Free Trial

Vietnam will ban fossil-fuel motorcycles from central Hanoi over pollution concerns

People wearing face masks wait at a traffic signal in Hanoi, Vietnam, on Nov. 14, 2024. (AP Photo/Hau Dinh)

Key Points

  • Vietnam will ban fossil-fuel motorcycles and mopeds in central Hanoi inside the main ring road from July 2026 under a directive by Prime Minister Pham Minh Chinh.
  • Hanoi’s nearly 7 million motorcycles make up the bulk of traffic, contributing to severe smog and ranking the city among the world’s most polluted.
  • A second phase from January 2028 will widen the ban to all fossil-fuel two-wheelers in a larger area and include restrictions on some gasoline-powered cars.
  • Local EV maker VinFast is spearheading a shift to electric vehicles, but critics warn the unclear phase-out plan and tight timeline could hit low-income riders hardest without improved public transport support.
  • MarketBeat previews top five stocks to own in August.

HANOI, Vietnam (AP) — Vietnam will ban fossil-fuel motorcycles and mopeds in the heart of the capital, Hanoi, starting July 2026, as part of a nationwide effort to curb air pollution, state media reported.

The directive issued by Vietnamese Prime Minister Pham Minh Chinh applies to the area inside and along the main ring road that encircles the center of Hanoi. The local government has been tasked with phasing out the two-wheelers by the deadline.

Like the rest of Vietnam, motorcycles are the main mode of transport for most of Hanoi’s 8 million residents. The city has nearly 7 million motorcycles and just over a million cars. But as incomes rise and more people switch to private vehicles, air pollution from traffic has become a growing concern. Hanoi is often enveloped in thick smog, ranking among the most polluted cities worldwide.

Vietnam also wants to switch from fossil-fuel to electric vehicles to cut pollution and tackle climate change. Local EV maker VinFast is leading the shift by holding nearly a fifth of the market share, according to the European Chamber of Commerce. But it still has only a small share of the two-wheeler market.

But many are concerned about the unclear plan for phasing out the vehicles.

Nguyen Van Hung, 62, has spent three decades driving a motorcycle taxi in Hanoi, now working with Grab, a ride-hailing app widely used across Southeast Asia. He worries the ban will hit the working class hardest. “It will affect people who rely on motorbikes to earn a living,” he said, pointing to delivery drivers, commuters and ride-hailing services. “How can people just discard their vehicles?”

Others said that the timeline was unrealistic. Hoang Duy Dung, 32, an office clerk who works in the city center, said he supports cleaner air but believes it is too soon. “We need better public transport and more support before such a big change.”

Central Hanoi is home to much of the city’s business activity, including offices, government buildings and commercial hubs.

A second phase, set to begin in January 2028, will expand the ban to a wider area and include all fossil-fuel two-wheelers, while also restricting some gasoline-powered cars.

Other measures include upgrading waste-treatment plants, using digital tools to monitor pollution and introducing stricter penalties for violators. Whistleblowers could be rewarded for reporting environmental breaches.

___

Associated Press climate and environmental coverage receive support from several private foundations. See more about AP’s climate initiative here. The AP is solely responsible for all content.

Where Should You Invest $1,000 Right Now?

Before you make your next trade, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.

Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.

They believe these five stocks are the five best companies for investors to buy now...

See The Five Stocks Here

The Next 7 Blockbuster Stocks for Growth Investors Cover

Wondering what the next stocks will be that hit it big, with solid fundamentals? Enter your email address to see which stocks MarketBeat analysts could become the next blockbuster growth stocks.

Get This Free Report
Like this article? Share it with a colleague.

Featured Articles and Offers

Recent Videos

Time to Cash Out? 5 Stocks to Drop Before Earnings
Watch Before Monday: Stocks to Load Up on Before Earnings
3 Hot Growth Stocks to Watch Right Now!

Stock Lists

All Stock Lists

Investing Tools

Calendars and Tools

Search Headlines