The goal of having 400,000 electric ride-hailing motorbikes in the city can be achieved with financial aid, exemptions from registration fees and value-added tax, and the addition of charging stations, said Le Thanh Hai, a director at the Institute for Development Studies.
The transition is believed to reduce expenses for drivers and improve HCMC’s environment, Hai said, citing a recent study of the institute.
Hai said that Grab and Be ride-hailing motorbike drivers in HCMC are paying VND70,000–100,000 (US$) a day for gasoline, according to a survey of 400 participants.
Xanh SM electric motorbike drivers, meanwhile, spend only VND20,000 on charging.
After battery deterioration, waiting time and charging costs are deducted, electric bike drivers can earn VND40,000–60,000 more each day, or VND1 million monthly, compared to their gasoline-powered counterparts.
These savings enable electric drivers to repay loans for the vehicle within 2–2.5 years.
He added that as ride-hailing drivers contributes a significant amount of emission in the city, the conversion of their vehicles from gasoline-powered to electric will improve the city’s environment.
A major obstacle, however, is charging infrastructure.
Electric motorbikes from brands like VinFast, Selex Motors, DatBike, and Honda require 4-10 hours to charge, with a range of 100-200 kilometers for a typical driver.
This means a driver needs to charge at least once a day, during that time they will earn no income.
“Energy infrastructure will no longer be a barrier if charging electric vehicles can be as fast as refueling gasoline,” Nguyen Huu Phuoc Nguyen, founder and CEO of electric scooter startup Selex Motors.
Selex offers a two-minute battery-swapping service compatible with other brands, with 50 stations in HCMC and plans to expand to 200 next year.
Nguyen added that the lack of standardized charging infrastructure remains an issue, with companies operating independently.
He urged city authorities to encourage businesses to expand shared charging and battery-swapping networks to create a level playing field and foster collective growth.
Financial barriers also hinder the transition, as technology drivers often have low and unstable incomes.
The Institute for Development Studies has collaborated with banks to develop tailored credit products and secured preferential commitments from electric motorbike manufacturers and distributors.
The city has also proposed that the central government waive registration fees and value-added tax for new electric vehicles and technology drivers for the first two years.
Vietnam’s transportation sector emits 32.9 million tons of CO2 equivalent annually, with HCMC contributing 13 million tons.
To promote green transportation, the city plans to convert all buses to electric or green-energy vehicles by 2030.
Additionally, a Vehicle Emissions Control Plan is being developed, focusing on incentives and transition roadmaps for taxis, technology vehicles, passenger cars, and vehicles used by public agencies and businesses.
