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  1. VIETNAM TODAY

Hanoi limits EV subsidies to poor households

Hanoi has narrowed a proposed EV subsidy scheme, limiting support for switching from petrol-powered motorbikes to poor households.

Under the proposal, individuals from poor households would receive a one-time subsidy of up to VND 20 million (USD 770) to switch from petrol-powered motorbikes to electric vehicles.

To qualify, applicants must own a fossil fuel-powered motorbike registered before the resolution takes effect and complete the switch between the effective date and December 31, 2027.

They must also transfer, remove or otherwise dispose of their old vehicle from designated low-emission zones and register a new green vehicle.

The draft also includes measures to encourage public transport use.

The proposal would provide free bus travel within Hanoi's Ring Road 1 throughout 2027 and free bus and urban rail services citywide during major holidays and special events until the end of 2030.

Earlier versions of the proposal would have provided support to a much broader range of residents.

A draft released in May proposed EV subsidies for all eligible motorbike owners, offering up to VND 5 million (USD 190) for ordinary residents, VND 15 million for near-poor households and VND 20 million for poor households.

City officials said the narrower policy reflected concerns over budget constraints, implementation challenges and the need to prioritise vulnerable groups most affected by the transition.

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