promotion of electric two-wheelers and solar energy in

Baseline study

Study conducted by: Dr. Do Khac Uan Mr. Ywert Visser

Final report – 03 June 2013

Promotion of Electric Two-Wheelers and Solar Energy in Vietnamese Cities:

An Explorative Project Initiated and Tested in Hanoi.

1 Baseline Study Promotion of Electric Two-Wheelers and Solar Energy

Executive Summary

Caritas Switzerland in Vietnam (Caritas) is developing the project

“Promotion of Electric Two-Wheelers (e-bike) and Solar Energy in

Vietnamese Cities: An Explorative Project Initiated and Tested in

Hanoi” (the project). A baseline study was requested to determine

the current status (e.g. usage, perception and awareness) on e-bike

among the target demographic of the project (high-school and

university students aged 16 to 22). In addition the report provides

baseline information on relevant factors such as the government

policy on e-bikes, air quality and the status of people with disabilities

and poor inhabitants of Hanoi. The same was implemented through

implementation of surveys among students and suppliers of e-bikes,

interviews and desk research.

Outcome of survey The survey was initially implemented at 3 universities and 2 high

schools, but voluntarily students at other high schools and universities participated.

Finally the survey was completed by 66% university (mostly 18 to 24 years old) and 34%

high school students (mostly 16 to 18 years old). The survey did not find significant

differences between high school and university students. The main difference was that

high school students tend to use more bicycles and be less aware of social issues, such

as environmental pollution. Furthermore, transport expenditure of high school students

was mainly decided and paid for by parents, whereas university students often had their

own income.

The survey found that most students use a bicycle, but that they tend to use up to 03

modes of transport often (typically a combination of motorbike, bicycle and bus). On

average 19% of the students owned more than 1 vehicle, while 51% e-bike users owned

another vehicle. Students are most familiar with the electric bicycle and the electric

scooter, but 7% of the respondents do not know any type of electric two-wheeler.

Students travel 12.3 km per day or 83.2 km per week on average and spend around

172,000 VND per month on transportation. Their income is 2 million VND on average.

The main motivation for students to buy an e-bike is to save money on transportation,

but environmental concerns are also important. Remarkable is the difference in

perception of non-e-bike users versus e-bike users. Only 8% of the non-e-bike users

said they are planning to buy an e-bike, while 18% said maybe. Most respondents are

reluctant to buy an e-bike because they already own another vehicle or they are worried

about the quality and the speed of the vehicle or issues with recharging. Interestingly,

people that own an e-bike are actually very positive about the performance of the vehicle

and do not mention any problem with recharging. This survey result shows that the

biggest barrier for non-e-bike users is lack of awareness (e.g. uncertainty due to lack of

practical experience with the e-bikes), which could be circumvented with concepts such

as renting or trial use of an e-bike.


The survey also asked students’ opinion on renting. Only 5% of the non-e-bike users

was willing to rent an e-bike while 84% said no to renting. The main rationale was that

they already owned another vehicle, hence did not see the need to rent another. In

addition, many students mentioned that they did not understand the concept of renting

an e-bike or how this would work in practice. They mentioned that they were familiar with

the concept of renting housing, but did not understand how an e-bike could be rented.

People that use an e-bike generally have used it for more than 1 year (43%), while 38%

had used it for less than 12 months. Electric bicycles are most popular (47%), followed

by the pedal assist (44%). Yamaha (47%), Honda (19%) and Giant (12%) are the most

popular brands, while brands produced in Vietnam are not popular. E-bikes are mostly

used for going to school and leisure activities. The actual buyers of e-bikes are parents,

aged 45-50.

The profile of the e-bike users that completed the survey is: 66% of them are male, the

average age is 17.8 years and 66% of them are high school students. E-bike users are

positive about the performance of their bike and 75% said the performance is better than

expected at time of purchase. Interestingly, they are most positive about safety while

driving, recharging, travel range and finding spare parts. These are the domains where

non-e-bike users have most concerns about.

The survey among e-bike suppliers generally supports the findings of the student survey.

Interestingly, 50% of the suppliers have been in business for one year only. They mostly

sell electric bicycles and pedal assist bicycles. In answer to the question what the

government can do to support the sector (e.g. in terms of policy), the biggest obstacle

mentioned by the e-bike suppliers is the import tax on e-bikes.

Policy and awareness of policymakers on EE transport modes At this moment, Vietnam has not issued policies in relation to the promotion of e-bikes

and conventional bicycles. However, the e-bike promotion and usage is affected

indirectly by other policies. The high import tariff (normally 65% or higher) seems to be

the biggest policy issue, since most of the e-bikes sold in Vietnam are imported as

completely build units from neighboring countries. Although import tax for parts of e-

bikes is generally lower than that of a complete build unit, from the survey it could be

observed that customers in Vietnam generally prefer the imported models. The import

tariff does not only affect the sales of e-bikes, but also leads to the use of low-cost

technologies which affect the service level of e-bikes.

Within the overall discussion and regulation of policymakers on the development of the

transport in Hanoi city, the proponents of infrastructure development are currently

leading. This group is supported by an abundance of data and planning on development

of infrastructure for motorbikes and cars and public transport. Meanwhile, little research

is done on e-bikes or other forms of energy efficient individual transport. However, from

the research already conducted it can be concluded that increased use of e-bikes and

bicycles would reduce traffic congestions and air pollution.

The lack of awareness and attention for e-bikes in the current policy debate can also be

considered an opportunity for the project of Caritas. The project is the first project in


Vietnam that will actually involve a technology demonstration component and also

contribute to objective research in the field of e-bikes (e.g. through the survey conducted

among students).

Power generation and development of solar photovoltaic (PV) power in Vietnam Vietnam has excellent potential for development of renewable energy, including solar PV

power. Due to the high share of hydropower in the power generation mix (46%) the

carbon intensity of power generation is relative low: 0.5408 ton CO2/MWh. However, with

exception of hydropower, the share of renewable energy in the Vietnamese power mix is

currently very small.

Within the context of the project, it should be noted that the current feed-in-tariff (FIT) is

too low to spark wide spread interest of investors. New policies are being developed to

change this situation, but at the moment there is only about 5 MWp installed solar PV

power generation capacity in Vietnam.

Transportation and its impact on air quality in Hanoi Rapid growth of cars and motorbikes, (10% and 15% respectively, year-on-year), has

had a serious impact on the air quality in Hanoi. Many central districts are exceeding the

ambient air quality limits set by the government. The air pollution causes more instances

of respiratory infections, especially among children and those in the poorer strata. The

air pollution also causes economic losses, with some estimating a loss of 48,000

USD/day in Hanoi. Others estimate that the GDP growth of Vietnam would be reduced

by 50% if the environmental losses would be taken into account.

Around 80% of the vehicles on the road in Hanoi are motorbikes. Most of the vehicles do

not have modern emission control features.. Hence, increased use of e-bikes has a

tremendous beneficial effect on the air quality in Hanoi. When taking into account power

generation, CO2 emissions from electric bicycles are only one third of motorcycles. Also

particle matter emissions are less than one tenth compared to motorcycles.

Status of poor and disabled people in Hanoi It is estimated that 1.27% of the population of Hanoi is living in poverty. Almost nobody

in a poor household has a university education or a white-collar job or owns a business.

In Hanoi 7.8% of the population has one or more disability in seeing, hearing, walking or

cognition.

The data shows that the living conditions of people with disabilities (PWD) are worse

than those without a disability (PWOD). Data indicates that 25.27% of the PWD are poor

and the literacy rate among PWD is much lower than PWOD. In addition, unemployment

rates among PWD almost 3 times higher than PWOD.

Employment opportunities for PWD under the e-bike project are thus very beneficial to

this group, also due to the innovative nature of the project and capacity building

component. In relation to engagement of PWD or people from disadvantaged

backgrounds, it is recommended to pay special attention to education and vocational

training in the initial stages of the project. An example can be to test their suitability for

their position at time of recruitment and provide an individual training plan for each staff.


Table of Contents

Executive Summary ...................................................................................................... 1

1. Introduction ............................................................................................... 5

1.1. Background ................................................................................................. 5

1.2. Objectives of the baseline study .................................................................. 5

2. Outcome of survey among students and suppliers ................................ 6

2.1. Introduction and sample methodology ......................................................... 6

2.2. Sample size ................................................................................................. 6

2.3. Outcome of survey among students ............................................................ 7

2.3.1. Transport modes and behavior of students .................................................. 7

2.3.2. Attitude and perception of students towards e-bikes .................................... 9

2.3.3. Perception of non-e-bike users .................................................................. 11

2.3.4. Experience of students with e-bikes ........................................................... 13

2.4. Outcome of survey among suppliers and manufacturers of e-bikes ........... 17

3. Policy makers’ e-bike awareness and policy framework ..................... 21

3.1. Introduction ................................................................................................ 21

3.2. Policy framework for promoting RE/EE modes of transport........................ 21

3.2.1. Cost of transportation ................................................................................ 22

3.2.2. Other policies indirectly affecting e-bikes ................................................... 23

3.3. Policy makers’ awareness, knowledge on e-bikes ..................................... 23

4. Development of solar PV power in Vietnam .......................................... 26

4.1. Energy policies affecting solar PV Power development ............................. 26

4.2. Solar PV Power development in Vietnam .................................................. 27

4.3. Carbon Footprint of power generation in Vietnam ...................................... 28

5. Impact of transportation on air quality in Hanoi .................................... 29

5.1. Introduction ................................................................................................ 29

5.2. Air quality standard in Vietnam .................................................................. 30

5.3. Air quality in Hanoi ..................................................................................... 31

5.4. The effect of air pollution on people in Hanoi ............................................. 32

5.5. Effect of e-bikes on the air quality in Hanoi ................................................ 34

5.6. The cost of air pollution in Hanoi ................................................................ 34

6. Status of poor and disabled people in Hanoi ........................................ 36

6.1. Poverty in Hanoi ........................................................................................ 36

6.2. Status of people with disabilities in Hanoi .................................................. 37

6.3. Inclusion of poor and PWD in the project ................................................... 38

7. Conclusion and recommendations ........................................................ 40

REFERENCES ............................................................................................................ 44

List of relevant stakeholders ........................................................................................ 46

Annex 1: copy of the student and manufacturer surveys ............................................. 48

Annex 2: copy of original surveys in English .............................................................. A-2

Annex 3: copy of the TOR for consultants ................................................................. A-3

Annex 4: copy of the work plan issued by consultants ............................................... A-4


1. Introduction

1.1. Background

Caritas Switzerland in Vietnam (Caritas) is developing a new project with the title

“Promotion of Electric Two-Wheelers (e-bike) and Solar Energy in Vietnamese Cities: An

Explorative Project Initiated and Tested in Hanoi” (hereafter called the project).

The project aims to promote electric two-wheelers and solar photovoltaic (PV) power

using an innovative and entrepreneurial approach. The ultimate goal of the project is to

contribute to sustainable development through CO2 neutral power generation (as a result

of application of solar PV power technologies) while at the same time supporting viable

business activities for the poor and disabled by involving them in the business

opportunities created by the project’s electric two-wheeler promotion component.

1.2. Objectives of the baseline study

Within the project development cycle of Caritas, the baseline study will act as an initial

fact and data gathering tool. This data will then be used in the second step of the

development cycle (the development of the feasibility study). In addition, it will be used

as a benchmark tool to determine the awareness of stakeholders on the measures that

the project is promoting in a pre-project situation.

Through analysis of the scope of work that is defined in the Terms of Reference (“TOR”)

of the project, the following main research questions can be distilled that act as the

leading objectives of this study:

1. What are the factors that promote (and prevent) usage of e-bikes, in particular

among high-school and university students (age 16-22)?

2. What is the current status of student’s awareness, attitude, usage and cost of

transport in general and with a focus on e-bikes?

3. What is the effect of transportation and e-bikes on air quality and air pollution in

Hanoi?

4. What are current and upcoming policies that may affect e-bikes?

5. What are other stakeholders doing to promote e-bikes?

6. What is the status (e.g. income and employment) of poor and disabled people

and how can they benefit from promotion of e-bikes (e.g. job creation)?

7. What are current and upcoming policies on solar energy/renewable energy in

Vietnam?

The aforementioned seven questions are answered by application of the following data

collection tools:

1. Survey among stakeholders (i.e. students and suppliers/manufacturers);

2. Direct interview with relevant stakeholders (e.g. policy makers, researchers);

3. Desk study of available literature.


2. Outcome of survey among students and suppliers

2.1. Introduction and sample methodology

Based on the requirements of the TOR, the focus of the survey is on high-school and

university students in Hanoi, preferably in the age of 16 to 22. For practical matters and

control of survey distribution randomly three universities and two high-schools have

been selected to implement the survey. However, also students of other high-schools

and universities were encouraged and allowed to participate in the survey.

The randomly selected educational institutions are:

Hanoi University of Science and Technology

National Economics University

Hanoi Foreign Trade University

Chu Van An High School

HUS High School for Gifted Students

The survey was distributed through designated focal points at the universities. The focal

points were responsible, for distribution, guide students with the completion of the survey

and collect completed surveys.

The focal points were also responsible for initial quality assurance, e.g. they rechecked

and reviewed all the questionnaires to ensure accuracy and quality of the data collected.

In addition, evaluation meetings between consultant and focal points were held during

the implementation of the survey to address any feedback or obstacles in survey

implementation.

Data entry was done by the focal points, reviewed by a third party by using different

tests, e.g. range tests to ensure accuracy of data. Final review was done by Consultant.

The survey that was distributed among students included questions for both non-e-bike

and e-bike users. Through observation at universities it was determined that only a

limited number of students were actually using an e-bike. Hence, the possibility existed

that only a limited number of actual e-bike users may complete the survey, which would

not yield reliable survey outcomes. Therefore, in addition to a survey among students, a

survey for manufactures/suppliers/distributors was developed, to specifically gather e-

bike market data. The supplier survey was of supplementary nature.

To optimize random sampling, the student survey was implemented in two phases: from

24 April 2013 to 30 April 2013 and from 3 May 2013 to 9 May 2013. The supplier survey

was implemented between 24 April 2013 and 5 May 2013.

2.2. Sample size

Considering the time and cost limitations, sample size was determined. However,

surveyors were encouraged to gather as much surveys as possible.


At each participating educational institution 30 randomly selected students were asked

to complete the survey in each participating education institution. This number was

sufficient to provide valid estimates of the desired indicators, thus at 90%

confidence level and around confidence interval of 5, a sample of 150 students were

interviewed.

The formula used in the sample size determination is given below:

Sample Size = Z2 * (p) * (1-p) ------------------- c2 Where: Z = Z value (1.645 for 90% confidence level) p = percentage picking a choice, expressed as decimal (.5 used for sample size needed) c = confidence interval, expressed as decimal (.05 = ±5)

Due to supplemental nature of manufacturer/supplier/distributor survey, a fixed number

of surveys were conducted among this population: the number of surveys distributed

was 70 with an anticipated collection of valid surveys of 40.

At the end of the survey, 320 student surveys had been collected and 47 supplier

surveys. After scrutinizing the surveys, 297 student surveys and 40 supplier surveys

were found to be complete and valid.

2.3. Outcome of survey among students

This section describes the results of the survey that was conducted among students.

The source of the analysis is 297 surveys, of which high schools (34%) and universities

(66%):

Students were handed one survey form that contained 4 pages. These 4 pages included

questions for both non-e-bike and e-bike users. A copy of representative surveys can be

found in annex 1.

