Hanoi has unveiled a revised and substantially less demanding roadmap for restricting internal combustion engine (ICE) two-wheelers, replacing a proposed outright ban with a phased low-emission zone approach that will begin with a six-month pilot on 11 streets surrounding Hoan Kiem Lake on 1 July. The climbdown follows sustained opposition from manufacturers, residents, and motorcycle-dependent workers. 

The development represents a substantial retreat from the city’s original plan to bar gasoline-powered bikes from a 26-square-kilometre zone covering Hanoi’s historic centre. Now, the programme will proceed in three distinct stages. The July pilot—which aligns with the date of the original outright ban—focuses on public awareness campaigns more so than enforcement, with authorities using the period to build infrastructure for what follows. 

In 2027, restrictions will expand to a 3.6-square-kilometre area covering the French Quarter and Old Quarter, with ride-hailing motorbikes banned and emissions testing introduced alongside smart camera monitoring. By 2028, the restricted zone will extend to the full Ring Road 1 perimeter, encompassing roughly 26 square kilometres, with only motorcycles meeting Euro 3 standards permitted to enter and commercial ride-hailing ICE two-wheelers banned entirely.

The scale of the challenge is reflected in both the pace—which remains fast, relative to Hanoi’s infrastructure—and the conditions it is trying to address. Hanoi has approximately eight million registered motorbikes and some of the worst air quality of any major city in the world, with vehicular emissions accounting for more than half of the pollution load. Public transport remains limited; the metro network is still in early expansion; and the subsidy on offer for switching to electric—up to VND 5m (US$190)—falls well short of the cost differential between entry-level ICE two-wheelers and VinFast’s electric equivalents, which start at around VND 30m.

Unsurprisingly VinFast, which sold 406,498 electric two-wheelers in Vietnam during 2025 for a near-sixfold increase, was the primary beneficiary of the original ban announcement. The surge was driven in part by anticipation of the restrictions. Honda sold 2.6 million units in Vietnam the same year, bringing forward electric model launches and cutting prices in response. It is among several global automakers that vehemently opposed the measure.

Whether the aggressive move to tackle air quality pans out remains uncertain. Vietnam’s government has historically been able to implement disruptive infrastructure and urban development decisions with limited public consultation, but the motorbike touches a different nerve. For a significant portion of Hanoi’s population it is both livelihood and primary transport, and the subsidy on offer does not come close to absorbing the transition cost. 

Elsewhere in Vietnam, similar developments are afoot: Ho Chi Minh City is pursuing a similar ICE two-wheeler phase-out, albeit on a slower timeline. Earlier in June, the country also introduced E10 biofuel nationally—a 10% ethanol blend—as a parallel emissions-reduction mechanism that does not require vehicle replacement. 

The country is targeting annual economic growth of at least 10% and investing aggressively in metro lines and bus networks. How quickly that public transport base develops will determine whether the 2027 and 2028 restrictions arrive with viable alternatives in place, or repeat the same infrastructure gap that forced the original ban’s inevitable reversal.