On 14 April 2022 in Hanoi, the Directorate for Roads of Vietnam (DRVN) and the Vietnam Automobile Transport Association (VATA) together with the NDC Transport Initiative for Asia (NDC TIA) organised the conference: “Assessing the impact of Covid-19 on the operation of road transport enterprises“. In the context of the Covid-19 pandemic, the NDC TIA conducted a study to quantitatively assess the impact of Covid-19 on road transport businesses. This is also the primary concern of DRVN, VATA and the Ministry of Transport (MOT). Therefore, the NDC TIA was requested by DRVN and VATA to collaborate in organising a big-scale hybrid conference with participation from government organisations (representatives of MOT, DRVN, VATA, and 63 provincial Departments of Transport nationwide), businesses (road transport companies, logistics companies, IT & Digitalisation companies) and City Automobile Transport Associations.
Moreover, road authorities have a common awareness of the necessity of green recovery after Covid-19. The NDC TIA is supporting the MOT on international experiences, practices and trends on green energy transformation, and carbon neutrality in transport. For this reason, the project was also asked by DRVN and VATA to share presentations of international reports at the conference. In his opening remark, Mr Nguyen Van Quyen, chairperson of VATA shared that the Covid pandemic has affected all industries and fields globally, above all, the transportation sector is considered one of the hardest-hit sectors in Vietnam, according to VATA. Early this year, the NDC TIA conducted a survey for examining the impact of Covid-19 on the operation of road transport firms. The goal of this study is to gain a more accurate understanding of the pandemic’s impact on road transport firms, as well as how they responded to and recovered from it. The findings revealed that the extent of the Covid pandemic has spread across the whole country, affecting businesses of all sizes and sorts. In particular, the extent of influence on each transportation enterprise varies greatly. Out of 87 enterprises surveyed, a remarkable 95% total number of enterprises surveyed indicated a revenue fall compared to 2019, with the average revenue reduction being approximately 25%-50% (49% of the total number of enterprises). The need to reduce the workforce is highly undesirable but it occurred in about 90% of the enterprises assessed. Most labour reduction rates of surveyed enterprises are less than 10%.
Among numerous recommended alternatives for the Covid-19 recovery of enterprises, the transition to a sustainable transport model is a long-term development solution that follows the general trend of the world. Dr Nguyen Dinh Thao, senior project officer of the NDC TIA, highlighted that the global trend is to recover by following a sustainable pathway and working toward the common goal of reducing GHG emissions in the sector. Especially for Vietnam, Prime Minister Pham Minh Chinh stated the commitment of Viet Nam to achieve net-zero emissions by 2050 during COP26 in Glasgow, UK. Germany’s experience in reducing GHG emissions in the transport sector, as well as its pledge to cut emissions by 65% by 2030, were presented at the conference to share lessons learnt from international experiences that Vietnam can learn from and apply for its green recovery. Promoting the application of digital transformation, and engaging in the e-commerce supply chain in transportation are also prominent contents of the conference. Businesses will be able to quickly enhance management and operational efficiency, reduce costs, and manage the reduction of greenhouse gas emissions as a result of digital transformation, therefore contributing to the objective of sustainable development goals. Transport digital platform businesses also presented numerous practical solutions that have been effectively applied.
Through the results of the Survey and the Conference, the VATA concluded that 4 main methods should be implemented to support the Covid Pandemic Response and Restoration of road transport enterprises:
Further information in Vietanamese about the conference can be found here and here.
NDC-TIA is part of the International Climate Initiative (IKI). The Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU) supports this initiative on the basis of a decision adopted by the German Bundestag. It supports China, India, and Viet Nam as well as regional and global decarbonisation strategies to increase the ambition around low-carbon transport. In Viet Nam, the project’s implementing organisation is GIZ and partner institutions include World Resources Institute (WRI) and International Council on Clean Transportation (ICCT). Viet Nam Ministry of Transport (MOT) is the Lead executive organisation and the Department of Environment (DOE) is the project owner. For more information on the project, please visit https://www.ndctransportinitiativeforasia.org/.
Hang Nguyen Thanh