Surveys were received from students at the following organizations:

Hanoi University of Science and Technology: 25%

National Economics University: 17%

Hanoi Foreign Trade University: 18%

Chu Van An High School: 14%

HUS High School for Gifted Students: 20%

Hanoi of Civil and Engineering, Vietnam University of Commerce, Banking

Academy: 6%

2.3.1. Transport modes and behavior of students

The survey found that students generally own one vehicle while 19% owned more than

one vehicle (a combination of motorbike and bicycle or e-bike was most popular).

However, when looking specifically at e-bike owners, it was found that 51% of them

owned an additional vehicle. 29% of the surveyed population owned an e-bike.


Figure 2.3.1.1 – vehicle ownership of students

In relation to the e-bike ownership it should be noted that this may not be an accurate

indicator of the overall use or ownership of e-bikes among students in general.

Surveyors that distributed the surveys to students knew that the survey was conducted

in relation to a study on e-bikes. Hence, they may have been inclined to focus on e-bike

users.

The survey found that the students may change the mode of transport from time to time.

The average number of transportation modes used (most often) was nearly three (2.78).

A combination of bus, motorbike and bicycle was most commonly mentioned.

Figure 2.3.1.2 – modes of transport most often used by students

Most of students still use bicycle for their transport. This could be due to the fact that

they lived near to their school/university. Besides, high school students are not old

enough to use the motorbike. In addition, walking was also a conventional modes as it

very convenient for students living in dormitory of very near by their schools. It should be

noted that the number of students using e-bike (31%) is higher than the number of

students owning e-bike, which could be explained as some time they borrowed from

friends of from their family members.

42.8%

30.6%

3.4%

29.3%

13.8%

7.7%

0% 10% 20% 30% 40% 50%

Bicycle

Motorbike

Car

Electric Bicycle/Scooter

Other

No vehicle

Vehicles owned by students

57.6%

67.3%

31.0%

12.8%

53.2%

9.1%

41.1%

5.1%

1.3%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Bus

Bicycle

Electric bicycle/scooter

Car

Motorbike

Taxi

Walking

Xe om

Other

What mode of transport is most often used


Since the transport of students was not fixed, sometimes they can choose another

mode, such as by taxi, motorbike taxi or even by car. However, this portion was not

much compared with other transportation modes.

The surveyed students typically make 2 (33%) or 4 (31%) trips per day with their

vehicles. The average distance traveled is 12.3 km per day or 83.2 km per week. On

average students spent 172,649 Vietnam Dong per month on transportation, and the

figure of 100,000 VND/month was most frequently mentioned.

Only 6% (20) of the students completed the question regarding their monthly income.

The average income is 2 million VND/month.

2.3.2. Attitude and perception of students towards e-bikes

In the first part of the survey, both e-bike users and non-e-bike users were asked about

their awareness, attitude and perception towards e-bikes.

The respondents were most familiar with the electric bicycle, which was indicated 41% of

the times. Additionally, electric scooters and pedelecs were also commonly known. Only

7% did not know any of the electric two-wheelers mentioned in the survey.

Figure 2.3.1.3 – student awareness of electric two-wheeler types

Through a series of statements, the respondents were questioned what would the main

motivation for them to buy or use an e-bike. This question was also intended to gauge

the impact of government policies and perception of students. Since the question

allowed participants to make multiple choices, the below chart shows the number of

instances a particular statement was selected:

41%

27%

19%

6% 7%

Which electric two-wheelers do you know?

Electric bicycle

Electric scooter

Pedal assist bicycle

Conversion kit


Figure 2.3.1.3 – motivation to buy an e-bike

Interestingly the main motivation of students was related to the cost of transportation,

whereas a government policy (e.g. tax on the use of motorbikes) was not a strong

motivation. This is an interesting finding, since studies on the effect of policies (e.g.

taxes) are known to have an important impact on people’s buying decisions (this is

further elaborated in chapter 3). In addition, environmental aspects were also appealing

to the respondents.

To determine the rationale for students to not use an e-bike, students were asked to

identify the reasons why they would not want to use an e-bike.

Figure 2.3.1.4 – motivation not to buy an e-bike

46 55

15 4

2 2

6 3

48 38

13 7

3 4

0 10 20 30 40 50 60

An increase in fuel priceSave money on transportation

It is easier to drive than a motorbikeTo impress friends and family

I like the design / colours of e-bikesIf government announces a tax on…

I am not old enough to drive a motorbikeGovernment restricts car/motorbike use

Protect the environmentIt is silent / noiseless

Ease to park/storeTo avoid traffic jams

It saves time travelingOther reasons

Number of times mentioned

Main motivation to purchase an e-bike

34 52

11 63

14 16

27 51

7 5

13 34

18 15

0 10 20 30 40 50 60 70

The range it can travel is too shortQuality concerns

Bad experience previouslyAlready have another type of transportation

I do not like the design of e-bikesI do not like to wear a helmet

It is not suitable to carry multiple peopleIt is too slow

None of my friends have an e-bikeNegative comments from friends and family

I do not feel safe when driving itDifficulty to recharge

It lacks features that my current vehicle hasOther


Main motivation not to use an e-bike


The most important reason was the ownership of another vehicle, followed by quality

concerns. Interestingly, respondents mentioned also speed as an important factor,

although research shows that the average speed in Hanoi is only 20 km/hour. In

addition, features and operational concerns (travel range, recharging) were very

important.

Interestingly perception questions, such as the design and impression of others were not

very important aspects in the buying decision.

2.3.3. Perception of non-e-bike users

After collecting initial data on the transportation modes, travel behavior and perception

towards e-bikes of students, the survey had specific questions for people that were using

e-bikes and people that were not yet using e-bikes.

The questions in this section were specifically directed to people that did not use an e-

bike yet.

The majority of people said they are not planning to use an e-bike, although 18% was

considering it. Most respondents are reluctant to buy an e-bike because they already

own another vehicle or they are worried about the quality and the speed of the vehicle or

issues with recharging. Interestingly, people that own an e-bike are actually very positive

about the performance of the vehicle and do not mention any problem with recharging.

Figure 2.3.3.1 – plan to use an e-bike

This survey result shows that the biggest barrier for non-e-bike users is lack of

awareness (e.g. uncertainty due to lack of practical experience with the e-bikes), which

could be circumvented with concepts such as renting or trial use of an e-bike.

The eight percent of students that were planning to use an e-bike were asked who would

pay for the e-bike.

Yes 8%

No 74%

Maybe 18%

Do you plan to use an e-bike?


Figure 2.3.3.2 – plan to use an e-bike

Most of the time the e-bike would be paid by the parents, although a third of the students

indicated that they would buy it themselves.

Respondents were also asked if they would be willing to rent an e-bike, without further

clarifying the renting scheme. Only 5% said they would, while 11% said maybe. The

main rationale was that they already owned another vehicle, hence did not see the need

to rent another. In addition, many students mentioned that they did not understand the

concept of renting an e-bike or how this would work in practice. They mentioned that

they were familiar with the concept of renting housing, but did not understand how an e-

bike could be rented.

Figure 2.3.3.3 – opinion on renting an e-bike

Given above response, not many people (only 20) completed the question regarding the

amount of money they would pay to rent the e-bike. The average fee mentioned was

110,000 VND, whereas the value of 50,000 VND/month was most frequently mentioned

(6 times).

Non-e-bike users that consider buying an e-bike are mostly choosing an electric bicycle.

However, the majority of this group is not sure yet what model they are going to use.

Myself 32%

Parents 61%

Employer 2%

Other 5%

Who would pay for the e-bike?

Yes 5%

No 84%

Maybe 11%

Opinion on renting an e-bike


Figure 2.3.3.4 – type of e-bike considered

The question which e-bike the users definitely did not want to use was left mostly

unanswered. Thi is understandable given the large amount of respondents that did not

decide yet on the type of e-bike to use.

2.3.4. Experience of students with e-bikes

The survey was designed as one version with questions for both non-e-bike and e-bike

users. In case the respondent owned or used an e-bike, he or she was directed to a

specific set of question.

The profile of the e-bike users that completed the survey is: 66% of them are male, the

average age is 17.8 years and 66% of them are high school students. Interestingly, most

e-bike users have been using the vehicle for more than 1 year, while the 38% has used

an e-bike for more than 6 months.

Figure 2.3.3.5 – length of e-bike usage

We also asked them through an open question, why they started using an e-bike.

Although this was an open question, most of the time the students referred to the low

operating cost of e-bikes. They had bought it due to an increase in fuel price or because

it reduced their overall cost of transportation. Secondly, environmental aspects were

mentioned, while a few people also mentioned that an e-bike was saver to drive than a

motorbike.

43%

10% 2%

5%

40%

What e-bike type will you choose?

Electric bicycle

Electric scooter


Conversion kit

Not decided yet

0– 3 months 11%

3 – 6 months 8%

6 – 12 months

38%

Longer than 1 year 43%

Length of e-bike usage


Students most frequently used an electric bicycle. Interestingly, they also use pedal

assist bicycles much.

Figure 2.3.3.6 – type of electric two-wheeler actually used

No student had used a conversion kit to convert their existing bicycle into a pedelec.

Through an open question, students were asked what the brand of the vehicle was. Half

of the respondent mentioned that they were using a Yamaha two-wheeler.

Figure 2.3.3.7 – brand of electric two-wheeler actually used

Interestingly, users of Yamaha were able to

remember the exact model of their e-bike

much better than competitive brands. In

particular the Yamaha model CGF, N2 and

H3 were frequently mentioned. Users of

Honda, Giant and other brands frequently did

not remember their model.

Based on the above information, e-bike

users prefer to use e-bikes that have an

association with Japanese brands.

electric bicycle 47%

electric scooter 9%

Pedal assist 44%

Type of electric two-wheeler used

Yamaha 47%

Giant 12%

Honda 19%

Other brands 22%

Brand of electric two-wheeler used

Figure 2.3.3.8 - The Yamaha H3


Information obtained from the survey indicates that e-bikes produced in Vietnam are not

popular. Brands that are produced in Vietnam, such as Hitasa and Asama were only

mentioned in a few instances.

The e-bike primarily displaces the use of walking, bus and bicycle transportation. E-bike

users previously frequently used a mix of walking, bicycle and bus or a mix of bicycle,

walking and motorbike.

Figure 2.3.3.9 – modes of transport used before the e-bike

Not surprisingly, students use their e-bike mostly to go to school but also for leisure

activities:

Figure 2.3.3.10 – usage of e-bike

With respect to the actual buyer of the e-bike, the e-bikes of students are most

frequently financed by their parents. Only 6% pays for the e-bike by themselves.

47

46

31

0

44

3

3

6

1

0 5 10 15 20 25 30 35 40 45 50

Bus

Bicycle

Motorbike

Car

Walking

Electric Bicycle/Scooter

Taxi

Xe om

Other


Modes of transport used before the e-bike

28 13

5 17

9 37

0 5 10 15 20 25 30 35 40

Travel to school/universityTravel to work

Shopping / go to marketLeisure

Pick up someoneAll kinds of trips


Usage of the e-bike


Figure 2.3.3.11 – the actual buyer of the e-bike

Interestingly, most e-bike users say that the performance of the e-bike is better than the

seller told them during the selling process.

Figure 2.3.3.12 – opinion on the performance of the e-bike

However, this may also have to do with the fact that only a few of the students actually

pay for the vehicle. Hence, they may be less critical towards the performance of the e-

bike.

In relation to the performance of the e-bike, students generally indicate that their e-bike

has a range of 45 km per charge, while nearly 50% of the respondents indicate that their

vehicle has a range of 50 km per charge. The average recharge time that the students

indicate is nearly 6 hours. All e-bike users recharge their e-bike at home and did not

mention any difficulty doing so.

At the end of the survey, we asked the students to rate their e-bike user experience

across a number of domains.

Myself 6%

Parents 89%

Employer 0%

Other 5%

Buyer of the e-bike

Yes 75%

No 3%

Not sure 22%

Is the performance of the e-bike better than the seller told you?


Figure 2.3.3.13 – satisfaction with the e-bike

In general e-bike users are satisfied with their vehicle, or have a neutral opinion. Only

the battery life, speed and quality aspects have a higher percentage of “not satisfied”

scores. Interesting finding is that the users do not seem to mind to wear a helmet, even

though suppliers indicate that the helmet wearing requirement has affected their

business in a negative way.

2.4. Outcome of survey among suppliers and manufacturers

of e-bikes

The survey among suppliers and manufacturers yielded 40 valid surveys. Most of the companies interviewed, are suppliers of e-bikes that sell their bikes through

shops located in the streets of Hanoi. Most sellers indicate that they saw positive signs

towards the development of the e-bike market, in particular the need for e-bikes from

students. Some retailers also mentioned going into the business for environmental

reasons or because they observed issues that impacted demand of e-bikes, such as an

increased fuel price.

0%10%20%30%40%50%60%70%80%90%

100%N

um

ber

of

tim

es m

en

tio

ned

Satisfaction of e-bike users across various domains

Very satisfied

Satisfied

Neutral

Not satisfied

Very unsatisfied


Figure 2.4.1 – how long has e-bike supplier been in business

Interestingly, the number of firms that have been in the business of selling e-bikes for

one year is very large.

Figure 2.4.2 – types of e-bike sold

Most e-bike retailers sell electric bicycles, although one retailer did not answer this

question. Pedelecs are also often sold. This is similar to the distribution of the e-bike

types used by students as indicated in the student survey.

Only 50% of the e-bike sellers also sell spare parts. Mostly they sell batteries and

recharge services (such as battery maintenance, recharging, selling new chargers and

cables).

Less than half of the respondents provided figures about the sales of e-bikes in the

previous three years. The numbers vary greatly, but it can be observed that most of the

shops only sell a few e-bikes per week. Half of the respondents answered that they only

sell 5 or less e-bikes per week. Only 33% of the respondents that answered this

question sold 10 or more e-bikes per week.

1 year 50%

2 years 25%

3 years 7%

> 3 years 13%

No answer 5%

How long has the e-bike supplier been in business

39

11

13

3

0 5 10 15 20 25 30 35 40 45

Electric bicycle

Electric scooter


Conversion kit


Types of e-bikes sold


The reasons why people buy e-bikes from the perspective of suppliers are matching with

the answers that were earlier provided by the students.

Figure 2.4.3 – motivation of customers to buy an e-bike

The main reason why people buy e-bikes from the perspective of suppliers is the lower

operating cost aspect. In addition, environmental concerns and not being allowed to

drive a motorbike are important factors. Other reasons for buying were “no need to wear

a helmet” which indicates that e-bike suppliers are not aware of current regulations or

wrongly inform their buyers. There is a legal requirement to wear a helmet on a e-bike,

although it is not strictly enforced yet among e-bike users (refer to chapter 3).

The typical e-bike buyers are males and females between 45 and 50 years of age, that

buy the vehicle for their child. This is consistent with the answers on age of the e-bike

above: Most of the time, these are up to 19 years old.

Figure 2.4.4 – age of e-bike users

24

24

11

2

0

18

0

7

16

1

4

1

1

3

0 5 10 15 20 25 30

increase in fuel price

Save money on transportation

easier to drive than a motorbike

impress friends and family

design / colours of e-bikes

not old enough to use a motorbike

government announcement on new tax

give as gift

Protect the environment

silent / noiseless

Ease to park/store

avoid traffic jams

saves time traveling

Other reason


Motivation for purchase of e-bike from supplier perspective

0% 20% 40% 60% 80% 100%

Up to 19 years

30-39 years

60 years or older

Age of e-bike users

None

Some

Many

Very much


The suppliers were asked about the intended usage of the e-bike, by the future owners.

