In a bold step toward sustainable urban development, Ho Chi Minh City (HCMC) is accelerating its transition from fossil-fuel-powered vehicles to electric and clean energy alternatives. The city is starting with its entire public bus fleet and gradually expanding to include personal and commercial vehicles.
Buses First: A Foundation for Greener Transport
According to the city’s Department of Construction, HCMC will convert its entire bus system — approximately 2,771 vehicles — to run on electricity or other green energy sources by 2030. Of these, 1,663 buses will replace existing routes, while 1,108 buses will be newly invested to serve future transit expansions.
Phase one focuses on developing a conversion roadmap and incentive policies for public transit. Phase two will extend those efforts to all remaining vehicle categories.
Phase Two: Broader Vehicle Scope, Tighter Emission Control
With over 9.6 million registered vehicles — including nearly 8.6 million motorbikes — HCMC is targeting key actions in phase two:
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Incentives and roadmaps for converting taxis, ride-hailing vehicles, trucks, private cars, and public-sector fleets to clean energy.
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Financial support for scrapping old gas-powered vehicles and purchasing electric alternatives.
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Low-emission zones in central HCMC, Can Gio, and Con Dao, giving priority to electric vehicles.
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A comprehensive policy framework and implementation procedures to ensure feasibility and uniform rollout.
Service Motorbikes Face Full Ban by 2030
In parallel with the city’s emissions control plan, the HCMC Institute for Development Studies is preparing a proposal to convert around 400,000 gasoline-powered motorbikes used in ride-hailing and delivery services.
The roadmap includes four key milestones:
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From Jan 2026: No new permits or contracts for gas-powered bikes.
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From Jan 2027: Gas-powered bikes restricted during peak hours in low-emission zones.
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From Jan 2028: Stricter emissions testing policies.
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From Dec 2029: Complete ban on gasoline motorbikes in ride-hailing platforms.
Financial Incentives: Loan Support and Tax Relief
To support drivers in transitioning to electric vehicles, the city is working with CEP Microfinance and local banks to offer 24–30 month loan packages, with installments designed to match the savings from not buying gasoline.
Under Resolution 198, the city will subsidize 2% of interest rates on these loans. For example, with a market interest rate of 8%, drivers would only pay 6%, and the government will cover the rest.
Additional proposals to the central government include:
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Waiving registration fees for new electric vehicles for the first two years
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Exempting VAT for ride-hailing drivers using electric vehicles
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VAT exemption per transaction on electric-based delivery services
Looking Ahead: A Long-Term Vision for a Greener City
Ho Chi Minh City’s transition to electric vehicles reflects a clear and structured approach to reducing emissions, improving air quality, and aligning with global sustainability goals. While the transition will require significant investment and public-private coordination, it marks a major shift toward a cleaner and more resilient urban future.