Ride-hailing and delivery drivers in Ho Chi Minh City. Illustrative photo.
Ho Chi Minh City is aiming to convert approximately 80 percent of motorbikes used by ride-hailing and delivery drivers to electric vehicles within the next two years, with plans to tighten emissions regulations over the following three to five years to complete the transition.
Le Thanh Hai, Director of the Centre for Economic Application Consulting under the Ho Chi Minh City Institute for Development Studies (HIDS), provided details about the “Green Transition - Expanded Ho Chi Minh City” project. The programme focuses on replacing petrol-powered motorbikes with electric ones for ride-hailing and delivery service drivers.
HIDS is leading the development of the project, which is expected to be finalised in June. A consultation workshop with experts is scheduled for July, and the plan will be submitted to the city government shortly after. The project team aims to complete all procedures within 2025 to enable implementation starting in January 2026.
According to HIDS, there are currently about 400,000 motorbikes used for passenger transport and delivery services in the city.
Hai noted that this group is one of the city’s highest-emission sources. With drivers covering an average of around 100 kilometres per day and working 8 to 12 hours daily, their carbon footprint is considerable.
“To control emissions, we must target major emitters such as buses and ride-hailing drivers. The first phase focuses on converting to electric buses and electric motorbikes,” Hai said.
The switch is also expected to help drivers save on fuel costs. HIDS surveyed over 400 drivers on platforms such as Grab, Be, and Gojerk in 2023 and found that petrol costs for those travelling around 100 kilometres per day ranged from VND 70,000 to VND 100,000 (approximately USD 2.75 to USD 3.93) daily.
In comparison, Xanh SM electric motorbike drivers reported spending only around VND 20,000 (approximately USD 0.79) on electricity for similar daily distances. After factoring in battery depreciation and charging downtime, drivers could still save between VND 40,000 and VND 60,000 (approximately USD 1.57 to USD 2.36) per day.
“With a working schedule of around 25 days per month, drivers could save more than VND 1 million (approximately USD 39) monthly. If this amount is used to finance an electric motorbike, they could pay off the loan in 24 to 30 months,” Hai explained, adding that HIDS believes the programme is financially feasible.
HIDS is currently working with banks to design tailored loan packages, and this will be clearly outlined in the project draft. The agency has also engaged with electric motorbike manufacturers and distributors, who have committed to offering special discounts during the transition phase.
“We have proposed to the central government that the vehicle registration fee be waived for the first two years for newly registered electric motorbikes. We are also seeking VAT exemptions for ride-hailing drivers during the transition period and for each order they fulfil,” Hai added.