The World Bank’s newly released report “Recommendations to the National Roadmap and Action Plan for the Electric Mobility Transition” suggests a roadmap for the process.
By 2030, 50 percent of urban vehicles and 100 percent of buses and taxis would have to use electricity, and by 2050, all road transport vehicles would run with electricity or green fuel.
The transition process will help reduce 5.3 million tons of CO2, or 8 percent of Vietnam’s targeted emission reduction by 2030, and 226 million tons, or 60 percent, by 2050.
In the transport sector, the process of burning petrol and diesel by vehicles using international combustion engine emits a considerable volume of pollutants such as nitrogen oxides, sulfur oxides, and particulate matter of 10 micrometers or less in diameter (PM10).
The gases cause air pollution, leading to serious consequences in the environment and threatening people’s health.
Scientists pointed out that road transport vehicles are the major factor that causes greenhouse gas emissions, accounting for 85 percent of the emission volume in the transport sector.
In 2022, motorbikes made up 28 percent of total emissions, and buses and interprovincial coaches 11 percent, cars 6 percent and trucks 56 percent.
Prior to that, the Vietnamese Prime Minister approved an action plan on green transition, and carbon and methane emission reduction for the transport sector via Decision 876 released in July 2022.
The important decision was Vietnam’s first policy with an aim of reducing 7.2 percent of the transport sector’s contribution to the total greenhouse gas emission volume of the entire national economy.
It was also an important step forward for Vietnam to obtain NDC (Nationally Determined Contributions) in accordance with the Paris Agreement and reach the net-zero goal by 2050.
The World Bank report also included recommendations in policies for Vietnam to obtain goals as shown in Decision 876, which puts emphasis in shifting to use electric vehicles.
However, this will be a complicated process, which covers a multi-sectoral ecosystem focusing on developing electric public transport means. This includes the activities of providing and manufacturing electric vehicles, giving preferences to electric vehicles, developing charging station networks, and preparing for the power sector to adapt to electric vehicle charging.
The first step in the transition process is establishing an inter-governmental agency to coordinate the efforts during the entire process. The ministries of Industry and Trade (MOIT), Transport (MOT), Planning and Investment (MPI), Science and Technology (MST) and Finance (MOF) will play major roles in the fields put under their management at the inter-governmental agency.
The working efficiency of the agency will play a decisive role in optimizing the pace and costs related to the transition process.
To obtain the goal of using electric vehicles, clean-fuel vehicle sales in Vietnam need to increase from 500,000 in 2022 to 1.5 million by 2030 and 7.3 million by 2050. The figures mean market demand of 7 million of products of all kinds of electric vehicles in 2024-2030, and 71 million in 2031-2050.
Prior to 2035, two-wheel vehicles (2WV) are expected to continue to be the major means of transport in Vietnam, though total demand is on the decrease.
Vietnam is the second largest 2WV market in the world, after China. In 2022, 2W electric vehicles accounted for 12 percent of total 2W sales. Therefore, Vietnam is ready to accelerate the use of E-2W (electric two-wheelers (E2W) on a larger scale.
The Vietnamese E2W market is diverse and bustling, with many suppliers competing on price and quality. Consumer’s E-2W acceptance is quite high, especially in urban areas.
In terms of personal cars (PC), the World Bank believes that Vietnam has a great opportunity to divorce itself from gasoline- and diesel-run cars and enter the era of electric PC (E-PC).
It will take another decade for the PC to replace 2W and become the major choice in Vietnam. In that period, E-PC prices will be increasingly competitive in comparison with the traditional PC thanks to performance improvement.
VinFast, the first Vietnamese electric vehicle brand in Vietnam, launched its first E-PC in 2021 and immediately got 14 percent of the total PC market share that year.
The prices of some VinFast’s E-PC models are now equal to a traditional PC. The manufacturer reported that 11,000 electric vehicles of different kinds were delivered to clients in October 2024.
Tam An
