FOREIGN TRADE UNIVERSITY

FALCUTY OF ECONOMICS AND INTERNATIONAL BUSINESS

=====***=====

RESEARCH PAPER
GREEN LOGISTICS DEVELOPMENT IN VIETNAM DURING THE
PERIOD OF 2020-2022

Topic: Logistics
Class: ESP231(GD1-HK2-2223).2
Instructor: M.A Phan Kim Thoa
Group: Group 4

No. Name Student ID

1 Nguyễn Minh Ngọc 2113150053
2 Lê Văn Quốc Hiếu 2114110112
3 Nguyễn Kim Ngân 2114110213
4 Lê Hiếu Ngân 2113150050
5 Trần Quốc Việt 2112530056
6 Nguyễn Đăng Quang 2119090020
7 Nguyễn Hạnh Hương 2114110143

Hanoi, March 23, 2023

 Green Logistics Development in Vietnam During the Period of 2020-2022

Ngoc M. Nguyen, Hieu V.Q. Le, Ngan K. Nguyen, Ngan H. Le, Viet Q. Tran, Quang D.
Nguyen, Huong H. Nguyen
Foreign Trade University
ESP231: English for Specific Purposes 3
M.A Phan Kim Thoa
March 23, 2023

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 TABLE OF CONTENTS

ABSTRACT...............................................................................................................................5
INTRODUCTION....................................................................................................................6
SECTION 1: THEORETICAL FRAMEWORK...................................................................7
1.1. Overview of Logistics.........................................................................................................7
1.1.1. Definition of Logistics..................................................................................................7
1.1.2. The concept of Logistics..............................................................................................7
1.1.3. The role of logistics in the economy............................................................................8
1.2. Overview of Green Logistics.............................................................................................9
1.2.1. The concept of Green Logistics....................................................................................9
1.2.2. Green Logistics strategies...........................................................................................10
1.2.3. Factors affecting the development of green logistics.................................................13
1.3. Literature review.............................................................................................................14
1.3.1. "Green Logistics Practices in Vietnam: An Empirical Study" by Hoang, Phan, and
Nguyen (2017)......................................................................................................................14
1.3.2. "Green logistics practices in Vietnam: An exploratory study" by Huy and Tu (2019)
..............................................................................................................................................14
1.3.3. "Green Logistics in Vietnam: An Exploratory Study of Logistics Service Providers"
by Tuan and Nguyen (2020).................................................................................................14
SECTION 2: ANALYSIS AND FINDINGS.........................................................................16
2.1. Regulations and policies related to the development of green logistics in Vietnam. .16
2.1.1. General regulations and policies related to sustainable economic development, green
economy, circular economy in general.................................................................................16
2.1.2. Regulations and policies directly related to the development of green and sustainable
logistics.................................................................................................................................16
2.2. Current status of Green Logistics activities in Vietnam..............................................18
2.2.1. Green transportation status.........................................................................................18
2.2.2. Green warehouse status..............................................................................................24
2.2.3. Reverse logistics status...............................................................................................27
2.3. Opportunities and challenges of developing green logistics in Vietnam.....................28
2.3.1. Opportunities..............................................................................................................28
2.3.2. Challenges..................................................................................................................29
SECTION 3: RECOMMENDATIONS................................................................................31
3.1. Implication and limitation of the research....................................................................31

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 3.1.1. Implications................................................................................................................31
3.1.2. Limitations..................................................................................................................31
3.2. Recommendations............................................................................................................31
3.2.1. For firms.....................................................................................................................31
3.2.2. For competent authorities...........................................................................................32
REFERENCE..........................................................................................................................34

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 ABSTRACT
While environmental issues have become critical concerns all over the world, organizations
are constantly under pressure to develop environmentally responsible and friendly operations.
Commitment to the natural environment has become an important variable. Therefore, the
interest in developing green logistics from companies, government, and the public is
increasing dramatically especially because traditional logistics cannot meet the requirements
of modern society and has a significant impact on the environment. Vietnam, as an emerging
developing country, is facing notable problems in balancing economic growth, social benefit,
and environmental sustainability in every field of the economy including logistics.
This paper provides an overview of the current developing status of green logistics in
Vietnam in terms of green transport status, green warehouse status, green information system
status, and the development of reverse logistics. This paper not only discusses the factors
affecting the development of green logistics but also examines the opportunities and
challenges in the application of green logistics in practice in Vietnam’s economy. The
findings of this study can be beneficial to promoting the sustainable development of green
logistics.
Keywords: Vietnam, green logistics, reverse logistics.

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 INTRODUCTION
The development of logistics has greatly promoted the rapid growth of global trade and trade
globalization has continuously increased the demands for international and domestic logistics.
However, the negative externalities of logistics on the environment have been recognized. For
instance, carbon dioxide emissions, noise pollution, resource waste, infrastructure failure, and
traffic congestion are generated from freight transportation and operating equipment (Ren,
2019).
Nowadays, in Vietnam, the development of the logistics industry is under intense pressure
from environmental protection. The Vietnam Logistics Forum held by the Ministry of
Industry and Trade on November 26, 2022, decided “Green Logistics” to be the main topic of
the forum. Therefore, developing logistics sustainability and eco-friendly can be considered as
a fundamental part of the modern economy, which does not concentrate on only economical
growth, but also how to minimize the negative effect on the environment.
We, the group of authors, would like to develop a report under the guidance of M.A Pham
Kim Thoa with the objectives to:
1. Provide an overview of the current status of green logistics development in
Vietnam.
2. Evaluate opportunities and challenges of developing green logistics in
Vietnam’s current economy.
In this report, the group of authors used qualitative methods to analyze the topic “Green
Logistics Development in Vietnam During the Period of 2020-2022”. The research paper is
organized as follows:
SECTION 1: THEORETICAL FRAMEWORK
SECTION 2: ANALYSIS AND FINDINGS
SECTION 3: RECOMMENDATIONS
Due to the limited amount of time and limitation in understanding and data collection, in spite
of all the efforts, the report hardly avoids mistakes. We, the authors, are willing to receive all
the comments from the reader to complete this paper more comprehensively.

