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NS-298 - Low-carbon Bus NAMA Viet Nam

Viet Nam

NAMA Seeking Support for Implementation

  • A Overview
    • A.1Party
      A.2Title of Mitigation Action
      A.3Description of mitigation action

      Viet Nam’s Low Carbon Bus (LCB) Nationally Appropriate Mitigation Action (NAMA) is an innovative and ambitious programme that puts the country at the forefront of Southeast-Asia’s transition towards low carbon public transport. From 2025 onwards, Viet Nam pledges to source only hybrid, plug-in hybrid or electric buses. The NAMA focuses on the swift market penetration of near-to commercial bus technologies whilst also improving the operational efficiency of bus fleets and the ridership of the public transport system.
      At present, in Viet Nam public transport emissions from buses are higher than from motorcycles in terms of passenger-kilometre. LCBs are therefore key to achieving emission reductions through a mode shift. The NAMA has a clear focus and follows a straightforward, sequenced approach.
      The 1st and main NAMA component comprises financial and technical assistance for the large-scale introduction of hybrid buses, followed by plug-in hybrids and electric buses from 2025 onwards. In the 2019-2021 period, a fleet of 250 buses will be established, which allows for economies of scale and low-cost professional maintenance. This approach, which is successfully implemented by leading public transport providers such as Transport for London (TfL) or TransMilenio in Bogota, is financially more attractive and less risky than pilot trials, which have high maintenance and operation costs. Hybrid buses are a proven technology: globally, numerous bus operators run fleets of more than 100 units that achieve fuel savings of 25% and more, and report bus reliability figures that are identical to conventional diesel units.
      The 2nd NAMA component focuses on improving the fuel efficiency of existing buses in Viet Nam by introducing technical and operational measures such as efficient tyres, Eco Drive and modern telematics, as well as planning improvements to optimise routes and bus dispatch. These measures are currently not applied in Viet Nam due to low levels of awareness, which the NAMA will overcome by providing financial and technical assistance. Buses will be equipped with state-of-the art communication technology that allows for real-time monitoring of the core operational parameters.
      The 3rd NAMA component contributes to improved system efficiency in public transport by introducing mode integration, smart ticketing and greenhouse gas (GHG) measurements, as well as national policy advocacy, including the establishment of a national urban mobility policy. The NAMA will strengthen the efforts undertaken by other national and international actors in this area.
      The NAMA will be implemented in two phases. Phase I, from 2019-2021, concentrates on three cities selected among potential cities such as Ha Noi, Can Tho, Da Nang, HCMC and Hue, while Phase II, foresees the scaling-up and expansion of the NAMA to all of Viet Nam’s major cities. The NAMA is estimated to reduce GHG emissions by approximately 10 million tCO2 by 2030 and to make significant and quantified contributions towards reducing Black Carbon, particulate matter and NOx emissions as well as noise pollution in cities. Hybrid buses as well as plug-in hybrids are near-to-profitable and will presumably cross the financial threshold of viability by 2025, based on the expected fuel price increase. The financial structuring is based on initial financing to cover the investment and risk costs of the hybrid buses, gradually shifting to financing incremental costs only until grant finance is phased out completely. Throughout the entire period, the NAMA requires approximately 5.5 billion USD, of which 60% is provided through commercial loans, 32% through corporate capital and 8% through grants.



      A.6Type of action

      A.7Greenhouse gases covered by the action

  • B National Implementing Entity
    • B.1.0Name
      B.1.1Contact Person 1
      B.1.5Contact Person 2
      B.1.9Contact Person 3
      Add Additional Entity
  • C Expected timeframe for the implementation of the mitigation action
    • C.1Number of years for completion
      C.2Expected start year of implementation
  • D Currency
    • D.1Used Currency
      Conversion to USD: 1
  • E Cost
    • E.1.1Estimated full cost of implementation
      Conversion to USD: 5,550,475,659
      E.1.2Comments on full cost of implementation
      Full costs of implementation refers to the investment needs in low-carbon buses (with the number of buses required based on government modal share targets for public transport), and operational efficiency improvements.
      E.2.1Estimated incremental cost of implementation
      Conversion to USD: 338,000,000
      E.2.2Comments on estimated incremental cost of implementation

      Incremental costs are mainly due to low-carbon buses being more expensive than conventional diesel Euro IV buses. Inititally the grant finance is based on incremental investment costs to overcome perceived risk barriers; the subsidy per bus will be reduced over time and based on full cost of ownership, i.e. taking into account fuel cost savings, after 2022. Phase I incremental costs are USD 21.5 million, which includes financial assistance for operational measures and technical assistance.

