Green transport development orientation
Ho Chi Minh City currently manages more than 9.4 million vehicles, including about 980,000 cars and more than 8.4 million motorbikes, most of which use fossil fuels. Traffic activities emit more than 13 million tons of CO2 each year, second only to the industrial sector with nearly 20 million tons of CO2.
Faced with this challenge, the city has developed a pollution reduction program for the 2020-2030 period. One of the important goals is to reduce 90% of the additional air pollution from traffic by 2030.
Ho Chi Minh City’s pollution reduction program focuses on encouraging green energy conversion to create carbon credits. The city has many environmentally friendly transportation models such as electric buses, TNGo shared bicycles, and SM Green electric car calling service (using electric motorbikes and cars).
The green bus system is gradually becoming the backbone of this strategy. According to Mr. Tran Quang Lam - Director of the Department of Transport of Ho Chi Minh City, to date, the city has put into operation more than 500 buses using clean energy, accounting for about 25% of the total number of buses (2,200 vehicles). In the period of 2025-2030, the city plans to deploy 2,771 more electric buses, of which 1,663 will replace old vehicles, and 1,108 will be newly invested for expanded routes.
Notably, after more than 2 years of pilot operation, VinBus' D4 electric bus route has received positive feedback from people thanks to its modern, environmentally friendly design and many amenities.
Dr. Truong Minh Huy Vu - Ho Chi Minh City Institute for Development Studies - commented that Ho Chi Minh City has many opportunities to develop the carbon credit market thanks to prioritizing the following areas: Deploying electric buses, developing electric delivery vehicles and building a metro system.
According to the plan, Ho Chi Minh City will complete 7 metro lines with a total length of 355km by 2035, opening up great opportunities to create carbon credits from public transport. Metro Line No. 1, scheduled to be operational on December 22, will be an important first step. The city also deploys thousands of electric taxis and electric motorbikes for delivery services, minimizing emissions from private vehicles.
Resolution 98 on piloting specific mechanisms and policies for the development of Ho Chi Minh City, the city is allowed to pilot the exchange and offset of carbon credits and enjoy all the revenue from this transaction. This revenue will be used to invest in climate change response programs, green and circular economic development.
Dr. Tran Du Lich - member of the Advisory Council for the implementation of Resolution 98 - said that this is the basis for Ho Chi Minh City to accelerate the implementation of the roadmap for selling carbon credits. Mr. Lich proposed 8 solutions to realize this program, including: developing a metro system, green energy public transport; having policies to reduce taxes, support people and businesses to change vehicles; optimizing urban transport, reducing traffic congestion; replacing old fuels with CNG, electricity; building smart transport systems...
Join hands to develop green transport infrastructure
To support green transportation, Ho Chi Minh City is having more strong solutions to encourage investment and infrastructure development. Currently, the city has built a project to develop green transportation phase 1, including strong support policies to encourage investment.
According to Mr. Tran Quang Lam, the HCMC Department of Transport proposed a preferential loan policy, supporting 85% of vehicle investment costs, with an interest rate of only 3%/year for 7 years. This is the largest incentive ever in the public transport sector.
Ho Chi Minh City plans to invest more than VND1,347 billion from the budget to build 17 electric charging stations at major bus stations such as Mien Dong Moi, Mien Tay and An Suong. Saigon Transport Mechanical Corporation (Samco) will also contribute more than VND888 billion to develop charging stations.
To achieve the goal of green transportation, Ho Chi Minh City also encourages the private sector to participate in building electric charging stations.
With the new policy, investors will be supported with loan interest rates of up to 50% of the interest rate announced by the Ho Chi Minh City State Financial Investment Company throughout the loan term. “This strategy not only promotes the participation of businesses but also creates a solid foundation for the city’s green transport system,” said Mr. Lam.
