Ho Chi Minh City aims to phase out gasoline-powered motorcycles for gig economy drivers by 2029. Starting in 2026, new registrations for gasoline-powered vehicles on ride-hailing platforms will be restricted. The Ho Chi Minh City Institute for Development Studies (HIDS), which drafted the transition plan, estimates that 80% of drivers will switch to electric vehicles within the next two years.
This initiative is part of Ho Chi Minh City's efforts to reduce emissions and pollution, with projected reductions of 315,000 tons of CO2 and 2,000 tons of fine dust annually, contributing to the city's commitment to Net Zero emissions by 2050. The transition also aims to bring economic benefits to gig workers and promote green infrastructure development.
Connecting with a large number of gig economy drivers, a Grab representative said many drivers are hesitant to make the switch. At the "Filtering Emissions, Filtering Air" seminar on 22/8, Dang Thuy Trang, Head of Public Affairs at Grab Vietnam, cited a recent survey showing 60% of drivers are not ready to transition. One of the main reasons is the charging infrastructure.
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Gig economy drivers wait for customers on a street in central Ho Chi Minh City, 24/5. Photo: Thanh Tung |
Gig economy drivers wait for customers on a street in central Ho Chi Minh City, 24/5. Photo: Thanh Tung
Charging stations are far fewer than gas stations, and there's no current sharing system between providers. Home charging is also difficult, as 60% of drivers are renters, with only one-third able to charge overnight at home. Additionally, drivers are concerned about charging during peak hours, when electricity is prioritized for industrial and residential use.
Current electric vehicle battery designs are also not ideal for drivers' daily operations. They strive to maximize every kilometer and hour on the road for optimal productivity. However, most electric vehicles currently have a short range per charge and long charging times, while refueling with gasoline only takes 3-5 minutes.
"A complete ecosystem and supporting infrastructure for electric vehicles is a prerequisite for this transition. Most importantly, the public charging station system and grid stability need rapid development," said Dang Thuy Trang. The Grab representative also suggested shared charging stations between vehicle providers to optimize resources and avoid unfair competition.
To support drivers in this transition, Grab is developing a feature to integrate information about electric vehicle charging stations into GrabMaps, directing drivers to the most convenient locations.
Financing the purchase of electric vehicles is another major challenge. While the plan allows drivers to pay in installments of 1-2 million VND per month, this remains a significant financial burden for many individuals and families who rely on their vehicle for income. Furthermore, the Grab representative expressed concern about the complicated procedures for receiving financial support, as most gig workers in Ho Chi Minh City are from other provinces and lack local residency.
Grab has proactively implemented initiatives to encourage drivers to switch to electric vehicles, such as collaborating with Vietnamese electric vehicle manufacturers to test and develop models specifically for transportation, and participating in programs that support drivers in purchasing electric vehicles with preferential interest rates. However, the transition still faces the challenges mentioned above.
Therefore, Grab proposes a transition based on vehicle usage and age. For example, newer gasoline-powered vehicles would be allowed to continue operating. The recommended transition options should also include hybrid vehicles, not just purely electric ones as is currently the case.
Nguyen Dong Phong, Director of the Vietnam Register's Motor Vehicle Emission Testing Center, clarified the transition, stating that current regulations do not mandate switching from gasoline to electric vehicles, but rather to clean, zero-emission fuels. However, two-wheeled vehicles using alternative fuels are not yet common.
Despite the concerns and anxieties surrounding the transition, major cities have seen initial success with electric buses. Phong noted that the transition of these vehicles was highly debated just last year. However, in 2025, Hanoi and Ho Chi Minh City are implementing the plan, aiming for 100% electric, green-energy buses by 2030.
Thuy Truong
