City logistics is one of the vital pillars that constitute the development of a city by directly fulfilling the daily needs of citizens and organizations in that city besides power, water, and fuel supplies. However, the downside of existing city logistic systems, notably in many developing countries, is that they still depend heavily on internal combustion engine vehicles (ICEVs) that cause many adverse impacts on the environment and the population’s health. Moreover, these impacts are predicted to be worsened and prolonged if no actions are taken since city logistics is inevitably thriving as a result of rapid urbanization, economic growth, and flourishing e-commerce. Shifting to cleaner vehicles is one of the promising approaches to mitigate these negative impacts. This change will also contribute to reducing CO₂ emissions, mitigating climate change impacts, and achieving not only a sustainable development of urban freight transport system but also a sustainable and livable environment. This paper presents the progress of changing the current fossil-fueled transport vehicles to eco-friendly ones in the world by reviewing existing literature. Then, challenges and opportunities of deploying non-fossil-fueled delivery vehicles are described in a SWOT (Strengths, Weakness, Opportunities, and Threats) table. Based on this SWOT table, the investigation of the current situation of city logistics and delivery vehicle fleet in Ho Chi Minh City (HCMC) is conducted to identify the opportunities and challenges of promoting electric delivery vehicles (EDVs) in urban freight transport of the city.