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 SECTION 1: THEORETICAL FRAMEWORK

1.1. Overview of Logistics

1.1.1. Definition of Logistics
As defined by the Council of Supply Chain Management Professionals (CSCMP), logistics
management is the part of supply chain management that plans, implements, and controls the
efficient, effective forward, and reverse flow and storage of goods, services, and related
information between the point of origin and the point of consumption in order to meet
customer’s requirements. Logistics management activities typically include inbound and
outbound transportation management, fleet management, warehousing, materials handling,
order fulfillment, logistics network design, inventory management, supply/demand planning,
and management of third party logistics services providers. To varying degrees, the logistics
function also includes sourcing and procurement, production planning and scheduling,
packaging and assembly, and customer service. It is involved in all levels of planning and
execution-strategic, operational, and tactical. Logistics management is an integrating function
which coordinates and optimizes all logistics activities, as well as integrates logistics activities
with other functions, including marketing, sales, manufacturing, finance, and information
technology.
Logistics management includes four components: Input into logistics, Management actions,
Suppliers and Output of logistics. Input into logistics consists of natural resources (land,
facilities and equipment), human resources, financial and information resources. Management
actions involve planning, implementation and control. Suppliers include raw material
inventory, in process inventory and finished goods. Output of logistics refers to marketing
orientation (competitive advantage), time-place utility, efficient movement to customer and
proprietary assets (Stock and Lambert, 2000).

1.1.2. The concept of Logistics

Logistics includes the range of activities connected to the production and delivery of products
for consumption, therefore it is made of two distinct but integrated branches: materials
management and physical distribution (Figure 1). Material management includes the
manufacture of components and completed products, as well as their packing and ultimate
recycling or reusing. Physical distribution refers to all operations involved in making parts
and finished goods available for consumption, especially transportation and warehousing.
However, if a supply chain is more integrated, it becomes more difficult to differentiate
between physical distribution and materials management because distribution routes from

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suppliers to customers are extended and because makers, wholesalers, and retailers share
responsibility for transportation and storage. Customers typically do not distinguish between a
product and the distribution system that supplies it, so logistics must be consistent with the
goods it serves (Anon, n.d.).

Another aspect of logistics is that it involves a fundamental relationship between the derived
and induced demands of its operation. Materials management frequently creates a derived
demand for physical distribution since what is being produced must be transported, stored,
and sold to consumers. However, physical distribution has an induced demand effect on
materials management as output will be shaped by distribution capacities in terms of its
organization and location (Anon, n.d.).

Figure 1. The concept of Logistics

Source: Transport Geography

1.1.3. The role of logistics in the economy

Markets for products and services on the national and foreign levels have grown as a result of
the rising affluence of customers. This century has seen the introduction of thousands of new
goods, all of which are now sold and distributed to consumers around the globe. To meet the
challenges of expanding marketplaces and the proliferation of new goods, business
organizations have grown in scale and complexity and switched from single-plant production
to multiple-plant operations. As a result, the distribution of products from the point of origin
to the point of consumption has become an enormously important component of the GDP of
industrialized nations.
For example, in the context of being affected by the Covid-19 pandemic from the beginning
of 2020, Vietnam's logistics service industry has shown an important role in contributing to
the implementation of new generation FTAs. In general, the export turnover of goods in 10
months, in the domestic economic sector reached 69.77 billion USD, increase by 7.7%,

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accounting for 26% of the total export turnover; in the FDI sector (including crude oil)
reached 198.16 billion USD, increase by 20.1%, accounting for 74%. (vnmedia.vn, n.d.).
According to the Report "Competitive Assessment of the Organization for Economic
Cooperation and Development (OECD): Logistics industry in Vietnam" in 2020, Vietnam's
logistics industry achieves an average growth rate of 12 - 14% per year, contributing to GDP
from 4 - 5% in Vietnam and on average 5% in ASEAN member countries, receives 5% of
jobs in ASEAN, the outsourcing rate is about 60 - 70%, logistics costs are equivalent to
16.8% of GDP.
As a significant component of GDP, logistics affects the rate of inflation, interest rates,
productivity and energy costs. Improvements in logistics productivity have positive effects on
the prices we pay for goods and services, the balance of national payments, the value of the
dollar, the ability to compete more effectively in international markets, industry profits (the
higher productivity implies lower costs of operation to produce and distribute an equivalent
amount of product), the ability to ward off foreign competition, the availability of investment
capital, and economic growth, leading to a higher level of employment (Stock and Lambert,
2000).
The logistics sector consumes an enormous quantity of energy resources. As a result, given
the natural laws of supply and demand, logistics push energy prices upward. The Federal
Council for Science and Technology has stated that transportation (just one component of
logistics) consumes 25% of all the energy and 50% of all the petroleum production in the US.
The distribution sector is expected to continue to use increasing quantities of energy
resources.

1.2. Overview of Green Logistics

1.2.1. The concept of Green Logistics
Green logistics is the main development trend of modern logistics. The term “green logistics”
was first mentioned in the 1980s. Since then, many organizers have mentioned many different
definitions of this term with different approaches to this category. Vietnam Logistics Report
2022 published by the Ministry of Industry and Trade, defines green logistics as the logistics
activities towards sustainable, eco-friendly goals, and reducing negative impact on the
environment.
Green Logistics consists of producing and distributing goods in a sustainable way, taking
account of environmental and social factors. Thus, the objectives are not only concerned with
the economic impact of logistics policies on the organization carrying them out, but also with
the wider effects on society, such as the effects of pollution on the environment. Green

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logistics focus on efforts and measures to minimize the effect of logistics activities on the
environment, moreover, reach the point where economy, society, and environment mutually
sustainably develop (Sbihi and Eglese, 2009) (Figure 2).

Figure 2. Framework of development of green logistics

Source: Vietnam Logistics Report, 2022

1.2.2. Green Logistics strategies

a. Greening transport activities
Transportation activities have a significant impact on the environment. Greenhouse gas
(GHG) emissions from transportation account for about 27% of total U.S. greenhouse gas
emissions, making it the largest contributor of U.S. GHG emissions (US EPA, 2022). In terms
of the emission of carbon dioxide, transportation activities accounted for 38% of energy-
related emissions in the United State in 2021, higher than every other sector of the economy
(Figure 3).

