Governments all over the world are currently grappling with two distinct but interconnected issues – how to reduce emissions of greenhouse gases (GHG) as well as how to reduce reliance on fossil fuels, particularly petroleum, which is frequently imported. Fuel economy standards of the passenger cars are an important part of the fuel economy policy package as it enables greater greenhouse gas emission reductions, i.e. regulation and standard setting are powerful tools in reducing emissions and promoting cleaner transport. Regulatory certainty also facilitates the development of advanced technology. However, not many countries have developed fuel economy policies, standards and regulations.
This technical report aims to build up the Fuel Economy (FE) database and the baseline establishment for passenger cars under 9 seats with the most up-to-date information and data available, which would serve as the basis for further development of mandatory FE standards in Viet Nam. The report conducted an assessment to car manufacturers, policy frameworks and international practices as well as identified fiscal incentives through fuel efficiency/CO2-based taxation with regard to shift the energy issues into an opportunity to unlock the market potential in Viet Nam. It also aims to provide guidance and insights to policymakers with relevant solutions, based on corresponding emission levels in the context that Viet Nam has made strong commitments in the most updated Vietnam’s Nationally Determined Contributions (NDC).
The NDC-TIA project is a regional IKI project. It supports China, India, and Viet Nam as well as regional and global decarbonisation strategies to increase the ambition around low-carbon transport. For more information on the project, please visit NDC Transport Initiative for Asia.