UEMI in Vietnam

In the context of formulating and implementing the Urban Pathways initiative for Vietnam, this paper analyses the administrative, legislative and political environment which influences policymaking at two levels of the government – the National and the Local/Provincial (Hai Phong). The paper outlines Vietnam’s GHG emission reduction targets, as well as the parallel ‘green growth’ strategies and action plans currently being implemented within three sectors – energy, transport and resource management. The paper also identifies key decisionmakers within the country’s public administration system.
Vietnam’s Intended Nationally Determined Contributions (INDC) specify mitigation and adaptation targets for the period of 2021 to 2030. The INDC also differentiates between conditional and unconditional contributions with respect to the country’s mitigation targets. Unconditional targets are defined as actions implemented using domestic resources, while conditional contributions are measures whose implementation is subject to receiving international finance, technology transfer and capacity building. Accordingly, the INDC specifies an unconditional GHG emission reduction target of 8% by 2030 under a Business as Usual (BAU) scenario. The conditional benchmark for 2030 is specified to be 25%. This also includes 20% reduction in the emission intensity per unit of GDP compared to 2010 levels (The Socialist Republic of Vietnam, 2015). However, given that the GHG emissions for 2030 are projected to triple to 787.4 MtCO2e compared to 2010 level of 246.8 MtCO2e, the committed conditional Vietnam’s Intended Nationally Determined Contributions (INDC) specify mitigation and adaptation targets for the period of 2021 to 2030. The INDC also differentiates between conditional and unconditional contributions with respect to the country’s mitigation targets. Unconditional targets are defined as actions implemented using domestic resources, while conditional contributions are measures whose implementation is subject to receiving international finance, technology transfer and capacity building. Accordingly, the INDC specifies an unconditional GHG emission reduction target of 8% by 2030 under a Business as Usual (BAU) scenario. The conditional benchmark for2030 is specified to be 25%. This also includes 20% reduction in the emission intensity per unit of GDP compared to 2010 levels (The Socialist Republic of Vietnam, 2015). However, given that the GHG emissions for 2030 are projected to triple to 787.4 MtCO2e compared to 2010 level of 246.8 MtCO2e, the committed conditional reduction still falls below the BAU scenario (Vieweg et al., 2017). It is therefore essential that Vietnam’s GHG mitigation efforts go beyond the INDC-mandated strategies. As emphasised by the INDC, Vietnam has a range of policies that specifically govern climate change related programmes. These include – Law on Environment (2014), Law on Economical and Efficient Use of Energy (2010), National Climate Change Strategy 2011 (NCCS) as well as the National Action Plan on Climate Change 2012-2020 (NAPCC). This list of policies also includes two national resolutions for ‘Pro-actively responding to climate change, enhancing natural resource management and environmental protection’ (2013) and ‘Management of GHG emissions; management of carbon-credit trading activities to the world market’ (2012). Additionally, the Vietnamese government also intends to develop a national GHG inventory to aid Measurement, Reporting and Verification (MRV) of mitigation actions at national and provincial levels (The Socialist Republic of Vietnam, 2015). Vietnam ratified the Paris Agreement in November 2016 and provided a strong legal basis for implementing the measures prescribed in theINDC. Towards this, Vietnam has officially adopted ‘Paris Agreement Implementation Plan’ which articulates sectoral mechanisms, periodic reforms in relevant national legislation as well as ministries responsible for the initiatives therein (outlined in the later sections). The plan states that Vietnam’s short-term actions would continue to focus and fund on climate adaptation, while GHG mitigation remains a long-term goal, primarily financed by private investments and the state playing an enabling role (The Socialist Republic of Vietnam, 2016).

