The ambitious goal of introducing 400,000 electric ride-hailing motorbikes in Ho Chi Minh City (HCMC) is within reach, provided there are financial incentives, tax exemptions, and the establishment of sufficient charging stations. This optimistic outlook comes from Le Thanh Hai, director of the Institute for Development Studies, who underscores the transition’s potential to cut costs for drivers and enhance environmental conditions in the city.
Recent research by the institute reveals a striking difference in daily expenses for fuel between traditional fuel and electric motorbike drivers. Grab and Be ride-hailing drivers currently fork out VND70,000–100,000 (approximately $3 to $4) each day on gasoline, based on survey feedback from 400 participants. In stark contrast, drivers of Xanh SM electric motorbikes pay only VND20,000 for charging.
When considering battery degradation, wait times, and charging expenses, electric motorbike riders can pocket between VND40,000 and VND60,000 more each day—translating to a monthly income boost of about VND1 million—in comparison to their gasoline-powered peers. These savings could enable them to pay off their vehicle loans in just two to 2.5 years.
Yet, the journey towards electric rides isn’t without its bumps. Charging infrastructure poses a significant challenge. Electric bikes from brands like VinFast, Selex Motors, DatBike, and Honda typically need 4-10 hours to charge and offer a range of 100-200 kilometers—meaning drivers must charge daily, incurring a loss of income during that time.
Nguyen Huu Phuoc Nguyen, CEO of electric scooter startup Selex Motors, believes that energy infrastructure will cease to be an obstacle as soon as charging speeds catch up with refueling gasoline. Selex Motors is pioneering a quick two-minute battery-swapping service compatible with various brands, currently operating 50 stations in HCMC, with plans to expand to 200 next year.
However, Nguyen points out that the absence of standardized charging infrastructure remains a critical issue, as companies often function independently. He urges local authorities to motivate businesses to expand shared charging and battery-swapping networks, promoting a collaborative growth atmosphere.
Financial considerations also play a crucial role in this transition, particularly for technology drivers who often experience low and unstable incomes. The Institute for Development Studies has teamed up with banks to craft specialized credit products and has secured promising commitments from electric motorbike manufacturers and distributors.
Moreover, the city has proposed appealing to the central government for the elimination of registration fees and value-added taxes on new electric vehicles and technology drivers for the initial two years. Currently, Vietnam’s transportation sector emits 32.9 million tons of CO2 equivalents annually, with HCMC responsible for about 13 million tons. To actively support green transportation, the city aims to convert all buses to electric or green-energy vehicles by 2030, alongside a comprehensive Vehicle Emissions Control Plan that encourages incentive creation and transition roadmaps for taxis, tech vehicles, passenger cars, and vehicles utilized by public agencies and businesses.
The road to an electric future may be paved with challenges, but an electric motorbike revolution along the bustling streets of HCMC promises a more sustainable urban environment for everyone— and perhaps even a newfound love for battery-powered journeys!
What financial support is being proposed for the transition to electric vehicles in HCMC?
The city recommends that the central government waive registration fees and value-added taxes for new electric vehicles and technology drivers during their first two years.
How much can electric motorbike drivers potentially save compared to gasoline-powered counterparts?
Electric motorbike drivers can save between VND40,000 and VND60,000 each day compared to traditional gasoline users, leading to an additional VND1 million in monthly earnings.
What plans does HCMC have for public transportation concerning green energy?
HCMC plans to convert all buses to electric or green-energy vehicles by 2030, supporting a broader goal of reducing emissions in the city’s transportation sector.
