Ho Chi Minh City forum seeks to develop green logistics for trade boost

The view was shared by Vietnamese and Australian experts at a green logistics forum held in Ho Chi Minh City on November 17.

Addressing the forum, Le Duy Hiep, president of the Vietnam Logistics Business Association (VLA), noted that Vietnam and Australia were among nearly 150 countries that committed to bringing greenhouse gas emissions to zero by 2050 at the 26th UN Conference on Climate Change (COP26) in Scotland in 2021.

This requires both countries to promote green transformation in the logistics industry to support trade, especially for importing and exporting agricultural products and pharmaceuticals, which bring in large turnover in two-way trade between Vietnam and Australia, he said.

According to the VLA president, the development of the logistics system helps not only to ensure safety and efficiency in transportation but also to promote the growth of agricultural and pharmaceutical products in the markets of both countries.

Taking the floor, Cherie Anne Russell, development counselor at the Australian Embassy in Vietnam, said that Australia is keen to boost cooperation with Vietnam in agriculture and the pharmaceuticals industry that are developing strongly thanks to people’s increasing income and high economic growth.

Logistics, therefore, plays an important role in forming the import-export supply chain to promote trade and investment between Vietnam and Australia, said Russell, stressing green logistics is considered a future trend that reflects the positive responsibility of businesses and improves competitiveness.

Meanwhile, Assoc. Prof. Dr. Ho Thi Thu Hoa, director of the Vietnam Logistics Research and Development Institute (VLI), pointed out Vietnamese agricultural exports to Australia recorded an average growth rate of 11% per annum in the 2018 – 2022 period. Some fruits such as mango, dragon fruit and longan have gained a firm foothold in the Australian market. In 2022 alone, a large amount of agricultural products including rice, pepper, coffee and cashew nuts were exported to this market, with the average export growth rate reaching 6.8%.

However, Hoa stated that businesses also encounter difficulties in shipping products to Australia, including high transport costs and strict delivery policies.

To improve export performance, she suggested that businesses strengthen quality control, and promote digital transformation in agriculture. In addition, she said it is imperative to improve logistics infrastructure, and enhance environmentally friendly transportation and connections between organizations to promote the development of green logistics for agricultural products in Vietnam.

Experts pointed out challenges to the shift to green logistics, including huge investment in infrastructure and technology, but stressed green logistics is an indispensable requirement to complete the green supply chain from production to consumption. They suggested that Vietnam optimize performance and production, consider the use of green energy vehicles, and build a roadmap for a greener future, taking into account the country’s actual conditions.