Hà Nội's residents experienced electrical motorbikes during a Green Transformation Day event held on May 16. — VNA/VNS Photo

HÀ NỘI — Hà Nội plans to offer subsidies of up to VNĐ20 million (US$759) to help residents switch from petrol-powered motorbikes to electric ones, as the capital pushes ahead with a broader transition towards greener transport and tighter restrictions on fossil fuel-powered vehicles.

Under a draft resolution released by the municipal People’s Committee for public feedback, residents with permanent or temporary residence registration in Hà Nội for at least two consecutive years, who own petrol-powered motorbikes registered before the resolution takes effect, would be eligible for support when purchasing electric motorbikes priced at VNĐ10 million or more.

Each individual would be entitled to support once for one vehicle and could choose between two support schemes. Under the direct cash support option, the city plans to subsidise 20 per cent of the electric motorbike’s value, capped at VNĐ5 million per vehicle. Poor households could receive support equal to 100 per cent of the vehicle’s value, up to VNĐ20 million, while near-poor households could receive 80 per cent, capped at VNĐ15 million.

Residents who do not opt for cash support could instead receive public transport tickets worth VNĐ5 million. Hà Nội is also considering a 50 per cent reduction in registration and licence plate fees for electric motorbikes, while poor and near-poor households would be exempt from the fees entirely.

The draft also proposes free public transport fares for several groups, including people who have rendered service to the nation, persons with disabilities, elderly people, pupils, students, industrial park workers and poor households. All passengers would also enjoy free public transport during holidays, Tết (Lunar New Year) and major city events.

Beyond financial support, the draft aims to lay the foundation for a green transport transition through the development of charging infrastructure, fee incentives and a roadmap to gradually limit petrol-powered vehicles in Hà Nội.

EV market heats up amid green transition

Persistently high fuel prices, together with Hà Nội’s roadmap to restrict fossil fuel-powered vehicles, are giving a strong boost to the electric vehicle (EV) market. Demand for hybrid cars, battery electric vehicles (BEVs) and electric motorbikes has surged, reflecting a growing shift towards greener and more cost-efficient transportation.

According to the Vietnam Automobile Manufacturers’ Association (VAMA) sales report for April, electrified vehicles continued to record the fastest growth. Hybrid vehicle sales reached 1,723 units in April, up 53 per cent year-on-year. In the first four months of 2026, hybrid sales totalled 6,848 units, soaring 86 per cent from the same period last year, making it the fastest-growing automobile segment in the market.

The BEV segment also showed positive signs, with 49 units sold in April, bringing total sales since the beginning of the year to 50 units. Although the figure remains modest, it marks a notable improvement as VAMA recorded no BEV sales during the same period last year.

The electric motorbike market is also accelerating rapidly. Surveys at dealerships showed the number of customers seeking information and purchasing electric motorbikes has increased three- to fourfold compared with previous periods.

The latest report from VinFast showed demand rising sharply. The company’s dealership network has received more than 135,000 deposits nationwide and delivered around 93,000 vehicles to customers, while production is being ramped up to fulfil more than 40,000 remaining orders.

Hà Nội’s plan to gradually restrict petrol-powered vehicles in inner-city areas from July 1 is further accelerating the shift towards EVs. Many residents said switching to green transport would help reduce fuel costs and allow them to adapt early to upcoming policies.

Experts forecast Việt Nam’s electric motorbike market will continue booming in 2026, with sales expected to reach 1.2-1.3 million units, up around 150 per cent year-on-year. Competition among major brands such as Honda, VinFast, Dat Bike and TMT Motors is also making the market more dynamic, with a wider range of models across both mass-market and premium segments. — VNA/VNS