On July 22, Deputy Prime Minister Le Van Thanh signed the Action Plan on a Green Energy Transformation, Methane and Carbon Emissions Mitigation in the transport sector, under Decision No.876/QD-TTg. This approval follows the commitment of the Government of Vietnam to become climate neutral by the mid of the century and contributes to meeting the sectoral NDC target that is being updated currently.

Accordingly, the overall objective of the strategy is to develop a green transport system in line with the target of carbon neutrality.

Specifically, the transformation roadmap of urban traffic includes the following targets:

• By 2025, 100% of buses will use electrified and/or use green fuels
• By 2030, the percentage of vehicles using electricity and/or green fuels will reach at least 50%, and 100% of taxis will use electricity and green energy
• By 2040, the production, assembly, and import of automobiles and motorcycles using fossil fuels will be ceased
• By 2050, the country will have a complete carbon-neutral transportation network

The Vietnam component of the NDC Transport Initiative for Asia (NDC-TIA) has supported the Ministry of Transport to develop the Action Plan on Green Energy Transformation, by strengthening the national legal framework and contributing their expertise to the implementation. Additionally, the project assists the Ministry in creating the national e-mobility roadmap, as well as developing economic and technical guidelines for e-buses, across Hanoi, Ho Chi Minh city, and the national framework. This will lay the groundwork for the deployment of electric vehicles beyond the pilot phase to support Vietnam in fulfilling its commitments under the Nationally Determined Contribution (NDC) and the goal of reducing methane emissions.