Vietnam’s Logistics Sector Gears Up for Green Transition in Lead-Up to FIATA World Congress 2025
As Vietnam prepares to host the FIATA World Congress 2025 in Hanoi from October 6–10 with the topic “Green and Resilient Logistics,” the nation’s logistics sector finds itself at a watershed moment. With global pressures—ranging from climate targets and energy costs to supply‑chain disruptions—the call to implement sustainable practices has never been louder. This Congress, the largest of its kind in Asia, signals both a recognition of urgent environmental challenges and a platform to propose scalable, green logistics solutions, including solar-powered energy via Power Purchase Agreements (PPAs).
Vietnam’s Logistics Landscape and Green Imperative
The logistics sector accounts for approximately 17% of Vietnam’s GDP and around 25% of GDP growth, involving over 30,000 enterprises—9,000 alone in Ho Chi Minh City. Meanwhile, logistics activities contribute nearly 7–8% of the nation’s CO₂ output, with road freight being a key driver .
Under Vietnam’s National Action Plan on Green Growth (2021–2030, vision 2050), logistics was flagged as a priority sector. Prime Minister Phạm Minh Chính met twice with FIATA and VLA leaders to underpin national commitment to net-zero emissions by 2050.
FIATA World Congress 2025: A Global Forum with a Local Mission
Described as the “Olympics of logistics,” the FIATA World Congress will draw over 1,200 delegates from 150+ countries, including top industry experts, policymakers, and global associations. The event will feature panels on eco‑friendly transport, supply‑chain digitization, cold‑chain logistics, and investment opportunities in Asia.
Both FIATA and Vietnam’s logistics agencies view this Congress as a launchpad for green logistics in the region:
FIATA Director General Stéphane Graber underscored the urgency for “decarbonisation and sustainable transport” in panel talks.
A nationwide Road Show organized by VLA is already educating local firms on green logistics tools, while memoranda of understanding between VLA and key players including shippers’ councils and shipowners aim to galvanize the sector.
Why Solar PPA Emerges as a Prime Solution
Among the green tools being discussed, Solar Power Purchase Agreements (PPAs) have gained traction:
Zero-upfront cost
Under a PPA, a third-party provider installs solar panels—typically on warehouses, depots, or terminals—and maintains ownership and operations. The logistics firm pays only for the electricity at a discounted, fixed rate.Budget certainty and resilience
As grid electricity prices climb, stable PPA rates offer predictable costs and energy security—especially valuable during peak logistics activity. On-site generation can also guard against power outages.Maximizing warehouse assets
Large roof areas in logistics facilities—often idle—provide ideal real estate for solar arrays. Vietnam already has nearly 1 GW of rooftop solar in commercial and industrial setups.Cutting carbon footprints
With logistics contributing significantly to Vietnam’s emissions, transitioning to clean energy directly addresses ESG goals. Solar makes visible progress toward net-zero targets.
Solar PPA in Practice: Global and Local Echoes
Though most global examples stem from manufacturing and tech firms, similar models are emerging in logistics:
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Warehouse-scale solar solutions are being deployed internationally to reduce grid dependency and lower emissions while flipping buildings into energy producers.
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In Vietnam, companies like SEV and TotalEnergies have installed multi-MW rooftop solar on commercial and industrial buildings, recording 20–25% reductions in facility energy costs .
Such initiatives pave the way for logistics firms to adopt Solar PPAs on large-scale sites, aligning energy use with sustainability in a visible, marketable way.
Government, VLA & Industry Speak Out
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Prime Minister Phạm Minh Chinh has reiterated that green logistics is central to Vietnam’s climate and development goals, giving high-level visibility to the FIATA Congress.
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The VLA is advocating practical measures, stressing shared understanding across government, industry, and local authorities as essential to implementing solutions like solar, EV fleets, and digitized systems .
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Deputy Director Tran Thanh Hai (Ministry of Industry & Trade) emphasized joint digital and green transformations, encouraging streamlined policy to aid firms in adopting new technologies.
Key Sustainability Initiatives Beyond Solar
The green logistics agenda extends across multiple dimensions:
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Electrifying trucking fleets, though still nascent among heavy goods vehicles, offers high-impact carbon savings .
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AI-enabled route optimization and empty-run reduction reduce emissions and boost cost efficiencies.
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Multimodal transport, embracing rail and waterways, aims to shift away from carbon-heavy road freight.
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Digitalization via e-bills like FIATA’s eFBL enhances transparency and automates customs, reducing paper waste and improving network flow.
Challenges to Overcome
Despite strong momentum, several obstacles remain:
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Cost barriers: Smaller logistics operators lack the capital to invest in green tech. While solar PPAs and public-private financing mitigate upfront costs, regulatory clarity and subsidies remain critical .
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Infrastructure gaps: Intermodal hubs, EV charging, and grid readiness require continued investment—areas flagged in national green growth plans .
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Technical integration: Blending solar power, electrified fleets, and logistics software demands interoperability—requiring industry-wide standards and training.
Looking Ahead: From Congress to Conversion
The FIATA World Congress 2025 stands not only as an emblematic event but as a practical springboard. Vietnam’s successful hosting will spotlight:
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Government commitment, demonstrated by Prime Ministerial engagement and alignment with COP26-era strategies.
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Industry readiness, via VLA-backed roadshows and policy dialogues.
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Green logistics in action, driven by Solar PPA rollouts and pilot EV fleet initiatives.
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Global networking, enabling partnerships for financing, technology transfer, and international standards adoption.
Conclusion: A Turning Point for Vietnam’s Logistics
Vietnam’s logistics industry has earned a global spotlight as host of the FIATA Congress, but its real test lies in delivering tangible green transformation that aligns with global sustainability benchmarks. Solar PPAs emerge as a compelling solution: low-risk, scalable, and capable of converting logistics rooftops into energy hubs.
Yet, success hinges on a cohesive ecosystem: government incentives, industry collaboration, technology integration, and access to finance. As Le Duy Hiep aptly stated, resilience and greening must move in tandem.
The October Congress will serve as both a showcase and a catalyst. Firms that adopt Solar PPA and other green measures ahead of time gain cost advantage, carbon credentials, and early-mover branding. For Vietnam, the Congress marks a pivotal juncture—transforming policy declarations into on-the-ground change, and potentially setting a regional blueprint for sustainable logistics.
