HCMC unveils ambitious plan to replace 400,000 gasoline motorbikes with EVs

Existing gasoline vehicles will gradually be phased out by the end of 2028.

The Ho Chi Minh City Institute for Development Studies (HIDS) has drafted the proposal.

Le Thanh Hai, director of its Center for Economic Application Consulting, said the roadmap is based on mandatory technical milestones and incentive policies to ensure drivers' financial stability, support trade-ins, facilitate electric vehicle loans, and develop charging infrastructure.

The city will begin converting existing gas-powered vehicles over a two-year period starting in early 2026, though a specific date has not yet been set, targeting 30% conversion by the end of the year and 80% by 2027 before complete the task in 2028.

From 2029 no gasoline motorbikes will be allowed on ride-hailing and delivery platforms.

Ride-hailing drivers in downtown Ho Chi Minh City. Photo by VnExpress/Thanh Tung

The city also plans to establish low-emission zones where gasoline vehicles will be restricted during peak hours from 2027 and banned entirely from 2028.

Incentives will be offered with early adopters among ride-hailing drivers, benefiting more.

In the first two years, ride-hailing drivers switching to electric bikes will receive at least a 2% interest rate subsidy on loans along with VAT and registration fee waivers.

In the third year, the support will drop by half.

The city also plans to assist tens of thousands of low-income drivers.

The proposal also encourages participation by tech platform providers to promote EV benefits, offer bonus points to drivers using electric bikes, and encourage environmentally conscious service choices.

For instance, each electric ride could earn drivers an extra VND500–1,000 (US$0.02–0.04).

Citywide EV battery station map

One major concern in the transition to electric vehicles is charging infrastructure.

Hai said there are currently around 50 battery-swapping stations, and two more companies are expected to invest in this business.

The city plans to support businesses in developing mobile charging stations and rest stops.

A task force comprising officials from the construction department and power industry and fire safety authorities has been formed to survey buildings and develop a citywide EV charging point map. This map will guide investment decisions and support policy development.

Electric buses serving routes connecting with HCMC's Ben Thanh - Suoi Tien metro at a parking lot. Photo by VnExpress/Giang Anh

In rental housing areas, authorities will enhance inspections to ensure safety for EV use.

Hai said this EV transition is part of HCMC's broader emissions control program in response to the prime minister's Directive 20 on urgent environmental protection measures.

The city plans to seek more autonomy from the government to effectively implement the program.

Costs incurred on tax breaks and interest subsidies will be offset by revenues from carbon credit trading.

Emission control expansion

Alongside the plan to switch over 400,000 motorbikes, the city Department of Construction is also collecting feedback on restricting gasoline and diesel vehicles in high-pollution areas.

The survey includes assessing emission levels, proposing new standards and setting restrictions for vehicles in zones with poor air quality.

It has proposed integrating emission control policies with land use planning to invest in parking lots and EV charging stations.

Other agencies have been asked to study and suggest draft regulations of fuel production, imports and distribution to align with the city's new emissions standards.

This effort is part of the city's emissions control plan that is being developed in two phases.

The first, to transition buses to green energy, has been completed, and targets making all of them eco-friendly by 2030.

With HCMC recently merging with Binh Duong and Ba Ria–Vung Tau provinces, the Department of Construction is working with other relevant agencies to evaluate the impact of the emission control plan and propose a comprehensive plan in the newly expanded city.

It is expected to be finalized in the third quarter of this year.

For phase two, a consultant is developing a citywide roadmap that will be submitted to the People's Committee and People's Council once completed.

The focus will be on incentives to help individuals and businesses switch from gas-powered to electric vehicles, including buyback programs and subsidies for clean energy vehicles.

Target groups will include individuals, taxis and tech-based transport services.

Simultaneously, HCMC will also finalize its emissions control solutions for until 2030.

It will establish emission control zones, prioritize electric vehicles, and restrict gasoline and diesel vehicles in areas such as the city center, Can Gio District and Con Dao.

Specific criteria and implementation steps will be announced alongside supporting policies.

As of June 2025 HCMC had over 9.6 million registered vehicles, the highest number in the country, including over one million cars.

According to the Department of Construction (formerly the Department of Transport), carbon monoxide and hydrocarbons, both harmful to humans, emitted by motorbikes account for 90% of all vehicle-related emissions in the city.

The proposal estimates that emission control measures could cut over 56,000 tons of CO and 4,400 tons of HC per year.

The government first introduced vehicle emissions control measures in 2010 when the government approved a plan targeting Hanoi and HCMC.

But implementation has been patchy due to the lack of legal provisions.

In 2020 HCMC's Department of Transport launched a pilot program to monitor motorbike emissions, offering free testing at maintenance centers to develop a roadmap.

The program was halted following the enactment of a new Environmental Protection Law, which required a more comprehensive and coordinated approach.