HO CHI MINH CITY PUSHES FOR MASSIVE SHIFT FROM GASOLINE TO ELECTRIC MOTORBIKES: A HISTORIC TURNING POINT FOR DELIVERY AND RIDE-HAILING DRIVERS
As air pollution continues to worsen in major urban centers, Ho Chi Minh City—the most populous city in Vietnam—is gearing up for an ambitious transformation of its two-wheeled transportation landscape. Over the next 2 to 3 years, the city plans to convert 400,000 gasoline-powered motorbikes into electric ones.
This initiative goes beyond reducing greenhouse gas emissions. It signals a bold move toward sustainable urban development, offering a cost-effective solution for hundreds of thousands of ride-hailing and delivery drivers—workers who now form the backbone of the country’s digital economy.
The Green Shift: Converting 400,000 Motorbikes to Electric
According to the Ho Chi Minh City Institute for Development Studies (HIDS), the proposal is entering its finalization phase, with a detailed roadmap expected to be announced in July. The ultimate goal is that by 2027, 100% of all motorbikes used for passenger and delivery services will run on electricity.
The primary focus will be ride-hailing drivers working for platforms like Grab, Gojek, Be, and Baemin, as well as independent delivery riders—all of whom rely on gasoline-powered bikes for daily operations. It's estimated that around 400,000 two-wheelers are currently in service in this sector in Ho Chi Minh City alone.
Fuel Costs: A Daily Burden for Tech-Enabled Drivers
One of the city's major concerns is the operating cost borne by drivers. According to a survey of over 400 drivers conducted by HIDS, the average daily travel distance is between 80 to 120 kilometers, consuming about VND 70,000 to 100,000 worth of gasoline each day.
Worse yet, because drivers often face traffic jams, heavy loads, and stop-and-go conditions during peak hours, fuel consumption can be 20% to 40% higher than normal. In comparison, the cost of charging an electric bike is only about VND 20,000 per day. This means drivers could save between VND 1 to 2 million per month by switching to electric vehicles.
Strong Financial Support from the City
Recognizing that not every driver can afford to shell out tens of millions of dong for a new electric vehicle, the city has outlined a comprehensive financial support program:
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Interest Rate Subsidies: Drivers can take out loans to buy electric bikes with an interest subsidy of 2% from the city budget. For instance, if the market rate is 8%, drivers will only need to pay 6%.
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Tailored Installment Plans: HIDS is working with CEP Microfinance and several banks to offer 24–30 month installment plans. The monthly payments are designed to match the amount drivers would typically spend on fuel—essentially making the switch cost-neutral.
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Waiving Initial Fees: New electric vehicle buyers will be exempt from registration and license plate fees, saving up to VND 3 million.
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VAT Refund Per Trip: For each electric trip worth VND 80,000, drivers could get a VAT refund of VND 6,400—something that has never been offered before.
Phasing Out Old, Polluting Motorbikes
For aging gasoline-powered motorbikes that no longer meet emission standards or require costly repairs, the city plans to implement a buy-back and scrappage program. Businesses involved in motorbike recycling will also be eligible for preferential loans to develop green recycling chains.
Electric Infrastructure: The Bottleneck That Must Be Solved
Despite the clear economic and environmental benefits, the switch to electric vehicles comes with challenges:
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Long Charging Times: A major inconvenience for high-mileage drivers who need quick turnarounds.
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Limited Charging Stations: Especially problematic in densely populated residential areas and narrow alleys.
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Unreliable Backup Power Supply: As demand spikes, the city must ensure a stable power supply and a resilient energy infrastructure.
Ho Chi Minh City plans to develop a network of charging stations, rest stops, and battery-swapping hubs powered by renewable energy. Investors in electric infrastructure will also receive interest rate support.
Transport Companies: Supporting and Committing to the Cause
Be Group—one of Vietnam's leading ride-hailing platforms—has expressed strong support for the initiative. Currently, about 10% of their 500,000 partner drivers are already using electric bikes.
Be has also teamed up with electric vehicle manufacturers like VinFast and Selex Motors to offer incentives such as:
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A VND 3 million discount per vehicle
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30% discount on battery-swapping fees in the first year
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4% discount when purchasing the VinFast Feliz S
However, companies are still requesting further assistance with battery costs, management software, and charging infrastructure to ensure a smooth transition.
Don’t Forget the Freelancers
A large portion of drivers operate independently, without being affiliated with any ride-hailing platforms. These drivers often face difficulties accessing financial support or official assistance programs.
The city is exploring ways to include them through used-bike trade-in programs and vehicle exchange initiatives—ensuring that no one is left behind in this green transition.
Target 2030: Fully Green Urban Transit
Ho Chi Minh City isn’t stopping with motorbikes. By 2030, the city aims for all public buses to run on green energy. Out of the 2,200 buses currently operating, about 31% already use electricity or compressed natural gas (CNG)—a figure that is steadily increasing each year.
Long-Term Benefits: Economic, Environmental, and Social
If successful, the project could help the city save hundreds of billions of dong annually for drivers, while also:
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Reducing greenhouse gas emissions, fine dust, and noise pollution
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Improving overall urban quality of life
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Contributing to Vietnam’s pledge to cut emissions by 9% by 2030
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Laying the groundwork for carbon credit trading—a potential economic boost in the future
Conclusion: A Greener Future Is Within Reach
The transition from gasoline to electric motorbikes in Ho Chi Minh City is no longer a far-off dream. With clear financial incentives, a long-term infrastructure vision, and support from the private sector, the city is proving that green mobility is both possible and essential.
For ride-hailing drivers, this isn’t just a chance to cut costs—it’s a way to improve job quality, protect their health, and contribute to a cleaner environment. Most importantly, with the right policies, drivers can make the switch without any upfront investment.
The future of transportation in Ho Chi Minh City is being rewritten every day—and you just might be one of its pioneers.