Figure 3. Shares of Energy-Related Emissions of Carbon Dioxide,

by Economic Sector, 2021

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 Source: Congressional Budget Office
There are two main factors of transport activities that affect the environment, including the
transport network system and the operation of means of transport. Traditional vehicles need to
burn fossil fuels and emit harmful emissions to operate. Meanwhile, the higher demand for
transportation, the more roads, rails, airports, and harbors will be built; which contributes to
the decreasing quality of the environment. The most urgent and necessary measures to reduce
transport's environmental impact are to increase its energy efficiency, reduce its activity and,
of course, reduce its dependence on fossil fuels (Vietnam Logistics Report, 2022).
b. Greening warehouse operations
The rapidly expanding warehousing industry has led to recent studies and controversies over
the industry’s impact on workers, the general population, and the environment. Warehousing
and its associated activities produce indoor and outdoor pollutants that have been shown to
have a significant impact on the environment. It is estimated that, globally, most supply chain
emissions emanate from road transport (57%), followed by ocean freight (17%). However,
logistics buildings, comprising warehouses and sortation facilities, are significant, accounting
for 13% of supply chain emissions. This is more than each of the remaining categories of air
freight (8%) and rail freight (5%) (World Economic Forum, 2019).
Greening warehousing operations is an approach to minimize the environmental impact of the
warehouse and its operations. This includes reducing energy consumption, waste generation,
and water usage. It also involves using recycled and recyclable materials, and investing in
energy-efficient equipment and practices.
c. Greening packaging operations
Packaging is an important process for all products before they are sent to the market.
However, Plastic packaging is perceived as an environmental problem, a source of litter, and a
contributor to climate change or the decrease in the quality of the environment (Pauer et al.,
2020). The size, shape, and material of the packaging have impacts on warehouse and
shipping costs. Hence, better product packaging with reused materials and optimal pallet
patterning may result in significant savings, increasing warehouse space utilization, and
reducing the number of packages that need to be handled. Inappropriate packaging can lead to
product damage during transportation and waste packaging, increasing the amount of waste
released into the environment.
The key to reducing environmental impact is to think in terms of sustainability both
environmentally and economically. The easiest way to reduce your environmental impact
without affecting supply-chain is to source sustainable raw materials, or make sure the
packaging originates from a sustainable source. Besides, using recycled material is also a

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great way to improve the environmental impact of packaging, many packaging suppliers
already use recycled material in their products so sourcing such a supplier will benefit the
supply chain’s impact on the environment (Thornton, 2015).
d. Developing reverse logistics
Reverse logistics, a fairly new concept in logistics, has gained increasing importance as a
profitable and sustainable business strategy. There are various definitions of Reverse
Logistics to be found in the literature. Dowlatshahi (2000) explains Reverse Logistics as “a
process in which a manufacturer systematically accepts previously shipped products or parts
from the point of consumption for possible recycling, remanufacturing or disposal”. Reverse
logistics start at the end consumer, moving backward through the supply chain to the
distributor or from the distributor to the manufacturer. Reverse logistics can also include
processes where the end consumer is responsible for the final disposal of the product,
including recycling, refurbishing, or resale (Jenkins, 2021) (Figure 4).

Figure 4. Reverse logistics supply chain

Source: ORACLE Netsuite

In terms of developing green logistics, reverse logistics includes two main activities: product
recovery and waste treatment. Businesses can recover products returned from the customers,
products that need warranty or maintenance, finished product, or packaging. For example, in
the beverage industry, the reverse logistics process uses empty tap containers. Beverage
production companies want to recapture the value of their containers by reusing them. This
requires planning transportation, managing shipping loads, and cleaning the containers
(Jenkins, 2021). Reverse logistics can help enterprises identify ways to reuse, resell or recycle
materials that would otherwise end up in a landfill. This not only helps optimize profits, but it
also helps improve brand’s reputation for social and environmental responsibility of the
enterprises.

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1.2.3. Factors affecting the development of green logistics
a. Laws and regulations
By issuing relevant laws and regulations, the legislation and government can guide and
supervise the development of green logistics. For instance, the European Union (EU) issued
certain laws to effectively regulate and monitor hazardous materials, packaging waste, solid
waste, and high energy consumption (Qu et al., 2017). WeiZheng et al. (2020) indicated that
the government's green governance capacity, the monitoring capacity of society, and the
development speed of the logistics industry are the basis for the green logistics policy system.
Meanwhile, the internal mechanisms of these factors affect the effectiveness of green logistics
policies and have significant meaning in developing green logistics to reach sustainable
achievements.
b. Construction of green logistics facilities
Developing advanced facilities, as powerful tools to improve the operational efficiency of
green logistics, is a good solution to meet the challenge of green logistics. In recent years,
various logistics facilities are emerging. For instance, urban consolidation centers, intelligent
transportation systems, shipment tracking systems, intelligent inventory routing planning
systems, electric road systems, and packaging benchmarking systems. The construction of
logistics facilities is beneficial to carbon emission reduction and fleet structure optimization.
The construction of green logistics facilities dramatically improves logistics efficiency and
waves a revolution in green logistics (Zhang et al., 2020).
The improvement of engines by vehicle manufacturers or the replacement of fossil fuels with
environmentally friendly fuels such as solar energy, biodiesel, etc. are important solutions to
reduce fuel consumption. fuel consumption and emissions to the environment. Planning the
traffic network in accordance with the objectives, nature and conditions of each location may
pay the way for the economy and logistics structure to sustainably develop.
c. Consumer green logistics demand
Green demands from consumers are an important driving factor for the development of green
logistics (Gu et al., 2015). With the customers’ environmental awareness, the demands for
green logistics in the market have gradually emerged. In a green market, logistics enterprises
gain profits by selling their products or services to consumers in a green way. In order to
satisfy the green demands from consumers, business firms engaging in logistics activities
must make changes to face the challenge, which will promote the development of green
logistics. Otherwise, if there are no green demands in the logistics market, the firms will not
be motivated to develop green logistics (Zhang et al., 2020).

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d. Technological innovations
The development of green logistics significantly benefits from green technology innovations.
Technology innovations in green materials and clean energy make it possible to reduce waste
pollution and greenhouse gas emissions in logistics activities. Moreover, the innovation of
modern information technology dramatically reduces redundant logistics activities, improves
logistics efficiency and further significantly prompts the development of green logistics (Ren
et al., 2019).
e. Green logistics human resources
Like other economic fields, factors related to human resources play a very important role in
the development of green logistics. The determination of senior managers as well as the
requirement for a human resource, who is not only professional but also knowledgeable about
green development, saving, and optimizing all resources will be the key to develop green
logistics at the enterprises (Viet Logistic Report, 2022).

1.3. Literature review

1.3.1. "Green Logistics Practices in Vietnam: An Empirical Study" by Hoang, Phan, and
Nguyen (2017)
This study aimed to investigate the implementation of green logistics practices in Vietnam by
surveying 104 logistics companies. The authors found that the adoption of green logistics
practices in Vietnam is still in the early stages of development, with a focus on reducing fuel
consumption and improving packaging practices. The study also revealed that the lack of
awareness and government support are the main barriers to the development of green logistics
in Vietnam.

