates green logistics principles, data analytics, and digital technologies.
Continued investment in and adoption of digital logistics solutions are crucial. Smart routing algorithms, sensor-based monitoring, and blockchain technology will further enhance efficiency, improve transparency across the entire supply chain, and enable real-time optimization of operations [2].
Vietnam’s logistics sector stands at a pivotal juncture. Embracing green logistics is not merely an environmental obligation but a strategic business imperative that offers a clear competitive edge. By committing to sustainable practices, Vietnam can anticipate a multitude of benefits:
With astute policies, accessible financing, continuous innovation, and a well-trained workforce, Vietnam is uniquely positioned to lead the charge in green logistics in Southeast Asia. This integrated approach will not only foster environmental stewardship but also establish a robust and winning business strategy for the nation's vital logistics sector.
Citations
[1] "Future trends and benefits in Vietnam's logistics sector." (2024, November). Vietnam Investment Review. Retrieved from https://vir.com.vn/future-trends-and-benefits-in-vietnams-logistics-sector-116838.html
[2] Mai Anh, N. T., & Vu Dinh, K. (2025). "The impact of green logistics practices on sustainable performance: An empirical study of small and medium logistics service providers in Hanoi." International Journal of Scientific Research and Management, 13(01), 8245–8254. https://doi.org/10.18535/ijsrm/v13i01.em06 (Please note: The original citation provided two similar entries from ResearchGate. This reference has been streamlined to a single, more complete citation for the same source, as the content seems to refer to the same study).
[3] Huỳnh, D. K., & Trần, T. B. N. (2020). "Green logistics application to reduce operating costs for Vietnam logistics enterprises." ResearchGate. https://doi.org/10.14311/bit.2020.02.01
[4] "Electric vehicles are driving a greener future in Viet Nam." (n.d.). UNDP Climate Promise. Retrieved from https://climatepromise.undp.org/news-and-stories/electric-vehicles-are-driving-greener-future-viet-nam
[5] Selex Motors. (n.d.). "The trend of electric vehicle utilization in logistics in Vietnam and worldwide." Retrieved from https://selex.vn/en/the-trend-of-electric-vehicle-in-lognam/
[6] "Selex Motors & Lazada Logistics pioneer green transport." (n.d.). Selex Motors News. Retrieved from https://selex.vn/en/selex-and-lazada-logistics-pioneer-green-transport/
[7] "Gojek partners with Selex Motors to expand e-bike scheme." (2023, September 6). Vietnam Investment Review. Retrieved from https://vir.com.vn/gojek-partners-with-selex-motors-to-expand-e-bike-scheme-104938.html
[8] "Strengthening Vietnam’s trucking sector towards lower logistics costs and greenhouse gas emissions." (n.d.). World Bank. Retrieved from https://documents1.worldbank.org/curated/en/165301554201962827/pdf/Strengthening-Vietnam-s-Trucking-Sector-Towards-Lower-Logistics-Costs-and-Greenhouse-Gas-Emissions.pdf
[9] "Greening the Vietnamese supply chain." (n.d.). PubMed Central. Retrieved from https://pmc.ncbi.nlm.nih.gov/articles/PMC10165402/
[10] "Plug-in electric vehicles in Vietnam." (2025, March). Wikipedia. Retrieved June 11, 2025, from https://en.wikipedia.org/wiki/Plug-in_electric_vehicles_in_Vietnam
[11] "Study reveals green job opportunities in Vietnam’s road transport sector." (2024, July 17). UNDP Vietnam. Retrieved from https://www.undp.org/vietnam/press-releases/study-reveals-green-job-opportunities-vietnams-road-transport-sector
[12] Please note: While the provided text mentions "National programs like 'Smart Port'", a specific direct source for this program's details was not found in the provided citation list. Therefore, this point is mentioned as an emerging solution, but a direct citation for the 'Smart Port' program itself is not included in the references.
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