Reducing carbon emissions in the logistics industry is becoming an urgent issue for Vietnamese businesses. Under pressure to reduce carbon emissions and increasingly strict international regulations, the Vietnamese logistics industry is forced to accelerate the green transition process. However, the difference in potential causes many challenges for small and medium enterprises (SMEs)…

Climate change is one of the biggest challenges globally. According to statistics, the logistics industry alone is generating an estimated 7-8% of carbon-CO2 emissions. In Vietnam, on average, transportation activities emit more than 50 million tons of CO2 each year.

LOGISTICS INDUSTRY UNDER PRESSURE TO REDUCE EMISSIONS
Sharing at the workshop “Green logistics – sustainable destination” organized by the Vietnam Logistics Services Association (VLA), experts said that logistics enterprises, especially small and medium enterprises (SMEs), need to make efforts to invest in digitalization, multimodal transport, etc. to optimize transportation. At the same time, it is necessary to take advantage of support policies, the carbon credit market and improve transparency in ESG reporting to meet international regulations.

According to Mr. Dao Trong Khoa, Chairman of VLA, Vietnam’s logistics is currently heavily dependent on roads and has uneven development among transport modes.

Accordingly, about 75% of goods are still transported by road, while 12% of goods are transported by sea and only 2% are transported by rail; Up to 95% of vehicles in Vietnam still rely heavily on fossil fuels.

Citing data from the World Bank, Mr. Khoa said that on average, transportation activities in Vietnam emit more than 50 million tons of CO2 each year. Of which, road transport accounts for 85% of emissions. These emissions are forecast to increase by an average of 6 – 7% per year. It is forecasted that CO2 emissions from the transportation sector will reach 90 million tons of CO2 by 2030.

In addition to large emissions, the Vietnamese logistics industry is also affected by increasingly strict policies, regulations and international integration requirements. New-generation trade agreements require Vietnamese enterprises to improve standards and reduce carbon footprints in logistics activities to move towards sustainable development of the supply chain.

Agreeing with this view, Mr. Stéphane Graber, General Director of FIATA (International Federation of Freight Forwarders Associations), said that reducing carbon emissions in the logistics industry is becoming an urgent issue for Vietnamese businesses.

For example, the European Union (EU), an important trading partner of Vietnam, has applied the Carbon Border Adjustment Mechanism (CBAM), imposing a carbon tax on imported goods with high emissions.

In addition, the EU also has the Corporate Sustainability Reporting Directive (CSRD) to standardize sustainability reporting. Businesses must publicly disclose information on environmental, social and governance (ESG) impacts.

“This could affect logistics service providers outside the EU if they are part of the supply chain of European companies that are required to report. By 2028, non-EU companies operating in Europe will also have to comply with this regulation,” said the General Director of FIATA.

WHAT SOLUTIONS ARE THERE FOR SMALL AND MEDIUM ENTERPRISES?
In fact, in recent times, a number of enterprises have taken the first steps in the green transformation process. However, they mainly focus on large enterprises with strong financial potential. Meanwhile, small and medium enterprises that do not have enough financial potential still face many difficulties due to high costs.

Sharing about solutions to help logistics enterprises carry out green transformation, Mr. Pham Thien An, Greenhouse Gas Expert, Vinacontrol Group, said that the Government currently has many mechanisms and policies to support enterprises, in addition, there will be a market for carbon credit exchange in the near future.

“This can be an effective financial tool for enterprises in the green transformation. Therefore, enterprises need to build a greenhouse gas reduction strategy with a specific, accurate and clear strategy to achieve the goal of reducing carbon emissions most effectively and quickly”, Mr. An said.

In addition, according to Mr. An, businesses need to apply technology, use Al (artificial intelligence) to optimize transportation distance. For means of transport, priority should be given to electric vehicles, using CNG and LPG biofuel vehicles as a transitional solution. At the same time, businesses need to combine a variety of transportation methods.

Giving recommendations to the Vietnamese logistics industry, especially SMEs, Mr. Stéphane Graber said that currently, SMEs should focus on investing in digitalization and multimodal transport. It is necessary to improve efficiency to increase sustainability such as investing in new technology, electronic transport documents. Investing in technology is very important to speed up processes, improve operational efficiency, optimize routes and reduce emissions.

In addition, delivery businesses should equip themselves with the latest knowledge on carbon emission reduction, domestic and international regulations, conduct assessments

carbon footprint to identify areas for improvement, as well as increase transparency in reporting.

“Finally, it is necessary to expand dialogue with partners, promote cooperation between SMEs and larger companies to share information, resources and improve knowledge, helping the whole industry develop in a sustainable direction,” emphasized Mr. Stéphane Graber.

From a business perspective, Ms. Pham Thi Tinh, Commercial Director of Hanoi Branch, Interlog International Logistics Joint Stock Company, said that the business focuses on three core factors: raising employee awareness, energy conversion and finding optimal solutions to save costs.

According to Ms. Tinh, since the end of 2022, Interlog has focused on internal training from the leadership level to employees to raise awareness of the green transition process. At the same time, the company promotes the application of technology and digital transformation, aiming to minimize the use of paperwork in management and operation…

According to: VNeconomy