Mobility players scramble as Vietnam’s mass e-bike switch looms

Huge change is coming to the streets of Vietnam’s largest cities, as Hanoi and Ho Chi Minh City prepare for an imminent ban on petrol-powered motorcycles.

Efforts to phase out internal combustion engines (ICEs) in the country, which has some 77 million registered motorcycles, over the next few years have sparked fierce competition among ride-hailing giants and electric vehicle makers alike.

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Grab, Be, and Xanh SM are all exploring how their rider-partners can pivot to EVs. Meanwhile, local EV manufacturers like VinFast, Selex Motors, and Dat Bike are battling to capture the expected surge in demand for their products.

Ho Chi Minh City is considering banning all ICE motorbikes from providing ride-hailing and delivery services within the city starting in 2029. As for Hanoi, it’s set to ban all petrol-powered motorcycles from the inner city from July 1, 2026, before expanding to the capital’s outer ring roads.

While the timeline of these sweeping bans is under scrutiny, one thing isn’t questioned enough: Vietnam’s motorcycle market is heading for its biggest disruption in decades. Global and local players alike are racing to cash in on the transition.

First on the chopping block

“If they force us to switch to e-bikes, I may quit this job,” says Nguyen Trung Tien, a part-time GrabBike rider in Ho Chi Minh City. He’s one of hundreds of thousands of riders expected to feel the impact of the transition first.

Tien purchased his Honda ICE motorbike four years ago for around 40 million dong (US$1,514) – a significant investment.

“Buying a new e-bike ends up costing about the same, so I’ll really need to think it through,” he explains. “I’m still waiting for more guidance and support from the platform.”

See also: Dat Bike raises $22m series B, plans Thai entry by 2026

Ride-hailing platforms are making some efforts to help drivers transition.

Singapore-headquartered Grab says it has piloted partnerships to develop financial assistance programs and EV models designed for delivery in Vietnam.

Its Vietnamese rival, Be Group, is offering vehicle leasing, purchasing, lending, insurance, as well as fuel services for driver-partners, including those keen to switch to EVs.

Xanh SM, which runs the largest ride-hailing fleet of VinFast EVs, offers the quickest EV transition option. The firm provides VinFast e-bikes valued at around 50 million dong (US$1,893) to riders, who pay a small refundable deposit to use the vehicle until the contract ends.

Charging issues

Demand revs up