Figure 2.4.4 – usage of e-bike by customers

The results confirm the results that were observed in the student survey, with going to

school or leisure as most frequent usage. Interestingly, the e-bikes are hardly used to

travel to work, according to suppliers.

Regarding performance, the suppliers mentioned that 40% of the buyers require a range

of up to 40 km/recharge, while another 40% requires a range of up to 50 km/recharge.

The remaining 20% required a range of more than 50 km/recharge.

Interestingly, many e-bike suppliers did not know exactly the type of batteries the e-bikes

they sold were using. However, lead-acid batteries were most common (55%), followed

by lithium-ion (37%).It should be noted that given the observed lack of knowhow among

e-bike sellers on the technical features of e-bikes, it is uncertain if the question on

battery types yielded reliable results.

In relation to market development, approximately half of the e-bike suppliers had a

positive impression about the future market, indicating growth or substantial growth.

However, about 40% was not sure or provided no answer.

In answer to the question what the government can do to support the sector (e.g. in

terms of policy), the biggest obstacle mentioned by the e-bike suppliers is the import tax

on e-bikes (this is further elaborated in chapter 3). While answering the question how e-

bike usage could be promoted, the sellers also referred to tax policies, and tax reduction.

Besides, a minor amount of respondents advised policies that affect motorbikes, such as

increased tax on motorbikes or motorbike use restriction policies.

Suppliers often referred to the speed and price as barriers towards the usage of e-bikes

from a user perspective.

20

6

20

15

0

13

0 5 10 15 20 25

Travel to school/university

Travel to work

Shopping / go to market

Leisure / sport

Pick up someone

All kinds of trips


Usage of e-bike from supplier perspective


3. Policy makers’ awareness, knowledge and policy

framework for promoting RE/EE mode of transport

and particularly e-bikes

3.1. Introduction

Hanoi city is experiencing rapid urbanization and population growth under the

background of significant economic development. This has led to an increased pressure

on the city’s transportation system, causing a deteriorating effect on air quality, traffic

safety and an increase in serious traffic congestion.

To address these issues, the Government of Vietnam (GoV) is progressively looking for

alternative transportation solutions to create an efficient and clean transportation

network. In the Hanoi Master Plan to 2030 and vision to 2050 an important role is

attributed to energy efficient forms of transport, including the use of Bus Rapid Transit

and metro line systems.

This report, however, limits the scope of research to policies that affect the

transportation mode that people are using and may affect e-bikes. The below

assessment takes into account policies developed and implemented since approximately

2008, when the transportation arena started to get affected by important new policies

(traffic safety laws) and increased fuel prices. In addition, it takes into account policies

that are announced, provided that sufficient details on their implementation status are

available.

While implementing the study on policy makers a great lack of awareness on e-bikes

was observed, which is further elaborated below. Hence, no policymakers could be

identified that specifically worked on the topic of e-bike. As a result, the below

assessment was mainly the result of desk study and brief interactions with stakeholders,

rather than in-depth interviews.

3.2. Policy framework for promoting RE/EE modes of

transport

The effect of government policies in relation to the promotion of e-bikes is evidenced by

the uptake of e-bikes in China. China has seen explosive growth in the sales of electric

bikes since 1998. The boom was triggered by Chinese local governments' efforts to

restrict motorcycles in city centers. China's annual sales of electric two-wheeled vehicles

(bikes and scooters) grew exponentially from fifty six thousand vehicles in 1998 to over

twenty one million in 2008 (Yang, 2010). It should be noted that the e-bike development

in China was the effect of loose enforcement of electric bike standards, rather than of

conscious decisions to support electric transportation.

Similar to the situation in China, e-bike sales and usage in Vietnam is also indirectly

affected by policies, mainly those that affect the cost and convenience of transportation.

At this moment, Vietnam has not issued policies in relation to the promotion of e-bikes


and conventional bicycles. However, the government does monitor the e-bike market

through established policies that are applicable to this type of vehicle.1

A survey conducted in Hanoi on this topic (Jones, 2012) showed that the surveyed

population was more susceptible to policy changes (e.g. new fees on use of motorbikes,

less fees for e-bikes) than it was to other aspects of the e-bike (e.g. sales price,

technical features).

3.2.1. Cost of transportation

In the survey that was conducted among manufacturers and suppliers of e-bikes, import

taxes and import tariffs were often referred as an obstacle or concern. This is

understandable, since at present there are no preferential tariffs for electric bicycles and

scooters or pedal assist bicycles (pedelecs).

The import duties of e-bikes are currently regulated through circular No. 157/2011/TT-

BTC dated 14/11/2011 that was issued by the Ministry of Finance. This circular refers to

the Harmonized Systems Code 87.11 for motorcycles and cycles fitted with an auxiliary

motor.

Depending on the capacity of the motor, the import tariff for electric bicycles and

scooters is currently between 65% and 70% when the e-bikes are produced in countries

that are member of the World Trade Organization (WTO). E-bikes produced in non-WTO

member states are subject to an import duty of 97.5% to 105%. In some cases

preferential tariffs may apply, e.g. in case the e-bike is produced in countries that are

member of the ASEAN–China Free Trade Area (ACFTA) an import tariff of 45% applies.

However, in the latter case additional documents to substantiate the origin of the

vehicles are required to be submitted. Parts of e-bikes may fall in lower import tariff

groups, but due to the wide variety of available components the precise amount of tax

varies greatly.

Besides the above import duties, a 10% Value Added Tax rate applies during the sale of

the vehicle.

Users, manufacturers and suppliers also mentioned proposed changes in the fees,

which are often referred to as “road tax”. Historically vehicle owners did not have to pay

a separate tax for ownership of a vehicle. Fees were paid only one time, when

purchasing and registering the vehicle and indirectly through a fee levied on each liter of

fuel sold.

From 2011 the government has increasingly emphasizes on the collection of separate

taxes (e.g. through decree no. Decree No. 18/2012/ND-CP). The media reported about

1 Vietnamnet News, “Electric bicycle fraud surging, merchant inspections reveal”,

retrieved 14/05/2013: http://english.vietnamnet.vn/fms/society/73445/electric-bicycle-

fraud-surging--merchant-inspections-reveal.html

http://english.vietnamnet.vn/fms/society/73445/electric-bicycle-fraud-surging--merchant-inspections-reveal.html

http://english.vietnamnet.vn/fms/society/73445/electric-bicycle-fraud-surging--merchant-inspections-reveal.html


these taxes with eye-catching headlines such as “Road tax: over $600/year on cars”2

and that implementation of the measures was imminent. These media announcements

often spark a strong interest in alternative transportation modes such as e-bikes.

The regulation came into effect on 1 January 2013 and includes a fee for cars and

motorbikes. However, at this moment only the collection of the road tax for cars is

enforced. Cars are required to undergo a period emission and road safety inspection. At

that inspection, the road tax is also paid. Motorbikes currently do not have to undergo a

periodic inspection (also refer to chapter 5), hence the collection mechanism is not

finalized.

However, as described in chapter 5, regulation is being prepared to also require periodic

inspection of motorbikes. This policy, in combination with the road tax is expected to

have a strong impact on the demand of e-bikes.

3.2.2. Other policies indirectly affecting e-bikes

Mandatory helmet wearing legislation (Regulation 32) that was enforced since 15

December 2007 sparked an in the popularity of e-bikes. The regulation initially did not

consider e-bike users; hence people that did not want to wear a helmet switched to e-

bikes instead. However, this loophole was closed in 2008. Feedback given in our

manufacturer survey suggests that this caused a decline in the sales of e-bikes.

Since the legislation did not prescribe fines for children that weren’t wearing helmets, the

e-bikes remained popular among children. This additional loophole was closed in a

decree issued in 2010 (no. 34) which also requires children aged 6 and up to wear

helmets. This new decree is progressively enforced more strictly3.

The current programs on energy efficiency do not specifically affect e-bikes or individual

transport, as most of the activities under for example the Vietnam National Energy

Efficiency Program (VNEEP) for the period 2005-2015 or Law on Energy Saving and

Efficiency currently focus mainly on industry in general, major industrial energy

consumers and household energy efficiency (e.g. through CFL light promotion) (World

Bank 2010).

3.3. Policy makers’ awareness, knowledge on e-bikes

Within the space awareness on e-bikes and the effect of these vehicles on

improvements of air quality and general livability of the city it is observed that there

2 Vietnamnet News, “'Road tax': Over $600/year on cars”, retrieved 14/05/2013:

http://english.vietnamnet.vn/fms/society/51388/-road-tax---over--600-year-on-cars.html

3 VNMedia, “Today people riding electric bicycle without helmet will be fined”, retrieved

16/05/2013: http://www.vnmedia.vn/VN/xa-hoi/tin-

tuc/23_829863/hom_nay_phat_nguoi_di_xe_dap_dien_khong_doi_mu_bao_hiem.html

http://english.vietnamnet.vn/fms/society/51388/-road-tax---over--600-year-on-cars.html

http://www.vnmedia.vn/VN/xa-hoi/tin-tuc/23_829863/hom_nay_phat_nguoi_di_xe_dap_dien_khong_doi_mu_bao_hiem.html

http://www.vnmedia.vn/VN/xa-hoi/tin-tuc/23_829863/hom_nay_phat_nguoi_di_xe_dap_dien_khong_doi_mu_bao_hiem.html


currently is no common approach provided by the local government and other actors in

this field (Tuyet 2012, Khuat 2009). In fact, two groups can be distinguished.

Policymakers are the local government but also the relevant academia and institutes that

support and influence policymakers through research and other input.

Firstly there are policymakers that focus on infrastructure development and

implementation of modern methods of transport (Metro, Bus Rapid Transit (BRT)

systems). Secondly there are policymakers that focus on the livability in the city,

environmental impacts and actors that research transportation modes and flows.

Within the first group, some actors are of the opinion that deployment of bicycles and e-

bikes would be inefficient use of road space and may intervene with further development

of infrastructure. They fear that capital used to develop infrastructure (e.g. special

bicycle lanes, recharge and storage areas areas) would defer much needed capital for

other projects. In addition, they fear that it may negatively affect the traffic flow of other

road participants (e.g. due to lower speed of e-bikes and bicycles)4. Within this group,

some actors seem to have a negative perception towards bicycles and e-bikes and are

of the opinion that transportation development should focus on modern ways of

transport, such as the Bus Rapid Transit, Metro lines and other forms of public transport.

Figure 3.3 - Ongoing construction of the Cat Linh – Ha Dong elevated railway system. This section

intersects with the elevated Ring Road 3 urban expressway that was opened in 2012.

4 VietnamNet News, “Bicycles will help reduce pollution, but will make traffic jam more serious” retrieved 16/05/2013: http://english.vietnamnet.vn/fms/environment/72129/bicycles-will-help-reduce-pollution--but-will-make-traffic-jam-more-serious.html

http://english.vietnamnet.vn/fms/environment/72129/bicycles-will-help-reduce-pollution--but-will-make-traffic-jam-more-serious.html

http://english.vietnamnet.vn/fms/environment/72129/bicycles-will-help-reduce-pollution--but-will-make-traffic-jam-more-serious.html


The second group includes academia that study traffic flows and urban transport in other

metropolitans and developed countries. They are in favor of e-bikes and bicycles and

refer to research that indicates benefits of using these forms of transport 5 . They

particular favor e-bikes and bicycles for short trips (up to 5 kilometers) citing health, air

pollution (both noise and particular matter) and to ease congestions in the city) (Khuat,

2009).

Another general observation is the focus on motorbikes, cars, trucks and development of

public transport among policymakers and master plan6 for the city of Hanoi. Other forms

of transport play a relative insignificant role in the current discussion on development of

transportation in Hanoi city, indicating a lack of awareness about the benefits of these

forms of transport.

The lack of awareness appears to originate from two main causes. The main reason is

the absolute number of car and motorbike users. Due to the importance of car and

motorbikes in the overall transportation mix of Hanoi, this group is able to influence

policymakers to invest in measures to easy traffic congestions. An additional benefit is

the large amount of research and planning that is available to support infrastructure

development and decision making for conventional vehicles. The smaller group of e-

bike and bicycle users in combination with actors that focus on the environmental impact

are a relatively small group and supported by a limited amount of research (Nguyen,

2010).

Presently there is research available on the effects of e-bikes and bicycles on traffic flow

patterns and its environmental impact. However, research on user perception, rationale

for transportation mode switch is extremely limited, with only a few studies conducted.

5VietnamNet News, “US$45,000 can help reduce congestion in Hanoi by bikes?” retrieved 16/05/2013: http://english.vietnamnet.vn/fms/society/72286/us-45-000-can-help-reduce-congestion-in-hanoi-by-bikes-.html 6 Perkins Eastman, “Hanoi Capital Construction Master Plan to 2030...”, retrieved

16/05/2013: http://perkinseastman.com/project_3407114_hanoi_capital

http://english.vietnamnet.vn/fms/society/72286/us-45-000-can-help-reduce-congestion-in-hanoi-by-bikes-.html

http://english.vietnamnet.vn/fms/society/72286/us-45-000-can-help-reduce-congestion-in-hanoi-by-bikes-.html

http://perkinseastman.com/project_3407114_hanoi_capital


4. Development of solar PV power in Vietnam

4.1. Energy policies affecting solar PV Power development

Vietnam has an abundance of renewable energy resources throughout the country,

including hydro, wind, solar, biomass and biogas. However, historically, energy policies

in Vietnam have focused on socio-economic development. This has led to

predominantly low-cost power generation using fossil fuel based thermal power and

hydropower. Apart from hydropower, the current grid connected renewable energy

generation involves biomass (bagasse from sugar plants) and some grid connected wind

farms.

The main obstacle for the development of the grid connected renewable energy,

including solar, in Vietnam is the current low feed-in tariffs for electricity. The present

feed-in tariff for power generators is typically lower than 1,050 VND/kWh (0.05 US

Dollar). The feed-in tariff has not incentivized development of renewable power

generation, for which some investors require a feed-in tariff in excess of 2,000 VND/kWh

(0.10 US Dollar) for an acceptable ROI.

In recent years the Government has been strongly promoting the development of

renewable energy as a way to overcome power shortage and diversify power

generation. In addition, the government is working on creating a more competitive power

market. Power prices have been adjusted upwards more frequently, since the issuance

of the prime minister’s Decision 24/2011 on power price adjustment in line with market

changes. The current Power Development Master Plan VII (Decision No. 1208/QĐ-TTg

dated July 21, 2011) has set a target of 4.5% renewables by the year 2020.

In addition, the Viet Nam Green Growth Strategy was approved by the Prime Minister in

September 2012. This strategy defines a reduction of 8-10% of greenhouse gas (GHG)

emissions before the year 2020, compared to the baseline of 2010. In addition, the

Strategy strongly promotes the use of renewable resources such as solar energy.

This policy shift is partly due to observed constraints in the current power generation mix

(e.g. fuel availability of coal power plants, and the environmental impact and potential

unavailability due to droughts of hydropower plants). Another aspect is the fact that the

economic growth has led to an enormous increase in the power demand. One percent of

GDP growth in Vietnam causes a 2% increase in power demand.

The Government of Vietnam has had different policies to encourage the development of

renewable energy, establish the targets for renewable energy production and move

toward a competitive energy market with diverse investment and business models. In

Decision No. 1855/QĐ-TTg dated December 27, 2007 approving the National Energy

Development Strategy of Vietnam for the period up to 2020 with outlook to 2050 the

Government encourages the development and use of new and renewable energy

sources; provides financial support for the investigation, research, trial manufacture and

establishment of pilot locations; and exempts for the import, production and circulation

taxes.