1.3.2. "Green logistics practices in Vietnam: An exploratory study" by Huy and Tu (2019)
This study aimed to explore the current state of green logistics practices in Vietnam by
conducting in-depth interviews with logistics professionals. The authors found that the
implementation of green logistics practices is still limited in Vietnam due to the lack of
incentives, regulations, and awareness. However, the study also revealed that some companies
have started to implement green logistics practices, such as optimizing transportation routes
and reducing packaging waste.

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1.3.3. "Green Logistics in Vietnam: An Exploratory Study of Logistics Service Providers"
by Tuan and Nguyen (2020)
This study aimed to explore the factors that influence the adoption of green logistics practices
in Vietnam by surveying 138 logistics service providers. The authors found that the adoption
of green logistics practices in Vietnam is still in the early stages, with a focus on energy-
saving practices and the use of eco-friendly packaging materials. The study also revealed that
the main barriers to the development of green logistics in Vietnam are the lack of government
support and the high cost of implementing green logistics practices.
Overall, the reviewed literature indicates that the development of green logistics in Vietnam
is still in the early stages and faces significant challenges. The lack of awareness, government
support, and incentives are the main barriers to the adoption of green logistics practices in
Vietnam. However, some companies have started to implement green logistics practices,
indicating that there is potential for the development of green logistics in Vietnam in the
future.

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 SECTION 2: ANALYSIS AND FINDINGS
2.1. Regulations and policies related to the development of green logistics in Vietnam
2.1.1. General regulations and policies related to sustainable economic development, green
economy, circular economy in general
On October 1, 2021, the Prime Minister issued Decision No. 1658/QD-TTg approving the
"National strategy on green growth for the period 2021- 2030, with a vision to 2050". The
strategy sets out the general goal of green growth, contributing to promoting economic
restructuring associated with growth model innovation in order to achieve economic
prosperity and environmental sustainability. This also aims to transform the growth model
towards greening economic sectors and apply the circular economy model to improve growth
quality, promote competitive advantages and minimize negative impacts on the environment.
On June 7, 2022, Decision No. 678/QD-TTg of the Prime Minister approved the Project on
Development of a Circular Economy in Vietnam with the general goal of moving towards a
green, carbon-neutral economy, in order to limit the global temperature. This project
contributes to concretizing the target of lowering greenhouse gas emission intensity per GDP
by at least 15% by 2030 compared to 2014, with a view to reaching net-zero emission by
2050. By 2025, achieve the goal of reusing, recycling and treating 85% of the generated
plastic waste, reducing 50% of plastic waste in the sea and minimizing the production and the
use of non-biodegradable plastic bags and single-use plastic products.

2.1.2. Regulations and policies directly related to the development of green and sustainable
logistics
Since 2010, Vietnam has imposed regulations on the development of green transport. The
Ministry of Transport issued Circular No. 16/2010/TT-BGTVT on June 30, 2010 regulating
the management and operation of airports and airfields. The Circular clearly states that airport
planning and investment projects must have an environmental impact assessment report and
will be inspected and monitored for the implementation of environmental protection solutions.
Moreover, they must comply with the laws on environmental protection and other
international environmental standards. Regarding reverse logistics for resource recovery,
Decree No. 38/2015/ND-CP dated April 24, 2015, of the Government regulating waste and
scrap management has regulated waste including hazardous waste, domestic solid waste,
industrial solid waste, liquid waste, wastewater, industrial exhaust, and other visible waste.
Sustainable development of the marine economy, including sustainable development of
logistics, has been stated in Resolution No. 26/NQ-CP of the Government issued on March 5,
2020 on the Master plan and 5-year plan of the Government. Next, on July 26, 2022, the

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Prime Minister issued Decision No. 892/QD-TTg approving the project to develop the marine
economic sector cluster in association with the construction of powerful marine economic
centers in the period up to 2030. This is a resolution which specifically implements the
strategy for sustainable development of Vietnam's marine economy to 2030, with a vision to
2045.
Most recently, on July 22, 2022, the Prime Minister issued Decision No. 876/QD-TTg
approving the Action Program for Transition to Green Energy. The major goal is to develop a
green transport system toward net-zero greenhouse gas emissions by 2050.
Regarding the roadmap for green energy transformation in the period of 2022-2030, with
roadway transport, improve manufacture, assembly, import and transition to electricity-
powered road vehicles; promote blending and use of E5 gas for 100% of road motor vehicles;
develop charging infrastructures to meet demand of individuals and enterprises; encourage the
transition to green energy for new and existing bus stations and rest stops.
For railway transport, organize pilot research on using railway vehicles with electricity and
green energy on existing railway lines in Vietnam. Invest in construction of new railway lines
towards a roadmap for electrification; formulate plans and invest according to a roadmap to
replace old railway vehicles with vehicles that may use electricity and green energy;
encourage transition to electricity and green energy for material handling equipment at gas
stations.
With inland waterway transport, encourage investment in building, importing, and converting
inland waterway vehicles using fossil fuels to using electricity and green energy; research and
develop criteria for green ports and green transport routes as a basis for formulating
mechanisms and policies to encourage new investment in green inland waterway ports.
For air transport, take all of the aviation industry's potential measures simultaneously to
reduce CO2 emissions. From 2027, research on using alternative fuels to supplement part of
aviation fuel. By 2030, complete the database system on energy use and fuel consumption of
aviation enterprises.
On the basis of the Action Program for Transition to Green Energy, on October 15, 2022, the
Vietnam Maritime Administration issued a blueprint for green energy transition and carbon
and methane emission reduction in the maritime sector. The goal of the plan is to develop a
green maritime transport system to achieve net-zero greenhouse gas emissions by 2050.

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2.2. Current status of Green Logistics activities in Vietnam
2.2.1. Green transportation status
a. Road transportation
On average, each year, transportation activities emit about 30 million tons of CO2; in which
road transport accounts for 85% of emissions (Report of Natural Resources and Environment,
2019). At the same time, Vietnam's greenhouse gas emissions are being assessed much higher
than that of developed and developing countries in the world (Table 1). The cause of this
situation comes from both the weakness of infrastructure, means of transport as well as the
capacity to organize, operate and provide road transport services.
Regarding transport infrastructure, although the Government has continuously invested in
improving the quality of the road infrastructure over the years, the expressway network in
general has not met the development requirements. The length of the highway is still low
compared to many other countries in the world, and the density of highways is not evenly
distributed among regions in the country. Some important highways that have great demand
and contribute to solving socio-economic problems have not yet been properly invested, such
as: North-South Expressway, Bien Hoa - Vung Tau Expressway, City. Ho Chi Minh City -
Moc Bai, highways in the Mekong Delta region and ring roads of Hanoi and Ho Chi Minh
City. Not only that, there are some other weaknesses in road transport infrastructure such as:
narrow roads, few lanes; poor quality and durability of road surface, frequent occurrence of
damage, rutting

