On 12/7, the government issued Directive 20, assigning Hanoi to implement a roadmap to ban fossil fuel-powered motorcycles within Ring Road 1 from mid-2026, expanding to a low-emission zone citywide by 2030. The Vietnam Motorcycle Manufacturers Association (VAMM) member companies agree with the state's emission reduction policy but suggest reconsidering the gasoline motorcycle ban timeline.
In a proposal to the government and ministries, VAMM assessed that a 2026 gasoline motorcycle ban in some Hanoi areas could create challenges for many stakeholders. Low-income individuals would be most affected due to the cost of new vehicles. For businesses, the one-year implementation period after the directive's announcement creates pressure on production and supply chains.
VAMM members like Honda, Yamaha, Suzuki, Piaggio, and SYM believe the ban requires significant investments to restructure assembly lines, innovate technology, and develop products. Without adequate preparation time and financial support, this could lead to production disruptions and losses.
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People using gasoline motorcycles on Hanoi streets, June 2025. Photo: Giang Huy |
People using gasoline motorcycles on Hanoi streets, June 2025. Photo: Giang Huy
The 5 manufacturers have about 2,000 dealerships and 200 parts suppliers, mainly for internal combustion engines. Failure to adapt to the electric vehicle transition could negatively impact the production and supply chain, affecting hundreds of thousands of workers.
Another concern is the inadequate public charging station infrastructure. The power grid isn't designed for simultaneous charging, especially in densely populated areas or during peak hours. Fire safety during charging remains a worry in older apartment buildings.
Currently, only VinFast has heavily invested in a nationwide public charging station network, primarily for cars. Most other electric motorcycle companies rely on home charging or small private charging points.
Some exceptions, like Dat Bike, have built fast charging stations, but these are limited and only in TP HCM. Selex Motors offers home charging and battery swapping at about 90 public stations in Hanoi, Da Nang, and TP HCM.
VAMM members believe a reasonable roadmap is crucial for an effective and sustainable transition. "A minimum of 2-3 years is needed to prepare for citizens, businesses, and management agencies," VAMM stated. Some manufacturers suggest a phased ban, starting with older, high-emission vehicles, then service vehicles, and finally, personal vehicles.
Hanoi's planned gasoline motorcycle ban from mid-2026 significantly impacts the traditional gasoline motorcycle market. Experts believe owners and prospective buyers will reconsider spending on gasoline-powered vehicles.
TP HCM also plans to transition many gasoline-powered service motorcycles to electric, alongside restrictions on gasoline and diesel cars and motorcycles in areas like downtown TP HCM, Can Gio (old), and Con Dao special zone.
The green transition plans of Vietnam's two largest cities, also the largest motorcycle markets, bring unprecedented changes to the motorcycle market. Honda, with the largest two-wheeled vehicle market share, sees Hanoi as its top market, accounting for about 8-9% of annual sales. The Japanese company's 2024 sales were 2,147,025 vehicles, equivalent to over 190,000 vehicles in Hanoi.
"When the authorities decide, it's no longer a matter of choice but a necessity to transition," said the CEO of a Vietnamese motorcycle brand. "People have to adapt, and so do manufacturers."
The CEO also believes a practical implementation roadmap is needed to balance stakeholders' interests. Experts suggest considering charging infrastructure solutions, financial support for citizens, and public transportation planning.
Hanoi is exploring support mechanisms to exchange about 450,000 gasoline motorcycles within Ring Road 1. The city is considering covering costs like registration fees for new electric vehicles. They are also planning charging areas for electric cars, motorcycles, and other clean energy vehicles.
Thanh Nhan