In order to achieve these targets, the Government has provided various incentives to

investors. Renewable energy power plants will receive incentives for investment,

electricity tariffs and taxes. Investors can enjoy advantages such as import tax

exemption and land fee exemption over a certain period of time, such as those defined

in the Joint Circular 58/2008/TTLT-BTC-BTN&MT dated 4 July 2008 the Ministry of

Finance (MoF) and the Ministry of Natural Resource and Environment (MONRE). The

existing incentives however are not sufficient yet to create the appropriate conditions for

planning and implementing numerous renewable projects as well as the sale of

renewable energy products in Vietnam. These incentives are beneficial to small

hydropower projects only and not to other forms of renewable energy.

4.2. Solar PV Power development in Vietnam

Vietnam has a well-recognized potential for development of solar energy. Solar

irradiation conditions in the south and in the center of the country are good with values of

4.0 to 5.9 kWh/m2 per day, while the north has high seasonal variations (2.4 to 5.6

kWh/m2 per day) (Dung, 2009). The amount of sunshine hours is between 1,800 and

2,700 per year.

Vietnam has currently one manufacturer of solar PV panels. The company Red Sun

Energy Joint Stock Company has a factory in Long An Province and, according to its

website, is currently able to produce 12 MWp of solar panels per year. Besides,

Vietnamese industry is able to produce the needed additional hardware, such as

inverters, controllers and batteries. The current price for Solar PV modules in Vietnam is

4 to 5 USD/Wp or 8,000-9,000 USD/kWp for one PV system of Vietnamese origin

(Thong, 2012). This is relatively expensive, compared to products sold in China, Europe

and the European Union, where the price is generally less than 3 USD/Wp.

Installed Solar PV power generation capacity in Vietnam is currently estimated at 5

MWp. The main cause for the low penetration is the low feed-in tariff of electricity, and in

turn, the low purchase price of electricity for consumers. Presently most of the larger

solar PV projects are installed as demonstration projects at enterprises and government

agencies in Vietnam. The largest solar PV power projects in Vietnam are currently

installed by supermarket chain BigC in Binh Duong (212 kWp) and at a plant of Intel

Corporation (200 kWp). Besides these larger projects, small-scale solar PV power

generation at off-grid locations exists and is also used for navigation beacons,

communication equipment etc.

Due to the geographical conditions of Vietnam, the current grid is available in most of the

localities. Localities that are currently not grid connected are often isolated or island

communities. In the latest Power Development Plan, the government has set a target of

100% rural electrification by 2020 (currently 95%). The government has acknowledged

the importance of renewable resources, including solar and wind power generation to

reach the target of 100% rural electrification. However, besides the overall policies to

promote renewable energy, the Vietnamese government has currently no specific

policies to incentivize solar PV Power.


The low penetration of solar PV power and the lack of current policies for promotion of

the same generate a strong case for additional capacity building on the benefits of this

form of power generation. The Vietnamese power market has traditionally relied on

technologies that it is most familiar with, including hydro and thermal power generation.

Additional capacity building among stakeholders and demonstration projects may inspire

policy makers to further strengthen the development framework for solar PV power given

the many advantages of solar PV power modules. In the context of Vietnam, Solar PV

power generation provides a reliable technology for rural electrification, with zero air

emissions and a system that is easily serviceable and is domestically produced.

Furthermore, the promotion of Solar PV Power fits in the Green Growth Strategy that

was approved by the Vietnamese government.

The current feed-in-tariff for power generators and subsequently the low purchase price

of electricity for consumers should be taken into account in the feasibility study of this

project.

4.3. Carbon Footprint of power generation in Vietnam

Vietnam has one electricity grid, the Vietnam National Power Grid. This grid distributes

electricity throughout all provinces of Vietnam. Electricity in Vietnam is predominantly

generated by gas (34%), coal (15%) and hydropower (46%). Oil and diesel powered

generation and other sources make up the remaining 5% (EVN 2011).

The carbon emission factor from power generation in Vietnam is periodically calculated

by the Vietnamese Designated National Authority (DNA) of the UNFCCC, under the

Ministry of Natural Resources and Environment. The calculation of the emission factor is

done in accordance with the relevant tools that are published by the United Nations

Framework Convention on Climate Change.

The latest figures have been approved by the Vietnam DNA on 05/03/2012. The latest

calculation shows that the emission factor currently is: 0.5408 ton CO2/MWh.

When comparing emissions of e-bikes it should be noted that only direct carbon dioxide

emission data is available of the power generation in the national power grid. Emission

data of other pollutants emitted, e.g. NOx, SO2 from thermal power plants are not

available. To estimate these emission sources, it is suggested to refer to credible

international emission inventory data. Also refer to paragraph 5.5 for more information

on this approach.


5. Impact of transportation on air quality in Hanoi

5.1. Introduction

Hanoi is a densely populated city with an estimated population of 6.9 million inhabitants

in 2010 (HSO, 2010), with an annual growth rate of 3.5%. Approximately 41% of the

population is living in the urban areas. However, the actual number of inhabitants is

much higher than that, due to people migrating to the city without officially registering as

residents (migrants are estimated to make up 11.4% of the total population in Hanoi).

Population growth, combined with sustained economic development has caused rapid

increase in the number of motorbikes and cars on the roads in Hanoi. Of all vehicles,

growth of the number of motorcycles is the greatest. In Vietnam, the number of

motorbikes increased 400% between 1996 and 2006. The number of motor vehicles in

Hanoi is continuously increasing every year at a rate of 10% for cars and 15% for

motorbike.

Figure 5.1 – number of motorcycles in Hanoi and HCMC between 1994 and 2011. Source: GSO, 2012

Motorcycles are the default mode of transport and account for 80% of all vehicles used

in Hanoi. In fact, motorcycles are used to commute from work, transport a whole family

and transport goods, even on relatively short trips.


Figure 5.1.1 – Transport mode usage in a representative street in Hanoi, in 2002 and 2010, source: TRAMOC

2011

In 2011, inhabitants of Hanoi owned approximate 3.65 million motorbikes (GSO 2012),

which is predicted to grow to 6.8 million motorbikes in the year 2020.

5.2. Air quality standard in Vietnam

Vietnam has air quality standards. Ambient air quality pollution limits are defined in

Vietnamese standard TCVN 5937-2005 (ambient air quality standard). The table below

provides the values (µg/m3) in Vietnam, in comparison with the emission standard in the

European Union (EU) and the limit promoted by the World Health Organization (WHO).

Parameter Vietnam WHO EU

BNZ 10 -- 5 NO2 40 40 40 SO2 50 20 20 PM10 50 20 40

Table 5.2 – Air quality standard limits (µg/m

3) in Vietnam and as defined by the EU and WHO.

To comply with the above shown limit, all new motorcycles sold in Vietnam after 2007

have to meet the EURO-2 standard. However, field tests show that more than 53%

(Oanh, 2008) of the motorcycles in Vietnam do not meet the EURO-2 standard. More

than 93% of the motorcycles used in Hanoi have 4-stroke engines, but only 6% have

advanced emission control technologies. In addition, due to the high traffic density and

congestions in Hanoi vehicles commonly drive at low speeds (15-20 km/h) with frequent

acceleration and breaking.

Currently Vietnam does not mandate period inspection of motorcycles. The government

has announced period emission inspection of motorcycles in Hanoi and HCMC to

commence in 2013. However detailed implementation guidelines have not been issued

to the public yet.

6%

8% 0%

9%

5%

72%

2002

PublicBusses

Other busses

Minivan

Bicycles

Cars

Motorbike

9%

1%

2%

2%

8%

78%

2010

PublicBusses

Other busses

Minivan

Bicycles

Cars

Motorbike


5.3. Air quality in Hanoi

Currently 6 air quality monitoring stations exist in Hanoi, of which 3 are used to provide

data to the public. However, these centralized monitoring stations have only limited

coverage and are not specifically focused on monitoring emissions from transportation.

In addition, since the data is collected by various agencies underlying measurement

parameters such as measurement frequency, and pollutants measured vary. There is no

central coordinating agency for validation of the monitoring information.

To mitigate these limitations, this report applies the conservative approach by referring

to the outcome of a compressive study that was conducted under the Swiss-Vietnamese

Clean Air Program (SVCAP). A sub-component of the project involved passive sampling

stations at more than 100 different sites in Hanoi, thus providing an accurate data set of

measurement under various conditions (road side, industry, urban, rural etc).

In Hanoi, air pollution7 is caused by transportation, industrial and domestic activities (e.g.

cooking on biomass or coal, burning of waste) (NEA Vietnam, 2009). Transport is the

main contributor to air pollution in Hanoi. It has been estimated that 70-75% of PM10,

SO2 , NOX, and CO air pollutants originate from transportation (Hoang, 2004; Son D.H,

2008). Transportation emissions originate mainly from the use of motorcycles.

The table below shows the results of measurement campaigns using passing sampling

methods in January and February 2007 (unit is (µg/m3):

Location NO2 SO2 BNZ

Traffic hot spots 64.3 47.4 14.1 Road side 47.9 38.8 13.3 Industrial areas 34.7 46.1 7.3 Urban area 29.0 25.9 7.4 Rural area 21.3 22.6 6.9

TCVN 5937:2005 40 50 10

Figure 5.3 – results of the measurement campaign conducted by SVCAP (Unit: (µg/m3)

The table clearly shows the increased pollution levels at traffic hot spots and road sides. Within Hanoi, pollution levels are highest in the Hoan Kiem and Hai Ba Trung Districts,

which also exceed Vietnamese national standard limits for all listed pollutants:

7 In this report, air pollution follows the definition of the US EPA, which defines air

pollution as the degradation of air quality resulting from unwanted chemicals or other

materials, which are higher than its own natural concentration, occurring in the

atmosphere that may result in adverse effects on humans, animals, vegetation,

and/or materials”.


District NO2 SO2 BNZ

Ba Dinh 47.7 32.3 9.3 Cau Giay 44.0 36.3 10.3 Dong Da 47.8 38.4 15.9 Hai Ba Trung 50.7 44.5 11.4 Hoang Mai 28.7 29.5 6.8 Hoan Kiem 64.2 36.5 18.4 Tay Ho 28.4 23.8 6.8 Thanh Xuan 47.0 52.9 12.4

TCVN 5937:2005 40 50 10

Figure 5.3.1 – results of the measurement campaign conducted by SVCAP per district (Unit: (µg/m3)

The above table shows that the average concentrations of air pollutants are very high I

many of the central districts of Hanoi. Due to traffic characteristics in Hanoi (e.g.

frequent low speed driving, congestions, lack of emission control etc.), the actual air

pollution at traffic hotspots is often much higher. The table below shows the pollution

levels at street level during traffic congestions in 2004:

Location NO2 SO2 CO VOC

Nga Tu Vong Intersection 390 360 360 170 Nga Tu Kim Lien Intersection 370 350 350 160 Nga Tu Kim So Intersection 380 370 355 165

TCVN 5937:2005 40 50 40 5.0

Figure 5.3.2 – results of the measurement campaign conducted during congestion times in 2004 at

selected intersections (Source: Son D.H, 2008) (Unit: (µg/m3)

It shows clearly that the pollution levels increase more than nine times in congested

areas. This does not only affect the commuters, but also residents living near these

areas.

5.4. The effect of air pollution on people in Hanoi

Air pollution particles emitted by vehicles in Hanoi are so small that they can bypass

respiratory defenses and lodge deep in the lungs, worsening lung diseases such as

asthma, and increasing the risk of heart attack and premature death. Air pollution from

emissions interferes with the development and function of the central nervous system,

as well as the cardiovascular and reproductive systems. The least mobile populations –

the poor, the young and the elderly suffer particularly (Saksena, 2007).

A study conducted in Hanoi (Phan, 2007) by the Hanoi Department of health found that

over 72% of families in Hanoi have had members become sick from air pollution.

Children are especially vulnerable to the effects of air pollution, due to their differences

in lung anatomy and physiology and organ maturity (Taylor, 2002). Airborne particles,

nitrogen oxides, sulfur oxides, and acid aerosols have also been shown to induce acute

respiratory symptoms, asthma, and bronchitis.


A study conducted in HCMC specifically focused on the effect of air pollution from traffic

on the health of children, while also taking into account the socioeconomic position of

the studied participants. The study was initiated in 2005 and in 2012 the final evaluation

report was published (Sumi, 2007 and HEI, 2012). The study focused on associations

between pediatric hospital admissions for acute lower respiratory infection (ALRI), e.g.

pneumonia or bronchiolitis.

The study found that ALRI admissions were generally positively associated with ambient

levels of PM10, NO2, and SO2. In particular a strong correlation could be determined

between combustion-source pollution from NO2, and SO2 and increased ALRI

admissions. In addition the study found that a higher number of children from the poorer

districts in HCMC were admitted to the hospital for ALRI.

Further research shows indications that exposure of traffic-related air pollution to a

woman during pregnancy affects subsequent respiratory health of the new born child

(Pinkerton, 2006), with effects likely to continue through the first four years of life and

probably persisting into later childhood. Throughout adolescence, air pollution adversely

affects lung function development and then, in later life, these impacts appear to

manifest themselves largely through the cardiovascular system, where air pollution may

even contribute to atherosclerosis and subsequent death from cardiovascular disease.

A study conducted in the United States (O’Connor, 2007) found that children with

persistent asthma had significantly decreased lung function following exposure to higher

concentrations of the air pollutants NO2, airborne fine particles, and SO2. Higher nitrogen

dioxide levels and higher levels of fine particles also were associated with school

absences related to asthma, and higher NO2 levels were associated with more asthma

symptoms.

The effects of air pollution on the general public are also severe. A study conducted by

MONRE in 2008 compared common illnesses between people living in Thuong Dinh

ward (Thanh Xuan district), Hanoi with people living in the more rural district of Gia Lam

of Hanoi. Thuong Dinh ward is densely populated and adjacent to major traffic arteries

such as Tay Son and Lang Street.

Location % in Thuong Dinh % in Gia Lam

Chronic bronchitis 6.4 2.8 Upper respiratory infection 36.1 13.1 Lower respiratory infection 17.9 15.5 Optical symptoms 28.5 16.1 Nose symptoms 17.5 13.7 Throat symptoms 31.4 26.3 Skin symptoms 17.6 6.6 Vegetative nervous system symptoms 30.6 21.5 Nervous response symptoms 40.7 37.7 Ventilate function disorder 29.4 22.8

Figure 5.4 – percentage of desease cases in industrial area Thuong Dinh compared to a rural area

(Phu Thuy, Gia Lam district) (source: MONRE, 2008)


It showed that the number of respiratory illness cases was more than twice that of the

people living in the rural district.

5.5. Effect of e-bikes on the air quality in Hanoi

Currently, Vietnam has only detailed emission inventories for the use of conventional

vehicles. Although the operation of e-bikes is air emission neutral during operation,

electricity consumed during recharge operation at households is normally sourced from

the national grid. As explained in chapter 4, in Vietnam only direct carbon dioxide

emission data is available of the power generation in the national power grid. Emissions

of other pollutants are currently not published by the government. However, a study on

e-bikes in Hanoi conducted by ADB (ADB, 2009) uses power sector inventory data to

provide an estimated value of emissions. This is a conservative approach.

The study assumes that the electricity requirements at the plug are 1.8 kilowatt-hours

per 100 km (kWh/100 km) for electric bicycles and 2.3 kWh/100 km for electric scooters

(including transmission losses of the grid).

