Vietnam will ban fossil-fuel motorcycles from central Hanoi over pollution concerns
Hanoi
, starting July 2026, as part of a nationwide effort to curb air pollution, state media reported.
The directive issued by Vietnamese Prime Minister Pham Minh Chinh applies to the area inside and along the main ring road that encircles the center of Hanoi. The local government has been tasked with phasing out the two-wheelers by the deadline.
Like the rest of Vietnam, motorcycles are the main mode of transport for most of Hanoi's 8 million residents. The city has nearly 7 million motorcycles and just over a million cars. But as incomes rise and more people switch to private vehicles, air pollution from traffic has become a growing concern. Hanoi is often enveloped in thick smog, ranking among the most polluted cities worldwide.
Vietnam also wants to switch from fossil-fuel to electric vehicles to cut pollution and tackle climate change. Local EV maker VinFast is leading the shift by holding nearly a fifth of the market share, according to the European Chamber of Commerce. But it still has only a small share of the two-wheeler market.
But many are concerned about the unclear plan for phasing out the vehicles.
Nguyen Van Hung, 62, has spent three decades driving a motorcycle taxi in Hanoi, now working with Grab, a ride-hailing app widely used across Southeast Asia. He worries the ban will hit the working class hardest. 'It will affect people who rely on motorbikes to earn a living,' he said, pointing to delivery drivers, commuters and ride-hailing services. 'How can people just discard their vehicles?'
Others said that the timeline was unrealistic. Hoang Duy Dung, 32, an office clerk who works in the city center, said he supports cleaner air but believes it is too soon. 'We need better public transport and more support before such a big change.'
Central Hanoi
is home to much of the city's business activity, including offices, government buildings and commercial hubs.
A second phase, set to begin in January 2028, will expand the ban to a wider area and include all fossil-fuel two-wheelers, while also restricting some gasoline-powered cars.
Other measures include upgrading waste-treatment plants, using digital tools to monitor pollution and introducing stricter penalties for violators. Whistleblowers could be rewarded for reporting environmental breaches.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Indian Express
14 hours ago
- New Indian Express
CM Stalin to inaugurate Vietnamese EV plant on July 31
CHENNAI: Vietnamese electric vehicle (EV) major VinFast is set to unveil its integrated EV manufacturing plant in Thoothukudi on July 31, with Chief Minister M K Stalin likely to preside over the inauguration. The plant will make the port city emerge as one of the state's major auto clusters besides Chennai, Hosur and Coimbatore. Terming the inauguration a moment of immense pride for the state, Industries Minister Dr T R B Rajaa told TNIE the project has gone from the signing of the Memorandum of Understanding (MoU) to inauguration in an astounding pace of just 15 months, reflecting Tamil Nadu government's focused, execution-driven approach under the leadership of Stalin. 'We have been clear in attracting credible, long-term global investors who bring in advanced technology, strong capital commitments and a clear vision for job creation and ecosystem development. VinFast fits that vision perfectly,' he said. He added the facility will be part of a new green industrial cluster and MSME ecosystem in Thoothukudi, bringing high-value jobs to local youth. 'It's a symbol of the next phase of south TN's industrial transformation,' the minister said.
Mint
15 hours ago
- Mint
Trump goes to bat for big tech in global trade talks
The Trump administration is using its global trade wars to advance the interests of the U.S. technology industry, seeking to prevent foreign countries from targeting American internet firms. The administration hopes to use the threat of tariffs and access to the U.S. economy to stop multiple countries from imposing new taxes, regulations and tariffs on American tech companies and their products ahead of a self-imposed Aug. 1 deadline, when higher levies are scheduled to take effect for dozens of trading partners. Measures targeting America's internet giants remain a sticking point in discussions with Brazil, South Korea and the European Union, according to people familiar with the discussions. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer are scheduled to meet Friday in Washington with South Korea's trade and finance ministers. President Trump's abrupt termination of trade talks with Canada last month over that country's proposed digital-services tax highlighted his administration's focus on the dominance of the American tech sector. Canada quickly rescinded the tax to salvage trade discussions. The emphasis on protecting America's internet companies abroad follows a yearslong campaign by tech companies, which have warned that what they call unfair taxes and regulations overseas could restrict the amount they can invest in the U.S. The U.S. approach to foreign digital taxes represents a win for an industry that nevertheless faces issues with the Trump administration domestically, including antitrust challenges and the impact of tariffs on their businesses. 'The companies have done a very good job at making the big tech agenda America first," said Nu Wexler, a public affairs consultant who previously worked at tech companies including Meta Platforms and Google. Many companies and executives donated millions of dollars to Trump's inauguration. Google CEO Sundar Pichai was among tech leaders in attendance for President Trump's inauguration in January. Tech companies have found allies on digital trade in Commerce Secretary Howard Lutnick, Bessent and Greer. In the deal with Indonesia, U.S. negotiators secured commitments that the Jakarta government would drop plans to tariff electronic goods such as movies or software downloads. Similar commitments have been secured from Vietnam, say people familiar with the plans, though the administration has yet to release documentation of that deal. The administration is committed to delivering on Trump's pledge to defend innovative U.S. companies from unfair practices overseas, White House spokesman Kush Desai said. Brazil is focused on resuming trade talks, not retaliatory measures, a government official said. The European Commission, which is in charge of EU trade policy, declined to comment. The South Korean and Vietnamese embassies didn't respond to requests for comment. Veterans of the first Trump term say the president has long opposed efforts from other countries to tax and