Vietnam is rapidly transitioning from gasoline to electric vehicles, focusing on motorcycles and buses. With a significant increase in electric motorcycle sales, Hanoi and Ho Chi Minh City are replacing existing diesel buses with electric models. The government's stricter emissions regulations and private sector investments in charging infrastructure are driving this shift from gasoline and diesel to electric transportation.
According to the Vietnamese Ministry of Construction, the government is promoting the expansion of low-emission zones in major cities and the introduction of emissions testing. Starting July 1, 2027, Hanoi and Ho Chi Minh City will implement emissions testing for motorcycles, with other centrally governed cities following suit on July 1, 2028.
Efforts to restrict gasoline vehicle operations in urban areas are also taking shape. Hanoi is piloting low-emission zones in certain areas within its first ring road and plans to extend this to the second and third ring roads in the future. Ho Chi Minh City is preparing to introduce similar low-emission zones.
Notably, Ho Chi Minh City has set a goal for the public sector to transition to eco-friendly vehicles. The city authorities plan to convert all cars, motorcycles, and scooters used by government agencies and officials to environmentally friendly energy vehicles by 2030.
This policy shift is also evident in public transportation. The Hanoi Transport Corporation (Transerco) has deployed 94 electric buses across seven routes this month, replacing existing diesel buses. On October 8, 15 electric buses were introduced on Route 83, connecting Hanoi's Giap Bat Bus Station and Hung Yen Bus Station. Subsequently, on October 15, 15 VinFast EB8 electric buses were added to Route 31, fully replacing the diesel buses on that route.
Electric bus adoption is also expanding in Ho Chi Minh City, where eco-friendly vehicles now account for approximately 67.8% of the city's transportation system. The city aims to convert all interprovincial buses to electric by January 1, 2027.
Earlier this month, two electric bus routes, 179 and 180, connecting VinHomes Grand Park and the city center, were launched. These routes will operate for free until the end of the year. Plans are also underway to establish 22 additional bus routes connecting to the subway Line 1.
The push for electric public transportation is extending to rural areas as well. Quang Ninh Province has begun operating six free electric bus routes to support student commutes, connecting 22 educational institutions in the Ha Long, Hong Gai, and Ha Tu areas and transporting approximately 2,000 students.
The electrification of personal transportation is also progressing rapidly. According to data from Vietnamese electric motorcycle manufacturers, sales of electric motorcycles exceeded 700,000 units from January to September this year, marking a 95% increase compared to the same period last year. The industry anticipates annual sales could reach 1 million units this year.
During the same period, the cumulative sales of six companies belonging to the Vietnam Motorcycle Manufacturers Association (VAMM) reached 2,054,213 units, a 7.7% increase from the previous year. While gasoline motorcycles still dominate the market, electric motorcycles are significantly outpacing in sales growth.
The Ministry of Construction reports that 28 out of every 100 motorcycles sold in Vietnam this year are electric models. Currently, there are approximately 3.5 to 4.1 million registered electric motorcycles nationwide.
Private companies are also expanding the charging infrastructure necessary for electric motorcycle adoption. VinFast is providing electric motorcycles that allow users to swap batteries instead of waiting for them to charge, catering to those who find it difficult to install charging facilities in apartment parking lots. When a battery runs out, users can simply exchange it at a battery swapping station.
VinFast's charging infrastructure operator, V-Green, has established around 80,000 battery swapping stations nationwide and plans to increase this number to 150,000 by the end of the year. VinFast is also offering users of its battery-swapping models 20 free battery exchanges per month until June 30, 2028.
VinFast's influence in the market is growing. Tai Thi Thanh Hai, Vice Chairwoman of the Vingroup Group and Global Vice President of VinFast, recently announced that the company's electric motorcycles hold a 19% market share in Vietnam's overall motorcycle market. VinFast aims to become the market leader in Vietnam by 2027.
However, as Vietnam's transition away from gasoline accelerates, there is a pressing need to improve not only the scale of electric vehicle adoption but also the charging facilities and public transportation systems. Challenges remain, particularly regarding the lack of charging infrastructure in apartment complexes and the stability of bus operations. Establishing a transportation environment that maintains convenience for citizens while replacing existing gasoline and diesel vehicles is expected to be a key focus moving forward.
* This article has been translated by AI.
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