Pollutant Electric bicycle Electric Scooter 4-stroke motorbike

CO2 (g/km) 16.1 20.5 55 BC (mg/100 km) 0.8 1.0 – CO (mg/100 km) 31.5 40.2 1,250,000 NOX (g/100 km) 1.3 1.7 15

OC (g/100 km) 0.4 0.5 – PM10 (g/100 km) 0.3 0.4 10 PM2.5 (g/100 km) 0.2 0.3 –

SO2 (g/100 km) 1.9 2.4 –

VOC (g/100 km) 0.0 0.1 225 Figure 5.5 – emissions from e-bikes in comparison to a 4-stroke motorbike (source: ADB, 2009)

The table above shows that the CO2 emissions from electric bicycles are only one third

of motorcycles. Also particle matter emissions are less than one tenth compared to

motorcycles. Hence, the use of electric bicycles will have a very significant impact on air

quality improvements on Vietnam as a whole.

The same study indicates that in 2005 12 billion passenger-kilometers were traveled in

Hanoi, or 8,000 km per motorbike. This clearly shows the immense emission reduction

that is possible when an uptake in the use of electric bicycles takes place.

5.6. The cost of air pollution in Hanoi

The average time for sick leave because of air pollution related sickness in Hanoi is 1.2-

2.4 times/person/year (Phan, 2007). The same study estimated that illnesses related to

air pollution cause losses of 20% in terms of income and health. Bronchial asthma

patients have the highest ratios of sick leave: the off-work days for a patient are between

8-16/year. It is estimated that the average spending of each asthma patient in Vietnam is

around US$301/year. Another study estimated that Hanoi losses one billion Vietnam

dong/day (eq. 48,000 USD/day) because of air pollution (SVCAP, 2007).


From a broader perspective, experts say that if the environmental losses caused by

the economic development in Vietnam are taken into account, the real growth GDP

growth rate would be reduced by 50% (UNEP, 2007).


6. Status of poor and disabled people in Hanoi

6.1. Poverty in Hanoi

Vietnam’s record on economic growth and poverty reduction over the last two decades

has been remarkable. Using a “basic needs” poverty line initially agreed in the early

1990s, the poverty headcount fell from 58 percent in the early 1990s to 14.5 percent by

2008. The official poverty line in Vietnam is defined by the Ministry of Labour – Invalids

and Social Affairs (MOLISA). MOLISA defines the urban and rural poverty lines of VND

500,000/person/month and VND 400,000/person/month respectively.

The most comprehensive survey in this field is conducted by the General Statistics

Office (GSO) through the Vietnam Household Living Standards Surveys (VHLSS), which

was last conducted in 2010. The survey does not provide data specifically for Hanoi, but

provides data for the red river delta instead. The GSO estimates the poverty rate in the

red river delta is 8.4% in 2010, compared to 14.2% nationwide.

A survey specifically focusing on Hanoi (UNEP 2010), estimates that 1.27% of the

population in Hanoi was living in poverty in 2009. The income poor in Ha Noi mainly

concentrate in the rural areas with a high level of 10%; meanwhile the income poverty

rate is only 1% in the urban areas of Ha Noi.

Characteristics on income and spending clearly show that the income of the poor is

barely above the poverty line, with an average income of only 805,000 VND per month in

2010.

Table 6.1 – income of households (source: UNEP, 2010)

There are strong disparities between those in the poorest quintile and those at the top of

the income distribution in Hanoi, as observed in the following table:


Table 6.1.1 – status of employment (source: UNEP, 2010)

Almost nobody in a poor household has a university education or a white-collar job or

owns a business; few work for the state, or have the security of an indefinite work

contract; and only one in five receives any work-related benefits.

6.2. Status of people with disabilities in Hanoi

The most comprehensive survey that includes data on people with disabilities (PWD) is

the 2009 Population and Housing census that is conducted by GSO. This survey was

the first in Vietnam to adopt internationally recognized (WHO framework) approaches on

definition and surveying of this data on PWD. Prior to this survey, statistics among

agencies often varied due to differences in surveying approaches (e.g. disability

prevalence in Vietnam of 6.6% (MOLISA, 2005) and 15.3% (GSO, 2006)). An interesting

feature of the Population and Housing census is that it allows comparison between

people with disabilities and people with no disabilities (PWOD).

The 2009 Population and Housing census (UNFPA, 2011) found that among persons

aged 5 years or older in Viet Nam in 2009 7.8% (6,1 million people) had one or

more disability in seeing, hearing, walking or cognition. Of the 7.8%, 385,000

persons (6.3%) had severe disabilities 8 . In Hanoi, 6.44% of the population has

disabilities.

The 2009 Census show that PWD experience worse household living standards than

PWOD. The proportion of PWD in the highest living standards quintile is 15.4%. This is

less than the 21.1 per cent of PWOD in the same quintile. Similar differences between

PWD and PWOD are found in the high-to-middle living standards quintile, whereas the

reverse picture is the case in the low-to-middle and lowest living standards quintiles.

Data provided by the Hanoi Association for the Handicapped (DP Hanoi, 2012) on the

income level of PWD shows that 25.27% of the PWD in Hanoi are classified as poor,

10% as nearly or and 17.87% received social support, while 39.66% received (public)

health insurance.

8 In the survey, severe disabilities were defined as “cannot do anything at all”.


Compared to non-disabled population

(PWOD), PWD are much older. The

population pyramids of the three groups of

population presented in Figure 6.2 clearly

show this difference: the PWD and PWSD

have showed much higher proportions of

people in older age groups. The mean age of

PWD is 59 years, compared to 30 years of

PWOD. The population pyramids also show a

higher ratio of PWD females to males in the

older age groups, particularly for PWSD.

On average, an adult PWD has attended

school for approximately 5 years compared

with almost 7 years for an adult PWOD.

Overall, in recent years Viet Nam has made

impressive achievements in gender equality

and women’s empowerment. The literacy

ratio between women and men aged 15 to

24 years 23 is 1. However, the literacy ratio

of PWD is only 0.8. These findings suggest that, while the country has generally made

great progress in gender equality and women’s empowerment, further and significant

efforts are needed to support and encourage vulnerable groups.

The PWD population has lower participation rates and higher unemployment rates in

both rural and urban areas. As the level of difficulties increase, the labor force

participation rate reduces and, in turn, the unemployment rate rises. Labor force

participation rates for PWOD are 82.7% whereas this is 72.0% for PWD. In urban areas,

unemployment rates for those groups are 4.3% and 13.9%, respectively.

The PWD have slightly worse living conditions and standards than PWOD, although

these differences are marginal. The PWD have slightly worse house conditions than

PWOD; the proportion of PWD living in permanent housing (14.1 per cent) is lower than

that of PWOD (17.4 per cent). The PWD also have worse access to hygienic toilet

facilities than PWOD; findings confirm 54.0 per cent of PWOD having access to hygienic

toilet facilities; this rate falls to 46.7 per cent for PWD. However, PWD and PWOD have

equal access to safe water. Data from the 2009 Census show similar levels of living

conditions among PWSD and PWD.

6.3. Inclusion of poor and PWD in the project

The above statistics show that the literacy rate of PWD is 20% lower than those without

a disability. In addition, the unemployment rate among PWD is almost 3 times as high

as the unemployment rate of PWOD. In addition, the poor tend to have less job security

and education in comparison with people in the higher income strata.

These statistics clearly show the importance of creating gainful employment

opportunities for PWD and people from disadvantaged backgrounds. Opportunities for

Table 6.2 – age distribution of PWD and PWOD (source: UNFPA, 2009)


these groups in the e-bike project are particularly beneficial due to the innovative nature

of the project.

In relation to engagement of PWD or people from disadvantaged backgrounds, it is

recommended to pay special attention to education and vocational training in the initial

stages of the project. As shown in the statistics, PWD have lower literacy rates and

enjoyed less education than PWOD. Hence, it may be useful to subject applicants for the

position to a test to gauge the knowledge, experience and abilities in comparison with

the job requirements. Based on this, an individual training plan for each staff can be

developed to mitigate these matters. Since extra cost may be associated with these

activities, the feasibility study report should allow sufficient margin in the investment

budget and operating cost to accommodate these factors.


7. Conclusion and recommendations

7.1. Outcome of the survey

Conclusion

From the student survey it can be observed that students that use an e-bike are actually

positive about the vehicle, in terms of performance and maintenance. However, students

that did not use an e-bike have a negative perception of e-bikes, which are mostly

related to the fact that non-e-bike users do not have practical experience with these

vehicles. In addition, only a minor number of students said that they would use an e-

bike. Reasons for this were the current ownership of another vehicle and concerns about

the operational aspects such as recharging.

For suppliers the main issue is the high import tax on the e-bikes, which can also be

seen as a barrier for successful promotion of e-bikes and also affects the quality and

technology of the e-bikes currently on the road.

Through implementation of the survey it could be observed that students are the main

users of e-bikes and hence the hypothesis of the project to focus on students is justified.

The average age of e-bike users is 17.8 years old.

Key recommendations

1. As explained above, when asked why non-e-bike users do not use an e-bike, their

rationale was commonly related to the lack of practical experience. Therefore, within

the e-bike project it is recommended to incorporate a “trying is believing” approach,

where non-e-bike users can use the e-bike on a trial basis, to take away their

concerns.

2. Students are the main e-bike users, hence a viable target group for e-bike promotion.

However, parents make most of the buying decisions. The survey conducted as part

of this baseline study only focused on students and their rationale for using/buying

the e-bike. Within the framework of the project sufficient attention should be given to

capacity building and participations of parents (e.g. address concerns buyers have).

3. Students that are using the e-bike are satisfied with their vehicle. It is therefore

suggested to investigate the possibility to use e-bike users are “ambassadors” in the

project.

4. Suppliers frequently mentioned the high import tax on the e-bikes as an obstacle for

their business. To address these concerns it may be useful to further promote the

benefits of e-bikes to policymakers and to advise them on tax policy revisions (e.g.

by providing a comparison of tax incentives provided in neighboring countries and its

effect on e-bikes/traffic flows/air quality/tax revenue.

5. Supplies often did not have sufficient technical knowhow about the e-bikes they sold

(e.g. what the battery type was). Therefore, the project may explore options for

capacity building of e-bike suppliers.


7.2. Awareness of policymakers on EE transport modes

Conclusion

From the policy review it can be observed that e-bikes and bicycles do have a beneficial

effect on reducing traffic jams and reducing noise and particulate pollution. However,

policymakers in general are not aware of the benefits of e-bikes. One important factor is

the lack of research on e-bikes and practical experience of policymakers with e-bikes.

While contacting government agencies it was often mentioned that research was

conducted on e-bikes and bicycles, but as part of a larger study on conventional

transportation modes, such as expansion of roads. In addition, there is presently no

common approach towards transportation across the various ministries (e.g. on

sustainability, transportation modes, environmental impact).

Key recommendations

1. The undervalued position of e-bikes in the overall transportation mix in Hanoi was

clearly acknowledged while working with government agencies on the status of

policymaking for e-bikes, since no agency could be identified that has dedicated staff

working on e-bike policy / advocacy matters. To overcome this, a two way approach

is recommended: (i) provide capacity building activities for policymakers through

dissemination of research and information about e-bikes (e.g. through workshops,

participation in seminars, development of whitepapers, and contribution to academic

research) and (ii) to engaging policymakers in pilot activities to try e-bikes in practice.

2. To open a dialogue with the relevant government actors in relation to the e-bike

import policy, while emphasizing secondary benefits that may develop through e-bike

promotion (e.g. job creation, lower environmental impact).

7.3. Power generation and development of solar

photovoltaic (PV) power in Vietnam

Conclusion

Vietnam has excellent potential for development of renewable energy, including solar PV

power. However, with the exception of hydropower the current renewable energy

contribution to the total power generation mix is very small. The main reason is the low

feed-in-tariff for power generation, which is not high enough to incentivize investors.

Solar PV power in Vietnam exists, but often for specific applications, such as rural

electrification.

Key recommendations

1. The project should take into account that currently both the feed-in-tariff for

generators and the purchase price of consumers for electricity is one of the lowest in

Southeast Asia.

2. Policymakers, students and other groups have relative little exposure to practical

examples of solar PV power applications. Therefore, application of solar PV power in

the project is likely to be one of the very few examples of practical examples of the


technology that actors have come across. Hence, it is recommended to also invite

relevant actors in the field of energy to visit the project to create additional capacity

building and awareness raising opportunities on this technology.

3. In addition to the above, it is recommended to disseminate the experience of

implementation the solar PV power project in a report and to practically describe

implementation process followed (e.g. licensing, import and construction issues

actual plant performance, financial analysis etc). This will reduce the barriers that

other actors have to overcome when they want to apply renewable energy power

generation at their sites.

7.4. Transportation and its impact on air quality in Hanoi

Conclusion

Around 80% of the vehicles on the road in Hanoi are motorbikes. Most of the vehicles do

not have modern emission control features, such as fuel injection systems. Hence, in

many of the central districts of Hanoi the air quality does not meet the When taking into

account power generation, CO2 emissions from electric bicycles are only one third of

motorcycles. Also particle matter emissions are less than one tenth compared to

motorcycles. Hence, increased use of e-bikes has a tremendous beneficial effect on the

air quality in Hanoi.

However, the successful promotion of e-bikes is linked to engagement of policymakers

(import tariff and awareness/consideration in policy and infrastructure development) as

well as the successful promotion of this project on concepts such as renting and trial use

of e-bikes to people that do not own such vehicles.

Key recommendations

1. From the survey it can be observed that students are very much concerned

about the environment. Hence, it is recommended to visualize the actual

contribution of an e-bike to air quality improvement. An example can be to create

an electronic board at the e-bike recharge station stating “emission reduction to

date:” showing various indicators.

2. Most motorbikes do not meet the emission standard. To further incentivize

students to exchange their motorbike to e-bike it is recommended to also provide

examples of the pollution caused by motorbikes. An example can be to allow

students to bring their own motorbike to the e-bike station, where their emissions

are measured with emission monitoring equipment.

7.5. Status of poor and disabled people in Hanoi

Conclusion

The data shows that the living conditions of people with disabilities (PWD) are worse

than those without a disability (PWOD). Data indicates that 25.27% of the PWD are poor

(compared to 1.27% PWOD) and the literacy rate among PWD is much lower than

PWOD. In addition, unemployment rates among PWD almost 3 times higher than

PWOD.


Employment opportunities for PWD under the e-bike project are thus very beneficial to

this group, also due to the innovative nature of the project and the social entrepreneur

component.

Key recommendations

1. In relation to engagement of PWD or people from disadvantaged backgrounds, it is

recommended to pay special attention to education and vocational training in the

initial stages of the project and its effect on the initial investment and future operating

cost.

2. The e-bike project is expected to be established as a social enterprise. The social

contribution may also lead to additional operating cost, e.g. due to training. Hence, in

order to able to compete in the market place, it is recommended to create a “social

development plan” to outline the planned social contribution of the project and its

financial implications.


