E-COMMERCE TOWARDS GREEN AND SUSTAINABLE DEVELOPMENT

Earlier this week, the National Assembly Standing Committee reviewed the draft Law on E-Commerce. A notable highlight is the introduction of policies on green and sustainable e-commerce, marking an important step that aligns rapid growth with environmental protection goals.

Vietnam’s e-commerce has been recognized as one of the most dynamic markets in the region. In 2024, online B2C retail reached USD 25 billion, up 20% from the previous year, accounting for nearly 10% of total consumer goods and services revenue. Over the past decade, the market has grown from USD 2.97 billion in 2014 to its current scale, maintaining an average annual growth rate of 20–30%. This places Vietnam third in Southeast Asia and among the world’s top five fastest-growing e-commerce markets.

The boom has attracted significant foreign investment and opened opportunities for small and medium-sized enterprises to reach global consumers through digital platforms. Shoppers also benefit from the convenience of accessing millions of domestic and international products with just a click.

However, the rapid expansion of e-commerce comes with mounting environmental challenges. Every online order generates packaging waste—paper, plastic, foam—as well as a delivery trip. When scaled to millions of transactions, packaging waste and transportation emissions become a pressing burden. International experiences serve as warnings: in South Korea, e-commerce waste is 4.8 times higher than traditional retail; in the United States, online shopping consumes seven times more cardboard; and in China, 70 billion parcels generated in 2020 required more than 11 million tons of paper and plastic packaging, including nearly 2 million tons of plastic waste. The World Economic Forum has projected that, without intervention, e-commerce transport emissions could add 6 million tons of CO₂ by 2030, while urban congestion may rise over 21%, costing individuals an extra 11 minutes of travel time daily.

In Vietnam, a National Assembly supervisory mission on environmental protection policies has also identified clear negative impacts from e-commerce. To date, most digital economy and e-commerce policies have focused mainly on growth acceleration. Therefore, incorporating green and sustainable development principles into the draft law is considered both urgent and essential.

The draft law encourages projects that meet green standards, promotes environmental protection solutions, and introduces labeling systems such as “green” and “sustainable” for certified goods and services. It also sets a framework for extended producer responsibility involving suppliers, logistics providers, and manufacturers, while the Law on Environmental Protection and related regulations will define detailed measures and enforcement.

E-commerce has already reshaped retail and fueled economic growth. Yet for this momentum to serve as a lasting foundation, Vietnam must shift from a model of “fast growth” to one of “green growth.” This strategic transition is key to building a modern, responsible, and sustainable economy.