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Mobility electrification to tackle air pollution in Vietnam
According to the World Health Organization (WHO), air pollution leads to about seven million premature deaths each year. Fine particulate matter (PM2.5) can cause or aggravate diseases such as asthma, cancer, stroke, and lung disease. High PM2.5 concentrations also adversely affect children’s cognitive development, cause mental health problems, and complicate underlying diseases such as diabetes.
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| Ha Quoc Dung, monitoring and reporting specialist The Institute of Strategy and Policy on Natural Resources and Environment |
In 2023, only 10 countries and 9 per cent of cities met the WHO’s PM2.5 standard. PM2.5 is also linked to climate change, with fossil fuel emissions being the main cause. Tackling air pollution and climate change simultaneously is feasible, offering opportunities to improve the environment and public health.
The same year, Vietnam ranked 22nd in the list of countries with the worst air quality, with an average AQI of 88, reflecting a worrying pollution situation. Although not as severe as Bangladesh or Pakistan, the pollution level in Vietnam is still at an unhealthy level, especially dangerous for sensitive groups such as children, the elderly and people with respiratory diseases.
On the morning of January 3, Hanoi recorded the highest air pollution level in the world with an average AQI of 284, according to IQAir. This is a very harmful level for health, especially for sensitive groups such as children, the elderly and people with respiratory diseases. Hanoi surpassed the top polluted cities such as Delhi and Karachi, maintaining its position in the group of the most polluted cities globally.
In Tay Ho district, the AQI reached 557, a dangerous level, while neighbouring areas all exceeded 400. Haiphong also recorded AQI 272. On the evening of February 10, Hanoi continued to be recorded as the most polluted city in the world, with an AQI of 188.
By January 24, Ho Chi Minh City had risen to second place in the list of most polluted cities, with PM2.5 concentrations 11 times higher than the WHO’s recommendations. This situation poses a major challenge, requiring emission control measures, traffic improvement, and increased green areas to protect public health.
Vietnam needs to reduce traffic emissions through measures such as road cleaning to reduce dust, traffic regulation to reduce congestion, building low-emission areas, developing public transport, electrifying vehicles, supporting the production and use of electric vehicles (EVs) through credit mechanisms, developing charging station infrastructure, and subsidising EVs. At the same time, it is necessary to strictly control emission sources and raise public awareness to improve sustainable air quality.
Modern transport policy
In 2024, around 17 million EVs were sold globally, with 65 per cent in China. Europe sold around 3 million EVs, with the UK seeing a 58 per cent on-year increase in battery EV sales thanks to heavy investment. The UK government required zero-emission vehicles to account for 22 per cent of sales in 2024, aiming for 80 per cent by 2030 and 100 per cent by 2035.
In the first nine months of 2024, EV sales in China increased by 31 per cent, driven by strong growth in plug-in hybrid EVs and extended-range ones.
Major manufacturers are pushing into this segment from 2025. The Chinese government has implemented a transport electrification policy to reduce air pollution and has rolled out a series of strong support measures to encourage use of EVs and plug-in hybrids, including credits, subsidies, tax incentives, and charging infrastructure development.
According to Gartner, the global EV fleet will reach 85 million by the end of 2025, with China accounting for more than half (49 million), far ahead of Europe (20.6 million) and North America (10.4 million). China’s new energy vehicle industry is expected to expand to $3.16 billion by 2026. Shenzhen is a prime example, having converted all 16,000 buses from diesel to electric since 2017 thanks to government subsidies.
China also requires at least 30 per cent of new government vehicles purchased each year to be classed as new energy, in order to reach its net-zero emissions target by 2060. To maintain this progress, CO2 emissions from new passenger cars must fall to zero by 2035, while emissions from commercial vehicles need to fall 74 per cent from 2012 levels.
Vietnam, especially large cities such as Hanoi, Ho Chi Minh City and Haiphong, are facing serious air pollution due to the increase in personal vehicles using fossil fuels.
According to the experience of developed countries such as the UK, the US, France, Sweden, and China, electrifying transport through credits, encouraging EVs, implementing low emission zones, and applying strict emission standards can effectively reduce air pollution and greenhouse gases.
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| Mobility electrification to tackle air pollution in Vietnam, Photo: Le Toan |
Electrification experience
To make this transition, Vietnam needs a comprehensive strategy, combining financial incentives, infrastructure investment and appropriate traffic regulation policies.
First, financial support and incentives for consumers and businesses are key. Countries like France and the US have been successful with subsidy and rebate schemes. The California Clean Vehicle Rebate Programme has allocated more than $1.4 billion since 2009, providing $7,500 in subsidies to EV buyers, helping to reduce nearly 10 million tons of CO2. France supports €4,000-7,000 for low-income people to buy EVs.
