How USAID Supports Vietnam’s Journey to Net Zero

With over 70 million scooters and motorcycles on the roads in Vietnam, over 90% of households own one, two wheelers in Vietnam are ubiquitous. They form the backbone of the shipping sector, easily navigating the chaotic traffic and narrow back alleys to deliver goods. However, this contributes to air that is clouded with exhaust for Vietnamese citizens.

Emissions in Vietnam have multiplied fivefold in the last 20 years. As pollution worsened, the demand for electric vehicles (EV) skyrocketed. Vietnam is now home to the third largest two-wheeler EV market in the world—but the sector still lags far behind that of the gasoline-powered two wheelers. Improved government policies and a two wheel EV ecosystem are needed to support Vietnam’s EV shift, reduce emissions, and clean up its air.

On the frontlines of Vietnam’s EV transition is Nguyen Huu Phuoc Nguyen, co-founder and CEO of Selex Motors, a local startup that produces affordable two wheelers for delivery services and urban commuters. Selex features a universal EV battery ecosystem that is compatible with 70 percent of the two-wheeler EVs on the road in Vietnam, which is especially helpful for the commercial delivery market. Using a simple phone app, drivers can quickly locate and navigate to a battery charging station. Once there, they can swap out their battery for a fully charged one.

Selex’s battery swapping stations allow riders to change out batteries within seconds, saving hours of charging time and making their vehicles more practical for long-distance usage. The ability to get back on the road in minutes, rather than after a lengthy charge, translates to real saving in the transportation industry.

“The battery swapping stations are very easy to use,” says Nguyen Huu Tai, a shipper in the bustling port city Danang. “I just open the app and swap the battery. It’s actually faster than waiting in line for gas. I rely on my scooter to make a living. I used to spend around $120 a month on gasoline and other maintenance costs. Now, it costs me half of that with battery swapping.”

Selex sought to expand into Danang, recognizing the potential for EV battery stations in the city—a major hub of central Vietnam, known for tourism, trade, and its rapid development. However, it did not have the capacity nor relationships to do so.

USAID partners with Vietnam’s Ministry of Industry and Trade and Danang city, through its Vietnam Low Emission Energy Program II, to mobilize much-needed private investment to accelerate the country’s clean energy transition.

With support from USAID, Selex collaborated with local experts and city leaders to identify potential battery station sites in Danang. Selex’s expansion is inline with the city’s vision for an energy-efficient urban infrastructure model, a goal under Vietnam’s National Energy Efficiency Program.

“USAID’s role facilitated our collaboration with the local government, by helping us secure locations for our battery-swapping stations—there is no precedent [for this] in Vietnam. USAID’s involvement provided security, reassurance, and credibility for our company.” Says Nguyen Huu Phuoc Nguyen.

This led to the recent launch of the first four of a planned 20 battery-swapping stations in the city. Since the launch, riders have swapped over 1,600 batteries, the equivalent of more than 984 liters (260 gallons) of gas avoided. The remaining stations will be opened throughout 2025, increasing the potential reduction in emissions.

USAID is laying the groundwork for Vietnam’s transportation sector to transition to green energy by making two-wheeled EVs a viable alternative to gasoline-powered vehicles. This transition could significantly reduce emissions, as EV two-wheelers emit 64% less carbon dioxide per kilometer driven. Reducing carbon emissions from the transportation sector advances Vietnam’s net-zero emissions by 2050 commitment.

“Developing the EV industry requires a collaborative effort involving various partners, including the government and international organizations like USAID, to offer expertise and help catalyze initial growth and momentum,” says Nguyen Huu Phuoc Nguyen.

USAID’s efforts have raised over $300 million for advanced energy systems, including rooftop solar and wind power. This includes support for clean energy project design and training for lenders to boost clean energy investments. USAID is committed to supporting Vietnam’s transition to a low emission transportation sector and to advancing locally-led, innovative approaches to accelerate Vietnam’s journey to clean energy.

ABOUT THE AUTHOR: Benjamin Ilka is a storyteller and visual media specialist at USAID’s Mission in Vietnam.