regulate U.S. tech companies, even as he often battles them on the home front. Trump 'sees this as a way for other countries to grab revenue unfairly from U.S. companies," said Everett Eissenstat, a former deputy director of the National Economic Council. When the European Union imposed hefty fines on Google and other tech companies in his first term, Trump referred to the bloc's then-competition czar as a 'tax lady" who 'really hates the U.S." The U.S. initiated probes of digital taxes in countries including France in 2019 that stalled during the Biden administration. Countries have long tried to allocate more of Silicon Valley's profits from digital advertising and online activities to their territories. Many are ramping up regulations for taking down misinformation, promoting transparency and keeping minors safe online. Some are trying to strengthen antitrust laws. Vice President JD Vance attended an AI summit in February in Paris. The Biden administration hoped a multilateral process would address digital-services taxes, but that effort stalled. Many tech executives felt former President Biden ignored the rise of overseas regulations. 'The U.S. government has finally acknowledged there is a fire we must put out," said Matt Schruers, chief executive officer of the Computer & Communications Industry Association trade group. Skeptics say the administration is battling for an already thriving industry that doesn't need its support while overlooking other segments of the economy that are more exposed to tariffs. Democrats have criticized Trump's ties to tech and cryptocurrency executives. After Trump was elected the second time, tech leaders including Meta CEO Mark Zuckerberg and Google's Sundar Pichai made pilgrimages to Trump's Mar-a-Lago club in Florida. Curbing what they said were harmful policies overseas consistently came up in the conversations, people familiar with the conversations said. As administration officials threatened eye-watering tariffs on goods from many countries, they also demanded that those governments relax some of their tech restrictions. In March, India withdrew its digital-services tax. India and the U.S. are still negotiating, but Trump has said he thinks a deal is close. Canada's digital tax was seen as a bellwether because it could have encouraged other countries to follow through on similar measures. Ottawa's levy was expected to cost U.S. tech companies about $3 billion and included a retroactive component back to 2022. President Trump and Canadian Prime Minister Mark Carney last month at the G-7 summit in Alberta, Canada. In late June, Trump and Canadian Prime Minister Mark Carney clashed over the digital tax at a Group of Seven summit in Canada. Some tech companies were preparing to make the payments when Trump stepped in just before the deadline. The two sides haven't yet reached a trade deal, and Carney has indicated U.S. tariffs might remain in place even with an agreement. Last week, shortly after Trump said he would impose 50% tariffs on Brazilian goods, Greer initiated a tariff investigation on Brazil under a section of U.S. trade law targeting unfair trade practices. Trump cited the country's legal action against Jair Bolsonaro, Brazil's former president and one his political allies. The investigation includes Brazil's digital-trade and electronic-payments practices, the latest salvo cheered by the tech sector. 'This is a very acute focus right now," CCIA's Schruers said. Write to Amrith Ramkumar at and Gavin Bade at
Mint
16 hours ago
- Mint
Vietnam Stocks Near Record on Reform Hopes, Trade Deal Optimism
(Bloomberg) -- Vietnam's stock benchmark is closing in on a record high, fueled by optimism over sweeping political reforms and clarity on a trade deal with the US. The government is undertaking its biggest administrative overhaul in decades to shrink bureaucracy as Prime Minister Pham Minh Chinh pushes for more than 8% economic growth this year. A trade deal that cut US tariffs on the nation's goods to 20% from 46% in April also clears an overhang for the market. The moves have driven a 19% rally in the Vietnam Ho Chi Minh Stock Index this year, putting the market well ahead of its Southeast Asian peers. More gains could follow if Vietnam secures an upgrade to emerging-market status by FTSE Russell. 'Never before have we seen such strong reforms in Vietnam,' said Tyler Manh Dung Nguyen, chief market strategist at Ho Chi Minh City Securities Corp. 'I would allocate more in Vietnam right at the beginning of these changes.' The government is cutting red tape and unnecessary costs to redirect funds to development projects, part of its aim to achieve high-income status by 2045. Its pro-growth policies are luring investors back to the country, reversing sentiment after global funds withdrew a net $3.18 billion from local stocks last year. Foreign investors bought $411 million of Vietnamese shares on a net basis in July, the second month of inflows this year, while selling their holdings in Malaysia, Indonesia and the Philippines. Conglomerate Vingroup JSC, lender Vietnam Joint Stock Commercial Bank for Industry and Trade and Hoa Phat Group JSC are among the biggest gainers on the index this year as investors bet on major beneficiaries of the country's strong growth. The economy expanded 7.52% in the six months through June, according to Vietnam's statistics office, supported by a surge in manufacturing as foreign buyers raced to avoid higher tariffs on sales to the US. 'We became more positive since May as valuations started to look compelling given the forecast earnings growth of about 15% and price-earnings multiples of 10 times in 2026,' said Christopher Leow, chief executive officer at Principal Asset Management in Singapore. Investors are expecting a FTSE reclassification of Vietnam's market to take place as soon as September, which the index compiler projects may draw up to $6 billion in capital inflows. That would give another boost to the benchmark, which is less than 2% away from its all-time high in January 2022. To be clear, Vietnam's growth outlook remains clouded by a potential slowdown in global growth in the second half of the year. Uncertainty over a 40% US tariff on goods deemed to be transshipped through the Southeast Asian nation also weighs on local businesses. Still, the bullish case for Vietnam is hard to ignore. 'What makes Vietnam stand out globally is that it's almost inconceivable it won't become a much bigger economy' and returns on invested capital are much higher than in many other countries, said Johannes Loefstrand, portfolio manager at T. Rowe Price who manages a frontier markets fund with its largest allocation in Vietnam. More stories like this are available on
