Under Government Directive 20, Hanoi will ban gasoline-powered motorcycles within its first ring road from 1/7/2026. From 1/1/2028, the ban will extend to the second ring road, also including restrictions on fossil fuel-powered cars. By 2030, the plan will expand to the third ring road.

While Ho Chi Minh City hasn't set a date for restricting gasoline motorcycles, it is exploring solutions to prioritize electric vehicles in certain zones. Restrictions on gasoline and diesel cars and motorcycles are also being considered for areas like downtown Ho Chi Minh City, Can Gio, and Con Dao special zone.

These plans could significantly impact the motorcycle market, as Hanoi and Ho Chi Minh City are the country's largest motorcycle markets due to their large populations and vibrant economies.

Market evolution

In the early 2000s, electric bicycles and motorcycles, primarily imported from China, targeted students and homemakers, marking the beginning of Vietnam's electric two-wheeler market. These affordable vehicles came in various models, with some also produced by Detech, a domestic brand with a factory in Hung Yen.

After 2010, new electric motorcycle brands, mainly in northern Vietnam, emerged. Unlike the previous direct sales model of Chinese brands through small distributors, these new brands adopted a more strategic approach, investing in factories, developing authorized dealer networks, and offering warranties and maintenance services. Key players included Dibao (Taiwan) in 2011, Pega (formerly HKbike) in 2012, DK Bike in 2014, and Anbico in 2015.

The market saw a major shift in 2018 with VinFast's entry. The growing trend toward eco-friendly vehicles in cities facing increasing air pollution paved the way for brands like VinFast, Selex Motors (2018), and Dat Bike (2019).

In 2019, Yadea, the world's leading electric two-wheeler brand in terms of sales, entered Vietnam. The Chinese company built two large factories in Bac Giang, aiming for an annual output of 2 million vehicles. By 2024, another major Chinese electric two-wheeler brand, Tailg, also entered Vietnam, establishing a factory in Hung Yen with a capacity of 350,000 vehicles per year.

A VinFast Klara on the streets of Hanoi. Photo: VinFast

A VinFast Klara on the streets of Hanoi. Photo: VinFast

Vietnam's electric motorcycle market is dominated by Vietnamese and Chinese brands, with VinFast, Dat Bike, Selex Motors, and Pega representing the domestic players.

For decades, Japanese brands like Honda, Yamaha, and Suzuki have controlled the gasoline motorcycle market. However, they have been slower to enter the electric segment.

Yamaha launched its first electric motorcycle, the Neo's, priced at 50 million VND in late 2022. Honda, the market leader with over 80% market share, introduced its first commercial electric products in 2024. The Honda ICON e: (26.9-27.3 million VND) became available to consumers in April 2025. A higher-end model, the CUV e:, is currently only available for lease.

Suzuki, SYM, and Piaggio, members of the Vietnam Association of Motorcycle Manufacturers (VAMM), have not yet released any fully electric models. Piaggio has imported models like the Piaggio One and Vespa Elettrica but hasn't announced commercial sales plans.

Official annual sales figures for electric motorcycles are unavailable. According to Dat Bike, electric motorcycles currently account for about 10% of all motorcycles on the road. VinFast, the only brand to publish sales data, sold nearly 71,000 electric vehicles in 2024, roughly 3% of the gasoline motorcycle sales by the five VAMM members (2.65 million units). According to the International Council on Clean Transportation (ICCT), domestic brands held about 70% of the electric motorcycle market share in 2020, led by VinFast.

With a diverse range of brands, Vietnam's electric motorcycle market offers various models and prices. The cheapest models start at 10-12 million VND, while some high-end models are priced from 60 million VND and above.

New policies drive electric motorcycle adoption

Experts believe Hanoi's plan to ban gasoline motorcycles, and a potential similar move by Ho Chi Minh City, will significantly impact the market. Motorcycles remain the most popular mode of transport due to affordability, ingrained habits, infrastructure, and flexibility.

According to a 2022 ICCT study, two-wheelers account for about 72.6% of trips in Hanoi and 82% in Ho Chi Minh City. The five VAMM members sold around 2.65 million motorcycles in 2024, over five times the number of cars sold (data from VAMA, Hyundai, and VinFast).

The ban will force people to adjust their commuting habits or switch to electric vehicles. "This means a decrease in gasoline motorcycle sales and a greater opportunity for electric motorcycles to reach more users," noted a long-time motorcycle industry expert in Ho Chi Minh City.

Honda, the leading two-wheeler brand in Vietnam, stated that Hanoi's decision has a significant impact. The capital city is Honda's largest market, accounting for about 8-9% of annual sales, equivalent to over 190,000 units. The Japanese company sold 2,147,025 motorcycles in 2024.

"The transition to eco-friendly vehicles in urban areas, especially densely populated areas like Hanoi's Ring Road 1, presents considerable challenges," a Honda Vietnam representative said.

ICON e:, Honda's first electric motorcycle model for sale in Vietnam. Photo: Luong Dung

ICON e:, Honda's first electric motorcycle model for sale in Vietnam. Photo: Luong Dung

According to Honda, replacing a large number of existing combustion engine vehicles in a short time will create financial and logistical pressures. The infrastructure for electric vehicles, especially charging stations, is still inadequate. Concerns about fire safety, particularly in older residential areas, also persist.

Honda suggests more time is needed to finalize technical standards, develop appropriate support policies, and improve infrastructure to ensure an effective and sustainable transition.

Apart from Honda, other gasoline motorcycle manufacturers haven't publicly responded to Hanoi's plan. A Suzuki Vietnam representative said VAMM members will meet next week to discuss the transition to electric vehicles.

The government currently offers no subsidies for electric motorcycles, while electric cars benefit from a registration fee exemption until 28/2/2027, a policy implemented since 1/3/2022.

Hanoi is exploring a program to support the exchange of approximately 450,000 gasoline motorcycles within Ring Road 1. The city is also considering covering almost all costs associated with the transition, including registration fees for new electric vehicles. Additionally, plans are underway to expand charging infrastructure for electric cars, motorcycles, and other clean energy vehicles.

VinFast has made the most significant investment in charging stations, with a nationwide network. Other electric motorcycle brands rely primarily on home charging. Dat Bike is one of the few brands besides VinFast investing in charging stations, but the number remains limited and only available in Ho Chi Minh City.

Thanh Nhan