App-based drivers in HCMC say switch to electric vehicles very difficult

The city is aiming to eliminate gasoline motorcycles from ride-hailing platforms by 2029. The transition will begin in 2026, when new registrations of gasoline vehicles on ride-hailing platforms will be limited. The HCMC Institute for Development Studies, which developed this transition plan, expects 80% of drivers to switch to electric vehicles in the next two years.

This initiative hopes for a reduction of 315,000 tons of CO2 and 2,000 tons of fine dust annually in line with the city's goal of achieving net-zero emissions by 2050. However, Grab Vietnam, which has a large number of drivers on its platform, says many are reluctant to make the switch to electric vehicles due to limited charging infrastructure.

Speaking at a seminar on Aug. 22, the Singapore-owned company’s external affairs director, Dang Thuy Trang, said 60% of drivers are not ready to switch, citing a recent survey by the company. EV charging stations are far fewer than gasoline stations, and there is no sharing of resources between companies.

Ride-hailing drivers wait for customers on a sidewalk in HCMC. Photo by VnExpress/Thanh Tung

Some 60% of drivers live in rented accommodation, with only a third having the option to charge their vehicles overnight at home. Many are also concerned about peak periods during the day when electricity is prioritized for residential and industrial use. The design of EV batteries is not well suited for ride-hailing use, with most still having only short ranges per charge and long charging times. On the other hand, a gasoline vehicle can be filled in seconds.

"The key requirement for this transition is a comprehensive ecosystem, particularly the rapid development of public charging stations and grid stability," Trang said. She exhorted manufacturers to share charging stations to optimize resources and prevent unfair competition. To support drivers making the transition, Grab is working on integrating charging station information into its GrabMaps so that drivers could head to the nearest one, she said.

The high cost of EVs is another major challenge. Although the transition plan allows drivers to pay in monthly installments of VND1-2 million (US$38-76), this still represents a financial burden for many, as their income depends on a single vehicle.

Trang also expressed concern about the difficulty of obtaining financial support for the transition, as many drivers in HCMC hail from elsewhere and lack permanent residency. But Grab has launched initiatives to encourage drivers to switch to EVs such as collaborating with manufacturers to test and develop vehicles tailored for transport services.

It is participating in programs to help drivers buy EVs through subsidized loans. Nevertheless, it has proposed making the transition a function of vehicles’ lifespans. Thus, it wants relatively new gasoline vehicles to be allowed to operate. It also recommends the use of hybrid vehicles along with EVs.

Nguyen Dong Phong, Director of the Road Motor Vehicle Emission Testing Center, clarified that the current regulation does not strictly require drivers to switch from gasoline motorcycles to electric ones. Instead, it requires vehicles to transition to clean, non-emitting fuels. However, he noted that in reality, alternative clean-fuel technologies for two-wheeled vehicles are not yet common in Vietnam, meaning electric motorcycles remain the most practical option.

Despite concerns about the transition, some large cities have seen success with electric buses, he said. He pointed out that the idea of switching to electric buses was controversial just a year ago. But Hanoi and HCMC have implemented the transition fully as planned, and target a complete switch to electric buses and clean energy by 2030.