The Green Revolution: Transforming Transport Emissions and Energy

The seminar focused on discussing two main topics: “Green, clean, and environmentally friendly energy vehicles” and “Proper use of Euro 5 fuel.”

To provide attendees with a more comprehensive and holistic perspective on green technology, the seminar featured experts and pioneering businesses in the fields of transportation and renewable energy: Assoc. Prof. Dr. Dam Hoang Phuc, Director of Automotive Engineering Training Program at Hanoi University of Science and Technology; Mr. Nguyen Trung Thang, Director of Tax Department at KPMG Vietnam; Mr. Le Quang Quoc, Product Registration Director at ISUZU Vietnam; and Mr. Nguyen Xuan Hung, Vice President of Vietnam Petroleum Association – a member of VINPA.

Green, clean, and environmentally friendly energy vehicles

Global air pollution is one of the most significant issues caused by the transportation sector over the past decades. To reduce greenhouse gas emissions and the increasing levels of fine dust in the air, the adoption of green energy vehicles is an essential solution.

According to Assoc. Prof. Dr. Dam Hoang Phuc, Director of Automotive Engineering Training Program at Hanoi University of Science and Technology, “The transition to clean energy vehicles will not only help reduce greenhouse gas emissions but also promote technological advancement in the automotive industry. Electrified vehicles, especially hybrid and pure electric vehicles, are the inevitable future of global transportation, and Vietnam needs to boost investment in research and application of these solutions.”

The most talked-about green energy vehicles today are electrified vehicles. True to their name, these vehicles use electrical energy to replace, in part or in whole, the role of internal combustion engines.

Electrified vehicles can be categorized into two main groups: hybrid vehicles and pure electric vehicles. Hybrid vehicles typically combine an internal combustion engine with an electric motor. Depending on their characteristics and efficiency, each manufacturer may have a different ratio of power distribution between the two. The batteries of hybrid vehicles can be charged from an external source (plug-in hybrid – PHEV) or through kinetic energy recovery.

In pure electric vehicles, the internal combustion engine is completely eliminated. The vehicle’s propulsion system consists of an electric motor and a large-capacity battery placed under the floor. By removing the internal combustion engine, pure electric vehicles have zero emissions and are ideal for the goal of reducing air pollution by 2030.

Therefore, the trend of electrification started to emerge in 2015 and gained momentum in 2020. In Vietnam, this wave is evident as the number of hybrid and pure electric vehicles is on the rise, ranging from affordable to luxury brands. Even at the Vietnam Motor Show 2024, green vehicles dominated with models such as the Toyota Camry HEV, Honda Civic e:HEV, Suzuki XL7 Hybrid, and a range of electric vehicles from BYD…

Worldwide, the transition to electrified vehicles is accelerated by supportive policies from many countries. In major automotive markets such as Europe, the US, Japan, and China, electrified vehicles receive various incentives such as tax reductions, cash subsidies, or free parking spaces. In neighboring countries like Thailand and Indonesia, pure electric vehicles are exempt from registration fees and import taxes.

In Vietnam, pure electric vehicles enjoy a preferential special consumption tax rate of 3%, while PHEVs are taxed at 70%. However, there are no incentives for conventional hybrid vehicles. Sharing his perspective on this matter, Mr. Nguyen Trung Thang, Director of Tax Department at KPMG Vietnam, stated, “According to KPMG, encouraging the consumption of BEVs is in line with global trends. However, considering the underdeveloped infrastructure for electric vehicles in Vietnam, the government should consider encouraging the replacement of ICE vehicles with hybrid vehicles (PHEV, HEV), which are more environmentally friendly.”

Proper use of Euro 5 fuel

In addition to the electrification of vehicles, using fuel that meets the Euro 5 standard with lower levels of pollutants will also help reduce toxic emissions into the environment.

In Vietnam, all automobiles sold from January 1, 2022, must comply with the Euro 5 emission standard, according to Decision 49/2011/QD-TTg of the Prime Minister. Replacing the previous Euro 4 standard, the Euro 5 emission standard has higher technical requirements and tighter limits on emissions, controlling additional components. Therefore, the effective implementation of the Euro 5 emission standard will significantly contribute to reducing environmental pollution.

Mr. Le Quang Quoc, Product Registration Director at ISUZU Vietnam, stated that using the right Euro 5 fuel not only reduces toxic emissions but also ensures the engine’s performance, prolongs the vehicle’s lifespan, and lowers maintenance costs. “It is essential that consumers understand and use the right type of standard fuel, while businesses and management agencies need to cooperate closely to promote the provision of clean fuel nationwide. This is an indispensable step towards a green and sustainable transportation system,” he added.

While offering numerous benefits, Euro 5 fuel is extremely scarce in Vietnam. According to a survey by the Vietnam Automobile Manufacturers’ Association (VAMA), only about 7% of gas stations nationwide provided Euro 5 fuel as of March 2024. Most of these stations are located in major cities and along main roads, making it challenging for people in rural and remote areas to access Euro 5 fuel.

According to Mr. Nguyen Xuan Hung, Vice President of Vietnam Petroleum Association, the scarcity of Euro 5 fuel arises from the fact that gas station businesses have to sell multiple fuel types simultaneously, leading to a choice between prioritizing the sale of Euro 5 or lower-grade fuel to optimize profits.

Additionally, limited communication and promotion of Euro 5 fuel have resulted in a lack of understanding among the public about the importance of using standard fuel. Lower-grade fuels (Euro 2/3) are still prevalent in the market due to the absence of policies to discontinue their sale.

In the automotive industry, Euro 5 fuel plays a crucial role in environmental protection and enhancing the quality of life. To use Euro 5 fuel properly, collaboration is needed from the entire community, including automobile manufacturers, government agencies, fuel providers, and consumers.

Aiming for Net Zero by 2050

The electrified vehicle market in Vietnam is showing promising signs, thanks to government support and the growing consumer demand for green transportation. However, the process of electrifying transportation also faces challenges, particularly the lack of infrastructure such as charging stations. The current system of charging stations is insufficient to meet the needs of electric vehicle owners. Therefore, there is a need for significant investment in building supportive infrastructure.

Moreover, Euro 5 fuel is essential in reducing air pollution and improving the quality of life. Using this fuel helps reduce toxic emissions from conventional vehicles and facilitates the transition to electric vehicles. Euro 5 fuel also enhances engine performance, reduces fuel consumption, and prolongs vehicle lifespan.

The seminar offered diverse insights into the trends and potential development of electrified vehicles, along with crucial solutions and recommendations regarding the use of Euro 5 fuel. With the participation of leading experts, the event not only raised consumer awareness but also provided a platform for relevant parties to discuss and share experiences, aiming towards the goal of Net Zero. Vietnam Motor Show 2024, coupled with this in-depth seminar, underscored its importance in driving the sustainable development of the automotive and motorcycle industry in Vietnam.

TH (Tuoitretudo)