An electric motorbike (rider in a light blue shirt) travels along a street in Hà Nội. — VNA/VNS Photo

HÀ NỘI — Hà Nội has proposed a package of financial incentives to help residents switch to clean-energy vehicles as the city moves to establish a low-emission zone within its Ring Road 1.

Under a draft resolution, individuals who have been living in the city for at least two years and own a fossil fuel-powered motorbike or moped registered before the resolution takes effect would be eligible for subsidies when switching to a clean-energy vehicle valued at VNĐ10 million (US$380) or more.

Each eligible resident may claim the benefit for one vehicle, with the programme running from the resolution's effective date through the end of 2029.

The standard subsidy covers 20 per cent of the vehicle's value, capped at VNĐ5 million ($190). Low-income households would receive full coverage up to VNĐ20 million ($760), while near-poor households would receive 80 per cent, capped at VNĐ15 million ($570).

Residents who prefer not to take a cash payout may instead opt for a public transit pass of equivalent value.

The city also proposed covering 30 per cent of loan interest for individuals who purchase electric motorbikes or mopeds on installment plans, for loan terms of up to 12 months.

Businesses and organisations that provide public utility services, passenger transport or freight hauling within the city would be eligible for a 30 per cent interest subsidy on commercial bank loans – for up to five years – when transitioning their fleets to green vehicles.

The eligible categories include ambulances, postal vehicles, street-cleaning and garbage trucks, school buses, taxis, contract vehicles with fewer than eight seats, and vehicles leased for public transit use. Self-drive rental companies investing in green vehicles for public purposes would qualify for the same loan interest support.

Businesses and organisations may also tap financing from the Hà Nội Investment Fund for Development and the Hà Nội Environmental Protection Fund under existing regulations.

In the first phase, running July 1 through December 31, Hà Nội plans to pilot the low-emission zone in Hoàn Kiếm Ward across 11 streets: Tràng Tiền, Hàng Khay, Lê Thái Tổ, Hàng Đào, Hàng Ngang, Hàng Buồm, Mã Mây, Hàng Bạc, Hàng Mắm, Nguyễn Hữu Huân, and Lý Thái Tổ.

Within the zone, gasoline-powered motorbikes and mopeds would be banned from 6pm to midnight on Fridays and from 6am to midnight on Saturdays and Sundays. App-based ride-hailing motorbikes would also be prohibited.

Trucks weighing under two metric tonnes that meet Emission Level 4 standards would be restricted to off-peak hours. Trucks between two and 3.5 metric tonnes meeting the same standard could only operate between 9pm and 6am and would require written approval from the city police. Trucks over 3.5 metric tons would be banned outright from the zone.

Vehicles with 16 or more seats, excluding buses and school buses, operating in the Old Quarter and around Hoàn Kiếm Lake in Hoàn Kiếm and Cửa Nam Wards must meet national Emission Level 4 standards and would be prohibited from circulating between 6am and 9am and between 4pm and 7.30pm daily.

Buses and school buses operating in the zone must also meet Level 4 emissions requirements, as must fossil fuel-powered vehicles with fewer than 16 seats. — VNS