Capital mobilised for green logistics, ports

The participation of international financial institutions and flexible leasing models is playing a crucial role in addressing green transition initiatives among logistics and port developers.

- By Bich Ngoc

Vietnam is required to move towards establishing green funds and government-backed financial support mechanisms, according to Floris Baars, manager of the Foreign Direct Investment Division at Phu Thai Cat, the exclusive authorised dealer for Caterpillar equipment and engines in Vietnam.

Speaking at the 2026 Vietnam ESG Investor Conference held in Ho Chi Minh City last week, Baars said the majority of funding for green transition efforts currently comes from foreign-invested enterprises, as they possess both the financial capacity and established partner networks in Vietnam to implement projects.

“However, in the next phase, the move would not only support such enterprises but also create opportunities for Vietnamese companies to participate in investing in and developing this new ecosystem,” Baars explained.

At present, private capital participation remains relatively limited, but he believes this will change as models such as electrification become more clearly implemented. “For example, in inland waterway transport, the operating costs of electric vessels are actually quite low, but the upfront investment costs can be three to four times higher than those of traditional diesel-powered vessels,” he noted.

This presents a particularly difficult challenge for domestic enterprises, as they are unlikely to recover capital quickly simply by increasing transport fees by 10-20 per cent per container or shipment.