REFERENCES

SVCAP; Fabian, S. Report on the first Air Quality Measuring Campaign in Hanoi using the Passive Sampling Method; SVCAP Publisher, Vietnam: 2007. Hanoi Statistical Office, Hanoi Statistical yearbook 2010 General Statistics Office, Transportation Statistics 2012 Saksena, S.; Quang, T. N.; Nguyen, T.; Dang, P. N.; Flachsbart, P. Commuters' exposure to particulate matter and carbon monoxide in Hanoi, Vietnam. Transportation Research Part D: Transport and Environment 2008, 13 (3), 206-211. Pinkerton KE, Joad JP. Influence of air pollution on respiratory health during perinatal development. Clin Exp Pharmacol Physiol 2006; 33: 269–272. ADB, 2009, Electric Two-Wheelers in India and Viet Nam Market Analysis and Environmental Impacts, ISBN 978-971-561-873-1 G O’Connor et al. Acute respiratory health effects of air pollution on asthmatic children in US inner cities. Journal of Allergy and Clinical Immunology (2008). Pham, L. T. (2007): Research programme on diseases related to air pollution in the inner Hanoi area, Hanoi Department of Health: http://www.intellasia.net/hanoians-health-threatened-by-pollution-64089 Sumi, M., Le, T. G., Vu, X. D. and others (2007): Air Pollution, Poverty, and Health in Ho Chi Minh City. UNFPA, 2011, Key Findings from the 2009 Viet Nam Population and Housing Census Kim Oanh, N. T.; Martel, M.; Pongkiatkul, P.; Berkowicz, R. Determination of fleet hourly emission and on-road vehicle emission factor using integrated monitoring and modeling approach. Atmospheric Research 2008, 89 (3), 223-232. Khuat Viet Hung, (2009), Expected research needs for innovating intercity transport: Current discussion in Vietnam, presented at International conference on Sustainability Science in Asia. Guttikunda, S.K., Son, D.H,; (2008) Working Paper Series supporting the SIM-air Program (Simple Interactive Models for Better Air Quality), SIM 14-2008 -- An “Air Quality Management” Action Plan for Hanoi, Vietnam Dang Dinh Thong, 2012, Solar PV Technology in Vietnam Application status & problems and future Trinh Qung Dung, 2009, Photovoltaic technology and solar energy development in Viet Nam, Techmonitor Nov-Dec 2009 Le Thi Anh Tuyet, 2012, SUSTAINABLE URBAN TRANSPORT ASSESSMENT Evaluation opportunities for Asia cities: The case of Hanoi


NGUYEN, Thi Thanh Huong, 2010, Potential of modal shift for urban daily mobility, case of Hanoi and HCM World Bank, 2010, World Bank’s Asia Sustainable and Alternative Energy Program (ASTAE). Vietnam - Expanding Opportunities for Energy Efficiency, March 2010 UNEP (2007): Global Environment Outlook GEO4. UNEP (2010), Urban Poverty Assessment in Hanoi and Ho Chi Minh City Christopher R. Cherry, Jonathan X. Weinert, Yang Xinmiao, Comparative environmental impacts of electric bikes in China, Transportation Research Part D 14 (2009) 281–290. Chi-Jen Yang, 2010, "Launching strategy for electric vehicles: Lessons from China and Taiwan, Elsevier Technological Forecasting & Social Change 77 (2010) 831–834


List of relevant stakeholders

E-bike & Hanoi government policy / effect of e-bike on transportation

Institute of Transport Planning and Management (ITPM), University of Transport and Communication Dr. Ing. Khuat Viet Hung, Director Address: Láng Thượng – Hanoi - Viet Nam Email: [email protected] Telephone: +84 43766 4078 Contact purpose: Telephone contact 25/04/2013 for interview. Mr. Khuat was unable to meet for interview but able to provide references to (i) discuss available research on e-bikes in Vietnam in general (ii) provide reference to information on the available research on effect of e-bikes/bicycles on traffic flow prepared by his institute. (iii) Provided general opinion that at this moment little research is conducted specifically on e-bikes, and most is conducted in relation to another project (e.g. general assessment on traffic flow in a given street). Hanoi Urban Transport Management and Operation Centre Address: 16 Cao Bá Quát – Hanoi - Vietnam Email: [email protected]; Telephone: 04.3747 0403 Contact purpose: Telephone contact 25/04/2013 and 14/04/2013 to international relations department. However, the department could not refer designated individuals within their organization with specific knowledge on the subject of e-bikes / bicycles policy. Outcome of the telephone conversations was that the department was considering bicycles and e-bikes but no specific projects and policies were developed by the agency at the moment.

Air quality / air pollution in Hanoi

Mr. Ngo Tho Hung Environmental research professional. Previous principal Researcher and Consultant, Head of Section at Center for Environmental Research (CENRE), Institute of Meteorology, Hydrology, and Environment. Telephone: 09 66 89 75 86 Email: [email protected] Contact purpose: E-mail contact to determine relevant agencies that are active in the field of environmental research and air quality and availability of recent reports on air quality in Hanoi. Department of Pollution Control – Ministry of Environment and Natural Resources Address: 10 Ton That Thuyet Street, Hanoi, Vietnam Telephone: 04.37713175 Email: [email protected] Contact purpose: Telephone contact 08/05/2013, Mr Dang Van Loi referred to the latest State of the Environment report issued by his agency.

Solar Power in Vietnam

School of Environmental Science and Technology, Hanoi University of Technology


Prof. Dr. Dang Dinh Thong Address: 1 Dai Co Viet Street, Hanoi Email: [email protected] Contact purpose: Not contacted but indicated as suggested contact during Feasibility Study Report development. This department is active in the field of solar power generation research and has demonstration plants active at their facilities.

Statistics on poor/disabled people

Inclusive Development Action (IDEA) Ms. Vu Thi Binh Minh, director Address: P312B, B14 Kim Liên, Đống Đa, Hanoi Email: [email protected] Telephone: 04.222 04 113 Contact purpose: contacted 15/05/2013 by email to determine the available statistics on people with disabilities in relation to the requirements of the project.

Development of a social enterprise / engage disabled/poor in business

Centre for Social Initiatives Promotion Ms. Kieu Oanh Pham, director Room 1406B, B Tower, Ha Thanh Plaza, 102 Thai Thinh Street, Hanoi Telephone: 04.35378746 Contact purpose: Not contacted but indicated as suggested contact during Feasibility

Study Report development to obtain information about development of the social

enterprise.

mailto:[email protected]

mailto:[email protected]


Annex 1: copy of the student and manufacturer surveys

The following four images are an example of a completed survey of a respondent that does not own an e-bike:


The following four images are an example of one completed survey of someone that uses an e-bike:


The following four images are an example of one completed supplier survey:


Annex 2: copy of original surveys in English

The following pages contain the student and supplier survey form that was used.

Study on Electric Bicycles in Hanoi, April/May 2013

Page 1 of 4

SURVEY ON THE USAGE OF ELECTRIC BYCICLES AMONG STUDENTS

The purpose of this survey is to study transportation habits and awareness of electric bicycles (e-bikes). Completing the survey will only take 3 minutes of your time. Your valuable feedback will help us to promote electric bicycles and the associated potential for air pollution reduction in Hanoi. Your information will be treated as confidential. This survey is conducted on behalf of Caritas Switzerland in Vietnam, a non-government development organization from Switzerland.

Section A - Background questions

Firstly we would like to ask you a few questions to help us analyse the survey:

General information

Your name: ________________________________ Gender: Male Female

Age: _____________________________________ Major in: ______________________________________

Telephone number: _________________________ Study year: ____________________________________

Name of University/School: __________________________________________

Date: ngày ___ tháng __ 2013

Section B - Your travel behaviour

These questions will help give us an understanding of how you like to travel.

1. What kind of vehicles do you own? Instruction: please mark the checkbox of any applicable choices.

Bicycle Electric Bicycle/Scooter No vehicle

Motorbike Car Other ____________________

2. Which 3 types of transport do you use most often? Instruction: please mark the most used as 1, the second as 2 and the third as 3.

__ Bus __ Car __ Walking

__ Bicycle __ Motorbike __ Xe om

__ Electric bicycle/scooter __ Taxi Other _____________________

3. How many trips do you make per day on average?

________________ trips per day.

4. How many kilometres do you travel?

On a normal day: _____ kilometre per day. And per week: _____ kilometre.

5. How much money do you spend on transportation per month (average)?

________________ VND per month.

6. How much is your budget/income per month (average)?

________________ VND per month I do not want to disclose

7. Do you know the following electric two-wheelers? Instruction: please mark the checkbox of any applicable choices.

Electric bicycle (The vehicle has pedals but pedalling is optional).

Electric scooter (The vehicle has no pedals).

Pedal assist bicycle (This vehicle looks like a conventional bicycle and the motor will assist you during


Page 2 of 4

pedalling. The vehicle will stop if you stop pedalling).

Conversion kit (a kit with equipment to convert a conventional bicycle into a pedal assist bicycle).

I am not familiar with any of these electric two-wheelers

8. What would be the main motivation for you to buy (or use) an e-bike? Instruction: please mark the checkbox of any applicable choices.

An increase in fuel price Government restricts car/motorbike use

Save money on transportation Protect the environment

It is easier to drive than a motorbike It is silent / noiseless

To impress friends and family Ease to park/store

I like the design / colours of e-bikes To avoid traffic jams

If government announces a tax on car/motorbike use

It saves time traveling

I am not old enough to drive a motorbike Other reason ________________________________

Can you explain your answer in more detail? _____________________________________________________

9. What would be a reason for you not to buy (or use) an e-bike? Instruction: please mark the checkbox of any applicable choices.

The range it can travel is too short It is too slow

Quality concerns None of my friends have an e-bike

Had/heard about bad experience with e-bikes Negative comments from friends and family

Already have another type of transportation I do not feel safe when driving it

I do not like the design of e-bikes Difficulty to recharge

I do not like to wear a helmet It lacks features that my current vehicle has

It is not suitable to carry multiple people Other reason ________________________________


In the next section of the survey we would like to ask you questions on the usage of the electric bicycle.

If you do not use or own an e-bike, please complete questions 9 to 12 below.

If you use or own an e-bike, please go to question 13.

Section C - Questions for people that do not use or own an e-bike

You do not use or own an e-bike. We would like to ask you the following questions:

10. Do you plan to use or purchase an e-bike? Instruction: please mark the checkbox of one applicable choice.

Yes No (please go to question 12) Maybe

Reasons: __________________________________________________

9.1. If yes, who would pay for the e-bike? Myself Parents/caretaker Employer Other person

11. What model would you choose if you are going to buy an e-bike in the next few months? Instruction: please mark the checkbox of one applicable choice.

Electric bicycle Electric scooter Pedal assist bicycle Conversion kit Not decided yet

10.1. What type of e-bike defined in question 10 would you NOT want to use? ___________________________________________________________ Not sure/no answer


Page 3 of 4

Why Not? __________________________________________________________________________________

12. Would you be interested to rent an e-bike? Instruction: please mark the checkbox of one applicable choice.

Yes No Maybe

13. If yes, how much would you pay for renting an e-bike?

I would be willing to rent it for ______________________ VND/per month Not sure/no answer

This is the end of this section. Please go to question 26 on page 5 of this questionnaire.

Section C - Questions for people that use or own an e-bike

You use or own an e-bike. We would like to ask you the following questions:

14. How long have you owned an e-bike? Instruction: please mark the checkbox of one applicable choice.

0 – 3 months 6 – 12 months

3 – 6 months Longer than 1 year

15. Why did you decide to use an e-bike? Instruction: please fill in your answer on the line below.

_________________________________________________________________________________________

16. What type of e-bike is it? Instruction: please mark the checkbox of one applicable choice.

electric bicycle (with pedals) Pedal assist bicycle (Xe Đạp trợ lực)

electric scooter (without pedals) I converted my bicycle to electric bicycle (conversion kit)

17. Which brand and model e-bike do you use or own? Instruction: please fill in your answer on the line below.

Brand name: _______________________________

Model: __________________________

Not sure

18. What mode(s) of transport did you use previously? Instruction: please mark the most used as 1, the second as 2 and the third as 3 etc. Leave empty if not used.

___ Bus ___ Walking ___ Xe om

___ Bicycle ___ Electric Bicycle/Scooter ___ Car

___ Motorbike ___ Taxi Other ______________

19. For what kind of trips do you use your e-bike mostly? Instruction: please mark the most used as 1, the second as 2 and the third as 3 etc. Leave empty if not used.

___ Travel to school/university ___ Shopping / go to market ___ Pick up someone

___ Travel to work ___ Leisure ___ All kinds of trips

Other, please specify_______________________________________________________

20. Who purchased (paid) the e-bike? Instruction: please mark the checkbox of one applicable choice.

Myself Parents/caretaker

Employer Other person


Page 4 of 4

21. How long can you use the e-bike before recharging it?

__________ kilometre. Recharge time: ________ hours

22. Is the performance (e.g. distance it can travel on 1 charge) of the e-bike similar to what the seller told you when you bought it?

Yes No, what is the difference? ____________________________________ Not sure

23. Where do you recharge the e-bike?

______________________________________________________________________________________

24. Do you encounter any difficulties with recharging?

Yes, details ________________________________________________________ No

25. Please state your general satisfaction with the use of the e-bike? Instruction: please mark the checkbox of one applicable choice

Very unsatisfied Not satisfied Neutral Satisfied Very satisfied

24.1. Can you specify your answers (i.e. why you are very satisfied, or why are you not satisfied)? ______________________________________________________________________________________

26. Please state your satisfaction with your current e-bike in relation to the following key words: Instruction: please mark the checkbox of one applicable choice or “not applicable” if no choice is applicable.

Not applicable

Very unsatisfied

Not satisfied

Neutral Satisfied Very

satisfied

a. Speed b. Reliability c. Quality d. Traveling range e. Storage space inside e-bike f. Safety when driving g. Comfort in normal weather h. Appearance / looks i. Battery life j. Easy to repair/find spare parts k. Easy to connect charger l. Impression on friends and family m. Easy to fit inside buildings n. Secure locking / theft protection o. Expensive to replace parts p. Wearing a helmet

Section D – End of the survey

27. This is the end of the survey. Do you have any further suggestion or comments?

_____________________________________________________________________________________ _____________________________________________________________________________________

Thank you for participating!


Page 1 of 4

SURVEY ON THE USAGE OF ELECTRIC BYCICLES AMONG SUPPLIERS/MANUFACTURERS

The purpose of this survey is to study transportation habits and awareness of electric bicycles (e-bikes). Completing the survey will only take 3 minutes of your time. Your valuable feedback will help us to promote electric bicycles and the associated potential for air pollution reduction in Hanoi. Your information will be treated as confidential. This survey is conducted on behalf of Caritas Switzerland in Vietnam, a non-government development organization from Switzerland.

Section A - Background questions

Firstly we would like to ask you a few questions to help us analyse the survey:

General information

Your name: ________________________________ Type of business: Manufacturer Distributor Retailer

Telephone number: _________________________ Name of company/shop: __________________________________________

Position in company: ________________________

Date: day ___ month ___ 2013 Address of company/shop

_____________________________________________

Section B – Basic information about your business

These questions will help give us a general understanding of your business.

1. How many years have you been selling/distributing/manufacturing e-bikes?

________________ years

2. Why did you start selling/distributing/manufacturing e-bikes? What market indications did you get?

___________________________________________________________________________________________

3. Do you sell/distribute/manufacture the following types of e-bikes? Instruction: please mark the checkbox of any applicable choices.

Electric bicycle

Electric scooter


Conversion kit (a kit with equipment to convert a conventional bicycle into a pedal assist bicycle).

I am not sure

4. Do you sell spare parts for e-bikes, e.g. new batteries? Instruction: please mark the checkbox of one applicable choice.

Yes No

If yes, what kind of spare parts: ________________________________________________________________

5. What other services do you offer to your customers? (i.e. recharging, repair works, guarantee)?

________________________________________________________________________________________

Baseline study on E-Bike in Hanoi

Page 2 of 4

6. How many e-bikes do you sell in a normal week (average over the last 3 years)? Instruction: please insert a value in the line given below

2011 2012 2013 I prefer not to disclose

Not sure/No answer

____ ____ ____

Section C – Information about people that use e-bikes

These questions will help give us an understanding of the people that are using e-bikes.

7. From your observation: what are the 3 main reasons for your customers to purchase an e-bike? Instruction: please mark the most used as 1, the second as 2 and the third as 3.

