Vietnam Motorbike Ban Sparks Economic Concerns

Vietnam's upcoming ban on petrol-powered motorbikes in Hanoi raises concerns of economic disruptions in a $4.6 billion market led by Honda. Japanese manufacturers warn of potential job losses and urge a gradual electrification roadmap. Vietnamese officials remain firm on the ban, citing pollution reduction needs.

The Vietnamese government's decision to ban petrol-powered motorbikes in Hanoi by 2026 has sparked warnings from Japan and major manufacturers of potential economic fallout. The move, aimed at combating air pollution, could significantly impact the $4.6 billion market dominated by Honda.

Japanese manufacturers, including Honda, Yamaha, and Suzuki, have expressed fears of job losses and industry disruption. They urge the Vietnamese authorities to adopt a phased approach to electrification, allowing time for infrastructure and production adjustments. However, the Vietnamese government remains committed to its plan, emphasizing environmental needs.

Market dynamics are shifting with rising sales of electric motorbikes from local brands like VinFast, contrasting with declining petrol vehicle sales. As Vietnam navigates this transition, stakeholders across industries brace for potential changes to the economic landscape.

(With inputs from agencies.)