Hanoi City People's Committee has just organized a consultation on the draft Regulation on a number of policies to support investment in the development of road transport infrastructure using clean energy, non-motorized transport; supporting the conversion of road transport vehicles from fossil fuels to clean energy; and a number of measures to limit the use of road transport vehicles that emit pollutants.
Regarding vehicle conversion support, individuals using gasoline motorbikes permanently residing or temporarily residing continuously for 2 years or more in Hanoi, if converting to electric motorbikes, are supported 20% of the converted vehicle value but not exceeding 5 million VND.
Specifically, for individuals from poor households, 100% of the converted vehicle value is supported but not exceeding 20 million VND; individuals from near-poor households are supported 80% of the converted vehicle value but not exceeding 15 million VND.
In case people do not receive financial support, they can choose the option of using a public passenger transport service ticket worth 5 million VND.
According to the submission, the support level from the date this Resolution takes effect until before January 1, 2030, helps people have a roadmap and plan for conversion suitable to personal conditions, reducing pressure on clean energy substation infrastructure.
The direct support level according to the ratio of converted vehicle value but not exceeding 5 million VND/vehicle is relatively similar to the experience of cities and countries referred to in the world experience section such as Thailand, China, Ho Chi Minh City.
This support level is also equivalent to about 15-20% of the average value of a new good quality electric motorbike.
In addition, the support level of 80-100% of the value of converted vehicles for individuals from poor and near-poor households will also be a large and practical support and encouragement for vulnerable and heavily affected by policies.
According to statistics from the Hanoi Department of Construction, as of March 2024, Hanoi has about 8.1 million road motor vehicles, of which about 1.1 million are cars (accounting for about 13.6%) and about 7 million are motorbikes and mopeds (accounting for about 86.7%); not to mention about 1.2 million road motor vehicles from other provinces and cities across the country participating in traffic in Hanoi.
Among the approximately 7 million motorcycles and mopeds, the majority are fossil fuel vehicles (accounting for more than 95%).
The city assumes that the number of vehicles eligible for conversion support is 3.36 million. Of which, direct cash support for individuals is estimated to be 80% of the converted vehicles with a maximum support level of 5 million VND for general households and 15 million VND for near-poor households (7,565 near-poor households), with a total estimated cost of more than 16,800 billion VND.