In the transport sector, the strategies mentioned in the INDC are – (a) Development of faster modes of public transport in large urban centres; (b) Encourage buses and taxis to transition from conventional fossil-fuels and instead use natural gas or Liquified Petroleum Gas (LPG);and (c) Implement solutions to address fuel quality, emission standards and vehicle maintenance. The INDC does not explicitly mention promotion and development of electric mobility. Addressing the resource sector, the INDC proposes the following strategies – (a) Enhance waste management capacity and planning by promoting the idea of reducing, reusing and recycling; (b) Application of advanced waste and waste-water treatment technologies; and (c) Increase waste-to-energy conversion through solid waste incineration and utilisation of land-fill gases.
The Socialist Republic of Vietnam follows a one-party system of governance, where the governance is highly centralised at the national level. Vietnam’s political and economic system is particularly governed by a cycle of Socio-Economic Development Strategies (SEDS) which are formulated for a period of 10 years each. Additionally, Vietnam also prepares Five-Year Plans, termed as Socio-Economic Development Plans (SEDP), which focus on the implementation the SEDS. This process constitutes a ‘top- down system of planning’, whereby the central authorities not only establish a development trajectory but also monitor and ensure that the programmes are duly implemented by all local governments (Albrecht et al., 2010).
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At present, national policymaking at the highest level is directed by both the SEDS 2011- 2020 and the current SEDP 2016-2020. From a low-carbon urban development perspective, there are three other major policies driving Vietnam’s sustainable growth. These include – National Sustainable Development Strategy for 2011-2020, the National Green Growth Strategy 2012 (VGGS) and its corresponding National Green Growth Action Plan 2014 (VGGAP). Vietnam’s current policy environment is composed of multiple legislations addressing similar issues, parallel solutions and action plans with overlapping timeframes. The Communist Party of Vietnam (CPV) is the single largest party which bears the responsibility for all political decisions. The Party Congress of the CPV meets once every five years to elect the Party’s leadership and its Central Committee and to deliberate on policy direction. The CPV is headed by the General Secretary and the Political Bureau (Politburo) is responsible for implementing the agenda decided by the Party Congress. Therefore, in the case of Vietnam, it is impossible to separate the political sphere of low-carbon/sustainable development from its administrative and legislative ones. The resolutions passed in both the 11th Party Congress (2011) and 12th Party Congress (2016) indicate the CPV’s strong commitment to rapid economic development which is accompanied with sustainable development. The 11th Congress established sustainable development and environmental protection as a cross-cut- ting requirement for the Vietnam’s SEDS 2011- 2020 and SEDP 2016-2020. Furthermore, the 12th Congress also emphasised the relation between the county’s economic development with the UN’s 2030 Sustainable Development Goals (SDGs), and the need to proactively address climate change (Ho Chi Minh National Academy of Politics, 2017). The CPV oversees the national policymaking procedure through the Central Committee which reviews draft bills. Moreover, this Central Committee also appoints the officials of the National Assembly, including its head, termed as the Deputy (UNDP, 2012). Such decision-making interconnections indicate a high degree of influence exercised by the CPV over both the National Government and the National Assembly.

Electric Two-Wheelers in Hai Phong

Vietnam currently contributes 0.6% of the world’s total greenhouse gases (GHG) emissions  and ranks 27th globally in terms of GHG emissions (Vietnamnet, 2017). For the period of 1990-2014, the country’s cumulative GHG emissions were 252 MtCO2e. During the same period, GHG emissions for energy (electricity sub-sector) were 50 metric tons, for transport: 31.9 metric tons and waste: 9.4 metric tons (WRI-CAIT, n.d.).
The demonstration project will focus on boosting the ridership and effectiveness of the currently running BRT and the forthcoming metro rail with a 200 shared E-scooter system (associated partner Bosch) as last-mile connectivity. This project will also include 20 E-mini-buses provided by the city and Vinfast, for which fast charging solutions (ABB) will be tested. The shared Escooter system will be equipped with state-of-the-art 10 docking-cum-charging stations, contactless payment and will be developed that provides a hassle-free experience of e-mobility and clubbing it with longer trips on public transport. The project will be a win-win for both public transport and e mobility. A technical support team will design and develop vehicles that are tailored for the local context and operated under the oversight of the local public transport operator and the city of Hanoi. The project will experiment innovative business models on E-minibuses (IDIADA) and charging solutions, such as battery swapping technologies, using existing telecom and power distribution boxes to accommodate vehicle charging.
Hanoi
Hanoi’s motorisation is characterised by the dominance of motorcycles, a symbol of high personal mobility amid rapidly rising incomes. Almost 5 million motorcycles make up 80 % of all trips in the city. The city’s efforts to curb motorisation have not been successful (for example, restriction on motor vehicle ownership) or were not in place (for example, parking was cheap and plentiful, gasoline price was among the world’s lowest). On the other hand, the supply of mobility services is poor. Occupying less than 7 % of the land area, the road network of Hanoi is exceptionally sparse. Road infrastructure are lacking to provide access especially to the less developed areas, for example, in the north and northwest of the city, where the city envisioned to accommodate future urban growth. The public transport system is underdeveloped with only buses, transporting less than 10 % of the total trips in the city. Furthermore, traffic management is still nascent. Most intersections are not signalised. Although some progress was made in part through the support of the World Bank-financed Urban Transport Improvement Project (UTIP), residents in Hanoi have been slow to accept basic traffic rules. Congestion are already becoming a critical problem in the city. Traffic is in general un-orderly and sometimes chaotic at intersections, posing safety concerns especially for vulnerable groups such as women, children, elderly, and long-distance motorists. Hanoi has developed rapid transit (BRT) system that supports Vietnam’s infrastructure strategy and with financial commitments from the World Bank.  According to the Vietnam’s TRAMOC BRT 3-month operation report, the average operating speed of the BRT buses is 20 km per hour, 20 percent faster than regular buses. The travel time on bus for Kim Ma-Khuat Duy Tien and Khuat Duy Tien-Yen Nghia is therefore calculated using the lengths of these two sections: 24 minutes and 22 minutes, respectively. Government of Hanoi has decided to invest 45 million euro towards the BRT system which also feeds to the monorail system – controversially, Hanoi’s masterplan sees public transport taking on only 55% of the city’s needs by 2030.  Government have earmarked subsides to ease private vehicle usage.

