Ho Chi Minh City residents could soon receive between 20% and 100% financial support to switch from gasoline-powered vehicles to electric ones, according to new proposals presented at a workshop on green transport transition held this morning (October 7).
The recommendations are part of the city’s broader plan to implement a Low Emission Zone (LEZ) and accelerate the shift toward sustainable mobility under its “Vehicle Emission Control Project.”
Transition Costs Pose the Biggest Challenge
The consulting unit emphasized that while regional integration with Binh Duong and Ba Ria–Vung Tau creates economic synergies, it also intensifies infrastructure and pollution pressures. Road transport remains HCMC’s largest source of emissions, particularly in central districts with high vehicle density.
Beyond health risks, poor air quality also damages the city’s reputation among investors — a hidden but significant economic cost. Consequently, the transition to green mobility is seen as both an economic and political priority.
HCMC’s roadmap for green transport is structured around three pillars:
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Electrification of transport fleets
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Creation of Low Emission Zones (LEZs)
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Development of supportive infrastructure and policy mechanisms
Public transport will lead the electrification effort. By 2030, the city aims to launch 78 new clean-fuel bus routes with 2,849 vehicles. The goal is to build a fully connected public transport network to encourage residents to adopt eco-friendly alternatives. Plans also include developing “green corridors,” designated bicycle lanes, and shared e-bike and e-motorbike systems.
Subsidies and Incentives for Electric Vehicle Adoption
Recognizing the high upfront cost of electric vehicles (EVs), especially for low-income households and transport businesses, the proposal outlines several financial incentives:
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100% registration fee exemption for electric vehicles used in transport services
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50% reduction in road maintenance fees for EVs
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50% reduction in license plate registration fees
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Cash incentives covering 10% of the value of new electric motorbikes (up to VND 5 million)
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Reimbursement of 70% of the residual value for scrapped motorbikes
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10% interest subsidy on EV purchase loans
For individuals and households, the city may provide direct conversion support based on income levels:
Additional benefits could include free or discounted parking at designated locations.
Ho Chi Minh City plans to establish the first LEZ in Can Gio
LEZ Pilots in Can Gio and Con Dao
The city also plans to pilot Low Emission Zones in downtown HCMC, Can Gio, and Con Dao starting in 2026. These areas were chosen for their ecological importance and potential for sustainable tourism.
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Can Gio, recognized by UNESCO as Vietnam’s first biosphere reserve, serves as the “green lung” of the city.
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Con Dao, with over 80% of its land designated as a national park, is known for eco-tourism and spiritual travel.
However, more than 95% of vehicles in both areas still run on fossil fuels, while public and non-motorized transport remains underdeveloped.
To address this, the proposal calls for:
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Six new electric bus routes in Con Dao connecting the airport, port, and major tourist sites
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Shared e-bike services and solar-powered charging stations at bus stops and markets
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Emission inspection and monitoring systems using AI-powered data analytics integrated with vehicle registration databases
By July 1, 2026, motorbikes in Can Gio’s communes (Binh Khanh, An Thoi Dong, Can Gio, and Thanh An) will be subject to emission testing — six months earlier than the rest of the city. From January 1, 2030, all motorbikes in this area must meet Level 2 emission standards, two years ahead of the citywide deadline.
The Rung Sac Road corridor will also serve as a controlled zone restricting vehicles that fail to meet emission standards on weekends.
The transition toward green mobility is expected to boost investment confidence, support tourism, and protect the city’s long-term economic competitiveness.
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Source: Vietnam Insider