Vietnam's Motorbike Strategy: Crucial Insights

Hà Nội, the capital city of Vietnam, has announced plans to ban all fossil fuel-powered motorcycles within its Ring Road 1 area starting July 1, 2026[1][3][4][5]. This ban will be gradually expanded over the years, with the ultimate goal of transitioning Hà Nội into a zero-emissions city by 2050.

The initiative stems from Directive 20 issued in July 2025, which lays out urgent tasks to combat severe air pollution and aims at making Hà Nội a zero-emissions city by 2050[1][2].

The Phased Motorcycle Ban

The ban will be enforced in stages, beginning with a pilot period from January to July 2026, focusing on limiting petrol-powered motorcycles in certain urban areas to assess impacts and gather feedback before enforcement expands[1].

By January 1, 2028, the ban will cover all motorcycles and mopeds within Ring Roads 1 and 2, and further restrictions will apply to gasoline-powered private cars.
By 2030, the restrictions will extend to areas within Ring Road 3, moving toward citywide coverage[3][5].

Supporting Green Transportation

To facilitate the transition to electric vehicles (EVs) and other clean energy alternatives, Hà Nội is offering various incentives[3][5].

Cash subsidies for individuals who exchange their petrol motorcycles for electric ones will be VNĐ3 million ($115) for regular individuals, VNĐ4 million ($150) for near-poor households, and VNĐ5 million ($190) for poor households. Each individual can only receive this financial support once for one vehicle, with the policy running through to 2030.
Ha Noi is encouraging private investors to participate in the development of clean energy transport infrastructure through public-private partnerships, offering priority for land allocation and 100% land rental subsidies for development in designated areas until 2033.
Ha Noi plans to roll out subsidies for businesses investing in charging station infrastructure, with up to 70% interest rate support for the first five years.
Businesses in passenger transport and freight, as well as those involved in the recycling and refurbishment of old vehicles, will be eligible for preferential loans with interest rates ranging from 3% to 5% annually, with loan terms of up to five years.

Promoting Public Awareness and Green Transportation Infrastructure

Hà Nội is also working to establish clear standards for charging stations to ensure interoperability across different types of EVs. Additionally, the city is planning to expand the number of charging stations across key areas, including high-density residential neighborhoods and major transport corridors, by the end of 2026.

The motorcycle ban will be enforced with measures such as clear signage, traffic police, fines for violators, and surveillance cameras. Residents must own a petrol or diesel motorcycle (registered before the resolution takes effect) in low-emission zones and convert it to a green vehicle worth at least VNĐ15 million ($570) to qualify for the subsidies.

Vingroup is considering financing options for residents looking to purchase EVs, including instalment loan packages with low-interest rates.

The city is also expected to launch a public awareness campaign to facilitate adaptation to the new rules, alongside the development of a low-emission zone (LEZ) plan, expected by the third quarter of 2025. The plan aims to improve public transportation by expanding electric buses and trains and building charging stations plus maintenance facilities for clean energy vehicles.

Overall, the phased fossil-fuel motorcycle ban and transport greening policies are part of Hà Nội’s long-term roadmap to drastically reduce emissions from transportation and transform the city into a greener, more sustainable urban environment by 2050[1][3][5].

[1] VietnamPlus, (2023, March 23). Hanoi to ban fossil fuel-powered motorcycles by 2026. Retrieved from https://vietnamplus.vn/hanoi-to-ban-fossil-fuel-powered-motorcycles-by-2026/185513.vnp

[2] The Hanoi Times, (2023, March 16). Hanoi works to establish clear standards for charging stations. Retrieved from https://www.hanoitimes.vn/business/2023/03/16/hanoi-works-to-establish-clear-standards-for-charging-stations/685776.html

[3] The Hanoi Times, (2023, March 22). Hanoi to offer cash subsidies for electric motorcycle switch. Retrieved from https://www.hanoitimes.vn/business/2023/03/22/hanoi-to-offer-cash-subsidies-for-electric-motorcycle-switch/686280.html

[4] VietnamNet Bridge, (2023, March 22). Hanoi to ban fossil fuel-powered motorcycles from 2026. Retrieved from https://english.vietnamnet.vn/fms/business/221810/hanoi-to-ban-fossil-fuel-powered-motorcycles-from-2026.html

[5] VietnamNet Bridge, (2023, March 21). Hanoi to build EV charging stations. Retrieved from https://english.vietnamnet.vn/fms/business/221726/hanoi-to-build-ev-charging-stations.html

The government of Vietnam, through Directive 20, has prioritized the reduction of severe air pollution and aims to transform Hà Nội into a zero-emissions city by 2050.
The ban on fossil fuel-powered motorcycles in Hà Nội will commence on July 1, 2026, in the Ring Road 1 area, with further extensions to other areas over the years.
The transition to zero-emissions entails a progressive ban on all fossil fuel-powered motorcycles and mopeds, beginning with the Ring Roads 1 and 2 by January 1, 2028, and subsequently extending to Ring Road 3 by 2030.
Funding incentives have been established to support the shift towards electric vehicles (EVs) in Hà Nội, including cash subsidies for individuals to exchange petrol motorcycles for electric ones.
Businesses, particularly those in passenger transport and freight sectors, can avail of preferential loans with reduced interest rates to invest in clean energy initiatives and infrastructure.
The government emphasizes the importance of clean energy transport infrastructure development through public-private partnerships, offering land subsidies and support for businesses investing in charging station infrastructure.
The city of Hà Nội is working to establish clear standards for charging stations to ensure compatibility with various EV types and is planning to increase the number of charging stations across key areas by 2026.
The phased motorcycle ban will be enforced with clear signage, traffic police, fines, and surveillance cameras, with residents encouraged to convert their petrol or diesel motorcycles to green vehicles worth at least VNĐ15 million ($570) to qualify for the subsidies.
Companies like Vingroup are offering financing options for residents looking to purchase EVs, including low-interest instalment loan packages.
As part of the public awareness campaign, the city is developing a low-emission zone (LEZ) plan, which focuses on improving public transportation through the expansion of electric buses and trains and the construction of charging stations and maintenance facilities for green vehicles.
The ultimate objective is to drastically decrease emissions from transportation and transform Hà Nội into a greener, more sustainable urban environment by 2050.
Green transportation is predicted to drive changes in personal finance and real estate, as homeowners and investors look for energy-efficient, sustainable living options.
The transition to EVs could also impact the automotive and car maintenance industries, with a potential shift towards electric vehicle technology and maintenance services.
Data and cloud computing industries may experience growth due to the growing demand for smart solutions for electric vehicles and sustainable-living applications such as smart homes and smart cities.
The sports betting industry could be affected by changes in consumer preferences and disposable income, as people shift their spending towards sustainable living and personal finance investments.
On the global scale, Hà Nội's transformation could set an example for other cities in Asia and around the world, highlighting the potential impact of technology, renewable energy, and environmental-science policies on the urban lifestyle, business, finance, and the environment.