Part 2: Sustainable Logistics Trends: Developing Green Free Trade Zones in Vietnam

Sustainable logistics not only reduces environmental impact but also delivers long-term economic benefits for businesses. In FTZs, green logistics is a key factor in cutting carbon emissions, reducing energy costs, and improving operational efficiency.

Moreover, building sustainable logistics in FTZs promotes collaboration among businesses, regulators, and communities to achieve the United Nations’ Sustainable Development Goals (SDGs), particularly in clean energy and sustainable consumption.

1. Limited Investment in Green Infrastructure

Despite Vietnam’s efforts to promote sustainable logistics, investment in green infrastructure remains insufficient. Existing FTZs lack comprehensive eco-friendly technologies, such as advanced wastewater treatment systems or solar-powered warehouses.

Many zones still rely on traditional transportation methods that contribute to pollution, reducing operational efficiency and negatively impacting the environment and public health.

2. Inconsistent Policies and Regulations

Establishing green FTZs requires consistent policies from central to local levels. Currently, environmental standards for FTZs in Vietnam are vague, undermining transparency and effectiveness in management.

Additionally, the lack of incentives for businesses to invest in green logistics is a major barrier. Companies often face higher costs when adopting green technologies, while financial incentives remain inadequate to encourage this transition.

1. Adopting Green Technology and Digitalization

Integrating green technology in FTZs is one of the most practical solutions. Businesses can implement smart energy management systems (EMS) to monitor and optimize energy consumption. Additionally, applying blockchain technology in supply chains increases transparency and reduces waste.

Digitalizing logistics processes, such as automating warehousing and deploying electric vehicles, significantly cuts carbon emissions. This model has been successfully implemented in FTZs in Singapore and South Korea.

2. Strengthening Public-Private Partnerships (PPP)

Collaborating with international organizations such as the World Bank (WB) or the Asian Development Bank (ADB) can provide resources and strategic advice for Vietnam during its green transition.

3. Raising Awareness and Developing Skilled Workforce

Long-term sustainable logistics development requires raising awareness among stakeholders, from businesses to communities. Specialized training programs on green logistics and sustainable supply chain management should be organized regularly to equip the workforce with updated knowledge and skills.

Developing sustainable logistics in FTZs is not only a trend but a critical factor in enhancing Vietnam’s regional competitiveness. With strategic investment in green infrastructure, digitalized processes, and clear supportive policies, Vietnam’s FTZs can become models of sustainable logistics, driving economic growth while protecting the environment.

Vietnam must act now to seize this opportunity. A green, modern FTZ will not only support economic goals but also reinforce Vietnam’s commitment to sustainable development, solidifying its reputation as a trusted partner in the global supply chain.