Countries LPI ranking Greenhouse gas emissions (grams CO2/GDP)

Germany 1 100

Japan 5 190

Singapore 7 155

USA 14 300

Korea 25 460

Vietnam 39 1090

India 44 900

Brazil 56 200

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 Table 1. LPI ranking and GHG emissions of some countries
Source: World Bank (2019)
of wheel tracks, potholes, cracks, breakage; unreasonable distribution between expressways -
overpasses - tunnels - bypasses... affecting the quality of vehicles and transit time, frequently
causing traffic jams, increasing volume greenhouse gas emissions; thereby affecting the level
of greening of road transport activities.
Regarding the means of road transport, in Vietnam, trucks with small tonnage account for a
higher proportion. According to the World Bank Report (2019), there are approximately 1.2
million trucks officially registered in Vietnam; in which, 68% have a total vehicle weight less
than 5 tons, 11% are from 5-10 tons, 14% are from 10-20 tons and 7% are heavy trucks with a
total vehicle weight of over 20 tons (Figure 5). While countries with developed road networks
such as Germany and the United States heavily depend on heavy trucks for transporting
goods, Vietnam also has a much lower proportion of heavy trucks. The low percentage of
heavy trucks in Vietnam leads to the need to use a higher number of trucks to transport the
same amount of goods. The result is higher congestion, higher costs and emissions.

Figure 5. Distribution of truck fleet (trucks, trailers, trailers, semi-trailers) of Vietnam

by tonnage and age

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 Source: World Bank (2019)
In general, compared to 2020, inland freight transport by road still accounts for the highest
proportion of all modes of transport, the benefits and harms it brings while still partly
affecting the environment as well as the environment other indexes in Vietnam.
Also, according to the World Bank Report, the average age of the truck fleet in Vietnam is 7.5
years. 94% of trucks have been used for more than 5 years, with a large proportion of them
being used for 8 to 12 years. A fleet of trucks with a long service life increases transportation
costs and greenhouse gas emissions due to higher total operating costs while reducing fuel
economy, placing the need for fleet renewal vehicles with better fuel efficiency.
The biggest problem currently for freight transport by road is the relatively high rate of empty
trucks returning. According to the survey results of the Report Editorial Board, 39.0% of
surveyed enterprises said that their number of empty means of transport on the way back was
less than 10%. Meanwhile, up to 40.3% of surveyed enterprises have the proportion of empty
means of transport returning from 10 to 30%. Particularly, 13% of enterprises have the
proportion of empty means of transport over 50%. The enterprises in the survey sample also
pointed out that the reason for the high proportion of empty means of transport is mainly due
to: not enough goods for the means of transport to run in both directions; due to customer's
change in delivery schedule; the transportation route has not been optimized; have not shared
transportation resources with partners, … However, the good news is that 51% of these
businesses have found a solution to handle the problem to improve the efficiency of freight
transport. In which, 63.3% of businesses said that they would implement a transport sharing
solution with other partners to optimize transportation resources.
Many companies are now looking at solutions to implement a green transport strategy
associated with sustainable infrastructure, which is to use fewer vehicles, replace clean and
fuel-efficient vehicles, and standardize the size of the truck. In January 2020, DHL Express -
the world's leading international express delivery service provider added 10 electric
motorbikes to the list of environmentally friendly delivery vehicles in Vietnam. On September
16, 2022, VinFast and Ahamove launched AhaFast - the first technology-based freight service
by electric motorbike in Vietnam. The event marks a big step forward for VinFast and
Ahamove in encouraging the community to use green logistics services. Currently, Ahamove
has built a delivery network in 17 provinces/cities with 2.5 million users, more than 100,000
partner drivers, of which about 40,000 drivers operate regularly every week. In the first phase,
the service will be deployed in Da Nang with 100 vehicles, then will expand to other big cities
such as Hanoi, Ho Chi Minh City, etc. Ho Chi Minh City, Hai Phong, Nha Trang, … One
hundred VinFast cars transferred to Ahamove to deploy AhaFast service in Da Nang in the

20
first phase are Feliz S cars. This is a new generation electric car model of VinFast, application
Using breakthrough battery technology LFP for a travel range of up to about 200 km / charge,
equivalent to the mobility of gasoline motorbikes, meeting the mobility needs of technology
drivers. According to the cooperation agreement, VinFast will provide electric motorcycle
products for Ahamove to deploy AhaFast service. Ahamove's goal is to put 10,000 electric
motorbikes into operation by 2025, gradually replacing gasoline cars and vehicles that do not
meet quality standards, causing environmental impacts.
For businesses with limited resources in implementing green transport projects through
replacing fossil fuel-powered vehicles with renewable fuel-using vehicles, it can still
completely contribute to the reduction of greenhouse gas emissions by applying eco-driver
training solutions. For example, Delta International Company Limited held the first eco-
driving training project in April 2018 at the city branch. Ho Chi Minh City with the support of
the program "Green freight and ecological/defensive driver training for sustainable
development" founded by GIZ. The project aims to train knowledge, fuel-saving driving skills
and ensure safety for drivers of logistics enterprises. To date, Delta has organized 6 eco-driver
training courses in the South with 12 drivers directly attending GIZ's program, 42 eco-drivers
being trained internally and preparing to deploy. in the Northern region. The practical
effectiveness of the "Eco-Driver Training and Defensive Driving" project for Delta has been
concretely demonstrated by helping the company reduce the rate of serious accidents by 100%
and save money. from 5.3 to 12% of fuel costs in the period from 2018 to present.
b. Rail transportation
Railway is a mode of transport that is considered to be environmentally friendly, but in
Vietnam, railway transport has not been invested and developed commensurate with its
exploitation potential. The report's analysis shows that the actual situation of railway
infrastructure in Vietnam is still limited and cannot meet the increase in freight traffic,
especially on the intermodal route through Dong Dang station.
Regarding vehicles, having too many types of locomotives makes it difficult to repair and
replace spare parts. Due to the limited investment capital, a large number of old and outdated
wagons has not been eliminated while there are still many wagons for container goods.
Vietnam's railways currently have an average speed of 80-90 km/h, which is quite slow
compared to many countries in the world.
With the limitations of both infrastructure and vehicles mentioned above, rail transport also
releases a large amount of harmful emissions and noise into the environment. There is still the
phenomenon that garbage and railway waste are discharged directly on the two sides of the
tracks, causing reactions that destroy railway equipment, pollute the environment and affect

