Supporting a green strategy for the automotive industry

In contrast, global trends are increasingly focusing on reducing emissions through the use of alternative energy sources and improving internal combustion engine technology.

Le Xuan Nghia, President, Consultancy on Development Institute

To reduce greenhouse gas emissions in the automotive industry, we need to focus on two key energy sources: batteries and hydrogel. While recent studies on hydrogel have shown promising initial results, its widespread use as an energy source remains challenging due to significant hurdles in storage and transportation.

In addition to being difficult to store and transport, hydrogel is expensive and poses significant fire and explosion risks. For example, a 40-foot container that can normally hold 40 tons of goods can only carry 360 kg of hydrogel, so a large, heavy steel tank is required for safe transportation.

Despite these obstacles, the global transportation industry continues to research hydrogel and hopes that it will emerge as an important clean fuel for the automotive sector in the future.

Electric vehicles (EVs) are currently being developed rapidly and have a significant market share in the US, Europe and China. The advantages of these vehicles include their lightweight design, suitability for both short and long distance trips and the ability to set up charging stations or mobile battery swapping stations.

However, the main disadvantage of this energy source is the environmental impact of the disposal of used batteries, which can cause significant pollution. To address this problem, many countries are currently researching technologies to produce batteries for electric vehicles with a lifespan of 20 to 30 years. Therefore, electric vehicles are considered a promising solution to reduce greenhouse gas emissions in the coming decades.

Vietnam is the second largest holder of rare earth reserves in the world, representing about 19 percent of the world supply, comparable to Brazil and half of China’s reserves. This positions Vietnam as a key player in automotive battery production, dependent on significant investment in technology to extract and refine these critical elements. Therefore, Vietnam is well positioned to exploit its significant market potential for electric vehicles and motorcycles, supported by an abundant supply of materials to produce long-life batteries.

However, both government and industry must implement comprehensive, long-term strategies to reduce greenhouse gas emissions while fostering a strong machinery and manufacturing sector that supports transportation, logistics and defense needs.

To overcome the challenges in advancing the automotive industry, it is imperative to implement effective solutions that require coordinated efforts from both the private sector and the government. First, when developing the automotive industry, certain countries rely on robust banking systems capable of financing heavy industry, or the government provides loan guarantees to help companies advance the sector.

Second, the complete liberalisation of the automobile market represents a significant challenge for the domestic automobile industry. While this is a reflection of the demands of globalisation, experience from other countries shows that targeted government measures can reduce competitive pressure.

Such measures could include subsidies for land costs, public procurement requirements to favor domestically produced electric vehicles, or incentives for consumers to choose local electric vehicles and domestically produced products. South Korea is an example of this approach and has successfully fostered a culture of support for local businesses in several sectors, including the automotive industry.

Third, developing public transport systems powered by low-emission fuels or electricity, as is the case in Thailand and other countries that use natural gas or liquefied petroleum gas, is a viable strategy. The government can subsidise fares to encourage consumers to use these modes of transport.

Other supporting measures could include special excise taxes, VAT adjustments, tolls and the development of electric vehicle charging infrastructure. Such measures would facilitate the deployment of charging stations in accessible locations at lower costs, thus helping electric vehicle manufacturers to minimise the costs of charging infrastructure, maintenance and battery repairs.

The use of vehicles designed to reduce greenhouse gas emissions contributes to environmental protection by reducing carbon particle and noise pollution. Nevertheless, significant investment is needed in this sector. Strategic government support is crucial to complement the efforts of companies operating in a highly competitive environment. This includes promoting the development of both the automotive and dual-use machinery industries, which benefits both consumer markets and the defense sector.

At the same time, this initiative aims to develop a highly skilled workforce of engineers for the industrial and defense sectors, with a focus on areas critical to the advancement of technology and national security. For example, areas such as robotics and AI are built on a robust mechanical technology base and require a cadre of competent engineers capable of innovating, researching and advancing technologies tailored to Vietnam’s needs.

Six Vietnamese sectors must maintain greenhouse gas inventories Since January 18, the energy, transport, construction, industry, agriculture and waste sectors have been legally obliged to prepare their greenhouse gas (GHG) inventories and report them to the relevant authorities.

Vietnam operates an online greenhouse gas reporting system A reporting system for enterprises to upload their greenhouse gas emissions data online has been completed and will be updated once the Ministry of Industry and Trade, the Ministry of Construction and the Ministry of Transport issue detailed guidelines for their respective areas, according to a recent consultation meeting.

IFC publishes greenhouse gas emissions inventory and reporting manual Thanks to the manual published by the International Finance Corporation (IFC), it is becoming easier for companies in Vietnam to record and report their greenhouse gas emissions.

Energy sector aims to reduce greenhouse gas emissions by 17-26 percent by 2030 Vietnam’s energy sector plans to reduce greenhouse gas emissions by 17-26 percent by 2030 and by around 90 percent by 2050 compared to the normal development scenario.

Vietnamese steel products meet greenhouse gas inventory standards and are certified BSI – the UK’s leading international certification organisation – has just certified the ISO 14064-1:2018 greenhouse gas inventory standard for steel products manufactured by Hoa Phat Dung Quat Steel Joint Stock Company.

Google’s greenhouse gas emissions increase due to the promotion of artificial intelligence Despite its goal of achieving net-zero emissions, Google is emitting more greenhouse gases than before as it powers the data centers needed to support artificial intelligence, the company said.