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
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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