The Electric Revolution: A Proposal for Hanoi’s Policy Support to Embrace Electric Vehicles

Proposal to Provide Direct Cash Support for Vehicle Owners to Switch to Green Alternatives

The Hanoi Department of Construction has reported to the municipal People’s Committee on the work related to the transition to green transportation and the development of electric vehicle charging infrastructure in the city.

According to the department, they have sent documents to relevant departments and units to gather opinions and feedback on the draft resolution on the transition to green transportation and the development of charging systems for the municipal People’s Council.

The draft resolution is currently being finalized and will be submitted to the People’s Committee for reporting to the People’s Council for approval at the September 2025 session, as directed by the People’s Committee and the People’s Council.

Some notable policies in the draft resolution include providing direct cash incentives to residents with gasoline or diesel-powered motorcycles (registered before the resolution takes effect) in low-emission areas who switch to green vehicles (with a value of VND 15 million or more).

The support levels are as follows: VND 3 million/vehicle for regular individuals, VND 4 million/vehicle for near-poor households, and VND 5 million/vehicle for poor households. Each individual is eligible for support for up to one vehicle until the end of 2030.

Additionally, there will be preferential loans with interest rates ranging from 3-5%/year, a credit limit of 100% of the contract value, and a maximum loan period of 5 years for public service units, passenger and freight transport units (excluding buses), and enterprises investing in vehicle recycling and dismantling facilities.

A 100% exemption on registration fees and license plate registration fees will be applied for green vehicles from the effective date of the resolution until the end of 2030.

Hanoi is seeking opinions on providing direct cash support for residents switching to electric vehicles

Surveillance Cameras to Monitor Violations

The Hanoi Department of Construction has also proposed a roadmap for piloting and expanding areas where personal vehicles using gasoline/diesel are restricted. Accordingly, a pilot program to restrict gasoline-powered motorcycles will be implemented from January 1, 2026, to June 30, 2026.

From July 1, 2026, gasoline-powered motorcycles will be banned within the inner ring road, and the ban will be extended to the outer ring road from January 1, 2028.

Personal cars using gasoline/diesel will be restricted within the outer ring road from January 1, 2028, and the restriction will be expanded to the third ring road from January 1, 2030.

From 2035 to 2050, fossil fuel-powered vehicles (including CNG and hybrid vehicles) will be gradually restricted according to different levels. The restriction will be implemented within the inner ring road from 2035, the outer ring road from 2040, the third ring road from 2045, and across the entire city from 2050.

Gasoline and diesel-powered cars will be banned from entering the outer ring road from 2028

The city will also implement congestion charges and adjust parking fees accordingly for polluting vehicles, following the roadmap mentioned above. To strengthen supervision and enforcement, Hanoi plans to install surveillance cameras and organize patrol teams. Violations related to emissions or entering restricted areas will be subject to administrative fines at a higher rate (up to twice the current level).

Investment Incentives for Charging Infrastructure

To ensure the successful implementation of the above goals, Hanoi requires that a minimum of 10% of parking spaces in existing buildings must be equipped with charging stations by the end of 2026, and a minimum of 30% of parking spaces in new projects must have charging facilities.

Projects investing in public charging infrastructure will receive a 70% subsidy on bank interest for the first five years. Projects that provide at least 30% of parking spaces with charging stations will receive a 50% subsidy on land clearance costs and a 100% exemption on land rent for the first five years.

Hanoi also plans to prioritize the installation of charging stations on sidewalks and encourage the development of hydrogen refueling stations and clean energy infrastructure.

Notably, Hanoi strongly encourages investors to participate in the development of clean energy transportation infrastructure through public-private partnerships (PPP). These investors will be given priority in land allocation and a 100% exemption on land rent at planned locations until the end of 2033.

The city also commits to investing in synchronous transportation and technical infrastructure to effectively connect with clean energy projects. In parallel with these policies, the Department of Construction will supplement specific procedures and processes to ensure that eligible entities can benefit from the incentives and support, addressing the issue of policies being issued but not effectively implemented in practice.

Hanoi aims to transition 100% of public transport to green alternatives

Synchronized Transition of Public Transport

After the resolution is issued by the People’s Council, the Department of Construction will advise the People’s Committee to issue a detailed plan outlining the tasks for relevant agencies in implementing the policies. These policies include financial policies, fees and charges, management and disposal of old vehicles, supervision and handling of violations, and support for the development and encouragement of investment in charging stations.

According to the report by the Department of Construction, Hanoi is not only focusing on motorcycles but is also developing a plan to transition all types of vehicles (buses, taxis, garbage trucks, three-wheeled vehicles, etc.) to electric or green energy alternatives, taking into account the specific characteristics of each type of transport.

In the taxi sector, the city currently has 65 units with 18,612 vehicles. As of June 2025, there were 8,831 electric taxis, accounting for 47.4% of the total taxis in operation. Twenty-three units have registered plans to transition to 100% electric taxis before 2030.

The Department of Construction also proposed that the Government and relevant ministries and sectors soon issue specific support mechanisms, such as credit incentives, tax exemptions or reductions, and direct subsidies for electric vehicles.

Hanoi will develop a master plan for the development of charging stations in densely populated areas, bus terminals, and final destinations, as well as along main transportation axes.

The city will conduct surveys and select pilot locations for charging stations that ensure technical and connectivity requirements. Flexible land use policies will be applied, including the use of public land, transportation land, and technical corridors. Simplified procedures will be implemented for construction permits and land-use conversions.

Hanoi also commits to creating a favorable investment environment, providing a clear legal framework, offering reasonable electricity prices, protecting assets, and effectively connecting electric vehicle manufacturers, charging equipment providers, and infrastructure investors. These efforts aim to promote localization of equipment and reduce investment costs.

Ngân Tuyền (ANTĐ)