Vietnam can learn from this by implementing financial support, credits, exemptions from special consumption tax, reductions in import tax on components, and preferential credit support for domestic manufacturing enterprises. The policy of exchanging old cars for electric cars, like China, is also an effective solution to replace polluting vehicles.
Second, developing charging infrastructure and smart grids is key to popularising EVs in Vietnam. Currently, the lack of charging stations is a major barrier. China has succeeded by investing heavily in fast charging networks, with more than 2 million charging stations nationwide. Vietnam needs to plan charging stations in large cities, public parking lots, shopping malls and highways.
The government should cooperate with private enterprises to develop fast charging stations and integrate smart grids, optimising renewable energy. Mobile charging station models and home charging stations should also be deployed to increase accessibility for people.
Third, implementing a low-emission zone policy and restricting old petrol vehicles in Hanoi, Ho Chi Minh City, and other crowded cities is an effective solution to reduce pollution. Such zones have been successful in Beijing, London, and Milan, significantly reducing emissions by restricting high-emission vehicles from entering the central area.
Hanoi and Ho Chi Minh City can pilot a ban on old low-emission vehicles, while charging emission fees for petrol and diesel vehicles. Prioritising dedicated lanes for EVs and electric buses is also a way to encourage the use of clean vehicles.
Fourth, implementing strict emission standards and promoting domestic EV production is a necessary direction. The US has been successful with various initiatives, and China also aims for 20 per cent of vehicles on the road to be clean. Vietnam can raise emission standards for fossil fuel vehicles and encourage investment in EV production.
The government should aim for 30 per cent of new vehicles sold by 2030 to be zero-emission vehicles, while supporting companies like VinFast through EV credits, tax incentives, research and development subsidies, and incentives for domestic consumption and exports.
Fifth, boosting the use of EVs in public transport and freight transport is an effective solution to reduce pollution. China has required buses and taxis in many major cities to switch to electric or plug-in hybrid vehicles. Vietnam can apply a similar model, requiring urban bus routes and taxis to gradually switch to EVs, while providing financial and infrastructure support to transport units. The government should also offer tax incentives or subsidies to logistics enterprises investing in electric trucks, contributing to reducing emissions from freight transport.
By synchronously implementing these solutions, Hanoi, Ho Chi Minh City, and Haiphong will not only improve air quality but also promote a green economy, reduce dependence on fossil fuels, and create momentum for the development of the domestic EV industry.
The event presented key topics including international standards and technological solutions for carbon emissions’ management, environmental, social, and governance policy evaluation based on global standards, and the application of technology in optimising operational costs.
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| ACCA event highlights technology’s role in sustainability practices |
The conference served as a platform for future-oriented businesses to share their successes and challenges while fostering collaboration among those committed to sustainability.
During the conference, Ren Varma, ACCA’s head of Mainland Southeast Asia, delivered in-depth insights into ACCA’s role in supporting businesses in building sustainable development capabilities.
Citing 2024 trade figures, Varma noted that Vietnam’s import-export turnover maintained unprecedented levels over the past 40 years, supported by the enforcement of over 17 trade agreements.
Vietnam-EU trade exceeded $67 billion, with numerous domestic enterprises integrating into European and global supply chains.
“Implementing sustainability reporting is imperative for Vietnamese firms participating in global supply chains to comply with Europe’s mandatory sustainability disclosure regulations. The key challenge is how businesses can effectively implement sustainability reporting with existing resources while meeting international standards,” said Varma.
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| Ren Varma, head of Mainland Southeast Asia, ACCA. Photo: ACCA Vietnam |
Representatives from various other organisations, such as VACPA, FPT, Unilever, HDBank, PwC, and the University of Economics in Ho Chi Minh City shared their experiences in leveraging technology for sustainability.
These real-world case studies enabled participants to gain practical insights into how best to apply technology to sustainable management, while understanding the essential competencies required for effective implementation.
At the event, experts reaffirmed their commitment to enhancing capabilities and professional expertise in achieving national sustainable development goals and the target of Net-Zero by 2050.
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| Photo: ACCA Vietnam |
ACCA pledged its continued support by launching the Professional Diploma in Sustainability (ProDipSust) across more than 180 countries, including Vietnam. This initiative aims to equip professionals with the necessary expertise to implement sustainable business practices.
ProDipSust not only provides in-depth knowledge on sustainability but also guides businesses on practical applications, from understanding international frameworks and regulations to strategic management, sustainability reporting, and assurance.
Recognised as a globally standardised knowledge framework, this diploma plays a crucial role in strengthening corporate sustainability governance, ensuring transparency, and complying with international standards.
Beyond offering training programmes, ACCA actively collaborates with leading organisations to drive sustainable development initiatives.
