The proposal is contained in a submission by the Hanoi People's Committee seeking approval for a resolution titled "Policies to support the transition to clean-energy transport, promote clean energy use, encourage public transport and implement measures to limit polluting road vehicles in Hanoi."

According to the proposal, the city aims to introduce a range of measures to accelerate the transition toward cleaner modes of transportation and encourage greater use of public transport.

Financial incentives for vehicle conversion

One of the most notable proposals is financial support for registration and license plate fees for individuals, transport operators and public-service providers switching to environmentally friendly vehicles.

Under the plan, residents and businesses would receive a 50% reduction in vehicle registration and license plate fees when converting to green transport.

Poor and near-poor households, as well as taxi and bus operators that continue using existing identification plates, would receive support covering 100% of those costs.

The city also proposes support equivalent to 30% of commercial bank loan interest rates, along with access to preferential financing from the Hanoi Development Investment Fund and the Environmental Protection Fund for transport companies and public-service operators investing in clean-energy vehicles.

In addition, the proposal includes direct cash subsidies for residents living within Ring Road 1 and for poor and near-poor households across the city who replace fossil-fuel motorcycles with clean-energy vehicles.

The proposed support levels are:

20% of the purchase price of a new vehicle, capped at VND 5 million ($192), for ordinary households.
Up to 100% of the vehicle cost, capped at VND 20 million ($769), for poor households.

Up to 80% of the vehicle cost, capped at VND 15 million ($577), for near-poor households.

One year of free bus travel

Beyond vehicle conversion incentives, the draft policy includes measures aimed at boosting public transport use.

Residents living within Ring Road 1 would be entitled to free bus travel for one year once low-emission zones are introduced.

Hanoi also proposes free access to buses and urban rail services during major holidays, Lunar New Year celebrations and special political or social events of significance to the capital and the country.

Roadmap toward clean-energy transport

For commercial transport services, the proposal establishes a phased transition roadmap for ride-hailing vehicles, taxis and app-based contract vehicles, with the goal of achieving 100% clean-energy operation before 2030.

Beginning in 2027, all newly purchased or replacement vehicles in these sectors would be required to use clean and environmentally friendly energy sources.

The draft resolution also outlines traffic management measures linked to the implementation of low-emission zones. Hanoi would be permitted to gradually restrict the use of privately owned vehicles that generate polluting emissions, following a roadmap aligned with the development of the city's public transport infrastructure.

To ensure policy consistency, the Department of Construction has transferred provisions related to support for public charging infrastructure and non-motorized transport facilities to a separate draft resolution on transport infrastructure development, avoiding overlap between policy frameworks.

According to the Hanoi People's Committee, the estimated budget required to implement the proposed measures is VND 6.423 trillion ($247 million).

Part of broader environmental strategy

The proposal forms part of Hanoi's broader efforts to improve air quality, reduce emissions from transport and support the development of cleaner urban mobility.

It follows recent discussions on low-emission zones in the city center and proposals to gradually reduce reliance on petrol-powered vehicles while expanding public transportation and electric mobility options.

Thanh Hue