At the local government level, Hanoi and Ho Chi Minh City have taken the lead in introducing the most explicit policy frameworks to promote electric motorcycles. According to a draft reviewed by the Hanoi Municipal People’s Council between November 26 and 28, ordinary residents who purchase electric motorcycles will be eligible for a subsidy equivalent to 20% of the motorcycle’s retail price, capped at VND 5 million per unit. For low-income and near-poverty households, the subsidy ceiling will be significantly increased to VND 20 million and VND 15 million, respectively, with each individual eligible for support only one motorcycle before January 1, 2031. This standard is higher than the earlier proposal released by the Ministry of Construction in July, which suggested a maximum subsidy of VND 3 million for ordinary residents.

In terms of supporting measures, individuals switching to electric motorcycles in Hanoi will receive a 50% reduction in motorcycle registration and license plate fees. Those choosing installment purchases will be eligible for a 30% interest subsidy on loans within a 12-month period. Public transportation and taxi operators will be granted full reimbursement of conversion costs when transitioning to electric motorcycles. On the infrastructure front, Hanoi requires that at least 15% of existing parking spaces in residential complexes, commercial buildings, hospitals, and other public facilities be retrofitted as charging spaces, while newly built projects must allocate no less than 30%. According to the city’s roadmap, fuel motorcycles will be banned from entering central urban streets starting in July 2026, and by 2030, the operation of most fossil-fuel vehicles will largely prohibited. At present, Hanoi has approximately 6.9 million motorcycles, with gasoline-powered models contributing to as much as 60% of the city’s air pollution. Nearly 70% of these motorcycles are aging motorcycles that fail to meet current emission standards.

In the other core city, Ho Chi Minh City, the electrification strategy is more focused on high-frequency usage scenarios and commercial operations. The city has proposed a phased replacement program aimed at completing the substitution of approximately 400,000 gasoline-powered two-wheelers used for ride-hailing and delivery services by 2028 (with some draft versions extending the target to 2029). Supporting measures include allowing only electric models to be newly registered for ride-hailing and delivery services, providing drivers with motorcycle manufacturers and platform companies to introduce financial leasing and trade-in programs to reduce the transformation costs and capital pressure on drivers.

The rapid advancement of local policies is rooted in the national government’s clear deployment of transportation electrification. In response to increasingly severe urban air pollution and carbon emission pressures, the Vietnamese government clarified the national electrification timetable and supporting measures in the second half of 2025. In July 2025, Prime Minister Pham Minh Chinh issued a directive mandating a phased restriction and eventual prohibition of gasoline motorcycles in Hanoi’s central urban areas. The first phase is scheduled to begin in July 2026, implementing time-based or area-based restrictions within Ring Road 1, followed by further expansions of the restricted zones in 2028 and 2030. This top-level national policy framework has become a critical reference for local governments to formulate detailed implementation plans.

The intensive release of policy signals has already translated into strong market resonance. Domestic manufacturers, represented by VinFast and Dat Bike, along with their dealer networks, are accelerating the rollout of electric two-wheeler products while simultaneously expanding charging and battery-swapping infrastructure. Since the beginning of 2025, both deliveries and channel orders have recorded significant growth. Notably, VinFast achieved a substantial increase in electric motorcycle deliveries in the third quarter of 2025, serving as a direct reflection of the policy-driven momentum at the end-market level.

Driven by the combined objectives of urban governance, energy transition, and industrial upgrading, Vietnam’s electric motorcycle transformation is no longer merely a single transportation policy initiative, but is steadily evolving into a comprehensive restructuring of both industry and mobility patterns. With the continued convergence of policy support, capital investment, and technological advancement, electric mobility is set not only to profoundly reshape Vietnam’s urban transportation landscape, but also to become a key force accelerating the global transformation of two-wheeler mobility.