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| An electric motorbike charging station in Hanoi__Photo: https://xedienxanh.net |
On July 12, Prime Minister Pham Minh Chinh signed Directive 20/CT-TTg, introducing urgent measures to curb air pollution nationwide, especially in major cities. A central component of the directive is a phased plan to eliminate fossil fuel-powered personal vehicles.
From July 1 next year, fossil-fuel motorcycles will be banned within Hanoi’s Ring Road 1. The restriction will extend to Ring Road 2 by early 2028, and to Ring Road 3 by 2030, alongside tighter control on gasoline cars.
The directive also instructs major cities to develop and announce low-emission zone plans with clearly defined roadmaps through 2030. These plans are to prioritize multimodal public transport and infrastructure for clean energy vehicles, particularly electric buses, light rail systems, and environmentally friendly alternatives.
Turning policy into action
Vietnam’s two largest cities - Hanoi and Ho Chi Minh City - are translating the directive into concrete actions through distinct transition plans, each targeting different user groups but aiming for the ultimate goal of zero-emission transportation.
Hanoi: supporting residents, building infrastructure
Following the directive’s issuance, Hanoi drafted a resolution to promote green vehicles and develop charging stations, expected to be submitted to the Municipal People’s Council this September.
Under the draft, residents using gasoline or diesel motorcycles in designated low-emission zones would receive financial support when switching to clean energy vehicles. To qualify, vehicles must be each valued at VND 15 million (around USD 570) or more and registered before the resolution takes effect. Support levels range from VND 3 million for individuals, VND 4 million for near-poor households, and VND 5 million for poor households. Each recipient is entitled to support only once, valid through 2030.
The city also proposes granting preferential loans for public transport operators, freight companies, public-utility enterprises, and vehicle recycling facilities. Loans could cover up to 100 percent of the value of vehicle purchase contracts, with annual interest rates of 3-5 percent over a maximum term of five years. Green vehicles would be exempt from registration and license plate fees through 2030.
By the end of 2026, Hanoi will build charging stations for at least 10 percent of parking spots in existing buildings; new construction projects must meet a 30 percent target. The city will subsidize 70 percent of loan interest for public charging station projects over the first five years. Bus stations and parking lots with more than 30 percent of spaces fitted with chargers would be eligible for 50-percent support for ground clearance expenses and a five-year land rental exemption.
Hanoi is also calling for investment in sidewalk charging infrastructure and hydrogen and other clean-fuel stations. Public-private partnership investment will be prioritized, with land-related incentives available through 2033.
Ho Chi Minh City: focusing on ride-hailing and delivery drivers
Ho Chi Minh City is adopting a cautious, phased approach, beginning with ride-hailing and delivery drivers - groups with high daily mileage and emissions.
According to a draft scheme formulated by the Ho Chi Minh City Institute for Development Studies (HIDS), from the beginning of 2026, fossil-fuel motorcycle riders will be ineligible to sign new contracts with ride-hailing platforms. The transition for existing vehicles will take place in three phases: 30 percent by the end of 2026, 80 percent by the end of 2027, and full conversion by the end of 2028 - equivalent to roughly 400,000 vehicles.
The city’s incentive policy follows the principle of “early transition, greater benefit.” In the first two years, drivers who switch to electric vehicles will receive a minimum 2-percent loan interest subsidy and exemptions from VAT and registration fee. For those who shift to using electric vehicles in the third year, support levels will taper off. A one-off cash grant of VND 8 million per vehicle is also proposed for approximately 10,000 low-income drivers.
Ho Chi Minh City is mapping its charging network and soliciting investment in mobile and rest-stop charging stations. Additional resources from carbon credit trading and environmental programs are expected to help offset costs. Emissions control, parking zone planning, and support for scrapping old vehicles are also included in the city’s scheme.
Public concerns and expert recommendations
Dr. To Van Truong, an independent environmental expert, described Directive 20 as “a decisive move demonstrating the Government’s willingness to confront difficult but essential challenges to protect community wellbeing and reshape urban development toward sustainability.” However, for the transition to succeed, he emphasized three guiding principles: right timing, proper methods, and public consensus.
The green transition has inspired optimism about a cleaner living environment and a more sustainable transport system, but also raised concerns among citizens. A common question is: if public transport remains limited and electric vehicles unaffordable, how can people adapt?
This worry is particularly acute among ride-hailing and delivery drivers, whose livelihoods depend on access to reliable, cost-effective transportation.
Speaking to Nhan Dan Online, Nguyen Minh Khoi, a GrabBike driver in Hanoi’s Hoang Mai ward, said: “I ride nearly 200 kilometers daily to make a living. Electric bikes can’t keep up with that pace - batteries run out fast, and charging stations are hard to find. Each time I stop to charge, even for merely a few minutes, I might miss a ride. And for us, missing a ride can mean missing a meal for my child or a utility bill payment. Without adequate infrastructure and real support, workers like us will be hit hardest.”
Vu Thi Nhan, a delivery driver in Ba Dinh ward, added: “I’m ready to switch to a clean vehicle, but a good electric bike costs 30 million dong or even more, while I earn less than 8 million a month. I’d need to take out a big loan. Many want to become green consumers but simply can’t afford it.”
A survey by the Institute of International Economics and Law under the Vietnam Union of Science and Technology Associations found that over 70 percent of citizens need financial assistance or access to low-interest loans to make the switch. “They don’t oppose the policy, they fear being left behind,” the survey noted.
“No one is against the development of green vehicles. However, without viable alternatives, a gap in transportation access will emerge. Hanoi should pilot the program in areas with ready infrastructure, such as the former district of Hoan Kiem, before expanding further. The transition process must be gradual, combining restrictions, support and incentives in a balanced manner to generate positive social effects,” Dr. Ta Ngoc Hai, former Deputy Director of the Institute of State Organizational Science under the Ministry of Home Affairs, suggested in a talk with Nhan Dan Online.
In his review of Hanoi’s draft plan, Dr. Truong reiterated the need to scale up electric bus networks, accelerate metro construction, upgrade pedestrian infrastructure, and enhance intermodal transfers. He called the period leading up to July 1, 2026, “a golden window” for serious, measurable progress - not just symbolic actions.
Hanoi should also offer trade-in schemes, subsidies for low-income users, tax and fee breaks for manufacturers, and widespread access to reliable charging infrastructure. But that alone is not enough, Truong cautioned. Fire safety, battery management, and national grid capacity must be addressed early, especially in tight or overheated spaces where charging risks are high.
“When thousands shift to electric vehicles at the same time, the load on the grid will spike, especially during peak hours. Without preparation, power overload or supply instability could derail the transition,” he told Dan Tri.
Echoing this, Nguyen Van Thanh, former Chairman of the Vietnam Automobile Transportation Association, recommended that Hanoi expand public charging infrastructure at filling stations, parking lots, residential complexes, and shopping malls. The network should support various vehicle types to avoid monopoly and ensure accessibility. He also urged the adoption of technical regulations on charging safety in residential areas and clear usage instructions for charging devices, alongside a system for collecting and disposing of expired batteries.- (VLLF)
