Prime Minister Pham Minh Chinh issued a directive on Saturday that prohibits gasoline-powered two-wheel vehicles within Ring Road 1, which encircles central areas around the Sword Lake and West Lake.
According to city officials, the financial support package will cover nearly all costs related to the switch for motorbikes in the area, including registration fees and licensing for new electric vehicles.
The program will prioritize residents living inside Ring Road 1 as well as regular commuters who travel through the restricted zone, Duong Duc Tuan, vice chairman of Hanoi People's Committee, said on Monday.
In addition to personal subsidies, Hanoi is investing in green transport infrastructure to support the transition. The city plans to expand its fleet of small electric buses and four-seater EV shuttles for downtown services, while adding more charging stations in parking lots, public garages and residential buildings.
Two metro lines already serve the area, with more routes under development. A newly established inter-agency task force will oversee the transition and speed up infrastructure deployment.
PM Chinh has ordered Hanoi to ban gas-powered motorbikes inside Ring Road 1 from July 1, 2026, and expand the restriction gradually to Ring Road 2 in 2028, with limits on both motorbikes and gasoline cars, and reach the outlying Ring Road 3 by 2030 as the city establishes a low-emission zone to reduce air pollution.
To encourage adoption, Hanoi also plans to raise fees for fossil fuel vehicles operating in the city center starting mid-2025.
Currently, Hanoi has over 9.2 million vehicles on its streets, including about 6.9 million motorbikes and 1.1 million cars. Another 1.2 million vehicles from other provinces regularly circulate in the capital.