Electric vehicle subsidy - financial lever to promote green transformation
According to the draft being consulted by the Hanoi People's Committee, people switching from gasoline motorbikes to electric motorbikes may be supported with 20% of the vehicle value, up to 5 million VND. For poor households, the support level is up to 100% of the vehicle value, but not exceeding 20 million VND.
This is considered one of the strongest policies to support green transportation transformation in Hanoi to date.
Many experts believe that if people want to change their vehicle usage habits, the first decisive factor is cost. Electric cars are still priced higher than the income level of many unskilled workers, shippers, technology motorbike taxi drivers or suburban people. Therefore, direct cash support policies are meaningful as an important financial "push".
According to traffic and environmental experts, green transformation will be very difficult to succeed if it only stops at calling for or administrative measures to restrict gasoline vehicles. To get people's consensus, the government needs to have a substantive support mechanism to reduce the initial cost burden.
Many international studies also show that subsidies are an effective tool to encourage people to switch to clean vehicles. Some localities in India such as Chandigarh have recorded a sharp increase in electric vehicle registration rates after expanding financial incentive policies for two-wheeled electric vehicles and electric cars.
In fact, the problem of transitioning to green transportation in Hanoi is no longer a story of the future. Air pollution has become a constant problem for many years, especially in winter and peak traffic times.
Therefore, the proposal to support the exchange of electric vehicles is assessed by many opinions as a step in the right direction. Not only helping to reduce greenhouse gas emissions, switching to electric vehicles also helps reduce urban noise, reduce dependence on fossil fuels and is in line with the green development trend that many cities around the world are pursuing.
In particular, prioritizing stronger support for poor and near-poor households also shows that the policy is aimed at social equity. Because if the green transition process is only for people with economic conditions, it will be very difficult to create widespread consensus.
Many Hanoi residents expressed their desire for this policy to be implemented soon. Mr. Nguyen Van Hung (Giap Bat ward) said that his family is considering changing to an electric car but is still hesitant because of the cost: "If we are supported with a few million VND, it will be much easier to decide. For ordinary workers, this support is really meaningful to us.
Meanwhile, Ms. Tran Thu Ha (Cau Giay ward) said that what people need most is the feeling of being accompanied in the transition process: "If the city both supports financially and develops more charging stations and synchronous infrastructure, people will be more assured of transitioning.
Financial support is the key to success
International reality shows that many cities and countries have succeeded in promoting green transportation thanks to strong financial support policies.
In Norway - a country considered a model for green vehicle conversion - people buying electric vehicles are exempt from many types of taxes, reduced registration fees, parking incentives and use of transport infrastructure. Thanks to that, the proportion of new electric vehicles sold in this country has far exceeded those using internal combustion engines.
China has also implemented large-scale subsidy packages for electric vehicles in Beijing, Shanghai and many major cities. These policies helped the electric vehicle market grow rapidly in just a few years.
Or in India, many localities apply direct support policies for two-wheeled electric vehicles - a type of vehicle close to Vietnamese traffic conditions. After increasing incentives, the rate of electric vehicle use has improved significantly.
The common point of successful models is that they not only set a goal to limit gasoline vehicles, but always come with specific support policies so that people have the ability to switch.
This is especially important for Hanoi - where motorbikes are still the means of livelihood for millions of workers.
Experts say that if the policy is implemented effectively, Hanoi can create a large spillover effect to other localities.
Of course, for the policy to be effective in the long term, Hanoi also needs to invest in charging station infrastructure in parallel, ensure fire safety, develop a battery recycling system and complete public transport.
At the present time, the proposal to provide financial support for people to switch from gasoline cars to electric vehicles is considered a necessary and correct starting point. Policies that "touch" the actual needs of people are always the decisive factor for success.
