National conference on Development of electric mobility towards green energy transition of transport sector in Viet Nam

Speech by Mr. Patrick Haverman, UNDP Deputy Resident Representative in Viet Nam

October 20, 2022

Your Excellency Mr. Le Anh Tuan Vice Minister of Ministry of Transport

Mr. Watanabe Shige, Deputy Ambassador of Japanese Ambassy to Viet Nam

Distinguished representatives from ministries, institutions, businesses, and development partners

Ladies and Gentlemen,

Xin chào and good morning!

On behalf of UNDP, it is my great honor to welcome all of you to the National conference on Development of electric mobility towards green energy transition of transport sector in Vietnam.

I would like to applaud the Government of Viet Nam for its commitment to Net-Zero emissions by 2050 at COP26.

We would also congratulate the Ministry of Transport on the recent approval of the Action plan for green energy transition and reduction of carbon dioxide and methane emissions of transport sector (Decision No. 876.QD-TTg) in July 2022. The main objective of the action plan is to accelerate fuel switch for all transport subsector and readiness of technology, institutional, capacity and resources for the transition for the period to 2030, and fuel switching to electricity and green energy for all transport vehicles and equipment to achieve zero emission targets by 2050.

Ladies and Gentlemen,

Generally, the transport sector contributes approximately a quarter of global greenhouse gases (GHG) emission and is a major sector where emissions are still rising. Within the transport sector, road transport is accounts for more than half of all transport relative GHG emission.  Rapidly growing mobility needs and increase in private vehicles also resulting in poor air quality and threats to community health. Among the 4 key areas highlighted at COP26 to secure global net zero by mid-century and keep 1.5 degrees within reach, accelerating the switch to electric vehicles is front and centre.

In Viet Nam, rapidly economic development has also resulted in sharp increase for road transportation, with an average annual growth of 9.43% between 2007 to 2019 and it is estimated annually growth rate will be from 6,8% to 7.35 over period to 2030.

As Viet Nam has committed in its Nationally Determined Contribution (NDC) to cut GHG emissions by 9% in 2030, compared to the BAU scenario using domestic resources, increasing this ambition to 27% against BAU contingent on receiving international. The transport sector will contribute for the GHG reduction by 0.89% and 2.23% respectively. Therefore, it is important to transform the transport sector to make meaningful contribution to meet Viet Nam NDC’s GHG emission target

Ladies and gentlemen,

To meet these GHG emissions reduction targets, road transport will have to reduce emissions substantially and E-mobility and green transport are key to realize “Action plan for green energy transition” to meet net zero emission target. Against this backdrop, the object of the workshop today is to share international experiences and trends in E-mobility, discuss the opportunities and challenges and to recommend solutions and initiative to support E-mobility in Vietnam and towards green energy transformation and reduction of carbon and methane emission in the transport sector

To promote e-mobility in Viet Nam, I would like to highlight some key points for discussion in the conference:

Firstly, electric vehicles and green transport are considered a promising technology and an attractive solution for low-carbon transport and extremely important for reaching objectives of green energy transition in transport sector and the commitment of net-zero emissions by 2050. A growing number of countries have pledged to phase out internal combustion engines or have ambitious vehicle electrification targets for the coming decades and establishing the EV as a future mode of transport.

The good news is the electric vehicle global market is very dynamic and sales of electric vehicles (EVs) 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, United State and Europe show robust growth. In Viet Nam, we also witness the opening up of the e-vehicle market.  

Secondly, promotion of EVs require a set of policies and regulations for vehicles, associated infrastructures, manufacturing, safety requirements, enabling environment for public-private partnerships. The government should accelerate action to overcome the current obstacles of infrastructure. Fiscal inventive also take vital role for piloting and scaling up electrification transport modalies. Awareness raising for widen social acceptance also contribute for the success of the transition.

Thirdly, the implementation of the Action program for green energy transition requires that the Government, development partners, private sector other stakeholder to work together contribute for electric mobility, green energy transition and reducing GHG emission. We have witnessed the private sector investments and contribution, that should be expanded and replicated nationwide

Ladies and Gentlemen

We would like to extend our appreciation to the Ministry of Transport, as well as all partners, stakeholders working towards the ambition of decarbonization of the transport sector of Viet Nam.

We look forward to the open and informative discussion as we move towards a net-zero emission future.

Wish you all with good health and success!

Thank you! Xin cảm ơn!