Starting July 1, 2026, Hanoi will restrict gasoline-powered motorcycles within its Ring Road 1 area. Meanwhile, Ho Chi Minh City plans to eliminate 400,000 gasoline-powered ride-hailing motorcycles from early 2026. With nearly 80 million motorcycles registered nationwide, which businesses will benefit from Vietnam’s push to electrify transportation?

Major players mobilize

Just days after the release of Ho Chi Minh City’s draft plan to convert gasoline-powered two-wheelers to electric ones for ride-hailing and delivery drivers, a representative from Honda Vietnam contacted the Ho Chi Minh City Institute for Development Studies (HIDS), the body behind the proposal, to inquire about the city's electrification roadmap.

Based on the information received, Honda plans to make production decisions regarding two-wheelers. The company is also gauging market interest by offering electric bike rentals at 1.47 million VND (about $59) per month, aiming to transition into mass production and sales of electric bikes.

Yamaha, another Japanese heavyweight, introduced its Yamaha NEO’s electric scooter in Vietnam as early as late 2022. Vietnam was the first country in Asia where Yamaha launched the model, underscoring the company's strong interest in the local market.

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Electric bikes on display at a showroom in Ho Chi Minh City. Photo: Tran Chung

In Ho Chi Minh City, a VietNamNet survey found a wide variety of electric motorbikes available. A salesperson at a store on Vo Thi Sau Street said consumers can buy electric bikes priced between 18 million and 25 million VND ($720 to $1,000), excluding the registration fee of 3 million VND ($120). Buyers can choose between battery-powered or lithium-ion battery bikes. Conventional lead-acid batteries are common in budget models, while lithium-ion batteries power higher-end bikes.

The electric two-wheeler market in Vietnam first emerged around 2013 with the entrance of Chinese brands like Yadea and Dibao.

Before VinFast officially entered the market at the end of 2018 with its Klara model, electric bikes in Vietnam were typically low-powered and slow, not requiring a driver’s license. At that time, electric bikes held only a negligible share compared to gasoline bikes.

Since 2019, the trend of electrifying transportation has laid the foundation for growth in the electric two-wheeler sector.

By 2020, according to the International Council on Clean Transportation, VinFast led the electric bike market with a 43.4% share, far ahead of Pega (15.7%). Other players included Dibao (Taiwan/China - 11.8%), Yadea (China - 8.6%), and Anbico (Vietnam - 8.3%), according to HIDS data.

Thus, the electric two-wheeler market has seen early competition among domestic and international manufacturers. State policies promoting the production and adoption of electric vehicles have created favorable conditions for electric bike companies to grow.

Market share will be shaped by key factors

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As of September 2024, Vietnam had 77 million registered motorcycles, with 770 bikes per 1,000 people - among the highest globally. Photo: Nguyen Hue

According to Dr. Nguyen Son, lecturer in supply chain and logistics management at RMIT University Vietnam, VinFast’s success in the electric vehicle market could significantly influence both domestic and foreign investors, creating opportunities for larger investment funds to engage in Vietnam’s growing electric mobility sector.

He believes Vietnam’s electric vehicle success could stimulate R&D investment and attract venture capital into related technologies such as smart vehicle systems and advanced battery solutions. It could also lead to ecosystem-driven services, including support, maintenance, battery swaps, and fleet management.

Currently, the two main product streams in the electric bike market come from local brand VinFast and several Chinese manufacturers.

Speaking to VietNamNet, Nguyen Ngoc Bao, National Assembly Deputy of the 13th tenure and former Standing Member of the Economic Committee, said VinFast has the advantage due to its sales policies and extensive charging station network. Additionally, consumer trust means Chinese brands may need more time to gain a significant market share.

“VinFast currently has a temporary advantage. However, Vietnam's open economy and fair competition laws mean the market remains accessible to powerful foreign players like Honda and Yamaha, who are likely to invest more due to the ‘greening’ policy,” Bao stated.

Regarding opinions that the push toward electrification primarily benefits firms like VinFast, Bao called such views mistaken.

He explained that Parliament had discussed banning polluting two-wheelers in major cities nearly 20 years ago. However, the country’s economic conditions and underdeveloped electric infrastructure at that time made such policies unfeasible. VinFast only appeared in recent years.

Today, Vietnam's per capita income is nearly $5,000, compared to just $500–$700 back then. Financial conditions have improved, making it more feasible for consumers to switch. Furthermore, as part of international integration, Vietnam must honor its emission reduction commitments. Electrifying transportation is a necessary and non-negotiable step.

“The ultimate goal of the policy is to benefit the people. No single company can dominate a market of nearly 100 million people. If a product doesn’t meet consumer needs, people won’t buy it. Price, quality, and design are the three key factors that influence consumer decisions,” he added.

According to recent data from global motorcycle statistics site MotorCycles Data, Vietnam’s two-wheeler sales reached 1.6 million units in the first half of 2025, up 19% year-over-year.

Among manufacturers active in Vietnam, both Honda and Yamaha posted sales growth of 6.2% and 20%, respectively.

Remarkably, VinFast’s electric bike sales soared by 501%, maintaining its lead in the rapidly expanding electric segment. Yadea (China) followed with 37.5% growth, trailed by Dibao, Pega, and several other brands.

Tran Chung