Addressing Climate Change in Transport for Vietnam, a collaborative effort by the Ministry of Transport, the World Bank and German government development agency GIZ, seeks to set out visions and strategies for climate-smart transport to minimize the sector's carbon footprint.

It presents three different scenarios with suggestions for mitigation policies or investments that would provide sustainable transport solutions and lead to a reduction in greenhouse gas emissions.

In scenario 1, which comprises policies and measures implemented with domestic resources, Vietnam's transport sector could reduce carbon dioxide emissions by up to 9 percent by 2030.

The measures include a modal shift towards public transport in large cities, improvements in vehicle fuel efficiency and emission technologies, shift towards lower carbon fuels, and promotion of electric two-wheelers.

Scenario 2 builds on policies and measures in scenario 1, with additional measures supported by international resources and the active participation of the private sector such as improvements in freight truck load factors, a shift from road to rail transport, and higher sales of electric motorcycles and cars. In this scenario, the transport sector could possibly reduce emissions by 15.2 percent by 2030.

Scenario 3 assumes much more ambitious international support and private sector participation, which would entail measures such as improved fuel efficiency, use of electric vehicles and load factor of freight transport. Then the reduction in emissions could be 20 percent.

These measures would require significant investment for which financing needs to be mobilized, the report concluded.

"A resilient transport system is critical to the continued success of Vietnam’s economy, which relies heavily on external trade and seamless connectivity," Ousmane Dione, the World Bank’s country director for Vietnam, said in a press release.

The transport sector contributes around 10.8 percent of the country’s CO2 emissions, and is projected to grow at 6-7 percent annually, amounting to nearly 70 million tons of carbon dioxide.

The country ranks third in Southeast Asia in greenhouse gas emissions behind Indonesia and Thailand, a study by the International Center for Tropical Agriculture earlier this year said.