Hanoi is seeking public feedback on a draft resolution aimed at accelerating the transition from fossil fuel-powered road vehicles to clean energy alternatives, as part of broader efforts to curb pollution and establish low-emission zones across the capital.
Under the proposal, residents with permanent registration or at least two consecutive years of temporary residence in Hanoi who own gasoline-powered motorcycles registered before the resolution takes effect will be eligible for financial support when switching to electric motorbikes priced at VND10 million (approximately $385) or more.
Low-income households would receive subsidies covering 100% of the replacement vehicle’s value, capped at VND20 million, while near-poor households would be eligible for support covering 80% of the cost, up to VND15 million.
The city also plans to subsidize 30% of commercial bank loan interest payments for eligible organizations purchasing clean-energy vehicles, with support available for up to five years. In addition, qualified investors may access financing through the Hanoi Development Investment Fund and the Hanoi Environmental Protection Fund.
City authorities said the proposed maximum support level of VND5 million for general recipients was developed after reviewing similar incentive programs in regional markets, including Taiwan (China), Indonesia, Thailand, China, and Ho Chi Minh City.
The policy forms part of Hanoi’s broader roadmap to control private vehicle use and develop low-emission zones. Beginning July 1 through the end of 2026, the city plans to pilot a low-emission zone in the former Hoan Kiem district’s central core, covering 11 key streets, before expanding the initiative to the Ring Road 1 area between 2028 and 2029.
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