Grab urges Hanoi to offer $380 subsidies for motorbike drivers to go electric

For low-income drivers, the subsidy should be VND20 million, Dang Thuy Trang, director of public affairs at Grab Vietnam, said at a forum Wednesday.

A GrabBike motorbike driver picks up a passenger in Hanoi. Photo by VnExpress/Phuong Anh

Grab’s proposal doubles the VND5 million subsidy the city government is considering for all gasoline motorbike owners to go electric.

A Grab recent survey found 76% of its drivers reluctant to make the switch due to the high costs of the vehicles of VND30-40 million.

With ride-hailing the main job for 70% of the drivers, Hanoi’s plans to ban gasoline-powered vehicles in the downtown area from next year is likely to cause them financial challenges, Trang said.

"Forcing a transition without accompanying support policies would place pressure on them and their families."

Grab also wants the city to provide loans without interest for 24 months for drivers to buy electric vehicles.

Offering drivers with electric motorbikes waivers or refunds of value-added tax and income tax would also help speed up the transition, Trang added.

The Department of Construction is advising the city on supporting the transition, with policies expected to be finalized in the first quarter of 2026.

There has been wide consultation with relevant stakeholders on a draft resolution for the purpose, including Grab.

Meanwhile, economist Nguyen Minh Phong has been advising Hanoi to reassess the feasibility of its gasoline-powered vehicle ban.

The road map for banning petrol vehicles needs to be reasonable, with gradually expanding time restrictions to avoid shocks that could affect people’s ability to work in the downtown area, he added.

Hanoi is set to ban gas-powered motorbikes from downtown streets from July 2026, and most fossil fuel vehicles from 2030. The city has around 6.9 million motorbikes.

Its government has said gasoline motorbikes account for 60% of the city’s pollution.