Hanoi approves ambitious green bus plan

The plan states that Hanoi aims to have half of its bus fleet electric and the other half running on liquefied natural gas or compressed natural gas (CNG) by 2026-2030, with an estimated budget of VND51 trillion ($2.1 billion). By 2035, the goal is for all buses in Hanoi to be electric.

Hanoi’s current proportion of green energy buses is only about 13.6 per cent. Of the 2,034 subsidised buses, only 277 use clean energy, including 139 CNG buses and 138 electric buses. VinBus is the only company using large-capacity electric buses that it manufactures itself.

Speaking to local media, Dr Ha Thanh Tung from the University of Transport and Communications spoke about the three major challenges to implementing the green bus transition plan.

"The first challenge is investment capital. The price of an electric bus is about 3–4 times that of a diesel bus with the same capacity. Similarly, the price of a CNG bus is about twice that of a diesel bus. The battery of an electric bus accounts for about 40-50 per cent of the vehicle’s value and will degrade after 4–5 years of use. The investment in charging stations, transformer systems, power supply, and control systems is also costly," said Tung.

Tung continued, "Secondly, infrastructure for electric buses, especially the charging station network, is limited. Meeting the set timeline requires 3–5 years to upgrade the electrical system and charging stations."

"Thirdly, authorities still lack mechanisms to guide businesses and investors in socialising investments for green energy infrastructure to support the transition to green buses," he added.

Speaking to VOV, the Vietnamese national radio broadcaster, associate professor Dam Hoang Phuc, director of the Automotive Engineering Training Programme at Hanoi University of Science and Technology, stated, "Hanoi needs to assess the feasibility and total investment of green energy sources for buses. A report from the US Environmental Protection Agency showed that CNG vehicles still emit pollutants, producing only about 20 per cent less emissions than petrol vehicles. Moreover, a study by the California Air Resources Board found that CNG reduces emissions by only 12-17 per cent compared to diesel."

Hanoi’s green bus conversion plan is an effort to implement the commitment that by 2025, 100 per cent of replacement/new buses in Vietnam will use electricity or green energy, as stated in Decision No.876/QD-TTg in 2022 on the action programme for green energy transition and reduction of carbon and methane emissions in the transport sector.

Speaking to VOV, Dr Tran Dinh Thien, former director of the Vietnam Institute of Economics, said, “Vietnam has made strong green transition commitments to the world, with the net-zero target by 2050 being one of them. Therefore, Hanoi’s choice of vehicles for green transition should aim towards clean, environmentally friendly options. Vietnam needs and must accelerate green transition to achieve its goals. If the transformation isn’t strong enough, Vietnam will struggle to fulfil its commitments, falling behind and being sidelined in the development race.”

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