Prime Minister Pham Minh Chinh has issued a ban on petrol-powered motorbikes in Hanoi, effective July 1, 2026 (AP). Pursuant to the adoption of the Paris Agreement and Vitenam’s pledge of net-zero emissions by 2050, Hanoi and Ho Chi Minh City are tackling air emissions and the worsening pollution of fossil-fuel motorbikes (MAE II). Major cities are the first to transition towards sustainable policy while wider restrictions are expected in upcoming years, as emphasized by Deputy Director General of the Department of Climate Change, Ms. Mai Kim Lien (AP & MAE II). These commitments not only demonstrate Vietnam’s role in the international community but also strengthen its resiliency and the potential for a green and sustainable economy, domestically (MAE II).
Vietnam is one of the most climate-vulnerable countries in the world (UNDP). Notable adverse effects of Climate Change such as coastal erosion, flooding and drought affect the livelihoods of millions (MAE II). At least 70,000 fatalities each year are attributed to air pollution (WHO). The reliance on fossil fuels for energy and transportation is a primary source of pollution, creating a dilemma as motorbikes are central to many citizens’ livelihoods (UNICEF).
Whereas Vietnam’s largest conglomerate VinGroup, bank on an electric future, threatened Japanese multinational companies which currently dominate Vietnamese manufacturing, Honda and Yamaha, remain skeptical of these ambitions (AP). According to Zifei Yang of the International Council on Clean Transportation, electric motorbikes have the potential to attract new investment, shape other developing markets and foster startups such as Dat Bike or VinFast, supported by VinGroup (AP).
Environmental markets are expected to experience rapid growth in the coming years through the creation of additional value and economic returns (Science Direct). Markets with supporting policies have currently have the upper hand in the global competition for clean transportation (ICCT). Since the ban was announced, electric motorbike sales have surged; VinFast sales have more than quadrupled, while Japanese manufacturers sales have declined (AP & USN). Globally, the market for Electric Vehicles (EV) has risen in the first half of 2025, comprising just under a quarter of all new light-duty vehicles (ICCT). The government has incentivized this dynamic, offering low-interest loans, tax breaks, subsidies and waived registration and license fees until 2030 (AP I).
Local opinions are divided. Some express concerns about the range, affordability and convenience of electric motorbikes (AP). ISEAS fellow, Nguyen Khac Giang, suggests the charging infrastructure is inadequate considering the timeline of the ban (Al Jazeera). While there have been proposals for convenient battery replacement stations, fundamental concerns regarding infrastructural limitations for public transportation or electric grids remain unaddressed (AP & Al Jazeera). Hanh Nguyen, a PhD candidate at the Australian National University, speculates industrial or developmental policy is now disguised as environmental policy (Al Jazeera).
As of early October 2025, Prime Minister Pham Minh Chinh approved Vietnam’s program for its 2025-2030 development of environmental industry (MAE II). This socioeconomic strategy intends to expand the environmental market by investing in and empowering private corporations focused on environmental technology (MAE II). In recent years Vietnam has experienced the fastest clean energy transformation in Southeast Asia through domestic investment (IEEFA).
The Executive Director of the International Energy Agency suggests that China’s expansion and domination of solar power generation could exceed the present total electricity demand of the United States (IEA). The Power Integration Project between Laos, Thailand, Malaysia and Singapore demonstrates the necessary “collective commitment and strong collaboration” to mitigate infrastructural risks and concerns while promoting sustainable economic development domestically, regionally and internationally (WEF). As clean energy booms at an unprecedented rate, energy security remains a risk amidst shifting market trends, emerging technology and geopolitical tensions (IEA).
SOURCES:
Al Jazeera: https://www.aljazeera.com/news/2025/8/28/vietnams-petrol-scooter-ban-for-hanoi-raises-fears-for-livelihoods
AP: https://apnews.com/article/vietnam-evs-motorbikes-yamaha-vinfast-4ab76826787a806392655b843c374f3a
ICCT: https://theicct.org/publication/global-ev-market-monitor-for-ldvs-in-key-markets-2025-h1-sept25/
IEEFA: https://ieefa.org/resources/boom-balance-vietnams-clean-energy-transition
MAE II: https://en.mae.gov.vn/vietnams-environmental-industry-poised-to-drive-green-transition-9005.htm
Science Direct: https://www.sciencedirect.com/science/article/pii/S2405844023069621#:~:text=Abstract,in%20reducing%20greenhouse%20gas%20emissions.
UNICEF: https://www.unicef.org/vietnam/stories/viet-nams-heavy-air-pollution-needs-stronger-action
WEF: https://www.weforum.org/stories/2025/02/3-ways-asia-can-bridge-energy-divide/
WHO: https://www.who.int/vietnam/health-topics/air-pollution