21
the lives of residential communities. In addition, there is also dust, chemicals, noise, and
vibration affecting the environment during transportation, loading and unloading of bulk
cargo, hazardous goods, etc.
Regarding warehouses at the railway, the biggest difficulty is that most of the general
warehouses have deteriorated, there is no standard warehouse to store and preserve fresh
goods and high-value goods. The whole Vietnam railway system has only 4 stations with
cargo yards and equipment for handling and storing containers, including: Lao Cai with a
capacity of 100,000 TEU/year, Dong Anh 85,000 TEU/year, Yen Vien 578,000 TEU/year,
Trang Bom 120,000 TEU/year. However, the Railway Corporation expects a loss after tax of
1,394 billion VND this year. Developing freight trains to China, third countries and to Russia
and Europe is the goal of the Vietnam Railways Corporation in the coming time.
Reducing road transport and increasing transportation by rail is one of the contents of
greening logistics activities. However, with the current situation of transporting goods by rail,
Vietnam needs to make a lot of efforts to develop this type to meet the requirements.
c. Sea and inland waterway transport
According to the announcement of the International Maritime Organization (IMO) on
greenhouse gas emissions for the 4th time in August 2020, the greenhouse gas emissions of
the shipping industry (international, domestic and fishing) increased by nearly 9.6% between
2012 and 2018 (from 977 million tons to 1,076 million tons). CO2 emissions alone have
increased from 962 million tons to 1,056 million. Therefore, the greening of seaports is a
trend of the world and Vietnam is not an exception to this trend.
According to the Green Port Development Project in Vietnam approved by the Ministry of
Transport on October 29, 2020, green ports in Vietnam will be built on 6 main groups of
criteria (focusing mainly on general ports) and container port) with specific criteria and scale
as shown in Table 2. To be considered for recognition of a green port, a seaport must achieve
at least 60% of the points of the criteria (at least 60/100 points total) and the enterprise must
have documents proving the implementation of each criterion.

No. Criteria Maximum point

1 Green port awareness 5

2 Use of resources 15

3 Environmental quality management 50

4 Use energy 15

5 IT applications 5

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 Reducing emissions, responding to climate change,
6 10
sea level rise

Table 2. Criteria for evaluating green ports in Vietnam

Source: Green Port Development Project in Vietnam, Ministry of Transport (2020)

In Vietnam, Tan Cang - Cat Lai in Ho Chi Minh City. Ho Chi Minh City is the first port to
win the title of Green Port of the APEC Port Service Network Council. This is also the largest
and most modern seaport in Vietnam, and at the same time ranks in the TOP 21 largest and
most modern container ports in the world with a scale of 160 hectares of yards, 2,040m of
jetty, loading and unloading equipment and advanced management technology. up. The
experience of greening seaports of enterprises is to save resources; port environment quality;
using clean energy at the port, treating waste at the port, applying technology 4.0, … Those
criteria are concretized through the following activities: replacing diesel-powered lifting
equipment with new ones. electric equipment (saving 1.5 - 2 million USD in fuel fee/year);
increase water transport with the capacity of 3,000 TEUs at the same time (replacing about
2,000 container trucks); applying electronic vouchers helps to reduce the time for cars to wait
at the port gate from 13 minutes to 6 minutes; eliminating paper documents at the port about
30,000 - 50,000 sheets/day; Planting trees along the piers and roads, …
According to statistics, in Vietnam, the total volume of goods through seaports reached nearly
519 million tons. The volume of container cargo through the seaport reached more than 15.9
million TEUs, up 7% and 12% respectively. In which, the seaport areas with container cargo
increased sharply, including: My Tho increased by 268%, Thanh Hoa increased by 60%
(mainly domestic containers), Quy Nhon increased by 28%, Da Nang increased by more than
19%, Ba Ria - Vung Tau increased by 18% and Ho Chi Minh City by 16% over the same
period last year.
For inland waterways, the development of coastal shipping routes and the VR-SB river-sea
fleet have partly reduced pressure on North-South railway transport, effectively participating
in container transport activities in the region. southern area. In addition, transporting goods by
barge also helps to reduce noise pollution caused by barges moving on rivers and canals away
from densely populated areas, in line with urban planning of provinces. However, the current
huge limitation of the water port system is that the road connecting to the port has a low
tonnage, which is not convenient for transshipment of goods by car. This comes from the fact
that inland ports and wharves are invested by enterprises, while the connecting roads are
invested by the State but little attention is paid to compatibility.

23
Regarding the number of inland waterway vessels, according to the Vietnam Register, as of
June 2021, the country has a total of 235,000 inland waterway vessels, with a total tonnage of
about 19.6 million tons, the average age is 14 years. However, because the inland waterway
vehicles are too old, outdated, low fuel combustion efficiency and no exhaust treatment
system, they emit many toxic gasses. For example, ports in the city. Ho Chi Minh City is
emitting a large amount of CO2 into the environment: Ben Nghe port emits over 5,000 tons of
CO2 each year; Sai Gon - Hiep Phuoc port about 7,750 tons of CO2/year; container port
about 101 tons of CO2/year; Thanh Le petroleum port emits about 385 tons of CO2/year;
Shipbuilding and repair ports also emit 2,278 tons of CO2/year.
d. Air transportation
Only 0.23% of goods are transported by air. According to data from the Civil Aviation
Administration of Vietnam, in 2021, the volume of goods via air freight will reach nearly 1.5
million tons (an increase of nearly 13%) compared to 2020. Of which, nearly 400 thousand
tons of goods will be transported by air. transfers by Vietnamese airlines. The market share of
international freight transport of 3 domestic airlines is only about 12% and the rest belongs to
foreign airlines. In fact, in Vietnam, no airline has a freighter plane and most of the goods are
placed under the belly of the passenger plane, which limits the output of goods.
Although air transport is the least risky mode of transport, emissions from aircraft pollute the
most sensitive areas of the atmosphere. In Vietnam, on average, each year transport activities
emit about 30 million tons of CO2, of which air transport accounts for 5% (Natural Resources
and Environment Newspaper, 2019).
To assess the overall efficiency of transport operations at Vietnamese enterprises, the Vietnam
Logistics Report 2022 Editorial Board asked surveyed enterprises to make comments on the
effectiveness of their transport management systems. industry in optimizing transport routes
and reducing fuel consumption. Accordingly, up to 54% of enterprises responded that their
transport management system was "comparative efficient" and "more efficient" (Figure 6).

