HANOI UNIVERSITY OF

SCIENCE AND TECHNOLOGY

Prof.Dr Le Anh Tuan

FIRST APEC WORKSHOP ON POLICY DIALOGUE

ON FUEL ECONOMY PLATFORM

April 26-27, 2018 at Bangkok, Thailand

Energy status

CO2 reduction targets

Vehicle fleet and potentials

Fuel economy development

Decision No. 153/2004/QĐ-TTg: Strategic

direction for sustainable development in Vietnam

Decision No. 1427/QD-TTg, 02/10/2012: Approval

on the National Target Program on Energy

Efficiency and Conservation for the period 2012-

2015

Decision No. 177/2007/QĐ-TTg: Project of bio-

fuels development to 2015 and the vision to 2025

Decision No. 1993/QD-TTg: Approving the

National Green Growth Strategy: Period 2011-

2020

Intended Nationally Determined Contribution

(INDC) in 2015 specifying its national contribution

(target) for the period 2021–2030 covering its

entire economy

National Target Program on Energy Efficiency and

Conservation for the period 2012-2015 (Decree

No. 1427/QD-TTg ):

o Achieve 5-8% savings on total national energy consumption for the

period 2012-2015.

o Set up a network for the implementation of the Law on Energy Efficiency

and Conservation at central and local levels.

o Widely use high efficient equipment, removing backward technologies

and equipment, reducing 10% of energy intensity in energy intensive

industries.

o Have mandatory management in accordance to Vietnam Building code

for 100% new buildings or renovated buildings.

o Meet 10-15% demand of public transportation in big cities.

Final energy demand

Total pimary enery supply 2005 vs 2013

National Power Development Plan VII (PDP 7

rev), 2016-2020, vision 2030

Power Sources 2015 2020 2025 2030

Renewable Energy 3.7% 6.5% 6.9% 10.7%

Coal 34.4% 49.3% 55.0% 53.2%

Gas Turbine 30.0% 16.6% 19.1% 16.8%

Hydro 30.4% 25.2% 17.4% 12.4%

Import 1.5% 2.4% 1.6% 1.2%

Nuclear - - - 5.7%

National Green Growth Strategy, Period 2011-

2020 (Decree No. 1993/QD-TTg)

oReduce the intensity of GHG emissions by 8-10%

compared to 2010 base

oReduce energy consumption per unit of GDP by 1-1,5%

per year

Intended Nationally Determined Contribution

(INDC) in 2015 specifying its national contribution

(target) for the period 2021–2030 covering its

entire economy as:

oUnconditional contribution: With domestic resources, by

2030 Viet Nam will reduce GHG emissions by 8%

compared to BAU(*):

o Emission intensity per unit of GDP will be reduced by 20%

compared to the 2010 levels

o Forest cover will increase to the level of 45%

(*) Viet Nam’s Business-as-Usual (BAU) scenario for GHG emissions was developed based on the assumption of economic

growth in the absence of climate change policies. The BAU starts from 2010 (the latest year of the national GHG inventory)

and includes the energy, agriculture, waste and LULUCF (land use, land-use change and forestry) sectors.

− GHG emissions in 2010: 246.8 million tCO2e

− Projections for 2020 and 2030 (not included industrial processes):

o 2020: 474.1 million tCO2e

o 2030: 787.4 million tCO2e

oConditional contribution: With international support and

the implementation of new mechanisms under the Global

Climate Agreement, by 2030 Viet Nam will reduce GHG

emissions by 25% compared to BAU:

o The areas of energy (including transport and

communications), agriculture (including land use and

forestry) and waste can make the greatest contributions

o The cost of adaptation is estimated in excess of 3-5% of

GDP by 2030

o Investments from the private sector and international support

are requiredno policy on CO2 target for vehicles athough the transport sector was the third largest energy-consuming

sector, accounting for 22% of total final energy consumption in 2013 and remained the main consumer of

petroleum products at 72% of the economy’s total requirement. This sector’s share increased rapidly from 18%

in 2005, resulting from its highest demand growths (6.4% per year average) during 2005-2013.

