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Vietnam is torn between two visions: the rumbling, reliable gas-powered motorbikes that now rule the roads, and the smooth, silent electric bikes that the government says are its future.
hanoi It plans to ban fossil-fuel motorcycles from its city center in July 2026, part of a national campaign to cut emissions and air pollution. its commercial capital, ho chi minh cityTaking a similar step. By 2030, Vietnam aims to have one-third of cars and more than one-fifth of motorbikes run on electricity.
Some see this as an opportunity to swap out smoke-spewing engines for cleaner, quieter rides, but others remain cautious. Gas-powered bikes are still affordable, sturdy, and easy to repair. Many owners are concerned that electric models may fall short in range, affordability and charging convenience.
Motorcycles have a central place at the center of the debate vietnamese life. The country’s 77 million two-wheelers – including 7 million in Hanoi and 8.5 million in Ho Chi Minh City – power small businesses, shape daily commerce and set the rhythm of cities. Shopkeepers load goods onto scooters to avoid traffic, while families pack three generations on the same bike to school.
While delivery drivers and mechanics struggle, electric bike startups are opening new retail stores and e-bike sales are on the rise.
Vietnam’s largest motorcycle manufacturer, Honda And Yamaha says the 2026 deadline is too ambitious. Vietnamese electric vehicle companies – including startups like Dat Bike or the larger VinFast, backed by Vingroup, Vietnam’s largest conglomerate – and Chinese electric bike maker Yedia Electric are betting on the future.
Ta Man Cuong, 45, a ride-hailing driver who earns about $20 on a good day, calls his worn-out but reliable motorbike his “iron horse,” a slang term for his faithful companion as he navigates the city’s daily chaos. He would be willing to shift to an electric bike, even if it costs less.
“But right now I can’t afford to buy an electric bike,” he said.
Vietnam’s motorbike market, at approximately 3.5 million units per year, is the second largest in Southeast Asia. It is one of the most electrified markets for two-wheelers, ranking third behind China and India, although electric motorbikes make up only about 12% of total sales.
Electrification of the remaining two-wheelers is important to cut tailpipe emissions and clear smog from the roads. EVs are more energy efficient than gas engines, said Xifei Yang of the International Council on Clean Transportation. According to the Boston-based nonprofit Health Effects Institute, about 70,000 deaths each year in Vietnam are linked to polluted air.
Unlike the car market, motorcycles sold in Vietnam are made there, Yang said. This means the shift to electric bikes could boost local producers, boost startups and attract new investment. Vietnam’s transformation could also shape other developing markets.
“These countries look at each other. Look at the experience,” he said.
Sales of electric motorbikes have surged since the ban was announced, with purchases of small bikes up 89% and full-size bike purchases up 197% in the first eight months of 2025. According to industry tracker MotorcyclesData, VinFast has more than quadrupled its sales and overtaken Yedia and other local rivals.
Yang said government subsidies for scrapping old motorbikes could help riders like Cuong. While better public transport in crowded city centers will also encourage the shift to electric vehicles. He said ride-hailing fleets will also benefit as they travel longer distances and electric bikes can help them save fuel. Stations where riders can replace dead batteries with fully charged ones instead of waiting for a recharge would also help.
Yang said smaller batteries make home charging easier, battery costs are falling globally, and EVs are no more fire prone than older vehicles, although such fires require special training and strict safety standards.
Ho Chi Minh City plans to replace 400,000 gasoline motorbikes with electric ones by 2028, starting with a ban on the use of gas bikes for ride-hailing and deliveries in 2026. The city will offer low-interest loans, tax breaks and establish low-emission zones to curb pollution. In Hanoi, people affected by the ban can get a $120-$200 subsidy to buy an electric bike worth at least $590, depending on income, and will not have to pay new registration or license plate fees until 2030.
VinFast looks set to benefit from this change. Its ride-hailing company, Green SM, in February became the market leader in Vietnam, overtaking Singapore-based regional ride-hailing firm Grab. It will soon launch its first battery-swapping electric motorbike, which will sell for about $760. It also plans to build 150,000 battery-swapping stations across the country within three years.
VinFast is partnering with Vietnamese banks to offer low-interest loans and subsidies to promote electric vehicle adoption, including covering 90% of the cost and waiving registration fees.
These policies and incentives may encourage more purchases of electric motorbikes, but long-term success depends on building electric bikes that offer high performance, long range and fast charging at prices equal to or better than gas-guzzling motorbikes, said Son Nguyen, CEO and founder of Dat Bikes. “Incentives can help drive momentum, but long-term success depends on building products that win on their own merits,” he said.
Dat Bike raised $22 million from private investors in September, nearly doubling its capital to $47 million. The company said it will use the funding to boost production, research and expand its sales.
Honda dominates Vietnam’s motorcycle market with over 80% market share. It sold nearly 2.3 million bikes in Vietnam from April 2024 to March 2025 and exported more than 300,000 bikes, cementing the country as both a top market and major production hub.
Yamaha follows behind with about 17% share. Through Vietnam’s manufacturers’ association, both companies said the 2026 ban was imposed too hastily. Honda has started selling e-bikes this year itself and has warned that replacing millions of bikes too soon will put pressure on consumers.
Honda and the Association of Motorcycle Manufacturers of Vietnam did not respond to requests for comment. Yamaha told The Associated Press it was reviewing the plan and could not comment yet.
For now, many businesses are hedging their bets. Bao Ngoc Cao, who rents motorbikes to expatriates and tourists, said she was “horrified” when she first heard about the ban. Their business runs on the principle that bikes are affordable – the monthly cost is about $80. Losing access to Hanoi’s most touristy roads would cut her off from her main customers, and while interest in EVs is growing, current subsidies are not enough to replace her fleet. Still, she says she supports the ban in principle, welcoming the promise of cleaner air and healthier roads.
“We’re just waiting to get more clarity and see what happens,” he said.
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