Photo by Dominic Kurniawan Suryaputra on Unsplash
September 14, 2025 (Sunday) - By Yoo Jung
Ho Chi Minh City has announced a phased plan to ban gasoline-powered motorcycles including services such as food delivery taxis (notably Grab), starting in 2026 with a full ban by 2029. While officials remark that these reforms are crucial for reducing pollution and reaching Vietnam’s net-zero goals, the shift has ignited concern among drivers and small businesses whose livelihoods depend on gasoline bikes.
The reform targets the estimated 400,000 ride-hailing and delivery drivers across the city. Many low-income workers rely on gasoline bikes for speed, convenience, and affordability. Under the new policy: By the end of 2026, 30% of gasoline-powered bikes must be replaced with electric bikes; by 2027, the target rises to 80%; by 2028, nearly all transitions must be completed; and by 2029, gasoline motorbikes for delivery and ride-hailing will be outright banned.
The plan was drafted by the Ho Chi Minh City Institute for Development Studies (HIDS) and aligns with Vietnam’s national climate strategy.
Vietnam has pledged to achieve net-zero emissions by 2050. Ho Chi Minh City, with nearly 9 million motorbikes for 11 million people, is ground zero for tackling air pollution and traffic congestion. Officials frame the transition as both an environmental and public health necessity.
But another layer is economic strategy. With foreign investments and subsidies, the government has heavily backed VinFast, Vietnam’s flagship electric vehicle company. Policies encouraging EV adoption—like VAT exemptions, waived registration fees, and interest-subsidized loans—directly promote VinFast’s production and infrastructure projects, from charging stations to battery-swap hubs.
To soften the blow for drivers, the government promises: Two years of VAT and registration fee exemptions (2026–2027) for EV purchases; Loan programs with a 2% annual interest subsidy to finance new electric bikes; A network of charging and battery swap stations city-wide by 2028.
Still, the path forward is rocky. Many residential buildings across HCMC have banned electric bikes from underground parking due to fire safety fears about lithium batteries. Charging infrastructure is sparse, charging times are long, and drivers complain they cannot afford to pause their work. “Charging takes too long, and I can’t afford to wait. My work depends on quick trips all day.”
Many people expressed their opinions that they doubt the government would enact these new policies, as gasoline bikes are pillars to many citizens in Ho Chi Minh. Nevertheless, experts warn that the ban could inflict social and economic harm on thousands of low-income workers without careful planning, exacerbating inequality.
