Green logistics elevates Vietnamese agricultural products

Agricultural and aquatic products are among the key pillars of Vietnam’s export landscape, contributing over USD 50 billion annually and expected to reach USD 65 billion by 2025, according to the Ministry of Industry and Trade. However, to strengthen their brand presence in international markets, success depends not only on production but also on logistics capabilities—particularly green logistics, which helps reduce carbon emissions and enhance quality control of agricultural products.

The Mekong Delta (ĐBSCL), Vietnam’s largest hub for rice, seafood, and fruit, currently accounts for about 30% of the cold storage capacity in the southern region and nearly 50% nationwide. It is also home to dozens of industrial zones, serving as a major production and logistics center connecting to Ho Chi Minh City and international seaports. However, the region’s cold logistics system remains fragmented, causing exporters to face high costs and significant risks.

According to experts from Can Tho University, cold-chain logistics is not merely technical infrastructure but a strategic factor in boosting competitiveness. A non-integrated logistics chain can increase costs by 20–30%, reducing the competitiveness of Vietnamese agricultural products compared to those from Thailand, Malaysia, or China.

In the context of global efforts to reduce emissions, green logistics has become an inevitable trend. For the agricultural sector, reducing intermediate transportation stages not only cuts emissions from transport but also directly improves quality control. Strict environmental standards from markets such as the U.S., the EU, and Japan increasingly require products to come with a sustainable supply chain.

According to Mr. Vuong Hieu, Chairman and CEO of Toan Phat Irradiation Co., Ltd., the integrated model of “irradiation – cold storage – transportation” at a single location can eliminate several energy-intensive intermediate steps.

Previously, goods had to be moved to another cold storage facility before irradiation, then returned for cold storage again, and only afterward transported for export. Now the entire process is carried out at one location. “This means eliminating unnecessary transfers, reducing carbon emissions—currently a hot issue in the industry—and moving toward green logistics,” Mr. Hieu said.

The closed-loop logistics process is the result of an alliance between Toan Phat and two Japanese corporations—Kawanishi Warehouse and MOL Logistics—to establish the Mekong Logistics Hub in the Tay Ninh area (previously in Long An), the southern gateway to Ho Chi Minh City. Kawanishi Warehouse, with over 100 years of experience and a track record of developing cold-storage chains across various countries, brings international AEO-standard management expertise. MOL Logistics, a subsidiary of Mitsui O.S.K. Lines, operates a network of 138 global offices, creating a direct connection for Vietnamese agricultural products to strategic seaports such as Cai Mep and Hai Phong.The partnership between the Vietnamese enterprise and two leading Japanese logistics groups will help maximize the utilization of Toan Phat’s 11,000-ton cold storage facility, serving around 500 domestic agricultural and aquatic exporters, especially those in the Mekong Delta.

The involvement of Japanese partners also requires the on-site logistics chain to be “greened.” Accordingly, the irradiation facility, cold storage, and transportation system must be designed based on sustainable development standards: using renewable energy, treating and recycling wastewater, and ensuring green spaces in operations. This helps Vietnamese export goods gain a competitive advantage as more import markets adopt green criteria as a core requirement for evaluating products.

For the agricultural and seafood sectors, the greatest export risk lies in microbiological safety and preservation. Just one shipment of seafood exceeding microbiological limits can cause a company to lose an entire export market.

The closed-loop logistics model helps address this challenge. “For example, seafood exported to the U.S. requires extremely strict microbiological control. If the goods are treated and then transferred to another storage facility, the risk of recontamination is very high. With on-site processing and sealing, companies can reduce risks while saving costs and time,” Mr. Hieu noted. As a result, Vietnamese agricultural products not only meet international standards but also strengthen their credibility in the eyes of global buyers.

As Vietnam aims for USD 65 billion in agricultural–forestry–fishery exports by 2025, the Mekong Logistics Hub is expected to help businesses shorten export routes, reduce costs, and increase competitiveness. In the long term, the model aims to become a key cold-chain transshipment hub for ASEAN, contributing to positioning Vietnamese agricultural products on the global map.

“Logistics alliances will create competitive advantages and help elevate Vietnam’s entire logistics infrastructure,” commented Mr. Osamu Sakurada, Chairman and CEO of MOL Logistics.

Source: VTV

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