Source: VN Express

A study by the Institute for Development Studies has found that 80% of the ride-hailing motorbikes in Ho Chi Minh City could be switched to electric, with the right policies and infrastructure upgrades in place.

City authorities had outlined plans in May 2025 to convert 400,000 motorbikes used by ride-hailing service providers to electric by 2030; Le Thanh Hai, a director at the Institute for Development Studies, has advised this can be achieved with the right combination of financial support, the enhancement of charging and battery-swapping infrastructure, and exemptions from registration fees and VAT.

Lower operating costs

Hai said that riders of ride-hail motorbike companies Grab and Be are paying 70,000-100,000 Vietnamese Dong (€2.30-3.30) a day for fuel, according to 400 survey participants. In contrast, riders of Xanh SM electric motorcycles spend only 20,000 Vietnamese Dong (approximately €0.67) per day on charging. It is estimated that, after battery deterioration, charging costs and waiting time are deducted, electric motorcycle ride-hail riders can earn the equivalent of €33.26 per month more than their ICE-riding counterparts. This would enable riders to repay vehicle loans within 2-2.5 years.

Infrastructure changes needed

The current charging infrastructure in Ho Chi Minh City presents an obstacle. Most electric motorcycles available have charging times of 4-10 hours and ranges of 100-200 km, meaning drivers would typically need to charge at least once a day – and thus unable to earn income while doing so.

Nguyen Huu Phuoc Nguyen, founder and CEO of electric scooter startup Selex Motors, said, “Energy infrastructure will no longer be a barrier if charging electric vehicles can be as fast as refueling gasoline.” Selex has developed a two-minute battery swapping service to help address this issue, with batteries compatible with other brands. The current 50 stations in Ho Chi Minh City are due to expand to 200 in 2026.

Nguyen also highlighted a lack of standardized charging infrastructure, and urged city authorities to encourage businesses to expand shared charging and battery-swapping networks.

Financial support models

Hai’s research identified that financial barriers also have a part to play, as ride-hailing riders often have low and unstable incomes. The Institute for Development Studies has worked with banks on developing specific credit products and secured preferential commitments from companies in the electric motorcycle and distribution sector.

Ho Chi Minh City has also proposed that the central government waive registration fees and VAT for new electric vehicles and their drivers for the first two years.

Figures show that Vietnam’s transportation sector emits 32.9 million tons of CO2 equivalent annually, with Ho Chi Minh City contributing a substantial 13 million tons. The switch to electric ride-hailing motorcycles is part of the city’s green transportation plans.