The Vietnam Register has completed a draft of the Vietnamese national standard on fuel consumption for road motor vehicles.

Under the draft, the Ministry of Construction proposes that the corporate average fuel consumption (CAFC) for all passenger cars in Vietnam must reach 4.83 liters per 100km by 2030. This proposal has raised concerns about its feasibility, as the implementation timeline is just five years away.

VAMA described the target as “too stringent.” If the standard is applied, about 96 percent of conventional gasoline cars and 14 percent of existing hybrid vehicles would not meet the proposed requirements.

If so, manufacturers would have to increase the production of electrified vehicles (hybrid, PHEV, EV) by 868 percent within just five years, a historically unprecedented surge that is beyond the capabilities of current automakers.

Le Hong Viet, deputy director of the Center for Emissions Testing of Road Motor Vehicles under the Vietnam Register, noted that this tentative standard is just under public consultation, has not been issued, and is only advisory in nature. Therefore, it does not yet impose any binding obligations on businesses or individuals. Moreover, the scope only applies to newly manufactured, assembled, or imported vehicles, not those already in circulation.

The 4.83 liters per 100km CAFC target is not applied directly to individual car models or specific companies, but rather as a nationwide average. Each enterprise will have its own target based on its product lineup and the average weight of the vehicles it manufactures or imports.

According to Viet, during the drafting process, the drafting committee regularly consulted associations and businesses to ensure feasibility. Specifically, in document No082101/2025/VAMA dated August 21, 2025, VAMA officially expressed support for the goal of achieving an average fuel consumption of 4.83 liters per 100km by 2035, viewing it as a practical contribution to Vietnam’s national emissions reduction targets.

“The compilation committee continues to study and assess detailed impacts based on market data and domestic vehicle trends, especially the increasing presence of electric vehicles, to develop a reasonable implementation roadmap. The goal is to both meet international commitments and align with the actual conditions of businesses and the Vietnamese market,” Viet emphasized.

Regulatory gaps in emissions reduction framework

Explaining the rationale behind the proposal, a representative from the Vietnam Register stated that Vietnam is currently applying energy labeling and Euro 5 emissions testing for passenger cars with fewer than 9 seats that are fully assembled or imported as complete built units (CBU).

The application encourages businesses to adopt modern technologies, helping reduce environmental pollution and improve fuel efficiency for passenger vehicles. However, the current circulars guiding energy labeling and QCVN 109:2024/BGTVT do not define CO₂ emissions limits or fuel consumption standards.

Vietnam Register confirmed that replacing TCVN 9854:2013 standard, which sets fuel consumption limits for passenger vehicles with fewer than 9 seats, is essential. The new standard would serve as a basis for businesses and regulators to adequately prepare in terms of production, assembly, importation, testing, and quality certification.

Applying the new standard would push businesses to invest in advanced technologies such as hybrid engines, electric powertrains, direct fuel injection, continuously variable transmissions, and optimized aerodynamics. As a result, consumers would benefit from safer, more fuel-efficient, and lower-emission vehicles.

Viet explained: “Fuel-efficient cars help reduce daily operating costs. For example, cutting fuel consumption by 0.5-1.0 liter per 100km could save millions of VND annually per vehicle. For transport, logistics, ride-hailing, and taxi businesses, this directly translates into higher profit margins, lower service prices, and increased competitiveness. In the long term, as the vehicle fleet shifts to hybrid and EVs, fuel costs will decrease significantly, reducing dependence on fuel imports.”

The transport sector currently accounts for around 18-20 percent of national CO₂ emissions. Reducing fuel consumption will also lower CO₂ emissions and other pollutants like NOx and PM. This is a critical step toward fulfilling Vietnam’s COP26 commitment to achieve net-zero emissions by 2050, as outlined in Decision 876. It also contributes to improving urban air quality, protecting public health, reducing healthcare costs, and enhancing the country’s global image.

Duy Anh