In our previous article, we explored the critical role of carbon emissions and why they matter in the Vietnamese context. Among the various sectors contributing to the country’s emissions, transportation stands as one of the most significant. In this article, we’ll examine the impact of transportation emissions on Vietnam’s environment and economy and discuss how players in the industry are responding to new sustainability demands.
Impact of transportation emissions in Vietnam
Transportation is one of the main contributors to carbon emissions in Vietnam, encompassing various modes of travel, including waterways, aviation, road, and rail. Road transport, in particular, is a focal area. According to the August 2024 report by the NDC Transport Initiative for Asia, road transport accounts for approximately 80% of total transportation emissions and over 85% of the sector's energy demand. With the growth of Vietnam's population and economy, the demand for transportation and fuel consumption is also on the rise, leading to increased emissions. Therefore, organizations and businesses that own and operate vehicle fleets play a crucial role in reducing emissions. Measures can include fuel consumption reduction, the adoption of new technologies, and the implementation of environmentally friendly practices.
Highlighted initiatives for transportation carbon reduction
While large corporations and multinational companies are increasingly setting clear emission reduction targets, domestic businesses with limited resources can still take practical steps to gradually shift towards sustainability.
More Efficient Energy Consumption: Gradually transitioning to more fuel-efficient or environmentally friendly vehicles (such as those meeting EURO 4 and EURO 5 standards) can help reduce emissions over time, depending on the financial capacity of the business, the readiness of infrastructure, and, most importantly, the long-term vision to embrace the green trend. Additionally, this effort may include considering the switch to electric vehicles (EVs) or even hydrogen-powered vehicles.
Electric vehicles (EVs): Transportation policies in Vietnam are gradually encouraging businesses to explore and invest in new technologies, seek alternative fuels, and integrate EVs into their fleets is among the first step. While EVs indeed reduce emissions compared to traditional fossil-fuel-powered vehicles during operation, they still indirectly contribute to emissions due to the electricity used for charging, which largely depends on thermal power. Furthermore, the widespread adoption of EVs faces challenges such as inconsistent infrastructure, limited travel range, etc. Nonetheless, projects involving EVs in public transportation and business operations in major cities like Hanoi and Ho Chi Minh City have gained attention and positive feedback, contributing to a reduction in dependence on fossil-fuel vehicles.
Hydrogen-powered vehicles: In addition to EVs, hydrogen fuel cell vehicles are also a low-emission option worth considering, emitting only water vapor. This is especially impactful when “green hydrogen,” produced by splitting water molecules using electricity from clean sources, is used – further reducing emissions as fuel production becomes carbon-neutral. However, challenges remain regarding vehicle costs, efficiency relative to production expenses, and infrastructure readiness. For instance, green hydrogen production can result in significant energy losses, and the infrastructure needed to support hydrogen-powered vehicles is still in its infancy globally, even in developed countries. Therefore, despite its great potential, this option remains less feasible in the short term for developing countries like Vietnam.
Leverage the power of technologies: Utilizing digital solutions for fleet management, such as fuel consumption monitoring, route optimization, telematics systems, and real-time carbon emission tracking, are effective measures to enhance operational efficiency, save costs, and reduce emissions. Dibee solution not only manages fuel consumption efficiently but also provides tools to measure and report fleet emissions based on extensive data, assisting businesses in regulatory compliance and suggesting improvements to further reduce emissions in the future.
Check out this blog: How digitalization is revolutionizing fleet management in the age of sustainability: Vietnam context and Dibee's role
Encouraging broader industry engagement
As environmental regulations become increasingly stringent, even small and medium-sized enterprises (SMEs) can enhance their competitive position by studying and assessing carbon emissions from business activities, including transportation. This evaluation can help identify measures to reduce emissions, conserve energy and fuel in supply chain operations, and optimize processes. Promoting sustainable thinking and fostering a culture of sustainability within organizations will enable SMEs to quickly adapt and respond effectively to changes in the legal and market landscape.
Conclusion
Carbon emissions are a pressing issue not only in Vietnam but globally, impacting environmental stability, public health, and economic resilience. Vietnam's climate policies and emission reduction targets underscore the importance of understanding greenhouse gases, particularly carbon emissions, in high-emission sectors like transportation. By implementing emission reduction measures suited to their specific characteristics and resources, businesses, organizations, and individuals contribute to the country's journey toward sustainable development for future generations. Moreover, they support Vietnam in maintaining a balanced approach between economic growth and environmental management amid modernization, ensuring a sustainable future for all members of society.
If you wish to gain deeper insights into carbon emissions in Vietnam, including environmental, economic, and legal contexts, don’t miss our article on the topic What are carbon emissions and why are they important: A focus look on Vietnam context.
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