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The key to green logistics

HNN.VN - Hue is undergoing a powerful transformation as it has become a centrally governed city, not only leveraging its natural advantages and distinctive cultural heritage but also proactively seeking new growth drivers. The development of a green logistics center and the establishment of a Free Trade Zone (FTZ) are viewed as strategic breakthroughs for the Ancient Capital.

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 Berth No. 3 at Chan May Port meets the demand for domestic and international maritime cargo shipment

The “key” to regional and international logistics chains

It was no coincidence that at the 6th Regional Logistics Forum held in Hue under the theme “Cross-border Logistics”, many experts and leaders from ministries and sectors referred to Hue as a “strategic gateway” on the North - South axis and the East - West Economic Corridor. Familiar landmarks to locals, such as Lang Co Bay, the deep-water Chan May Port, National Highway 1, the expressway network, and Phu Bai International Airport… are now viewed from a new perspective: a multimodal transportation hub essential for modern logistics centers.

At the forum, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan affirmed that cross-border logistics is becoming a new development driver for gateway localities, no longer confined to major economic centers. This assessment underscores Hue’s unique geographical and natural advantages, which have yet to be fully unlocked.

Nearly two decades ago, during conferences on the development orientation of Chan May - Lang Co Economic Zone, it was evident that Hue held significant potential to benefit from the East - West Economic Corridor (EWEC), an initiative originating from the 8th Greater Mekong Subregion Ministerial Conference held in the Philippines in 1998. With over 80 kilometers of border adjoining Lao provinces of Sekong and Salavan, connected through the A Dot and Hong Van border gates, Hue plays a vital linking role with central and southern Laos and northeastern Thailand along the western corridor to the East Sea via Chan May and Thuan An ports. These are the terminal nodes of the EWEC through Hue, facilitating two-way trade between Thailand and Laos and, on the contrary,  creating a strategic lever for Hue to emerge as a dynamic logistics hub integrated into international markets.

Today, “green logistics” is no longer a slogan. It has become a mandatory criterion within global supply chains. For Hue to succeed, relevant organizations, ministries, and local authorities must adopt a new mindset, building a professional model that connects enterprises, regulators, and the community.

According to Mr. Tran Thanh Hai - Deputy Director General of the Agency of Foreign Trade under the Ministry of Industry and Trade, Vietnam’s new logistics centers must follow green and smart models. Hue enjoys notable competitive advantages, including well-connected transport infrastructure, expanding seaport investment, favorable conditions for clean transport corridors, ample space for warehousing and automated logistics, and a young workforce adaptable to technology.

Entering global value chains

Assoc. Prof. Dr. Ho Thi Thu Hoa, President of Vietnam Logistics Research and Development Institute, noted that Hue possesses all prerequisites for green logistics development, from environmental and climatic conditions to a strategic vision combining heritage urban development with smart city planning. Beyond utilizing cultural identity and deep-rooted tourism, green logistics and an FTZ create a pathway towards sustainable integration and growth for Hue.

Hue currently has Chan May - Lang Co Economic Zone, spanning over 27.000 hectares. Its development has been adjusted through 2045 to include five functional subzones, including a non-tariff area that lays the groundwork for establishing a nationally scaled FTZ, an advantage not all economic zones in Vietnam have.

Mr. Dang Huu Phuc - Director of the Department of Industry and Trade, emphasized that Official Dispatch No. 47/CD-TTg dated April 22nd, 2025, issued by the Prime Minister on the development of free trade zones and “duty-free ports”, provides a crucial legal basis for Hue to implement a modern FTZ. Transforming Hue into a green logistics center and FTZ would generate multiple benefits: creating new economic space to ease pressure on Da Nang, Ho Chi Minh City, and Hai Phong - the logistics hubs nearing their capacity limit; enabling Vietnam to capture supply chain shifts toward Southeast Asia; positioning Hue as an international hub for recycling, processing, and distribution; attracting next-generation FDI that require green infrastructure, digital technology, and modern governance; and creating tens of thousands of jobs for local residents.

From an international perspective, experts recommend that Hue build its image as a “green - smart - transparent logistics center” to attract multinational corporations. This aligns with global trends and Vietnam’s commitments to sustainable development.

Dr. Tran Thi Hong Minh, President of the Central Institute for Economic Management, stressed that developing green logistics linked with an FTZ in Hue should operate as an integrated “seaport - logistics - industry - services” ecosystem. Such a model would not only accelerate local growth but also reposition central Vietnam within national economic networks and global value chains.

With determined local leadership, business collaboration, and strong central policy support, Hue’s green logistics center and modern FTZ are expected to materialize in the near future. However, experts caution that Hue must clearly define its distinctive identity and competitive advantages to avoid duplication with other localities. One idea is to build a green and smart FTZ that focuses on green logistics, low-carbon trade, and connecting with tourism, services, and maritime infrastructure. This would make Hue stand out in the larger development picture of central Vietnam. Additionally, piloting the FTZ model within the Chan May - Lang Co Economic Zone on a moderate scale before gradual expansion; and, attracting international logistics, trade, and supporting industry corporations, will be decisive factors for the strategy’s success.

An FTZ is a designated area where goods and services benefit from special incentives in taxation, customs procedures, and trade mechanisms, aiming to create an open environment to attract investment and promote international commerce.

Story and photo: MINH VAN
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