  • F Support required for the implementation the mitigation action
    • F.1.1Amount of Financial support
      Conversion to USD: 496,900,000
      F.1.2Type of required Financial support

      F.1.3Comments on Financial support

      To make LCBs comparable in financial and risk terms to conventional diesel buses, grants are required in Phase I, as only these will make the two investment options financially compatible and demonstrate their viability. In Phase II, a financial mechanism including guarantees and concessional loans will facilitate wider scaling-up.

      F.2.1Amount of Technological support
      F.2.2Comments on Technological support
      F.3.1Amount of capacity building support
      Conversion to USD: 3,100,000
      F.3.2Type of required capacity building support

      F.3.3Comments on Capacity Building support

      Includes support for monitoring operational efficiency measures, bus route planning, dissemination, eco-driving, national urban transport programme, integrated ticketing, public transport integration and MRV system for cities.

  • G Estimated emission reductions
    • G.1Amount
      G.3Additional imformation (e.g. if available, information on the methodological approach followed)
      Cumulative emission reductions up to 2030, based on full-scale implementation. Reductions are based on well-to-wheel calculations and estimated as follows: 1) introduction of nearly 30,000 hybrid, plug-in hybrid and battery electric buses compared to conventional diesel, with grid electricy factor based on current power mix in Viet Nam; 2) low-rolling resistance tyres, idle-stop devices and eco-driving; and 3) modal shift from private to public transport to achieve government targets, under the assumption the shift is from motorcycles to buses, which is conservative as there will be shifting from cars as well.
  • H Other indicators
    • H.1Other indicators of implementation

      tCO2/capita for transport by city; gCO2/km for buses; gCO2/p-km; public transport mode share; tNOx; tPM, number of implemented operational measures; USD invested in measures

  • I Other relevant information
    • I.1Other relevant information including co-benefits for local sustainable development

      Co-benefits include: air quality improvement, energy security, accessibility, city liveability, congestion reduction, noise reduction

  • J Relevant National Policies strategies, plans and programmes and/or other mitigation action
    • J.1Relevant National Policies
      Viet Nam's Nationally Determined Contribution from 2015; Plan for the Implementation of Paris Agreement (Decision No. 2053/QĐ-TTg dated 28 October 2016 of Prime Minister); Viet Nam Sustainable Development Strategy from 2011 to 2020 (Decision No. 432/QD-TTg dated 12 Apr 2012 of Prime Minister); Viet Nam National Green Growth Strategy from 2011 to 2020 and vision to 2050 (Decision No. 1393/QĐ-TTg dated 25 Sep 2012 of Prime Minister);  National Strategy on Climate Change From 2011 to 2020 and vision to 2050 (Decision No. 2139/QĐ-TTg dated 05 December 2011 of Prime Minister); Scheme on GHG emission management from 2012 to 2020 (Decision No. 1775/QĐ-TTg dated 21 November 2012 of Prime Minister); Roadmap for application of exhaust emission standards to manufactured, assembled and imported brand new cars and motorbikes (Decision 49/2011/QĐ-TTg); Action plan on climate change and green growth of MOT in the period 2016-2020 (Decision 1456/QĐ-BGTVT); Plan for road traffic development in Viet Nam by 2020 and the orientation towards 2030 (Decision 356/QĐ-TTg); Development of bus public transport for the period 2012-2020 (280/QĐ-TTg and Decision No 13/ QD-TTg); National Targeted Programme on Energy Efficiency and Conservation Phase 2012-2015.
      J.2Link to other NAMAs
  • K Attachments
  • L Support received
    • L.1Outside the Registry
      L.2Within the Registry
      Support providedSupportTypeAmountCommentDate
      No records to display.