Efficient technology solutions key factors in energy transition

Speaking at the forum, hosted by the Investment and Trade Promotion Centre in Ho Chi Minh City on September 24, Phuong Nguyen, CEO of Tona Syntegra Solar JSC, spoke about the need for the transition roadmap for industrial logistics to prioritise energy efficiency, monitoring and management, clean and renewable energy, low-emission vehicles and carbon offsetting through credits.

"The application of clean energy and energy efficiency can help commercial and industrial sectors save at least 35 per cent of energy costs," said Phuong.

The industrial sector currently consumes up to 54 per cent of the total energy used in Vietnam, with the transportation sector accounting for 20 per cent.

"The significant increase in transportation activities caused by the country's economic development and increasing population makes energy a crucial issue," Phuong said.

Catherine Tran, director of Leong Lee International Co., Ltd. believes that integrated technology solutions are one of the most effective solutions to help Vietnamese logistics firms achieve green transformation.

"Continued innovation in solar and storage technologies will improve scalability, which is a good strategy in the green transition," she said.

Juergen Weber, chairman of the Transport and Logistics Sector Committee of the European Chamber of Commerce in Vietnam, spoke of how cutting emissions from logistical activities will be vital to slow down the process of global warming.

"Logistics plays an important role in the climate crisis and addressing its impact requires a comprehensive approach that includes technology, policy and behavioural change," he added.

Terry Tan, director of Sunny Auto Company said, "To achieve green transition targets, we must find ways to gradually replace combustible-engined vehicles with electric vehicles (EVs) and those that run on biofuels. Electric trucks release 54 per cent less CO2, save 70 to 80 per cent on fuel costs, and cost 30 to 50 per cent less to maintain than petrol vehicles. So, while the initial investment cost for EVs may be high, it will decrease in the long term."

"Logistical costs in Vietnam are much higher than in other countries in the region, but switching to green logistics can reduce costs. Exporters will also benefit from reduced taxes in import markets, and they can receive and sell carbon credits," he added.

ITPC deputy director Cao Thi Phi Van said, "Ho Chi Minh City has just issued an action plan from now until the end of the decade to implement the National Strategy on green growth. The city aims to promote a circular economy to reduce greenhouse gas emissions."

"The city has set out 14 main areas to focus on, including green finance, high-quality human resources, green energy, clean water, green buildings, and of course, green transportation," Van added.

There are currently over 40,000 firms in the logistics market in Vietnam, with large global brands such as DHL, CJ logistics and Maersk Lines. Vietnamese firms are also well represented in the sector, with names such as Transimex, Sotran, and Tan Cang Saigon.

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