Decarbonization in Transport: Market Pressures and Practical Pathways

As the global commitment to net-zero emissions intensifies, the transport sector is facing unprecedented pressure to decarbonize. What was once considered a long-term sustainability objective has now become a mandatory requirement directly linked to corporate competitiveness.

This challenge is particularly pronounced in developing economies such as Vietnam, where freight demand continues to grow in parallel with rapid urbanization and expanding trade activities. The sector must simultaneously ensure operational efficiency while progressively complying with increasingly stringent environmental regulations.

Mounting Pressure on Vietnam’s Transport and Logistics Sector

According to the Asian Transport Observatory, Vietnam’s transport sector currently consumes over 459,000 terajoules of energy, with approximately 87% derived from petroleum-based fuels. In 2023, transport-related CO₂ emissions reached approximately 39.3 million tonnes, accounting for nearly 11% of the country’s total emissions.

These figures underscore two key structural challenges:

• High dependency on fossil fuels
• Technology transition pressure amid incomplete infrastructure development

In addition to emissions, the sector is increasingly exposed to climate-related risks, with annual damage to transport infrastructure estimated at tens of millions of USD, primarily affecting road networks.

Vietnam is also tightening its regulatory framework on emissions. The roadmap toward stricter standards such as Euro V and Euro VI, coupled with enhanced vehicle inspection and environmental monitoring, is placing clear compliance requirements on enterprises and vehicle operators.

This transition impacts not only new vehicle investments but also the operation and management of existing fleets, requiring businesses to balance cost optimization with regulatory compliance.

Green Transition in Transport: A Phased and Integrated Approach

While electrification and alternative fuels represent long-term solutions for decarbonization, practical constraints necessitate a phased transition supported by multiple complementary measures:

• Enhancing engine efficiency and reducing fuel consumption
• Upgrading emission standards (Euro V, Euro VI)
• Optimizing fleet operations (routing, load factors, preventive maintenance)
• Developing enabling infrastructure (charging networks, smart logistics systems)

Despite the growing momentum of electric trucks and green transport solutions, deployment in Vietnam continues to face several barriers:

• High capital expenditure (CAPEX) requirements
• Limited charging infrastructure
• Extended return on investment (ROI) periods
• Inertia in conventional operating practices

As a result, many enterprises are adopting a gradual transition approach rather than immediate large-scale transformation, enabling alignment between investment efficiency and operational performance.

Green Transport Solutions in the Emerging Landscape

Across the value chain, both transport operators and solution providers are recalibrating their strategies to align with decarbonization trends. In this context, VIMID is among the early movers in delivering integrated green transport solutions.

By upgrading product technology and expanding its portfolio of clean-energy trucks, VIMID has established a strategic partnership with SINOTRUK—one of China’s leading heavy-duty truck manufacturers—to introduce vehicle platforms tailored to Vietnam’s operating conditions. These include G7X-EV, TS7, V7X, TH7, T7H, NX, MAX, and TX, featuring electric drivetrains or fuel-efficient configurations that comply with applicable emission standards.

In parallel, VIMID is accelerating digital transformation initiatives, leveraging artificial intelligence and advancing the development of comprehensive green transport solutions.

G7X-EV Electric tractor

Supporting Enterprises in the Transition to Low-Carbon Transport

In 2025, VIMID marked a significant milestone by signing strategic cooperation agreements with major players in Vietnam’s transport and logistics sector. With a shared objective of advancing a sustainable and low-emission transport ecosystem, VIMID is committed to supporting partners throughout their decarbonization journey.

Notably, VIMID delivered the first batch of electric tractor units in Vietnam for real-world logistics operations in 2025, marking a transition from pilot research to commercial deployment in the green transport segment.

Beyond product and service offerings, VIMID provides advisory, infrastructure planning, and deployment of flexible charging solutions aligned with operational realities. This enables enterprises to optimize total cost of ownership (TCO), enhance competitiveness, and implement effective decarbonization strategies.

VIMID’s approach to green transition reflects a clear and actionable commitment to the future of Vietnam’s transport sector—contributing to the establishment of new industry benchmarks and enabling Vietnamese enterprises to generate tangible impact and sustainable value at both national and global levels.