According to statistics from the Ministry of Industry and Trade presented at the international workshop on “Circular Economy and New Technologies in Sustainable Logistics Development in the Asia-Pacific region,” Vietnam’s logistics industry has achieved impressive growth, with a rate of approximately 14-16% annually. The outsourcing rate of logistics services reached 60-70%, contributing 4-5% to the country’s GDP.
The Agility Ranking 2022 also placed Vietnam 11th among 50 emerging global logistics markets. By 2024, the total cargo volume transported through seaports is estimated to increase by about 14%, reaching over 570 million tons.
PARTICIPATING IN THE GLOBAL “PLAYING FIELD” MAKES GREEN TRANSFORMATION IMPERATIVE
However, the traditional logistics model, characterized by high resource consumption, emissions, and waste generation, is causing negative impacts on the environment and society. The circular economy emerges as a breakthrough solution, offering a new direction for the sustainable, efficient, and responsible development of Vietnam’s logistics industry.
Moreover, in the current global context, Vietnamese logistics enterprises that fail to quickly adapt to green standards will face significant challenges when accessing international markets.
As analyzed by Mr. Pham Hoai Trung, Chairman of Azitech Technology Company Ltd. & Greengo Sustainable Consultant, global markets have imposed a series of regulations to strongly promote the application of the circular economy in logistics for those who wish to participate in the “global playing field.”
For instance, the European Union (EU) has introduced regulations such as CSRD (sustainability reporting), CBAM (Carbon Border Adjustment Mechanism), and EPR (Extended Producer Responsibility), which require enterprises to report emissions and implement circular measures.
The US Securities and Exchange Commission (SEC) has also issued regulations mandating companies to disclose information about greenhouse gas emissions.
Major retail chains in Japan and South Korea compel logistics service providers to provide information on the lifecycle of pallets and the carbon footprint of transportation routes.
Global retail giants such as Walmart, Amazon, IKEA, Aeon, and MM Mega Market have stringent requirements for green logistics and ESG (Environmental, Social, and Governance) standards from their suppliers.
Additionally, logistics enterprises are facing increasing pressure from various stakeholders in the supply chain to adopt a circular economy. Shippers demand the recovery and reuse of packaging, carbon footprint reporting (CFP), and compliance with green delivery and reverse logistics standards.
Governments and regulatory agencies require adherence to EPR, waste reporting and recycling, and greenhouse gas emissions reduction. Investors, banks, and ESG funds demand the disclosure of ESG ratings, carbon reduction plans, and information on circularity for preferential capital access…
Certification and auditing organizations require circular logistics system certification, carbon footprint auditing, and disclosure of information on circular packaging. Consumers and end customers demand green delivery, eco-friendly packaging, and carbon footprint transparency.
Suppliers and auxiliary partners require recycled materials and circular packaging, traceability of raw materials. Local communities and non-governmental organizations demand emission and noise control and transparency in ESG information…
At the workshop, Prof. Joseph Sarkis from the Worcester Polytechnic Institute, USA, emphasized that greening and circular economy in the logistics industry are no longer options but imperative for businesses to survive and thrive.
“In the current context, if enterprises do not immediately and swiftly implement the criteria for greening the logistics industry, they will face numerous difficulties and gradually be eliminated from the global supply chain,” warned Prof. Joseph Sarkis.
Developing green logistics infrastructure, applying clean technologies, environmentally friendly transportation means, and intelligent warehouse systems must be identified as the focal points for enterprises.
However, there are concerns that greening and implementing a circular economy in the logistics sector also presents challenges. Out of more than 30,000 logistics enterprises in the country, the majority are small and medium-sized enterprises with limited capital, technology, and human resources, which hinder the industry’s transition to green practices.
NATIONAL STRATEGY ON CIRCULAR LOGISTICS IS NEEDED
To effectively implement the circular economy, Prof. Nguyen Hong Quan, from the Institute for Circular Economy Development (ICED), Ho Chi Minh City National University, suggested that enterprises should apply technological solutions, from integrating renewable energy and fuel-efficient transportation to emission-reducing supply chain systems.
