Greening e-commerce crucial for sustainable development

E-commerce has resulted in significant waste with adverse environmental impacts - photo: tapchitaichinh.vn

Harms to environment

Recently, according to reports by Google, Temasek, and Bain & Company in Vietnam, the total gross merchandise value (GMV) is expected to achieve a compound annual growth rate (CAGR) of 16%, reaching US$36 billion in 2024. E-commerce is one of the primary drivers of this growth.

This year, the e-commerce sector has grown by 18% compared to 2023, with a GMV of US$22 billion, becoming a main growth driver of Vietnam’s digital economy.

Vietnam has experienced an average annual e-commerce growth rate of 25%, ranking among the leading Southeast Asian countries in this regard. The number of online shoppers in Vietnam has surpassed 61 million, with the average spending per shopper reaching US$336.

However, the rapid growth of e-commerce, particularly in online retail and food delivery, has exacerbated challenges in managing packaging and plastic waste, negatively impacting the environment.

A 2023 report on packaging plastic waste from e-commerce in Vietnam by the Vietnam E-commerce Association highlights an increase in the production and consumption of plastic packaging. Meanwhile, the systems for collecting, treating and reducing plastic waste remain inadequate, posing a challenge for solid waste management. With an annual growth rate exceeding 25%, plastic waste from e-commerce is projected to reach 800,000 tonnes by 2030.

Research on online sales channels reveals that plastic bags are used across all online platforms, including websites, e-commerce marketplaces, and social media. Multichannel sales involve a significantly higher use of plastic bags for packaging – 71.9% compared to 50% for single-channel sales.

Most e-commerce activities in Vietnam are concentrated in coastal cities or areas near rivers that flow into the sea, such as Ho Chi Minh City, Hanoi, Hai Phong, Da Nang, Hue, Can Tho, and Nha Trang. Since most plastic waste from e-commerce is mixed with household waste, it has not been collected, sorted, recycled, or environmentally treated. Consequently, a large proportion of this waste ends up in the ocean.

Policies needed to green e-commerce - photo: hanoimoi.vn

Time to green e-commerce

Amid efforts to drive economic growth toward sustainability, e-commerce development must also align with these green goals.

According to the latest data from the High Quality Vietnamese Products Business Association, 59% of consumers are willing to increase their use of green products. This shift in consumer behavior highlights the growing popularity of green consumption in Vietnam. In response, many businesses have pioneered improvements in packaging and transportation to minimize waste and environmental pollution.

In recent years, Vietnam has issued important legal documents on environmental protection, including Prime Ministerial Directive 33/CT-TTg on strengthening the management, reuse, recycling, treatment, and reduction of plastic waste, and Prime Ministerial Decision 1746/QD-TTg on issuing a National Action Plan on Marine Plastic Waste Management until 2030.

Additionally, Vietnam has adopted a national strategy on solid waste management until 2025, with a vision to 2050. The goal is to ensure 100% of shopping centers use environmentally friendly plastic bags and to reduce ocean plastic waste by 50% in 2025.

Experts emphasize the need for policies that promote sustainable and environmentally friendly digital economy and e-commerce development. Online consumers, e-commerce businesses, and logistics companies must take the lead in implementing sustainable solutions. Companies and sellers should adopt eco-friendly practices, prioritize recyclable materials, and use biodegradable packaging to reduce waste.

The World Wide Fund for Nature (WWF) recommends that Vietnam introduce policies, laws and standards on environmentally friendly packaging. When revising its Postal Law, Vietnam should include specific regulations and standards for the packaging activities of merchants, delivery companies, and other stakeholders.