Evaluation of energy intensity of transport service sectors in Vietnam

This research analyses energy intensity of transport service sectors in Vietnam and its changing trend in the past years using IO tables and LMDI decomposition method. Energy consumption of 38 economic sectors in 2007, 2012 and 2018 is determined, of which transport service sectors were the second largest energy consumer (17.71 Mtoe), occupied 18.5% of total energy consumed in Vietnamese economy in 2018. In terms of energy intensity, a rising trend is seen in all transport service sectors, of which four most important transport services including bus and other road passenger transport, freight transport service by road and pipeline, waterway shipping freight and aviation passenger reached 0.62 kgoe/USD, 0.72 kgoe/USD, 0.60 kgoe/USD and 0.62 kgoe/USD in 2018, respectively. The ineffective structural change and ineffective energy intensity change are the reasons behind the upward trend in these sectors. Using Leontief inverse, the study also unveils how demanded on transport services by other economic sectors in terms of energy and how much energy embodied in all inputs of any economic sector. In order to keep the energy intensity stable and gradually decreasing, the recommendations are focused on effectiveness in structural changes and improvements in energy efficiency.