Saving nearly 500 billion USD in fuel imports

Electric buses are being welcomed by people. Photo: MQ

Creating 6.5 million jobs by 2050

According to a recently released report by the World Bank, Vietnam is entering an important phase in its transition to electric vehicles, in order to realize its commitment to achieving net zero emissions by 2050. This change not only helps reduce emissions but also creates opportunities for the development of green industries, opening up a more sustainable future for Vietnam's transportation. Especially in the road transport sector, which is currently contributing to 7.2% of Vietnam's total greenhouse gas emissions, equivalent to 32.9 million tons of CO2 in 2021.

To reduce these emissions, the Government issued Decision No. 876/QD-TTg in July 2022, which sets out important targets for the electrification of transport.

The WB report also shows that by 2030, about 50% of urban vehicles and 100% of inner-city buses and taxis will use electric energy. Furthermore, by 2050, all road vehicles are expected to switch to green energy. According to calculations, switching to electric vehicles can help reduce net emissions by about 2.2 million tons of CO2e by 2050, even with the current grid system. The above figure will increase to 5.3 million tons if the greening of the grid is completed according to Power Plan VIII. In addition, the development of electric vehicles also opens up many new industries and jobs with high scientific and technical content. It is estimated that switching to electric vehicles can create up to 6.5 million jobs in Vietnam by 2050, especially in the field of battery production and charging infrastructure development.

And if we only consider the electric two-wheeled vehicle segment, the WB report also shows that with an international oil price of 80 USD/barrel, Vietnam will save 498 billion USD from having to go abroad to buy gasoline. According to the World Bank's assessment, Vietnam is facing many opportunities to promote the transition to electric vehicles.

Also related to the conversion to electric vehicles, in early January 2025, Hanoi Transport Corporation (Transerco) officially put into operation 4 bus routes, with 35 medium-sized vehicles and 11 small-sized vehicles, using electric energy. Director of Hanoi Traffic Management and Operation Center Thai Ho Phuong said that after more than 1 month of operation, all 4 electric bus routes have shown positive signals. In February 2025 alone, the passenger volume on these 4 routes reached 578,400 (excluding free passengers), an increase of 36.4% compared to January 2025.

Of which, route 39 passenger volume increased by 25.1%, revenue increased by 41.5%; route 59 passenger volume increased by 46.2%, revenue increased by 52.1%... Average passenger volume of 4 routes reached 40 passengers/trip, up 42.1% over the same period in 2024.

According to the Project on developing a public transport system using buses using electricity and green energy in Hanoi, by 2035, 100% of buses must use these energies. Specifically, in the period of 2026-2035, the city will convert 50% of electric buses and 50% of LNG/CNG (liquefied natural gas) buses. The total number of vehicles that need to be converted is 2,051. Of which, in 2025, the city will convert 103 electric vehicles (5%); in the period of 2026-2030, 1,813 vehicles (93.4%), including 859 electric vehicles and 851 LNG/CNG vehicles; in the period of 2031-2035, 2,051 vehicles will be completed for conversion (100%).

Synchronous solution

Regarding the transition to electric vehicles in Vietnam, Ms. Chiara Rogate - a senior energy expert of the World Bank, commented that to ensure success, there must be synchronous solutions from policy to infrastructure. First of all, the establishment of a state management agency specializing in electric vehicles is necessary. This agency will help coordinate policies between the transport and energy sectors, creating consistency in the process of implementing vehicle electrification goals.

According to Ms. Chiara Rogate, Vietnamese people's awareness of electric vehicles has also made great strides in a short time. Vietnamese people are now very interested in electric vehicles thanks to the benefits of lower operating costs compared to gasoline vehicles, along with the trend of green living and environmental protection. In addition, battery technology and the travel range of electric vehicles are gradually improving, helping to eliminate concerns about travel distance. Expanding the network of charging stations, especially fast charging stations integrated with smart technology, also plays an important role in encouraging people to switch to electric vehicles.

Currently, public charging infrastructure is still limited, making many people hesitate when considering using this means of transport. In addition, the electricity industry also needs to be carefully prepared to meet the increasing demand for electric vehicle charging. Electric vehicles, especially cars and trucks, are expected to account for 53% of charging demand in the period 2035 - 2050, requiring huge investments: 6 - 9 billion USD from 2024 - 2030, and 200 - 218 billion USD from 2041 - 2050...

The WB report also proposes building a public charging network from 2025 to 2035, starting in Hanoi, Hai Phong, Da Nang, Ho Chi Minh City and Can Tho, then expanding to suburban areas.

Source: https://daidoanket.vn/chuyen-doi-su-dung-xe-dien-tiet-kiem-gan-500-ti-usd-nhap-nhien-lieu-10301699.html