___ An increase in fuel price ___ To give as gift or present

___ Save money on transportation ___ Protect the environment

___ It is easier to drive than a motorbike ___ It is silent / noiseless

___ To impress friends and family ___ Ease to park/store

___ Because of the design / colours of e-bikes ___ To avoid traffic jams

___ User is not old enough to use a motorbike ___ It saves time traveling

___ Due to government announcement on new tax/regulation on car/motorbike use

Other reason ________________________________


8. What type of e-bike (e.g. electric bicycle or electric scooter) is most popular? Instruction: please insert a value in the line given below

______________________________________

I prefer not to disclose Not sure/No answer

9. For what kind of trips do you your customers use the e-bike mostly? Instruction: please mark the most used as 1, the second as 2 and the third as 3 etc. Leave empty if not applicable.

___ Travel to school/university ___ Shopping / go to market ___ Pick up someone

___ Travel to work ___ Leisure / sport ___ All kinds of trips

10. Can you describe your main customer (the person who is paying the invoice)? Instruction: please insert a value in the line given below

Description: Age: _________________________ _______

Gender Not sure/No answer

Male Female

11. For whom do they purchase the e-bike (The person actually using the e-bike)? Instruction: please mark the checkbox of any applicable choices.

Themselves Their child Other family member Other person Not sure/no answer

12. From your observation, how old are most e-bike users? Instruction: please mark the checkbox of one applicable choice.

None Some Many Very much

a. Up to 19 years b. 20–29 years c. 30-39 years d. 40-59 years e. 60 years or older

Baseline study on E-Bike in Hanoi

Page 3 of 4

13. What are the 3 main e-bike concerns of your customers when they visit your shop: Instruction: please mark 3 checkboxes.

f. Speed g. Battery life h. Reliability i. Easy to repair/find spare parts j. Quality k. Easy to connect charger l. Traveling range m. Impression on friends and family n. Storage space inside e-bike o. Easy to fit inside buildings p. Safety when driving q. Secure locking / theft protection r. Comfort in normal weather s. Expensive to replace parts t. Ability to use e-bike in the rain u. Wearing a helmet

Section D – Technical information about e-bikes.

We would like to know general technical information about the e-bikes that you sell.

14. What range (kilometre a bike can travel on 1 charge) do customers generally require from an e-bike (km/per recharge)?

Instruction: please mark the checkbox of any applicable choices.

Lower than 10 km/charge 21-30 km/charge 41-50 km/charge

10-20 km/charge 31-40 km/charge Higher than 50 km/charge

15. What type of batteries do the e-bikes that you sell/distribute/manufacture have? Instruction: please mark the most used as 1, the second as 2 and the third as 3, etc.

___ Lead-acid ___ Lithium-polymer Other

___ Lithium-ion ___ NiCD I am not sure

16. Please provide the technical parameters of the 5 most sold electric two-wheelers by your company: Instruction: please fill in the information of each of the 5 most sold e-bikes in the space provided.

Vehicle 1 Vehicle 2 Vehicle 3 Vehicle 4 Vehicle 5

a. Brand name

b. Model

c. Country of origin

d. Advertised travel range (km/charge)

e. Retail price (VND)

f. Power consumption (kWh/100 km)

g. Battery type

h. e-bike type (e.g. electric bicycle, electric scooter, pedal assist or conversion kit)


Page 4 of 4

Section E – Your opinion on e-bike promotion

We would like to know your opinion on e-bike promotion.

17. What are your expectations for the electric bicycle market in 2013 compared to 2012? Instruction: please mark the checkbox of one applicable choice.

Decreasing considerably Same as last year Growing considerably

Decreasing Growing Not sure

Explain your choice/answer (i.e why/how/etc)

18. (In your opinion) What is the potential for e-bike development in the next 5 years?

___________________________________________________________________________________________

19. What challenges are e-bike manufacturers/suppliers facing in terms of government policy and support?

_________________________________________________________________________________________

20. Can you tell us your idea how e-bikes could be better promoted in Hanoi?

_________________________________________________________________________________________

21. What do you think are the main limiting factors that prevent the usage of e-bikes in Hanoi?

_________________________________________________________________________________________

Section F – End of the survey

22. This is the end of the survey. Do you have any further suggestion or comments?

_____________________________________________________________________________________ _____________________________________________________________________________________

Thank you for participating!


Annex 3: copy of the TOR for consultants

The following pages contain the original TOR for consultants to conduct the baseline study.

Contract Number:

1

JOB/TASKS PROFILE

Position: Consultants for Baseline Study of E-Bike Project Starting Date: 10 April 2013

Work Time: 10 April –

22 May 2013

Duties 1. Gain full understanding of the project goal and its objectives. 2. Develop a detailed workplan to carry out all required tasks (incl.

suggested methodologies, timeframe, resources, task allocation between consultants/project team, report structure, etc.).

3. Carry out studies (incl. document research, questionnaires, interviews, etc).

4. Develop a report (incl. all relevant aspects regarding the tasks assigned, and incl. a list of proposals for suitable partner organisations for the project).

5. Organise a small workshop (together with the Caritas Programme Manager) to adjust the overall project (incl. logframe, workplan, etc), advice for further steps to be taken, and planning of the feasibility study.

Qualifications 1. Relevant tertiary degree 2. Strong experience in designing and execution of qualitative and

quantitative research 3. Sound knowledge/understanding of renewable energy/energy efficiency,

CO2 emission, policy climate 4. Sound understanding of technologies relating to bicycles/e-bicycles and

solar energy 5. Excellent English writing skills 6. Team spirit

Date: 3 April 2013 Deadline: 7 April 2013 Contact: Ms Le Thi Minh Thi, email: [email protected], phone: 04 3832 5943 Further details can be found in the attached TORs Caritas Switzerland in Vietnam

Contract Number:

2

Terms of Reference:

Two Consultants for Baseline Study of E-Bike Project Project Title:

Promotion of Electric Two-Wheelers and Solar Energy in Vietnamese Cities: An Explorative Project Initiated and Tested in Hanoi.

Time: April/May 2013 (22 days)

1. Project Background and Goal

Caritas is starting up a new project called Promotion of Electric Two-Wheelers and Solar Energy in Vietnamese Cities: An Explorative Project Initiated and Tested in Hanoi. Overall goal of the project is to contribute to sustainable development in Vietnam by providing CO2-reducing technology solutions, while at the same time supporting viable pro-poor business options for the poor and disabled. Specifically, the project aims to:

• Increase knowledge and awareness among relevant actors by communicating innovative and

feasible solution of renewable energy (through the ebike and solar energy promotion); and to

• Put forward an innovative and viable business approach/ model that enables a combination of

ebike technology promotion and pro-poor business.

The project will be implemented from April 2013 until September 2014. Caritas Vietnam is looking for a group of one international consultant and one national consultant (can apply seperately or as a team) to carry out the project baseline study. The assignment is expected to be completed by 22 May 2013. A project overview on goal, objectives, results and project components of the project can be found in the Annex.

2. Scope of Work Overall Objective: Overall objective of the consultancy work is to lay the ground for the project by carrying out several baselines. These baselines are the preparation for the feasibility study of the project, which in turn will define the final design of the pilot project.

Short Description: The task of the consultants include the preparation of baseline studies on

Contract Number:

3

a) students’ attitude, awareness, usage, and costs of their daily means of transportation and viable alternatives, such as e-bikes (esp. also in regard to renewable energy and micro-climate improvement in Hanoi/effect to greenhouse effect) as well as preferred types/models of electric two-wheelers;

b) the income situation of the poor disabled in Hanoi and their employment status; c) relevant policy makers’ awareness and knowledge, and the state of relevant renewable energy

and energy efficiency implementation and policies in Vietnam, as well as existing policies on urban air environment, and suggested transportation solutions (in regard to micro-climate improvement);

a) Carbon footprint of Vietnam - and energy mix in Hanoi (Vietnam in general) used for public electricity supply;

b) Effects of air pollution to human health in Hanoi, and especially the effects to the lower social strata. If possible monetarisation of the effects.

Specific Tasks/Activities: 1) Gain full understanding of the project goal and its objectives. 2) Develop a detailed workplan to carry out all required tasks (incl. suggested methodologies, timeframe, resources, task allocation between consultants/project team, report structure, etc.). 3) Carry out studies (incl. document research, questionnaires, interviews, etc). 4) Develop a report (incl. all relevant aspects regarding the tasks assigned, and incl. a list of proposals for suitable partner organisations for the project). 5) Organise a small workshop (together with the Caritas Programme Manager) to adjust the overall project (incl. logframe, workplan, etc), advice for further steps to be taken, and planning of the feasibility study.

Methodologies: Suggested methodologies include, but are not limited to, desk reviews, focus groups discussions, face-to-face in-depth interviews (based on interview guideline/questionnaire), questionnaires, etc. Consultants are encouraged to propose supplementary methodologies, techniques and tools (see specific task 2).

3. Tentative Agenda

Activity Tentative Date

Time Comments/Notes

1 Gaining thorough understanding of project goal and objectives

10-12 April 1.5 days

Incl. consultation with Caritas Project Team to answer questions

2 Development of detailed methodology, tools and work-plan

13-16 April 1.5 days

Consultants will get final approval by Caritas latest by 18 April

3 Carrying out of baseline research/studies 19 April – 10 May

14 days

4 Development of report 11-17 May 4 days

5 Workshop/preparation of Feasibility Study 22 May 1 day ½ day consultation/sharing workshop, ½ day preparation for concrete

Contract Number:

4

adjustement of feasibility study

Total: 22

4. Outputs/Deliverables:

Outputs/Deliverables Remarks/Description Deadline

1 Thorough understanding of project goal and objectives gained

10-12 April 2013

2 Detailed workplan, discussed with and approved by Caritas Project Team

The workplan should contain suggested methodologies, timeframe, resources, task allocation between consultants/project team, report structure, etc.

16 April 2013

3 Successful Research/Studies carried out 19 April – 10 May 2013

4 Report on Baseline Research/Studies, shared with Caritas Project Team

Report should be in English.

The report should include a list with proposals for suitable project partners.

17 May 2013

5 Consultation/Sharing Workshop and List for Adjustment of the Feasibility Study

Workshop should be co-organised with the Caritas Programme Manager

22 May 2013

5. Contract Duration

Period of Working/Timeline: 10 April - 22 May 2013

Total No. of Working Days: 22 days

6. Payment and Reimbursement

Consultants are asked to send their financial proposal.

7. Other Conditions/Remarks

Hired consultants may prove suitable for further consultancy work with Caritas Switzerland in the same project for the feasibility study (planned May-June 2013).

8. Annex/Materials

1) Project Overview (Chart), with Goals, Objectives, Results, and Project Components

2) Internal Caritas Project Proposal

3) Project Logical Framework

4) REEEP Declaration (incl. Flyer and Info Materials)

9. Application

Contract Number:

5

Interested consultants are invited to send their CV and proposal addressing their understanding of the assignment (incl. relevant background), short methodology and workplan (incl. time plan), and budget proposal as well as reference details to Caritas at the following email address: [email protected] by 7 April 2013.

For any further information, please contact the Caritas Desk Officer of the E-bike Project:

Name: Ms Le Thi Minh Thi

Phone: 04 37623358

Email: [email protected]


Annex 4: copy of the work plan issued by consultants

The following pages contain the original work plan that was prepared by consultants for this assignment.

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Work plan for the baseline study on electric bicycles in Hanoi

Last updated 03/06/2013 16:22

PURPOSE OF THE STUDY The main purpose of the study is to answer the following questions:

1. What are the factors that promote (and prevent) usage of electric bicycle usage, in particular among high-school and university students (age 16-22)?

2. What is the current status of student’s awareness, attitude, usage and cost of transport in general and with a focus on two wheel vehicles and electric bicycles?

3. What is the effect of transportation and electric bicycles on air quality and air pollution in Hanoi?

4. What are current and upcoming policies that may affect e-bikes? 5. What are other stakeholders doing to promote electric bicycles? 6. What is the status (e.g. income and employment) of n poor and disabled people and how

can they benefit from promotion of electric bicycles (e.g. job creation)? 7. What are current and upcoming policies on solar energy/renewable energy in Vietnam?

CONTENT OF THE BASELINE STUDY

The proposed content is shown below. Chapters may be reorganized / renamed based on

information received.The main report is expected to be between 25 and 30 pages,

excluding annexes.

TABLE OF CONTENT OF E-BICYCLE BASELINE STUDY

TITLE PAGE

INTRODUCTION

LIST OF ABBREVIBRATIONS

EXECUTIVE SUMMARY

TABLE OF CONTENTS

This will provide the main results of the baseline study and form the basis for

the workshop. (1 page)

Chapter 1. Awareness, attitude, usage and cost of means of transport used among

students

Section (i) Modes of transport used in Hanoi city

This chapter will provide a short summary of current transportation modes used

in Hanoi and relevant trends, statistics and growth predictions. This chapter may

also explain relevant demographic or economic changes. It will also explain

available statistics on e-bikes (1 page). Main purpose of this chapter is to provide

an introduction of the transport situation in Hanoi / Vietnam (e.g. rapid increase

of car usage in recent years).

Section (ii) Outcome of e-bike perception survey

a. Survey methodology and approach

Approach

Study methodology

b. Actors influencing transport mode choice in Hanoi

c. Daily usage of e-bicycles

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d. The perception of e-bikes among students.

e. Perception of suppliers/manufacturers and adults (parents) on e-bikes

f. Cost and performance of e-bicycles based on user experience

g. Cost and performance of e-bicycles based on supplier and manufacturer

specifications and assumptions.

h. Rationale for purchase of e-bikes

This chapter will provide the outcome of the survey conducted between (i)

students, (ii) adults (iii) suppliers/manufacturers). It will try to answer the

question what factors will (de)motivate people from using and buying electric

bicycles. By questioning students, it is expected to answer questions related to

the image, awareness and perception of students in relation to these vehicles. By

questioning the adults (who are most likely actually paying for the vehicle) it is

expected to determine the purchase motivation). Suppliers/manufactures are

questioned to obtain their impression of buying motives, ways sales could be

promoted and also technical and economic data. (6-10 pages).

Section (iii): Assessment of economics and emissions of different mode of transport

This chapter will explain the economics and emissions of various modes of

transport and explain more how the e-bikes compare. It will also further

elaborate in maintenance and other cost associated with the use of e-bikes (both

from a user and manufacturer perspective) (2-3 pages)

Section (iv) How much CO2 emissions are e-bicycles saving at current levels? How much

CO2 is saved if e-bicycles share was to increase?

This will provide a methodology for calculation of emissions of e-bikes. It will

also explain default values used to calculate emissions from e-bikes and an

assessment how they compare regionally and globally. (1-2 pages)

This section will also provide a calculation of emission reduction under a variety of

scenario’s, based on the outcome of the survey and policy desk research. (1

page)

Section (v) Shifting and rebound effect

Information about ways to promote electric bicycles and when or how people

will return to other modes of transport, based on outcome of the stakeholder

meeting and surveys. (1 page)

Chapter 2: Policy makers’ awareness, knowledge and policy framework for promoting

RE/EE mode of transport and particularly e-bikes

This will provide the result of both desk study and interviews with relevant

government actors in relation to the current policies and expected new policies

that may affect e-bike usage. (2-3 pages)

Chapter 3: Development of Solar PV power in Vietnam

This chapter will provide information on the development of renewable energy

in Vietnam in general and solar PV power generation in particular. It will also

explain current and upcoming policies, and measures that may incentivize solar

PV power projects.