Developing green logistics must start from the procurement of raw materials, production, distribution, delivery, and waste treatment. Simultaneously, green finance mechanisms, tax incentives, and policies supporting innovative enterprises should be strongly promoted.
Additionally, applying technologies such as artificial intelligence (AI), the Internet of Things (IoT), big data, and blockchain, along with renewable energy, will play a crucial role in monitoring, optimizing, and reducing greenhouse gas emissions throughout the entire logistics chain.
As a typical example of a low-emission green port model, Mr. Pham Hoai Trung cited the PSA Singapore port, which has implemented a comprehensive circular logistics model, including: 100% use of autonomous electric container vehicles, eliminating diesel vehicles; installation of solar roof panels (>100MWp) and electric charging stations along the container route; rainwater harvesting for sanitation and on-site waste sorting and recycling…
For the Vietnamese logistics industry, Mr. Trung suggested that enterprises can apply the 9R framework to implement the circular economy: Rethink – Redesign logistics processes and systems to optimize resource usage; Reduce – Minimize material and energy usage in logistics activities; Reuse – Utilize materials and products multiple times; Repair – Fix damaged products to extend their lifespan; Refurbish – Renovate old products for reuse; Remanufacture – Produce new products from old parts; Repurpose – Use old products for a different purpose; Recycle – Convert waste materials into new ones; Recover – Generate energy from waste materials.
Specifically, according to Mr. Trung, to establish an effective circular logistics model, the following key components should be focused on: Reusable pallets/containers; eco-friendly/recyclable packaging; reverse logistics; green warehouses; clean transportation means; use of technologies like QR codes and RFID (Radio-Frequency Identification) to track the lifecycle of packaging and other materials, measure the carbon footprint; collaborate with specialized recycling companies to handle waste materials and ensure compliance with EPR regulations.
Many questions at the workshop asked: Where should we start with the circular economy in the logistics sector? Mr. Trung suggested that first, enterprises need to assess their current state, identify fuel consumption, current transportation modes, and vehicle efficiency.
Then, develop a roadmap to transition to clean fuel vehicles and optimize transportation modes; upgrade warehouses, apply transportation management software, and train employees. Finally, establish a monitoring and reporting system according to international standards such as ISO and GRI (Global Reporting Initiative).
The Art of Trade Negotiation: Vietnam and the US Engage in the Second Round of Reciprocal Trade Talks
On May 19th, the first day of negotiations, the Vietnamese and American delegations devoted time to discussing a comprehensive approach to address fundamental issues of mutual concern and accelerate the negotiation process.
High-Speed North-South Railway: Revolutionizing Residential Preferences, Redefining Urban Priorities
The ambitious high-speed rail project is set to revolutionize the country’s landscape and challenge traditional residential preferences. With its completion, a new real estate ecosystem is expected to emerge, offering alternative options to big cities as the primary choice for home seekers.
“Elevating the Grand Project: Bà Nà – Suối Mơ with a Soaring $2 Billion Investment”
The Ba Na – Suoi Mo mega-project in Da Nang city has undergone a significant transformation with an additional 7,000 hotel rooms and two new cable car routes. This ambitious expansion showcases the project’s dynamic vision, offering a glimpse into a vibrant future.
The Great Egg Conundrum: Unscrambling the Facts
Recently, social media has been abuzz with videos and images showcasing seemingly unusual characteristics in certain chicken eggs, such as double yolks, watery whites, and abnormally shiny shells. These anomalies have sparked concerns among consumers about the quality of eggs available in the market.
“The Central Coast’s Tourism Hub: Sun Group’s Iconic Project Receives a Boost with a $2 Billion Investment”
The project encompasses a diverse range of developments, including commercial, tourism, and service sectors. With over 7,000 hotel rooms, an array of entertainment options, two additional cable car routes bringing the total to ten, along with supporting infrastructure and transportation hubs, this project is set to become a vibrant and exciting destination.
