The proposal to convert 400,000 gasoline-powered motorbikes used by ride-hailing and delivery drivers in Ho Chi Minh City into electric vehicles once again sparked heated debate at the forum “Emission reduction and air filtration” on August 22.

Le Thanh Hai, Director of the Center for Economic Application Consulting (HIDS), said the transition will take more than three years. Starting in 2026, drivers using gas-powered motorbikes will not be allowed to newly register on transport platforms. Existing drivers will have three years (2026-2028) to switch gradually to electric bikes through installment loans.

The State will exempt registration and VAT fees for electric bike purchases, while offering preferential loan packages to encourage installment-based purchases.

Additionally, Ho Chi Minh City’s budget will allocate around 50 billion VND (about USD 2 million) to support 10,000-15,000 drivers from low-income, near-poor, or poor households. Each eligible driver will receive 3-5 million VND (USD 118-197) as a first down payment, equivalent to 25% of the bike’s value.

HIDS estimated that savings from switching to electric could cover about 1 million VND (USD 39) in monthly installments, equivalent to 40,000 VND (USD 1.60) per working day over 25 days.

The proposal aims to transition 30% of service motorbikes to electric in 2026 and an additional 50% in 2027. By January 1, 2029, gasoline-powered bikes will be banned from ride-hailing and delivery services on all platforms.

Support programs will run until 2027. By 2028, only preferential loans will remain, while tax and registration exemptions will end. “This means those who switch earlier will benefit more,” Hai explained.

The first group affected will be hundreds of thousands of drivers, many of whom work with Grab.

Drivers’ concerns over financial burdens

While supporting the plan, Dang Thuy Trang, Public Affairs Director at Grab Vietnam, emphasized that “transitioning vehicles is not simply replacing a gas-powered bike with an electric one. Behind each bike is the livelihood of a person and their family.”

She added, “Many drivers see their motorbike as their biggest asset. Even a loan of 1-2 million VND (USD 39-79) per month could still be a heavy financial burden.”

Grab recommended that for the proposal to succeed, Ho Chi Minh City must rapidly expand public charging stations and stabilize the power grid.

Trang suggested prioritizing older vehicles for replacement, instead of forcing newer bikes (still within 1-2 years of purchase) off the road. “Forcing drivers to sell almost-new bikes that still have high value is not a reasonable administrative solution,” she said.

Grab is also working with Vietnamese e-bike manufacturers to test and design models tailored to the needs of ride-hailing and delivery drivers. They are partnering with electric bike producers and financial institutions to provide special conversion packages.

The company is also researching integration of charging station data into GrabMaps to help drivers locate stations more conveniently.

“If synchronized measures are implemented, the plan has a very high chance of success,” said Nguyen Dong Phong, Director of the Vehicle Emissions Testing Center under the Vietnam Register.

He added that charging infrastructure and battery technology will play a decisive role in electrifying transport. Many companies are already developing safer, non-flammable batteries, though commercial rollout will take more time.

Despite the challenges, the Vietnam Register stressed that the ultimate reward is environmental improvement. “The trade-off is there, but it is a trade-off worth making.”

Tran Chung