At a press conference on July 17, Le Thanh Hai, Director of the Center for Economic Application Consulting under the Ho Chi Minh City Institute for Development Studies (HIDS), said the institute is finalizing the "Proposal for Converting Gasoline Motorbikes to Electric Motorbikes for Ride-Hailing and Delivery Drivers in HCMC." The plan will be submitted to the Ho Chi Minh City People's Committee on July 18.

The proposal aims to transition the city’s entire fleet of two-wheeled service vehicles to electric power.

To support the plan, HIDS has proposed that the central government waive VAT and vehicle registration fees for electric motorbikes over a two-year period. This incentive is intended to create strong momentum for drivers to make the switch.

Under the proposed timeline, the city aims to convert approximately 80% of ride-hailing and delivery drivers - equivalent to 320,000 individuals - by 2026-2027.

By 2028, although the tax and fee exemptions will expire, the city plans to offer drivers financial assistance through loan programs to continue supporting vehicle conversion.

In 2029, HIDS recommends a full ban on gasoline-powered motorbikes used for ride-hailing and delivery across the newly merged districts of Ho Chi Minh City.

Because this policy would significantly impact the livelihoods of those who rely on daily driving for income, HIDS conducted a 2023 survey involving 470 gasoline-powered drivers using platforms such as Be, Grab, and Gojek.

The survey found that drivers typically spend VND 70,000 to 100,000 (USD 2.75–3.93) per day on gasoline for routes of 100–150 km. In contrast, electric vehicle users on the Xanh SM platform spend only about VND 20,000 (USD 0.78) per day on charging.

“When factoring in other costs like oil changes, each electric driver saves at least VND 40,000 (USD 1.57) daily. Over an average of 25 working days per month, that's about VND 1 million (USD 39) in monthly savings,” said Hai.

Hai added that drivers who have already switched to electric confirmed these figures and even reported higher savings, supporting the feasibility of the proposal.

Regarding vehicle financing, HIDS estimates that a used gasoline motorbike can be sold for about VND 8 million (USD 315), covering roughly 20-25% of the cost of a new electric bike (around VND 30 million or USD 1,180). The remaining VND 24 million (USD 945) could be paid in installments over 24 to 30 months.

“The monthly installment aligns with the VND 1 million (USD 39) monthly savings from switching to electric,” Hai explained.

Tran Chung