Transport is the sector that contributes the most to greenhouse gas emissions in Vietnam.

Vietnam’s commitment to reduce net emissions to zero by 2050 is more ambitious than some rapidly industrializing countries in the region and shows a strong determination to build a developed economy without sacrificing environmental goals.

Electric vehicles are the solution

Transport is a major contributor to Vietnam’s greenhouse gas emissions. According to the World Bank’s scenario, CO2 emissions from the sector will increase from 33.2 million tons to 89.1 million tons by 2030.

Of which, emissions from road transport accounted for 83.3% of CO2 emissions in 2020. Road transport continues to increase to serve freight transport and passenger travel needs.

The United Nations predicts that Asia – home to 17 of the world’s 33 megacities – will reach 64% urbanisation by 2050. Reducing emissions and pollution from the transport sector will be a prerequisite for creating livable and sustainable cities.

So, how can cities cope with the dramatic increase in greenhouse gas emissions from the transport sector to control pollution and achieve sustainable development?

A typical solution is electric vehicles (EV). Using renewable energy, emissions from electric vehicles are only 1/3 of those from conventional vehicles.

In Asia, China is now the world’s largest producer of electric vehicles and also ranks among the top in terms of electric vehicle registrations. Thailand, while one of the leading countries in automobile production, has yet to catch up with the global growth of electric vehicles.

Recognizing the shift of the transportation industry away from fossil fuels, Thailand has launched a plan for electric vehicles to account for half of the car market by 2030.

Vietnam in the flow of electric vehicles

The rise of electric vehicles (EVs) is contributing to Vietnam’s net-zero emissions target and driving long-term sustainable economic growth, according to a report by HSBC. Local EV manufacturers have been particularly successful in electrifying two-wheeled vehicles.

In the future, cooperation with foreign companies and exploitation of rare earth resources can help Vietnam become a leader in the green mobility industry.

For example, VinFast’s parent company is partnering with China’s Gotion High-Tech to develop some LFP (lithium ferrous phosphate) batteries and build two lithium-ion plants in Ha Tinh province, expected to open in the third quarter of 2024.

In the future, VinFast could become the leading electric vehicle exporter to ASEAN, with Indonesia as the main market.

Investing in public transport

In addition, Vietnam can learn from European countries’ policies on promoting public transport. The EU Green Deal calls for a 90% reduction in greenhouse gas emissions from transport, aiming to make the EU a carbon-neutral economy by 2050, while aiming for zero pollution.

One of the important solutions to achieve the above goal is to increase the number of people using public transport instead of personal vehicles when participating in traffic.

In 2023, CO2 emissions per capita in the European Union (EU) fell by 14.3% compared to 2019. Meanwhile, CO2 emissions per capita in China increased by 11.25% and in the US decreased by 8.9% from 2019 to 2023. The EU is now only about 15% higher than the global average, about 40% lower than China and 59% lower than the US.

Some urban transport experts have called for a shift to green urban transport, emphasizing the importance of prioritizing human mobility over increasing space for private vehicles.

New investment models focusing on pedestrians, bicycles, public transport and de-prioritizing cars, thereby providing strategies for “Greening Urban Mobility”, have been proposed by many experts.

The role of business

To address the heavy impact of transport on the environment, the role of businesses in the green transition is crucial. Businesses need to come up with incentives for employees to prioritize using more environmentally friendly public transport.

It is also businesses, especially those that own brands, that decide what means of transport are used for goods, and thus have an impact on transport businesses, most of which are micro-enterprises or households.

To motivate businesses to make green transitions, there are two main solutions. According to the market mechanism, to encourage businesses to convert, the State can require transparency of information through emission labels on goods.

In addition, the State can encourage the conversion of vehicles from “brown to green” by providing financial incentives to small and medium-sized transport enterprises or through large enterprises.

Regardless of the approach, businesses need emissions tracking tools that can handle complex supply chain data and meet ever-evolving regulations and standards.

Globally, the use of highly integrated software can help businesses measure carbon and other greenhouse gases per unit of product and combine that data with costs when making transport service selection decisions.

( Ministry of Transport’s Electronic Information Portal )