Chapter 4: Carbon footprint of energy generation in Vietnam

This chapter will explain how electricity in Vietnam is generated and provide

particular information about the status of renewable energy in the generation

mix.

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Chapter 5: Effect of air pollution from transportation

This chapter will explain the effects of transportation emissions on the air

quality in Hanoi. Furthermore, it will explain the impact of the pollution on the

general population and vulnerable groups (e.g. pregnant woman or children). (1-

2 pages)

Chapter 6: Income situation of disable and poor people in Hanoi

this chapter will explain what is the current situation of the

employment/income generation of disabled people. Also it will explain how

disabled people see their potential in doing business on e-bikes

(advantages/challenges)?

Chapter 7: Activities of other stakeholders

This will explain the outcome of interviews with other stakeholders on (i) e-bike

promotion (ii) experience of other stakeholders with engagement of poor/disabled

people in enterprises

CONCLUSION AND RECOMMENDATIONS

Annex 1 – List with potential partners

Annex 2 – Results and data from survey

Annex 3 – Index of references and interviewees

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SCHEDULE

Below is a summary of the detailed project schedule.

Start on 15 April to finish on 30 May will have 46 days and 27 working days (considering

the week of 29 Apr to 03 May a non-working week).

Project will deliver survey results and draft report to Caritas before the workshop on 22

May. Final report will be submitted no later than 30 may 2013.

WBS Tasks Task Lead Note Start End R

equ

ired m

an

days (

Days)

Actu

al (D

ays)

1 Overall Project (baseline study) Ywert 15/04/13 30/05/13 46 46

1.1 Work Plan and Survey development Ywert + Uan 15/04/13 19/04/13 5 5

1.2 Carry out Survey Uan 24/04/13 17/05/13 24 24

1.3 Desk research Ywert 25/04/13 06/05/13 12 12

1.4 Stakeholder meetings / data gathering Ywert + Uan 23/04/13 14/05/13 22 22

1.5 Draft to submit to Caritas for review/comment 19/05/13 20/05/13 2 2

1.6 Report authoring 19/05/13 30/05/13 35 35

1.7 Workshop 20/05/13 22/05/13 3 3

2 Work Plan and Survey development Ywert 15/04/13 19/04/13 5 5

2.1 Develop work plan and project organization/staffing Ywert +

Uan 15/04/13 19/04/13 3 5

2.2 Survey implementation strategy Ywert + Uan 15/04/13 16/04/13 2 2

2.3 List stakeholders to include in the project Ywert + Uan 15/04/13 17/04/13 3 3

2.4 Prepare draft survey (user, non-user, manufacturer survey) Ywert + Uan 15/04/13 17/04/13 3 3

3 Carry out Survey Uan 24/04/13 17/05/13 24 24

3.1 Test and adjust survey Uan 23/04/13 23/04/13 1 1

3.2 Survey administration (copying, distribution etc) Uan 23/04/13 24/04/13 2 2

3.3 Survey for students Uan 24/04/13 15/05/13 11 22

3.4 Survey for adults Uan 24/04/13 15/05/13 11 22

3.5 Survey for manufacturers/suppliers Uan 24/04/13 15/05/13 11 22

3.6 Process and consolidate survey report Uan 24/04/13 15/05/13 12 22

3.7 Survey data anlysis and chart/graph creation Uan 16/05/13 17/05/13 2 2

4 Desk research Ywert 25/04/13 06/05/13 12 12

4.1 Modes of transport used in Hanoi Ywert 24/04/13 25/04/13 2 2

4.2 Impact of transportation on air quality Ywert 25/04/13 26/04/13 2 2

4.3 Government policies on e-bikes and transportation Ywert 26/04/13 06/05/13 2 11

4.4 Grid emission factor information Ywert 27/04/13 27/04/13 1 1

4.5 Inclusion of disabled/poor people Ywert 28/04/13 06/05/13 1 9

5 Stakeholder meetings / data gathering Ywert + Uan 23/04/13 14/05/13 22 22

5.1 Prepare interview questions and list of people to interview Ywert After meeting with Caritas 23/04/13 23/04/13 1 1

5.2 Perform telephone interview Ywert 25/04/13 26/04/13 2 2

5.3 Gather data on other stakeholders that are relevant for the project Ywert 25/04/13 09/05/13 6 15

5.4 Validation 25/04/13 14/05/13 1 20

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6 Report authoring Ywert 26/04/13 30/05/13 35 35

6.1 Outline Ywert 26/04/13 26/04/13 1 1

6.2 First draft (internal) Ywert 10/05/13 15/05/13 4 6

6.3 Draft to submit to Caritas for review/comment Ywert 19/05/13 20/05/13 2 2

6.4 Finalize report Ywert 22/05/13 30/05/13 4 4

7 Workshop Ywert + Uan 20/05/13 22/05/13 3 3

7.1 Prepare documentation for workshop Ywert + Uan 20/05/13 21/05/13 2 2

7.2 Workshop participation Ywert + Uan 22/05/13 22/05/13 1 1

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CLARIFICATION OF TOR REQUIREMENTS

a) students’ attitude, awareness, usage, and costs of their daily means of transportation

and viable alternatives, such as e-bikes (esp. also in regard to renewable energy and

microclimate improvement in Hanoi/effect to greenhouse effect) as well as preferred

types/models of electric two-wheelers;

The purpose is:

1. To determine attitude, awareness and perception of high-school and university students regarding electric bicycles. Rationale: to determine the factors that influence behaviour of students to use (or not to use) electric bicycles)(SURVEY)

2. To collect data on cost and performance of electric bicycles. To provide objective information on quality and cost of electric bicycles (both from a user perspective and as guaranteed by the supplier/manufacturer).(SURVEY)

b) the income situation of the poor disabled in Hanoi and their employment status;

1. Provide an overview of the income and employment status of disabled and poor people in Hanoi.

2. To identify how disabled and poor people can be involved in the project, most effectively. (DESK)

c) relevant policy makers’ awareness and knowledge, and the state of relevant

renewable energy and energy efficiency implementation and policies in Vietnam, as well

as existing policies on urban air environment, and suggested transportation solutions (in

regard to micro-climate improvement);

1. To give an overview of current and upcoming policies that may promote electric bicycles or affect transportation in Hanoi.

a. To identify current or new policies that may lead to a transportation mode swift (DESK + INTERVIEW)

b. To identify current or new policies that may help to promote electric bicycles (DESK + INTERVIEW)

(d) Carbon footprint of Vietnam - and energy mix in Hanoi (Vietnam in general) used for

public electricity supply;

To explain the current energy generation mix in Vietnam and its energy

intensity.(DESK)

e) Effects of air pollution to human health in Hanoi, and especially the effects to the

lower social strata. If possible monetarisation of the effects.

1. To provide an overview of the impact of transportation on air quality in Hanoi

a. To define the current air pollution situation in Hanoi and its implications on the health of the population (especially vulnerable groups such as pregnant woman and children). (INTERVIEW + DESK)

b. To explain the impact of electric bicycle usage on air quality in Hanoi. (INTERVIEW + DESK)

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IMPLEMENTATION PLAN:

1. DESK RESEARCH (responsible person: Ywert)

The following approach will be adopted:

(i) Desk research of available literature and research on the income situation of

people with disabilities in Hanoi and status of their employment.

(i) Desk research of available literature and research on policies to promote

alternative transportation modes and the effect of electric bicycles as well as

the current transportation modes used in Hanoi and Vietnam on the ambient

air quality.

(i) Desk research of available literature on the effects and costs of air pollution on

the human health in Hanoi and in particular on vulnerable groups, including

children, elderly and pregnant woman.

(ii) Desk research on carbon footprint of Vietnam - and energy mix in Hanoi.

2. INTERVIEW (responsible person: Ywert and Uan)

(ii) Interviews will be conducted with relevant actors that are listed in the Interview

and stakeholder list.

3. SURVEY ORGANIZATION

An E-Bike survey will be conducted among a minimum of 120 ± 20 students, adults

(users/non users) and 30 manufactures via direct interview (as defined below) and

additional surveys through indirect interview (as explained below). The survey in

different locations of Hanoi will be carried out from 22 April to 26 April and from 6 May

to 10 May. The duration may be extended or shorten once the survey completed. It is

expected to collect approximately 150 usable and complete surveys through distribution

of 300 copies).

The type of survey was developed as the interview with yes-no question, multi choice

question and comment question. The questions will be converted in to Vietnamese for

convenience during interview.

To obtain high quality responses, there will be two approaches to complete the survey,

as follows:

Direct interview:

Direct interview will be used for a number of surveys. This means that the

interviewer will complete the survey by talking to the respondent involved. This

will ensure that questions are answered completely and comprehensively.

Indirect interview:

The surveys will be distributed to students and request them to answer questions or

select the proper solutions. Then the surveys will be collected. Since the survey will

be completed without supervision, the results of this survey are subject to a higher

uncertainty in relation to the quality of the responses. However, the advantage is

that the survey will be spread among a larger group of respondents.

Distribution of survey among students and adults

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Main vehicle for distribution of surveys will be through appointed focal points at a

number of universities and high schools. We have secured cooperation with students

from the 05 universities/schools listed below. They will act as the focal point for

distribution. The students involved are:

(1) Hanoi University of Science and Technology Nguyen Duc Quy (third year student, major in Environmental engineering) (2) National Economics University Nguyen Thi Hoa (forth year student, environmental economics) (3) Hanoi Foreign Trade University Nguyen Thi Lan Huong (forth year student, Foreign Trading) (4) Chu Van An High School, or other High School Pham Quoc Hoang (Chemical and science), 10th grade What about parents of students?? (5) Thang Long High School Nguyen Van Dat, 11 th grade

These students will act as a starting point. Further distribution may also happen through

other channels. In addition, these students will be responsible to collect a number of

surveys among adults.

Distribution and data collection of surveys of manufacturer/supplier of e-bikes

All surveys of manufacturers and suppliers will be conducted through direct interview.

Main vehicle for distribution of surveys will be through engagement of reliable students

and a number of surveys will also be conducted by Uan.

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LIST OF STAKEHOLDERS TO INTERVIEW

The following list of stakeholders has been compiled that will be initially interviewed.

Based on the outcome of each meeting, more people may be visited.

Air quality / air pollution

1. Institute of Transport Planning and Management

Dr. Ing. Khuat Viet Hung

2. Hanoi Center for Environmental and Natural Resources Monitoring and Analysis

(CENMA)

Mr. Nguyen Minh Tan

3. School of Environmental Science and Technology

Prof. Dr. Nghiem Trung Dung

Government / City policy

4. Hanoi Traffic Police Department

Mr. Dao Vinh Thang

5. Hanoi People Committee (Hanoi Urban Transport Management and Operation

Centre)

6. Asian Development Bank (Transport and Communications Division)


7. Vietnam Association for the Handicapped / Hanoi Association for Disabled People

8. Inclusive Development Action (IDEA)

Ms. Nguyen Thi Oanh


9. Centre for Social Initiatives Promotion

Ms. Kieu Oanh Pham

Electric Bicycle sellers/manufactures

10. Honda Vietnam Co., Ltd (market leader, environmental awareness promotion,

manufacturer)

11. SUFAT Vietnam Company Limited (potential manufacturer)

12. Hanoi Bicycle Collective (knowhow on e-bike promotion and sales)

Mr. Guim Valls Teruel

13. Asama Jiun International Vietnam Co.,Ltd. (market leader in e-bikes)

Director: Fang Wu Leh

14. CÔNG TY TNHH SX TM DV HIỆP TÂN HITASA (manufacturer)

15. VIHA Bicycle Company (VIHABICO) (manufacturer)

16. CÔNG TY TNHH ĐIỆN KHÍ JILI VIỆT NAM (manufacturer)

17. CÔNG TY ĐIỆN MÁY XE ĐẠP XE MÁY TODIMAX (manufacturer)

18. Công ty cổ phần xe đạp LIXEHA (seller/distributor)

19. Distributors/shop owners in Hanoi

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GUIDING QUESTIONS FOR STAKEHOLDERS

The following guiding questions will be used in the conversation with the stakeholder

groups that are defined above. For each individual interviewee also specific questions will

be developed, based on their position, organization, experience.

Air quality / air pollution

Guiding questions

Objective: Determine status of current monitoring activities and availability of recent

statistics. Determine impact of air quality on human health.

1. Where are air quality monitoring point located in Hanoi? How many are there?

What is their operating status?

2. Are there any monitoring stations that monitor emissions from traffic in Hanoi?

3. Which recent publications are there on air quality / air pollution in Hanoi?

4. What is the current status of air pollution caused by transportation activities?

How do the current metrics relate to national standards on air quality?

5. What research is your organization currently working on in the field of air

pollution from transportation activities?

6. What are the impacts of air pollution on the health, and what are the effects of

transportation emissions on the health of people, and especially vulnerable

groups?

7. Have you observed changes in air pollution emissions in recent years, e.g. due to

changes in the type of vehicles people use or other factors, such as the economy?

8. Are you aware of any upcoming policy from central or local government to curb

air pollution and that caused by transportation in particular?

Government / City policy

Guiding questions

Objective: Determine current action plan on traffic mode change / identify initiatives to

develop (or upcoming) policies that may affect transportation modes used.

1. What are the main challenges facing transportation in Hanoi?

2. What are the main contributing factors of traffic congestion?

3. Are any patterns visible?

4. What is your opinion about the effect of cycling or electric bicycles on the traffic in

Hanoi? Would it easy traffic congestions?

5. Currently many transportation projects are underway in Hanoi, such as the BRT,

the metro line. What are current plans for commuting from/to the station for

these projects?

6. Does your department engage in initiatives to change the travel behavior of

commuters, e.g. by discouraging use certain vehicles?

7. Are you currently aware or working on policies that may affect users travel

behavior or promote/discourage certain vehicles?

8. Are there any plans to promote cycling or electric vehicles, such as electric

bicycles?

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Objective: Obtain statistics on the income situation and employment situation of the

poor and disabled in Hanoi

1. Is the status, e.g. income, employment etc. monitored by the government or

other actors?

2. What publications are there on the income, employment and social status of poor

and disabled?

3. What is the leading publication on income and employment of poor / disabled?

4. What is the latest available publication?

5. What kind of employment do disabled generally have?

6. What is their income?

7. What are general /demographic characteristics of poor people in Hanoi?

8. What are trends observed in the employment or income situation among poor /

disabled in Hanoi in the last 3 years?

9. How is the impact of economic growth or downturn on these groups?

10. What are successful initiatives to employ disabled and poor people?


Objective: obtain information how poor / disabled can be successfully engaged in

business and how their income situation can be improved in a sustainable manner.

1. Can you name 5 social enterprises that in your opinion have been very

successful?

2. What are successful initiatives that you have come across in the field of

promotion of employment for disabled and disadvantaged people?

3. What are thing to consider when employing disadvantaged or disabled people?

4. Are there any support mechanisms from the government that can help businesses

to employ disabled easier?

5. What are benefits of hiring people with disabilities for a company? For example,

are they more loyal than regular staff?

6. What are things to consider when hiring people with disabilities?

Electric Bicycle sellers/manufactures

Main information from this group will be collected through survey. However, some will be

queried directly for specific information, e.g.

1. What is the status of domestic e-bike manufacturing? How many manufacturers

are there?

2. What is your companies’ perspective on electric bicycles?

3. Is an electric bicycle a viable alternative for motorbikes?

4. What market do you focus on for the electric bicycles you sell?

5. Does the government have any policy to encourage or discourage

production/sales of e-bikes? How about tax such as import tax?

6. What is the impact of Chinese and Japanese made motorbikes?

promotion of electric two-wheelers and solar energy in

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