In Directive 20 issued on July 12, 2025, Prime Minister Pham Minh Chinh has instructed Hanoi to consider increasing the registration fees, license plate fees, and parking fees for fossil fuel-powered vehicles in the city center. This move aims to curb the use of gasoline and diesel-fueled cars and motorcycles and is part of urgent tasks to address environmental pollution. The directive sets out a timeline for this initiative, with the fee adjustments to be implemented from the third quarter of this year and reviewed annually.
One of the key goals is to reduce the presence of gasoline and diesel-powered vehicles within the city’s Vanh Dai 1 area by July 1, 2026, and further restrict their use in Vanh Dai 1 and Vanh Dai 2 from January 1, 2028, with a complete ban on fossil fuel-powered motorcycles. A similar restriction will be implemented for cars, and the measures will be extended to Vanh Dai 3 from 2030.
Currently, Hanoi levies a 12% registration fee for passenger cars and 7.2% for pickup trucks, while motorcycles are subject to a 2% fee. Car owners also incur a significant cost of VND 20 million for license plates. The proposed increase in registration and license plate fees will make owning and operating fossil fuel-powered vehicles in Hanoi considerably more expensive.
In contrast, electric vehicles in Vietnam are currently exempt from registration fees until February 28, 2027, making them a more cost-effective option compared to their fossil fuel counterparts.
Furthermore, Directive 20 also instructs Hanoi to implement supportive policies for businesses involved in the production and assembly of clean energy vehicles and the development of supporting infrastructure. Additionally, the city is encouraged to offer incentives and support to residents transitioning from fossil fuel vehicles to cleaner alternatives or opting for public transportation.
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