2.2.2. Green warehouse status

Currently, 53.7% of Vietnamese logistics service enterprises provide warehousing services.
Warehousing service continues to be one of the main services provided by Vietnamese
logistics enterprises. The current concern is warehouse management technology and
warehouse development investment capital to promptly meet the requirements of production
and import

24
 Figure 6. Enterprise’s assessment of the efficiency of the transport system
Source: Vietnam logistic report (2022)

and export. In general, Vietnam's current warehousing system is of lower quality than other
Asian countries. Many warehouses do not have concrete floors, only built of bricks on the
sandy floor, the warehouse floor is not flat, it is easy to damage goods. Regarding energy for
the warehouse system, warehouses mainly use electricity to serve the needs of lighting and
control the temperature of the warehouse when necessary. Warehouses with eco-friendly
features such as using solar energy, natural light, suitable area, thick walls and floors, on-site
recycling are requirements in warehouse construction and operation of Vietnamese
enterprises.
According to a survey by the Vietnam logistic report (Figure 7), up to 68.6% of enterprises
answered that they have not used renewable energy in operating warehouse operations at their
enterprises or have not rented warehouses using renewable energy. create. Regarding the
reason, 65.3% of enterprises stated that they did not have enough resources to design the
operating system and 29.2% of enterprises said that the cost to set up a warehouse system
using renewable energy was high. making the business unable to invest. Among 31.4% of
enterprises that have used renewable energy in warehouse operations, 81.8% of enterprises
use solar energy; 18.2% use hydroelectricity; 12.1% use wind energy.
Survey data also shows that the management of warehouses is not really scientific, has not
applied modern techniques, especially not many applications of information technology are
used in coordination and management of warehouses. Distribution warehouse, or CY/CFS
warehouse that has not yet connected to the customer's information network to serve the
inspection, storage and tracking of each shipment from the warehouse to any place, has not
yet applied warehouse management techniques (specialized software, barcodes, ...). This is

25
the reason why it is still difficult for businesses to control the amount of energy consumed at
the warehouse.

Figure 7. The proportion of enterprises using renewable energy in warehouse operations

Source: Vietnam logistic report (2022)

The survey results of enterprises on green logistics development in 2022 show that, in order to
effectively manage warehouse operations, 64.2% of enterprises participating in the survey
(Figure 8) have used warehouse management software and evaluated the effectiveness of
using warehouse management software at a fairly high score of 4.31 on a 5-point scale.
Among enterprises that have used warehouse management software, 58.9% of enterprises
(Figure 9) evaluate the warehouse management software as having helped enterprises use
resources at a "comparative efficient" and "more efficient" level; thereby optimizing
warehouse operations, reducing the waste of business resources. This is also one of the
important solutions to reduce the impact on the environment when operating your warehouse
system.

26
 Figure 8. Rate of enterprises using warehouse management software

Figure 9. Enterprises assessment of the effectiveness of using management software

Source: Vietnam logistic report (2022)

2.2.3. Reverse logistics status

Reverse logistics in Vietnam is a developing industry that is still in the early stages of
maturity. It is becoming increasingly important as e-commerce continues to grow and more
consumers shop online. As a result, companies are investing in infrastructure and processes to
improve their ability to manage returned goods. Currently, there are a few companies in
Vietnam that specialize in reverse logistics, such as Vietnam Post Corporation and VNPost
Express. These companies offer services such as product return management, refurbishment,
and recycling.
However, the reverse logistics infrastructure in Vietnam is still relatively weak compared to
more developed countries, and there are many challenges that need to be addressed. Some of
the main challenges include the lack of standardized processes and systems for managing
returns, the high cost of transportation, and the lack of awareness and education about the
importance of reverse logistics among consumers and businesses.
To overcome these challenges, the Vietnamese government is working to develop policies and
regulations that will support the growth of the reverse logistics industry. For example, in
2019, the Ministry of Natural Resources and Environment introduced a draft decree on the
management of waste and discarded products, which includes provisions on the management
of returned products.

27
Overall, while there is still much work to be done, the reverse logistics industry in Vietnam is
showing signs of growth and development, and there is potential for further expansion in the
coming years.

2.3. Opportunities and challenges of developing green logistics in Vietnam

Vietnam is a rapidly growing economy with a population of approximately 99 million people,
and it has undergone significant economic development in the last few decades. This has led
to the growth of transportation and logistics industries, which have contributed to the
country's economic development. However, the growth of these industries has also brought
about various environmental and social problems. As a result, there is a need for Vietnam to
develop green logistics practices that are sustainable and environmentally friendly. This paper
aims to identify the opportunities and threats of developing green logistics in Vietnam.
2.3.1. Opportunities
a. Reduced Carbon Emissions
One of the significant opportunities of developing green logistics in Vietnam is the reduction
of carbon emissions. Carbon emissions from the transportation sector contribute significantly
to global warming, and developing green logistics practices can reduce these emissions.
According to a study by Le et al. (2020), adopting green logistics practices such as optimizing
transport routes, reducing empty trips, and improving vehicle fuel efficiency can significantly
reduce carbon emissions in Vietnam's logistics sector.
b. Cost Savings
Another opportunity of developing green logistics practices in Vietnam is the cost savings that
can be achieved. Implementing green logistics practices such as using alternative fuels,
reducing fuel consumption, and improving vehicle utilization can significantly reduce
logistics costs (Murray et al., 2015). According to a report by the World Bank (2015),
improving logistics efficiency can reduce logistics costs by up to 25% in Vietnam.
c. Enhanced Corporate Reputation
Developing green logistics practices can also enhance the corporate reputation of logistics
companies in Vietnam. Consumers are becoming more environmentally conscious, and they
prefer to do business with companies that demonstrate a commitment to sustainability (Bieker
et al., 2017). By adopting green logistics practices, logistics companies can improve their
corporate reputation and attract more customers.
d. Improved Health and Safety
Green logistics practices can also lead to improved health and safety in Vietnam. For
example, reducing carbon emissions can improve air quality, which can reduce the incidence

28
of respiratory diseases. Additionally, reducing road accidents through improved vehicle
maintenance and driver training can lead to fewer injuries and fatalities (Liu et al., 2017).

