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.
As Vietnam’s capital city Hanoi grapples with some of the world’s worst urban air quality, electric motorbikes are gaining traction as a potential solution to the city’s pollution crisis. With over 77 million petrol-powered motorbikes dominating Vietnam’s roads, the government is urging a transition to cleaner electric alternatives.
Petrol-powered vehicles contribute significantly to Hanoi’s air pollution, with estimates from city authorities attributing over two-thirds of the smog to motorbikes. In response, the government has set a target for 25% of two-wheelers to be electric by 2030.
Uptake of electric motorcycles and challenges
Electric motorbikes, priced as low as $500, are gaining popularity, especially among students, who account for 80% of the market, according to transport analyst Truong Thi My Thanh. Low running costs further drive adoption. However, it is believed that older drivers remain resistant to change, due to their historical reliance on petrol motorbikes for significant periods of time.
Charging infrastructure and battery safety concerns also present hurdles. While many users can charge vehicles at home, shared living spaces and fears stemming from incidents like a deadly Hanoi fire in 2022 deter some. Nasdaq-listed VinFast, a major e-motorbike manufacturer, has addressed these issues by installing 150,000 EV charging points nationwide.
For riders who don’t want to spend hours at charging stations, new solutions like battery-swapping stations offer a promising alternative. Selex, a Vietnamese start-up backed by the Asian Development Bank, has introduced stations allowing riders to exchange depleted batteries for fully charged ones in seconds. This innovation is particularly beneficial for delivery and taxi services, which require longer operational ranges.
Industry and policy efforts
Vietnam’s push for electric motorbikes has attracted significant corporate and governmental attention. E-motorbike brand Selex has partnered with logistics companies like Lazada and DHL Express to integrate e-motorcycles into delivery fleets. Meanwhile, Vingroup operates a taxi service with thousands of electric vehicles.
Selex founder Nguyen Phuoc Huu Nguyen suggested that a vehicle registration fee waiver for EVs would help “end-users see the benefits of buying an e-bike. We all understand that EVs are good for the environment. But it needs investment.”
Transport analyst Truong Thi My Thanh highlights that while e-bikes are a step forward, Hanoi’s long-term solution requires embracing public transportation to ease gridlock. However, the rising popularity of electric motorbikes represents a critical shift toward sustainable urban mobility.
Despite challenges, transport analyst Thanh described the growth in electric vehicle ownership as “a beacon of hope” for Hanoi’s fight against pollution.
On 8 June 2020, deputies in the Vietnamese National Assembly voted by over 94% in favour of the European Union Vietnam Free Trade Agreement (EVFTA).
The EVFTA is expected to come into force from 1st August 2020. From that date onwards, approximately 65% of EU exports to Vietnam and 71 % of EU imports from Vietnam will be exempted from custom duty.
The agreement will cut or eliminate 99% of tariffs on goods traded between the Southeast Asian country and the EU.
It will open up Vietnam’s services, including post, banking and shipping and public procurement markets, align some standards and protect EU food and drinks, such as French champagne or Greek feta cheese, from imitations in Vietnam.
The EVFTA is the European Union’s second deal with a member of the Association of Southeast Asian nations (ASEAN) after Singapore.
Critics in Europe have taken issue with Vietnam’s record on human and labour rights, although the deal does include commitments in those areas.
The World Bank said in May the EVFTA could boost Vietnam’s gross domestic product and exports by 2.4% and 12% respectively by 2030 and lift hundreds of thousands of people out of poverty.
“Such benefits are particularly urgent to lock in positive economic gains as the country responds to the Covid-19 pandemic,” the World Bank said.
Electric bicycles imported from Vietnam are currently subject to 2.5% import duty.