This month, Hanoi’s government announced a bold initiative to ban fossil-fueled motorbikes from the city’s Ring Road 1, an area that encompasses much of the bustling downtown, with the prohibition set to take effect by mid-2026. However, the Motorbike Manufacturers Association, which includes industry giants like Honda, Yamaha, Suzuki, Piaggio, and SYM, believes the timeline is unrealistic and should be extended.
While the association recognizes the necessity of reducing emissions, it underscored the significant challenges posed by such an aggressive plan. “Residents, businesses, and regulators need at least two to three years to prepare for this shift,” the group recently communicated to government officials. They proposed a more gradual approach that starts with banning older, high-emission vehicles, then progressively targets commercial bikes, delaying the ban on personal vehicles.
Their concern centers on the financial strain this abrupt transition could place on low-income residents who may struggle to afford new electric vehicles. Manufacturers echoed these sentiments, warning that the costs associated with shifting to electric production could lead to substantial financial losses.
Hanoi is a crucial market for Honda, which holds the largest market share in Vietnam’s two-wheeler sector. In the previous year alone, Honda sold 2.15 million two-wheelers in Vietnam, with 190,000 of those sales happening in Hanoi. The association further highlighted the complex web of suppliers—around 200 firms primarily focused on internal combustion engine components—who could be jeopardized if the transition to electric bikes occurs too swiftly. The lack of adequate public charging infrastructure is another pressing concern.
Currently, Vietnam’s power grid is ill-equipped to handle widespread electric vehicle charging, especially during peak usage times in populous areas. Moreover, home charging poses risks of fire and explosion, particularly in older apartment complexes. Although VinFast has established a nationwide charging network, it primarily serves electric cars. Other players like Dat Bike have set up a few stations in Ho Chi Minh City, while Selex Motors has opted for a battery-swapping model at 90 locations across Hanoi, Da Nang, and Ho Chi Minh City.
In Ho Chi Minh City, ride-hailing and delivery drivers are expected to make the switch to electric motorbikes by 2026, with a complete phase-out of gasoline models to follow by the end of 2028. As the largest cities in Vietnam, Hanoi and Ho Chi Minh City lead the way in motorbike usage.
A CEO from a Vietnamese motorbike brand noted that once government decisions are made, adaptation is no longer a matter of choice but an obligation. He emphasized the need for a realistic roadmap that considers the interests of all stakeholders involved. Experts advocate for additional financial support for private users and comprehensive public transport planning to ease this transition.
To that end, Hanoi is exploring initiatives to assist the 450,000 residents within Ring Road 1 who currently rely on gas-powered motorbikes, potentially by subsidizing the registration fees of new vehicles.
What prompted Hanoi’s government to ban fossil-fueled motorbikes?
The ban is part of Hanoi’s initiative to reduce emissions within the city, aiming to phase out gasoline-powered motorbikes from the densely populated Ring Road 1 by mid-2026.
What concerns has the Motorbike Manufacturers Association raised regarding the ban?
The association argues that the current timeline is too aggressive, urging for a phased approach that provides residents and manufacturers more preparation time, particularly to mitigate financial burdens on low-income individuals.
How is the current charging infrastructure in Vietnam supporting the transition to electric motorbikes?
The existing public charging infrastructure is limited, with Vietnam’s power grid unprepared for mass electric vehicle charging, especially in peak hours, and home charging posing safety risks in older apartment buildings.
