According to the Ho Chi Minh City Institute for Development Studies (HIDS), these motorbikes - used for ride-hailing and delivery services - are currently the top contributors to transport-related emissions in the city.

HIDS has just completed a draft of its proposal titled “Project to Transition Two-Wheeled Vehicles from Gasoline to Electric for Tech-Based Drivers and Delivery Services in HCMC.”

The final version will be submitted to the HCMC People’s Committee this week, pending feedback and legal review, before being escalated to the central government.

Speaking with VietNamNet, Le Thanh Hai, Director of the Center for Applied Economic Consulting at HIDS, confirmed that the city is prioritizing tech-based two-wheeled vehicles in its transportation electrification strategy.

A 2023 survey revealed that app-based drivers travel an average of 80–120 kilometers per day - three to four times the distance of a typical commuter. Some drivers even exceed 150 km daily. This means that switching one gasoline-powered delivery bike to electric could reduce emissions far more significantly than doing so for private-use bikes.

“We chose ride-hailing and delivery drivers as our first priority group because they have the highest mobility rates. Solving their emissions problem essentially addresses the bulk of emissions from two-wheelers,” Hai explained.

A socially inclusive policy

Concerned that ride-hailing drivers may not be financially prepared for such a transition, Hai emphasized that “this is a policy designed to ensure no one is left behind.”

The core objective, he said, is to reduce emissions and improve air quality, not shift financial burdens onto low-income workers.

He added that delivery drivers should be eligible for social support policies and not be expected to absorb the full cost of transitioning to electric vehicles (EVs).

The impact of early electrification is already visible. According to HIDS, the introduction of Xanh SM electric motorbikes - now accounting for 39% of the ride-hailing fleet - has led to noticeably improved air quality compared to two years ago.

Incentives and four-stage rollout plan

To support this transition, HIDS recommends that HCMC propose to the central government full exemptions from registration fees, license plate fees, and VAT for electric motorbikes registered by ride-hailing drivers. These incentives would apply from January 2026 through December 2029.

They also suggest that the Ministry of Finance and the State Bank of Vietnam establish a low-interest loan program, capped at 6% annually, to help drivers finance their EV purchases.

In addition, the city should subsidize at least 2% of interest rates and coordinate with banks and ride-hailing companies to deduct loan payments automatically from driver earnings - ensuring timely repayment.

The proposal outlines a four-phase roadmap:

From January 2026: Begin implementing incentives and stop issuing new permits for gasoline-powered bikes. Existing gas-powered bikes registered before this date may continue operating but must develop a transition plan.

From January 2027: Limit gas-powered motorbikes during peak hours in designated low-emission zones.

From January 2028: Enforce stricter emissions control policies.

By December 2029: Completely ban gas-powered motorbikes from providing services on ride-hailing platforms.

A city grappling with pollution

According to HIDS, the average annual concentration of PM2.5 fine dust in HCMC exceeds WHO recommendations by 2.5 to 4.7 times. Transportation is a leading source of air pollution in the city.

As of 2021, HCMC managed over 7.6 million motorbikes and more than 800,000 cars, not counting around 2 million vehicles from neighboring provinces that enter the city daily. Many owners neglect scheduled maintenance, further contributing to harmful emissions.

Data from the Center for Air Pollution and Climate Change Research at the Vietnam National University in HCMC indicates that motorbikes account for 29% of total NO emissions, 90% of CO, 37.7% of PM10, and 31% of PM2.5 across the city.

If implemented, this electric motorbike conversion plan could mark a turning point in HCMC’s fight against urban air pollution, with the ride-hailing fleet leading the green transition.

Tran Chung