Families in Ho Chi Minh City may get up to $800 to switch to electric motorbikes

The proposal, presented to city officials on Oct. 7, is part of HCMC's "green transition" program to tighten vehicle emission controls. Starting in 2026, central districts would become low-emission zones (LEZs), where diesel trucks, substandard commercial cars and older service motorbikes would be banned or restricted. From 2027, when mandatory emissions checks for motorbikes begin, the rules will apply to all non-compliant vehicles.

The LEZ is expected to cover Districts 1, 3, 5, 6, 8, 10, 11, Binh Thanh, Tan Binh, Tan Phu and Phu Nhuan, which are home to 3.2 million residents and 9.2 million daily trips, and also areas where fine dust levels (PM2.5 and PM10) often exceed safety limits. Can Gio District and Con Dao Island will also be included in the pilot scheme to protect biosphere reserves and promote sustainable tourism.

To ease the shift, households would be subsidized based on income level: regular families could get 10% of costs (up to VND5 million), near-poor households 80% (up to VND16 million), and poor households 100% (up to VND20 million). Buyers would also enjoy a 50% cut in registration and license plate fees, plus interest support for loans.

Transport businesses would benefit too: full exemptions from registration fees, half-price road maintenance and license plate fees, and 50% support for loan interest in the first year. Bus operators going electric could borrow up to 85% of investment costs with preferential rates for seven years.

The city plans major infrastructure upgrades alongside subsidies, including 72 new routes with over 1,100 electric buses, at least 8,000 public bicycles, pedestrian- and cycle-friendly "green corridors," and 750–1,338 charging stations at parking lots, malls and major roads.

Preparation and legal groundwork in 2025–2026 will cost more than VND733 billion. Between 2026 and 2030, full rollout is expected to cost over VND7.3 trillion (excluding bus purchases), with 80% funded by the state budget.

After merging with Binh Duong and Ba Ria–Vung Tau, HCMC now has more than 14 million residents and 13 million vehicles, not counting transient traffic.

Road transport accounts for 88% of fine dust emissions from traffic, costing the city an estimated VND3 trillion in economic losses every year, according to statistics provided by the municipal Department of Construction.