Doctor Pham Viet Thuan, from the Ho Chi Minh City Institute of Economics and Environment, shared this information at the "Green Transition: What's Needed to Accelerate?" workshop organized by Thanh Nien Newspaper on 26/6 in Ho Chi Minh City.

Doctor Pham Viet Thuan reported that a survey by his Institute revealed approximately 80% of residents in Ho Chi Minh City and Hanoi are not yet prepared to transition to electric vehicles. He attributed this reluctance not to a lack of awareness, but primarily to uncoordinated implementation conditions.

The primary obstacle is the current legal framework, as Vietnam still lacks a dedicated Electric Vehicle Law. This absence leaves technical standards, legal liability, and risk management mechanisms unregulated. For instance, in cases of electric vehicle battery fires or explosions, responsibility remains unclear between manufacturers and users, hindering the transition due to an incomplete legal foundation.

Furthermore, the existing electricity and charging infrastructure lags behind demand. Mr. Thuan illustrated this, noting that if Ho Chi Minh City's entire fleet transitioned to electric vehicles, electricity demand could soar to approximately 46,000 MW. Upgrading the power grid and substations to support charging alone would necessitate an investment of at least 7 billion USD. Including charging stations, vehicles, and supporting policies, the total capital required could surpass 10 billion USD.

Moreover, the charging station network lacks comprehensive planning, and current policies to support vehicle conversion are not enticing enough to alter public behavior. Consequently, Mr. Thuan emphasized that the transition requires a phased roadmap rather than a simultaneous rollout.

Instead of a broad implementation, he proposed prioritizing three specific vehicle categories: buses, taxis, and delivery vehicles. These groups, characterized by high operational frequency and ease of management, could significantly impact emissions. A successful transition within these categories could reduce CO2 emissions in Ho Chi Minh City by approximately 80%.

Doctor Pham Viet Thuan, Ho Chi Minh City Institute of Economics and Environment. Photo: Doc Lap

The challenges extend beyond transportation, with the broader green transition encountering several obstacles. Associate Professor Doctor Nguyen Dinh Tho noted that Vietnam's green economy currently represents only about 4-4,5% of its total economic output. Most production and urbanization still adhere to a "brown economy" model, heavily reliant on fossil fuels and high-emission activities.

According to Doctor Tho, among the three pillars of green technology, green finance, and green human resources, the latter poses the most significant weakness. The youth unemployment rate for those aged 15-24 stands at 9-10%, and informal labor comprises approximately 64,5% of the workforce. This limits access to green jobs and green finance. He stressed that even substantial investments in infrastructure or technology would prove ineffective without a skilled workforce capable of operating them.

Businesses in the renewable energy sector echo these challenges, drawing from their practical implementation experiences. A representative from Trung Nam Group highlighted Vietnam's substantial advantage in wind and solar power, thanks to favorable natural conditions, stable cash flow, and long project lifecycles, which appeal to credit institutions. However, following a period of rapid expansion, the market is now entering a new development phase marked by numerous policy adjustments. The Direct Power Purchase Agreement (DPPA) mechanism, in particular, is anticipated to create more opportunities for private sector involvement in the electricity market.

Sharing this perspective, Nguyen Ngoc Minh Dang, General Director of Power Investment Construction Consulting Joint Stock Company 5 (PCC5), noted that businesses still encounter significant hurdles. These include unclear electricity purchase and sale prices, prolonged investment procedures, complex site clearance, and notably, transmission infrastructure limitations. Many completed projects remain inoperable, awaiting synchronized power lines or grid integration.

From the electricity supply perspective, a representative from EVN stated that Vietnam's power demand has surged in recent years. This is particularly evident during peak heatwaves, when the system load occasionally surpassed 58,000 MW, with daily consumption reaching over 1 billion kWh.

EVN confirmed that the power sector continues to meet socio-economic development needs. However, the system faces increasing pressure as electricity demand grows, while most generation sources remain dependent on fossil fuels.

To achieve energy transition goals, EVN is progressively developing low-emission power sources, including expanded hydropower, wind power, and solar power. The company is also exploring new long-term avenues such as offshore wind and nuclear power. Concurrently, EVN is modernizing the power grid to enhance operational capabilities in response to rapidly increasing load demand.

However, an EVN representative suggested that beyond investing in generation and grid infrastructure, implementing economical and efficient electricity use offers an immediate solution. This approach could alleviate system pressure, curb the need for new investments, and contribute to emission reductions during the transition phase.

Thi Ha