Hai Phong 
With a population of 1.96 million (2015), Hai Phong is the third largest city in Vietnam. The city plays a critical role within the region owing to its strategic location within the Red River Delta and along the coast of the South China Sea, as well as its proximity to the capital city of Hanoi, situated 100 km to the east. The Port of Hai Phong is the largest container port in northern Vietnam, which has resulted in the city becoming one of the largest marine distribution centres with a concentration of multiple large-scale manufacturing, industrial complexes and international free-trade zones. From the perspective of low-carbon urban development, Hai Phong’s local governmental policies are connected with corresponding national strategies. Three of these policies are especially important. The first one is the National Green Growth Strategy (2012) which aims at a 30% GHG emission reduction by 2030. Based on this policy, the city has framed its own Green Growth Strategy Action Plan (2014). Along with the intent of achieving low-carbon growth for urban and industrial areas, this plan also aims at developing Hai Phong as a ‘Green Port City’.
The second major policy document is the National Socio-economic Development Plan (SEDP). Based on the SEDP’s directives, the local department for planning and investment (DPI) prepares the city’s five-year master plans (the current one being for the 2016-2020 period). The plan sets targets for GDP growth, poverty reduction, industrial production, taxation and public expenditure.  Thirdly, Hai Phong also adheres to a spatial master plan prepared at the national level by the MOT, which guides the city’s urban planning and port development projects. For effective implementation of these multiple plans, it is essential that the local government builds synergies between diverse actions and facilitates coordination among all line agencies.  Hai Phong’s sectoral challenges and solutions which align with the city’s ‘green growth’ plans are outlined below: 

Similar to with all other Vietnamese cities, the dependence on motorcycles is extremely high in Hai Phong. 78% of households own a motorbike (2014) and the mode accounted for over two-thirds of total trips (OECD, 2016). To address the present lack of efficient public transport, the city could invest in strengthening the existing bus network. The city also has a proposal of introducing 220 electric buses, which is yet to be implemented.   

Pilot Project Concept Hai Phong

Hong Bang District is Hai Phong's socio-economic centre with historical, cultural and recreational importance. The population of this district is 108,101 with a density of 7,471 people/km2. Beside a growing population, in 2017 Hai Phong received approximately 7 million visitors, which included 1 million international visitors. One area of great significance and high touristic attraction is the Hong Bang District’s Tam Bac park, named after the Tam Bac river flowing through the district. Due to tourism flows and commercial activities in the area, vehicular movement is very high with huge risks to pedestrian. Pedestrian safety is also low due to the lack of allocated walking space, further evident with frequent and high volume of traffic accidents. With this in mind, the Tam Bac river front has the potential to be developed into a pedestrian friendly space by reducing vehicular movement, implementing energy efficient street lighting, and improving waste management. Hence, Hai Phong city plans to develop a project to redevelop the area along the Tam Bac river and Tam Bac Park to prioritise pedestrians and create an amiable public space for the citizens and the environment.
City officials announce in 2017 that a ban on fossil fuels motorbikes will be imposed by year 2030 to help ease pollution and congestion. Earlier in 2018, Mitsubishi Motors along with the Vietnam Industry Agency (VIA) under the Ministry of Industry and Trade (MOIT) worked towards conducting a joint study of efficient EV usage and the public policy programmes and incentives that will support the accelerated adoption of sustainable automotive technology. In August 2018, a Singapore based company deployed 5000 electric personal mobility devices to Hanoi, Da Nang and Haiphong Cities. In addition, VinFast trading and production LLC entered into contracts with Siemens to supply technology and components to manufacture of electric buses in Vietnan. In its 2020 plan, the government of Vietnam intends to increase public transport modal share from below 10% to 25-30% by year 2020. to introduce 200 hybrid and 50 plug-in hybrid buses, which it expects to reduce emissions by up to 5 million metric tonnes of CO2 by 2030. This is also expected to lead to USD600 million in diesel fuel savings and USD40 million worth of reduced particle pollution and nitrogen oxide pollution, which should help improve air quality. Financially, the government will support hybrid and plug-in hybrid buses via grants from its low-carbon bus fund up to 30% of the cost. It expects to allocate USD15 million by 2020 for this purpose, while from 2021 to 2030, another 21,700 low-carbon buses are expected to require USD326 million in grants.