2.3.2. Challenges
a. Operational Challenges
The first set of challenges that must be addressed to develop green logistics in Vietnam are
operational challenges. These challenges relate to the day-to-day operations of logistics
companies and their ability to implement green logistics practices effectively. Some of the
significant operational challenges include:
 Limited Availability of Clean Energy Sources
One of the significant challenges of developing green logistics in Vietnam is the limited
availability of clean energy sources. While the use of alternative fuels such as electricity and
natural gas can significantly reduce carbon emissions, their availability is limited in Vietnam
(Vietnam Economic Times, 2021). The lack of charging stations for electric vehicles and the
limited availability of natural gas refueling stations pose significant challenges to logistics
companies seeking to adopt green logistics practices.
 High Costs of Green Logistics Technologies
The high costs of green logistics technologies is another significant operational challenge
facing logistics companies in Vietnam. Many green logistics technologies such as electric
vehicles and hydrogen fuel cells are expensive, making them unaffordable for many logistics
companies (Tran et al., 2018). This limits the ability of logistics companies to adopt green
logistics practices, particularly small and medium-sized enterprises (SMEs).
 Lack of Skilled Labor
The lack of skilled labor is another operational challenge facing logistics companies in
Vietnam. Implementing green logistics practices requires a significant level of expertise,
particularly in areas such as energy management and vehicle maintenance (Le et al., 2020).
However, the availability of skilled labor is limited in Vietnam, making it difficult for
logistics companies to implement green logistics practices effectively.
b. Regulatory Challenges
The second set of challenges facing the development of green logistics in Vietnam are
regulatory challenges. These challenges relate to the regulatory environment in which
logistics companies operate and the extent to which regulations support the adoption of green
logistics practices. Some of the significant regulatory challenges include:
 Limited Regulatory Framework

29
One of the significant regulatory challenges facing the development of green logistics in
Vietnam is the limited regulatory framework supporting green logistics practices. While there
are some regulations in place, such as the National Action Plan on Green Growth, they are not
comprehensive enough to support the adoption of green logistics practices (Nguyen et al.,
2017). This limits the ability of logistics companies to implement green logistics practices
effectively.
 Lack of Enforcement of Regulations
Even where regulations exist to support the adoption of green logistics practices, their
enforcement is often weak. This makes it difficult for logistics companies to comply with
regulations and implement green logistics practices effectively (Tran et al., 2018).
Additionally, the lack of enforcement of regulations undermines the incentives for logistics
companies to adopt green logistics practices, as there is little consequence for non-
compliance.

30
 SECTION 3: RECOMMENDATIONS
3.1. Implication and limitation of the research
3.1.1. Implications
The research presents a comprehensive understanding of logistics, green logistics, and their
importance in Vietnam with regards to environmental pollution and climate change. It
highlights strategies for greening various logistics activities such as transport, warehousing,
packaging operations, and reverse logistics, which can help reduce the environmental impact
of logistics activities. The study also suggests that the government promotes sustainable
development and green logistics, and enterprises should comply with regulations for
successful operations in Vietnam. The research findings can be valuable for logistics
organizations to adopt sustainable practices and contribute to sustainable development.
Policymakers can also use the study to design regulations and incentives that promote
sustainable logistics practices.

3.1.2. Limitations
While the chapter provides an overview of logistics and green logistics in Vietnam, it lacks
specific details about each logistics activity. Additionally, the research only covers a specific
time period and does not cover the latest developments in logistics and green logistics. The
research does not evaluate the effectiveness of the strategies presented or provide
implementation guidelines. Future research can expand on this study to explore the practical
implementation of sustainable logistics practices and their impact on organizational
performance, environmental sustainability, and social responsibility.

3.2. Recommendations
3.2.1. For firms
Firms can take various steps to make their logistics operations more sustainable. One way is
to adopt environmentally friendly transport, such as using more fuel-efficient vehicles or
switching to alternative modes of transportation like electric or hybrid trucks, trains, or ships.
Intermodal transportation, which combines multiple modes of transportation, can also
minimize the environmental impact. Technology and analytics can help optimize
transportation routes, reducing distance and fuel consumption, while also improving delivery
times and reducing transportation costs (Kukartsev et al., 2020). Firms can use sustainable
packaging materials, such as recycled or biodegradable materials, to reduce waste and
minimize the environmental impact of their operations, taking IKEA for example, they adopt
paper/cardboard pallets and using so-called ledges instead of traditional wooden pallets. The
ledges have a plastic leg underneath the goods, allowing for more efficient packing and a

31
reduction in transportation needs, CO2 emissions, and the amount of space required. This
approach is proving to be an effective way of reducing the company's environmental impact.
Developing warehouse management, using energy-efficient lighting, heating, and cooling
systems, and implementing waste reduction and recycling programs can also make a
difference. Different technologies and order picking methods could improve energy efficiency
and operational performance within warehouses (Bartolini, Bottani and Grosse, 2019). Firms
can work with their suppliers to develop more sustainable logistics practices, like reducing
packaging materials and optimizing transportation routes. Finally, monitoring and measuring
environmental impact through GLP model (Zhang et al., 2020) or annual report can help
firms identify areas for improvement and track progress towards sustainability goals, DHL,
for instance, they manage CO2 emissions with precise carbon reporting and offsetting,
adhering to GHG Protocol and WEF Guideline, with their carbon report, customers can
confidently design their carbon reduction strategy (Saroha, 2014).

3.2.2. For competent authorities

Competent authorities can take several measures to promote environmentally friendly
logistics practices. Firstly, they can incentivize the use of eco-friendly modes of transportation
such as electric vehicles and bicycles by providing tax credits and subsidies. Incorporating
environmental protection measures into sustainable urban logistics programs and promoting
the use of railways and waterways over highways and aviation. Secondly, they can implement
green logistics policies to reduce carbon emissions, improve fuel efficiency, and reduce waste.
Governments can also implement environmental policies and carbon-pricing regulations to
encourage logistics enterprises to adopt energy conservation and emission reduction
behaviors. The construction and evaluation of a GLP model is also vital to policy formulation
and improvement, which requires the introduction of proper performance indicators that take
environmental factors into account (Zhang et al., 2020). Thirdly, investing in green logistics
infrastructure such as charging stations for electric vehicles, bicycle lanes, and green parking
areas can encourage the use of eco-friendly transportation (Zhang et al., 2018). Fourthly,
competent authorities can encourage collaboration between businesses to share resources,
reduce waste, and improve efficiency.
Fifthly, education and training programs can be launched to educate logistics companies and
their employees on sustainable transportation and environmental protection. Applying green
logistics in university is an ideal way, for example, Coventry university has included a subject
called Sustainability and Green Logistics to Explore the principles of sustainability and
understand how to create more sustainable logistics and procurement practices. Lastly, setting

32
targets or using the GPL model (Verma et al., 2016) for logistics companies to reduce carbon
emissions and monitoring their progress can help achieve environmental goals.

33
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