Beyond offering training activities, ACCA collaborates with major organisations to drive sustainability initiatives. In this seminar, ACCA Vietnam, in partnership with VACPA and PwC Vietnam, established a highly practical forum to help Vietnamese firms align with international standards and devise effective sustainability strategies.
Ren Varma underscored the critical role of finance and accounting professionals in advancing sustainable development, saying, “Financial expertise is not just about financial reporting, it plays a fundamental role in shaping sustainable strategies. Finance professionals are responsible for integrating sustainability initiatives into business models, accurately measuring their impact, and transparently communicating them to stakeholders. ACCA’s certification serves as a vital tool for businesses and individuals to enhance their expertise in this field.”
“With a strong commitment to fostering sustainability competencies, ACCA will continue to support businesses and financial professionals on their journey towards a responsible and sustainable economy,” he added.
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Ho Chi Minh City has announced plans to develop infrastructure along the Saigon River towards the East Sea. Photo: Le Toan |
Talking with VIR on March 4, Doan Manh Thang, director of water and resilience at Royal HaskoningDHV Vietnam, said the Saigon River has great potential but has not been exploited properly. The plan will map out a waterway from Cu Chi to the city centre.
Royal HaskoningDHV is the leader of a consortium that includes Boston Consulting Group, Roland Berger, the Ministry of Construction, and ACUD Consult that has been tasked with developing this plan which was approved by the prime minister on December 31, 2024.
The plan aims to develop Ho Chi Minh City into a hub of high-quality human resources, modern services, and advanced industries, pioneering in the green economy, the digital economy, and a digital society. It will also maintain its position as Vietnam’s leading centre for economy, finance, commerce, culture, education, and science and technology, with deep international integration.
“We can build service areas such as marinas and commercial centres along the river, alongside green spaces,” Thang said.
Moreover, a metro line from the city centre to Can Gio Island could act as the driving force for the city to reach double-digit growth, he confirmed.
Can Gio Port, meanwhile, is strategically located opposite Cai Mep-Thi Vai Port – the largest international port in Vietnam. However, it is only operating at 50 per cent capacity. The government has decided to upgrade Can Gio Port to become an international transit centre, with an estimated investment of $4 billion. The port is expected to handle 10 per cent of Vietnam’s imports and exports, of which 90 per cent will be international transshipment.
According to Phan Van Mai, newly appointed Chairman of the National Assembly’s Economic and Financial Committee and former Chairman of Ho Chi Minh City People’s Committee, the city will strive for regional GDP growth of 8.5-9.0 per year until 2030.
“To effectively implement the plan, the city needs to mobilise resources, attract investment, develop human resources, and apply science and technology, innovation, digital transformation, and environmental protection,” Mai said.
Meanwhile, Thang said that the biggest bottleneck in implementing this plan is the lack of mechanisms to entice capital.
“Public investment is the seed capital to stimulate investment from other economic sectors. In fact, many investors are interested, but the mechanisms for investment must be more detailed,” he said.
A resolution issued in June 2023 grants special mechanisms for the development of Ho Chi Minh City. Meanwhile, in February 2025, the National Assembly issued another resolution for Hanoi and Ho Chi Minh City to invest and develop metro systems. On that basis, Ho Chi Minh City will invest simultaneously and complete seven routes with a total length of 355km within 10 years.
“Initially, the state will have to spend money because it will be difficult to attract investment, but when it starts to take shape, private investors will be looking to spend money to build infrastructure. This would remove the bottleneck, but still requires appropriate policies,” Thang said.
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| Thu Thiem New Urban Area – the new financial and economic hub of Ho Chi Minh City. Photo: Le Toan |
In total, 11 plots covering 9.2 hectares in the Number 1 Functional Area will be used for the project in Thu Duc city.
The location was reported to the local Department of Telecommunications on March 11 to set up a plan to develop telecommunications and digital infrastructure for the centre.
Thu Thiem New Urban Area was approved in 1996 covering 930 hectares on the east bank of the Saigon River and opposite District 1. When completed, the area will have a population of 200,000 people.
The area will be divided into a central core, a northern residential area, a residential area along Mai Chi Tho Avenue, an eastern residential area, and a southern zone.
On January 4, Prime Minister Pham Minh Chinh chaired a conference to announce an action plan to implement a regional and international financial centre in Ho Chi Minh City.
At the conference, PM Chinh said that Ho Chi Minh City is located at the head of Southeast Asia, making it convenient for trade and financial connections with major markets such as China, Japan, South Korea, and ASEAN. Building a financial centre there will help reduce costs and transaction times for traders.
To accelerate the project, early this year, Ho Chi Minh City established a steering committee for the construction and development of the centre with 29 members. The establishment of the international financial centre is expected to create a foundation for the future growth of Ho Chi Minh City. This is also an opportunity for the city to attract international investors and increase foreign investment in various sectors.
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