oThe transport sector was the third largest energy-

consuming sector, accounting for 22% of total final

energy consumption in 2013

oTransport sector is the main consumer of petroleum

products at 72% of the economy’s total requirement.

oThe annual growth rate of energy consuming in transport

sector is 6.4% during 2005-2013.

o GHG inventory in 2010 and projections for 2020 and

2030 for the energy sector Source: INDC, 2015

Transport share (%): 22.5 22.5 13.0

By 2030:

The use of ethanol will be 10% compared to 3% in the

BAU.

15% of private motorbike use will be replaced with the

use of public urban buses and trams.

Road cargo transportation will decline by 5% with a shift

towards sea-borne and river-borne transportation with the

rates corresponding with share of tonne-km of each

transport mode in 2030

Source: DoE, VR 2018

About 46 mil.

motorcycles

(inl. 2.0 mil.

E-bikes)

2.5 mil. cars

Average fuel consumption of new vehicles

Vehicle Technology Measures Source/DocumentsImplemented

year

Alternative Fuels

Bioethanol QĐ53/2012/QĐ-TTg

Blended gasoline E5:- Big cities: 01.12.2014- Nationwide: 01.12.2015 11/CT-BCT

2018

Blended gasoline E10:- Big cities: 01.12.2016- Nationwide: 01.12.2017 (Est: 2019)

N/A

Higher bioethanol ratio (E20, E30,…) N/A

Biodiesel QĐ53/2012/QĐ-TTg

Blended diesel B5 N/A

Blended diesel B10 N/A

Higher biodiesel ratio (B20, B30,…) N/A

CNG

Ho Chi Minh City: ~300 buses (7.2017) Site: pvgas.com.vn

Increase number of CNG vehicles

LPG

South: ~350 taxi (11.2010)

Vehicle Technology Measures Source/DocumentsImplemented

year

Mass Rapid Transit (MRT)

BRT

Hanoi: Planned 9 lines (2017: 1 line)

Master plan 2030-2050 (approved by 1259/QĐ-TTg, 26.07.2011)

2017

HCM: Planned 8 lines N/A

Metro

Hanoi: 8 lines (first 4 lines: 2016, 2018, 2019, 2020). Real: N/A.

Master plan 2030-2050 (approved by 1259/QĐ-TTg, 26.07.2011)

HCM: 8 lines (1st one: est. 2020) N/A

Vehicle Technology Measures Source/DocumentsImplemented

year

Electric Vehicles

Electric 2-wheeler

Nationwide: ~2 mil. units (09.2016) Site: mt.gov.vn

Electric bus

HCM: 4 operating lines (01.2017) 2017

Intensify electric buses in big cities

Electric car N/A

Next-generation Vehicle

Hybrid vehicle N/A

Fuel cell vehicle N/A

Autonomous vehicle N/A

2015: Madated fuel economy labelling program

for locally assembled and imported cars with up to

7 seats

2018: All vehicles with 9 seats or less will require

new fuel efficiency labels before they can hit the

market

Excise tax

No Vehicle CategoryTax rate (%)

2016 Since Jan. 2018

1 Passenger cars from 9 seats or fewer

a - Engine capacity <1.5L 40 35

b - Engine capacity 1.5-2L 45 40

c - Engine capacity 2-2.5L 50 50

d - Engine capacity 2.5-3L 55 60

e - Engine capacity 3-4L 90 90

2Cars operated by gasoline and electricity or bio-fuel, with gasoline accounting for at most 70% of the fuel used

70% of the tax rate for cars of the same kind

3 Bio-fuel powered cars50% of the tax rate for cars of the same kind

4 Electric cars

a - Passenger cars from 9 seats or fewer 15

b - Passenger cars from 10 to less than 16 seats 10

c - Passenger cars from 16 to less than 24 seats 5

d - Cars for both passenger and goods 10

(Law 106/2016/QH13)

Thanks for your attention!

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