Ha Noi, October 20, 2022 - The Transport Newspaper, in collaboration with the United Nations Development Programme (UNDP) and the Embassy of Japan to Viet Nam, has organized a conference on "Development of Electric Vehicles Towards a Green Energy Transition.”

The conference is an opportunity to introduce and discuss topics including the Action Programme on green energy transition and reducing carbon and methane emissions from the transport sector; development policies for electric vehicles (EV); opportunities and challenges for promoting EV development in Viet Nam with regards to policies, infrastructure, and markets; and international experience and global best practices on developing e-mobility, along with recommendations on how to do so in Viet Nam.

Attending the conference were over 100 leaders and experts from government agencies such as the Ministry of Transport, the Ministry of Finance, the Ministry of Industry and Trade, the Ministry of Science and Technology, the Ministry of Natural Resources and Environment, research institutes, experts from top universities in Viet Nam, and enterprises manufacturing and importing automobiles and motorbikes in Viet Nam.
In his address at the opening of the conference, Deputy Minister of Transport H.E. Mr. Le Anh Tuan said: “Climate change is a serious global challenge. Climate change response, carbon emissions reduction, and sustainable development are irreversible trends backed by strong determination and bold goals from the international community.

At the 2021 United Nations Climate Change Conference (also called COP26), Viet Nam was one of 147 countries to make strong commitments to reduce net emissions to zero by the middle of the century, timely implementation of which will bring great long-term benefits to the country. The commitments made at COP26 are an opportunity for the Government of Viet Nam to restructure its economy towards low carbon, which is a driving force for comprehensive transformation of the Vietnamese economy in general and of the transport sector in particular towards green development without greenhouse gas emissions.

Currently, electricity has been widely applied to cars, motorbikes, buses, and railway locomotives on a global scale. For developing countries like Viet Nam, due to a lower starting point, energy transition in their roadmaps usually starts about 5-10 years later but is expected to accelerate at a later stage to catch up and achieve the emissions target of net zero by 2050.

To contribute to the realization of Viet Nam’s COP26 commitments, the Prime Minister signed Decision 876/QD-TTg approving the Action Programme on green energy transition reducing carbon and methane emissions from the transport sector, which identifies specific objectives, roadmaps, and tasks for each sub-sector, of which the road sub-sector is identified as a focus. This will be an opportunity for the transport sector to access advanced and modern technology, converting from fossil energy to green ones, and reducing greenhouse gas emissions.”

Deputy Minister H.E. Mr. Le Anh Tuan emphasized that, as a state management agency in the field of transport, the Ministry of Transport always welcomes inputs and comments from all experts, scientists, and businesses on the orientation as well as actions/measures to implement a green energy transition for all types of transportation towards the goal of environmental protection, safety, and greatest convenience. The Deputy Minister also highlighted the significance of the conference.

Studies show that the transport sector worldwide consumes more than 55% of petroleum fuels and emits about 25% of the total global CO2, of which road vehicles account for 17%. To solve the problem of air pollution in the field of transport, EVs are considered to have the most advantage because they do not emit air pollutants, are highly energy-efficient, and can easily be integrated with the modern driver assistance features of self-driving cars.

The world’s EV market has made great leaps and bounds in recent years. Between 2019 and 2021, the number of EVs increased by 2.5 times to reach 17 million.

According to the Vietnam Register, as of August 2022 Viet Nam had manufactured, assembled, or imported nearly 3,000 electric cars, an increase of more than 20 times compared to the number of electric cars in 2019. To date, the country has had nearly 1.8 million electric bikes in operation serving people's daily mobility needs.

Vietnam is a developing country whose process of industrialization has only been in motion for the past thirty years, but which has nevertheless built momentum towards continued strong growth in the decades ahead, with the goal of increasing GDP by 6.5%-7% per year. The industries and sectors that play key roles in economic development, however, are also those with high levels of greenhouse gas emissions. Setting goals for transitioning to green energy and sharply reducing emissions to net zero by 2050 will also bring enormous challenges to growth and harmonized regulation across economic sectors.

The transport sector is one of the major consumers of fossil fuels in Viet Nam, as well as one of the main emitters of greenhouse gases. Setting a net zero emission target will open up opportunities for transition; it will also entail various difficulties and challenges that will require whole-of-society cooperation and strong international support.

According to an assessment by the Ministry of Transport, the rate of new zero-emission vehicles sold around the world is currently about 2% but is estimated to grow to 30% by 2030 (50% in the US alone). As such, Viet Nam's future policies and initiatives on early transition to green energy will help the zero-emission vehicle industry to develop rapidly and strongly in domestic and foreign markets, promoting economic growth. This is also an opportunity to attract more foreign investment to Viet Nam’s fledgling industry for zero-emission vehicles and equipment.

Transitioning to green energy in the transport sector will also eliminate Viet Nam’s dependence on fossil fuels – an energy source that is mainly imported – which would both reduce its logistics costs and increase its competitiveness in the global market.

Mr. Patrick Haverman, UNDP Deputy Resident Representative in Viet Nam, highlighted in his remarks to conference attendees that “Electric vehicles and green transport are considered a promising technology, an attractive solution for low-carbon transport, and extremely important for reaching objectives for green energy transition in the transport sector and the commitment of net-zero emissions by 2050. The electric vehicle global market is very dynamic: sales of electric vehicles doubled in 2021 from the previous year to a new record of 6.6 million, and nearly 10% of global car sales were electric in 2021. The e-vehicle markets in China, the United States, and Europe show robust growth. In Viet Nam, we are also witnessing the e-vehicle market opening up. “Promotion of EVs require a set of policies and regulations for vehicles, associated infrastructure, manufacturing, and safety requirements, as well as an enabling environment for public-private partnerships. The government should accelerate action to overcome current obstacles in infrastructure. Fiscal incentives can also play a vital role in piloting and scaling up the electrification of transport modalities. Awareness raising for wider social acceptance will also contribute to the success of the transition. Implementing the Action Programme for green energy transition requires the government, development partners, the private sector, and other stakeholders to work together for e-mobility, green energy transition, and reducing greenhouse gas emissions.”

Viet Nam's strong commitments at COP26 will be an opportunity for the transport sector to access advanced and modern technologies to be on par with developed countries in terms of green technology. In the meantime, accessing resources and supporting international investment to build an advanced, modern, low-emission transport infrastructure system will help to promote economic development.

For more detailed information, please contact:
Ms. Nguyen Thi Anh Nguyet
Vice Head of Communications, Transport Newspaper
Phone: 0915057282; Email: anhnguyet.nguyen@baogiothong.vn

Ms. Phan Huong Giang
UNDP CCE Media and Communications Analyst,
Phone: 0948466688; Email: phan.huong.giang@undp.org