Ha Noi plans record subsidies to accelerate shift to electric motorbikes

The incentives are outlined in a draft resolution on promoting clean-energy vehicles, which the Ha Noi People's Council is expected to consider at its 28th session from November 26–28. Under the proposal, residents with permanent residence or at least two consecutive years of living in the city who replace their gasoline motorbikes with electric models priced from VND10 million (US$400) will qualify for support of up to VND5 million (US$200).

The subsidy will cover 20 percent of the new vehicle's value, capped at VND5 million, while poor households will receive up to VND20 million and near-poor households up to VND15 million (US$600). Each eligible resident may receive support for one vehicle between the resolution's effective date and January 1, 2031.

Ha Noi also plans to cover 50 percent of the cost of issuing license plates and registration certificates for motorbikes converted to clean-energy models until 2030, with full support granted to poor and near-poor households.

To further ease the transition, the city will subsidize 30 percent of interest payments for individuals purchasing clean-energy motorbikes through installment loans with repayment terms of up to 12 months. Public transport operators, including taxi and bus companies that switch to clean-energy vehicles while retaining existing identification plates, will receive full support for registration fees. Firms offering self-drive rental vehicles for public transport will be exempt from street and sidewalk parking fees for up to five years if they use clean-energy fleets.

As part of a broader effort to curb private vehicle use, the city will waive public transport fares for people with meritorious service to the nation, persons with disabilities, senior citizens, children under six, members of poor households, students, and industrial-park workers.

Major expansion of charging infrastructure

To support the transition, Ha Noi is planning a significant expansion of its clean-energy charging network. Local authorities will assess demand and identify suitable locations for public charging stations.

Parking facilities in apartment buildings, commercial centers, hospitals, and other public venues within Ring Road 3 must convert at least 15 percent of their parking spaces into charging stations by January 1, 2030, while newly built facilities will be required to equip 30 percent of spaces. Road infrastructure—including bridges, tunnels, streets, bus stations, parking lots, and rest stops—must meet the same targets.

To encourage private investment, the city will support 30 percent of bank loan interest or provide access to the Ha Noi Development Investment Fund for up to five years for projects building public charging infrastructure. Investors will also receive 50 percent support for site clearance and full land rent exemptions for the first five years.

Projects to build public charging stations will be fast-tracked, moving directly to the investment-approval stage without additional procedures.

The policy package is designed to implement the 2024 Capital Law on environmental protection and Directive 20, issued by the prime minister on July 12, which mandates urgent measures to tackle pollution. Under this directive, Ha Noi will ban gasoline motorbikes inside Ring Road 1 from July 1, 2026, extend the ban to Ring Road 2 in 2028, and to Ring Road 3 in 2030, accompanied by restrictions on gasoline-powered cars.

Ha Noi currently has 6.9 million motorbikes, including about 450,000 within Ring Road 1. At an environmental forum in July, Deputy Chairman of the Ha Noi People's Committee Duong Duc Tuan cited research showing that gasoline motorbikes contribute up to 60 percent of the city's air pollution, with nearly 70 percent of the fleet made up of old vehicles with uncontrolled emissions./.