Talking to a reporter of Lao Dong Newspaper, Mr. Nguyen Cong Hung - Chairman of the Hanoi Taxi Association - said that businesses agree and commit to implementing according to the roadmap of the Government and the Hanoi People's Committee on converting fossil fuel taxis to green energy. However, we hope that the Hanoi People's Committee will soon remove the mechanism, especially access to capital sources, loan interest support and have effective management solutions...
Sir, Hanoi City sets a target to complete taxi conversion to green energy by 2030 at the latest. What have businesses prepared?
- Over the past time, the Hanoi People's Committee and the Department of Construction have organized many meetings, building mechanisms to support businesses to convert vehicles, ensuring harmony of interests.
The contents discussed are quite practical, creating trust for the business community. The Association and taxi units in the Capital are committed to implementing the roadmap correctly.
Currently, the whole city has more than 8,700 electric taxis, accounting for about 47% of the total number of taxis. It is expected that by 2028, at least 25-28% more gasoline vehicles will be converted and the conversion will be completed in the period 2029-2030.
According to you, what are the biggest difficulties for businesses in the transition process?
- The biggest difficulty is capital. Businesses have worked with the Hanoi Development Investment Fund and credit institutions, but are stuck with collateral. If there is no collateral, businesses can only borrow 40% of capital with an interest rate of 4.98%/year; to borrow more, there must be bank guarantees.
We propose to allow mortgaging with newly invested electric vehicles, similar to borrowing to buy gasoline cars before. Financial risks are also very high. For gasoline cars, businesses can calculate depreciation in 5-7 years, but for electric vehicles it is not clear because they are new products. Each electric vehicle costs about 450-500 million VND; after 5 years, the cost of replacing batteries is about 140-150 million VND, not including maintenance and repair costs. The treatment of waste batteries is also a problem when there is currently no unit responsible for collection.
Another pressure is the liquidation of gasoline cars. When applying a low emission zone, old cars are difficult to sell, the value decreases sharply, causing the enterprise's financial statements to worsen, leading to narrowing credit limits.
Businesses propose to increase the loan ratio to 80% of the vehicle value; exempt corporate income tax for a certain period; preferential fees and charges for registration and license plate issuance for electric taxis.
For old vehicles, identification license plates are already asset of enterprises. When switching to electric vehicles, it is necessary to allow keeping license plates without having to pay a second fee.
The situation of "pirate" taxis is causing outrage. So what is your opinion on this issue?
- The city currently has about 21,000 taxis, of which more than 8,700 are electric vehicles. However, there are about 5,000-6,000 out-of-province vehicles operating like "pirate" taxis. Many contract cars under 8 seats operate like taxis but do not sign contracts, do not list prices and do not transmit GPS data.
This causes inequality with businesses complying with regulations, while increasing infrastructure pressure and traffic congestion.
Over the past time, Hanoi City has applied technology, using AI cameras for monitoring. We propose that functional forces continue to strengthen inspection and strictly handle to restore order in the transport market, improve passenger service quality, towards building a green, clean, and civilized Capital.
Thank you, sir!
