Tourist EVs in Vietnam face suspension under new speed limit

Under a government decree effective Feb. 15, 2024, motorized four-wheel passenger vehicles can only operate on roads where the maximum speed limit is 30 kph, but few roads are designed that way.

A representative of Saigon Public Transport Co., Ltd. (Saigon.PT), which operates 70 small electric vehicles for tourists in HCMC, said that "We had to cancel a series of booked tours in HCMC as they no longer comply with the new regulations."

According to this representative, there are virtually no roads in HCMC with a 30 kph speed limit, making it difficult for these vehicles to continue operating.

Electric cars operated by Saigon Public Transport Company Limited (Saigon.PT) run in downtown Ho Chi Minh City. Photo by VnExpress/Ha Giang

Saigon.PT launched its tourist electric vehicle service in April 2024 on a trial basis, offering eight-seater EVs for city tours at prices ranging from VND120,000 to VND250,000 (US$4.72-9.83) per 30-minute trip. The vehicles operate in Districts 1, 4, 5, and 6, passing by major landmarks such as the Saigon River Port, the Reunification Palace, the City Hall, and Ben Thanh Market. The service was recently extended to connect with three stations of HCMC metro.

During the pilot phase, the company recorded over 55,600 trips, serving more than 226,000 passengers. Demand was particularly high during holidays and festivals, and passengers responded positively to the service, which allowed for convenient sightseeing.

However, the new speed limit requirement could significantly impact operations. "The regulation directly affects our service. We hope authorities will find a solution that aligns with the city's actual road conditions. Otherwise, we may have to suspend operations," the company representative said.

The city's Department of Transport noted that since 2014, the Ministry of Transport has directed localities to remove speed limit signs below 40 km/h, except in specific areas such as construction zones.

The department acknowledged challenges if 30 km/h speed limit signs are introduced, as lowering speed limits could disrupt traffic flow. The department has proposed that the city government seek guidance from relevant ministries while temporarily allowing these vehicles to operate with time and area restrictions.

Similar difficulties are being reported in other tourist destinations.

In Da Lat in the Central Highlands, local authorities have decided to discontinue the pilot program for electric tourist vehicles starting Feb. 15, as no roads in the city meet the 30 km/h speed limit requirement.

An electric car carrying tourists in the center of Da Lat city. Photo by VnExpress/Khanh Huong

Two companies, Da Lat City Tour Co., Ltd. and Tinh An Tourism Development Co., Ltd., had been running electric vehicle services on designated routes around Xuan Huong Lake, Tuyen Lam Lake, and the Valley of Love.

As the service was popular among tourists, officials are considering alternative solutions.

In Ba Ria-Vung Tau, a popular beach destination that borders HCMC, seven businesses operate more than 260 electric vehicles for tourists in Vung Tau and Con Dao. The province's Deputy Director of Transport, Do Nguyen Hai Thuan, highlighted the effectiveness of these vehicles, especially in areas where large buses are restricted.

"These electric vehicles provide a valuable option for tourists and contribute to the growth of local tourism," he said.

To comply with the new regulation, his department has proposed that the provincial government allow electric vehicles to continue operating on designated routes in urban and coastal areas. Under the proposal, operators would be required to obtain proper licenses, and drivers would need to undergo safety training.

An electric car on Tran Phu Street, Nha Trang. Photo by VnExpress/Bui Toan

In Nha Trang, a major beach destination in central Vietnam, Transport Department Deputy Director Chu Van An said electric vehicles have helped meet tourist demand while also supporting environmental sustainability.

However, he acknowledged concerns over safety, particularly when these small vehicles share roads with larger ones. Some operators have also failed to adhere to designated routes.

"The regulations are clear, and compliance is required. However, tourists still have alternative transport options, such as electric taxis and open-roof buses," An said.