Ho Chi Minh City To Convert 400,000 Ride-Hailing Motorcycles To Electric By 2029

HO CHI MINH CITY, July 17 (Bernama-VNA) -- Ho Chi Minh City has set a target to transition some 400,000 ride-hailing gasoline motorcycles to electric vehicles by the end of 2029 under a freshly completed draft project, Vietnam News Agency (VNA) reported.

The proposal, developed by the Department of Construction in collaboration with the Ho Chi Minh City Institute for Development Studies (HIDS), aims to eliminate air pollution and greenhouse gas emissions from this vehicle category. It will be submitted to the municipal People’s Committee this week.

A 2023 survey by the institute found that each e-hailing driver travels between 80-120 kilometres daily, three to four times more than the average citizen, making the switch to electric motorcycles significantly impactful for emission reduction.

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Director of the HIDS’s Centre for Economic Application Consulting Le Thanh Hai said the move would benefit the environment while helping drivers save on fuel and maintenance costs. The project sets clear milestones: 30 per cent of the target fleet converted by 2026 (120,000 vehicles), 80 per cent by 2027 (320,000 vehicles), and full conversion by the end of 2029.

Transport emissions remain one of the main contributors to air pollution in the city, with concerns that such emissions could increase 2.6-fold to more than 44 million tonnes annually by 2030. The Department of Agriculture and Environment highlighted the need for sustainable transport solutions to mitigate this trend and protect public health.

To support the transition, Hai recommended financial incentives for drivers, including VAT exemptions, registration fee waivers, and easier access to low-interest loans. The project also includes measures to encourage investment in energy infrastructure and electric vehicle manufacturing.

Starting in early 2026, new operating licences will no longer be issued to gasoline motorcycle drivers entering the ride-hailing sector. From 2027, gasoline motorcycles will be restricted during peak hours in low-emission zones, with emission control policies tightened in 2028.

By the end of 2029, gasoline motorcycles will be banned from ride-hailing platforms.

Currently, the city has around 600 public charging points, well short of the 3,000 required to support an estimated 350,000 to 400,000 electric two-wheelers. Authorities aim to complete the necessary charging and battery swap infrastructure by December 2028.