Hundreds of electric vehicle (EV) charging stations are rapidly appearing across Hà Nội, accompanied by thousands of preferential loan packages available to the public. Electric vehicles have recently become a clear priority for the authorities, with the government urgently pressing localities to organize a shift from gasoline-powered vehicles to this new mode of transport.
In theory, this transition promises to reduce air pollution and make Hà Nội’s atmosphere cleaner. Yet, many sources of pollution remain unaddressed. Furthermore, the far-reaching consequences of implementing this plan are still unclear.
For example, how will the vast number of old gasoline vehicles be “managed”? Will the biofuel program, which has required huge investments, turn into a wasteful endeavor? And what plans exist for the massive amount of EV batteries that will reach the end of their life cycle?
If these issues remain unresolved, Hà Nội’s so-called “green transformation” risks becoming more of a lifeline for electric vehicle manufacturers than a genuine environmental solution for the city.
Where Will Old Gasoline Vehicles Go?
Within Hà Nội’s 3,345 km² area, there are currently approximately 6.9 million motorbikes and 1.1 million cars in operation. By comparison, Hồ Chí Minh City, before the 2020 mergers with surrounding districts, has 2,095 km² to accommodate 11.3 million motorbikes and 1.4 million cars.
Managing and disposing of this enormous volume of gasoline vehicles in Việt Nam’s two largest cities is no simple task. Yet, authorities have not publicly outlined clear procedures for handling these vehicles.
Following the government’s rapid push to switch from gasoline to electric vehicles, many programs exchanging gas-powered motorbikes for electric ones have been rolled out nationwide. These campaigns appear at dealerships and in mobile setups across community spaces and shopping centers. EV companies like VinFast have actively implemented “trade-in” programs, buying old gasoline motorbikes from residents to subsidize their purchase of new electric models. Through these initiatives, large numbers of gasoline vehicles are being collected, awaiting further processing.
Nguyễn Đình Tùng, a representative of VinFast Hà Thành, said that gasoline motorbikes acquired by the company are taken for further handling, although he was unsure of the exact steps involved. He noted that during a recent weekend event at Đầm Sen Water Park in Hồ Chí Minh City, the dealership collected over 100 gasoline motorbikes.
Lê Thanh Hải, director of the Center for Applied Economic Consulting at the Hồ Chí Minh City Institute for Development Studies, said there are plans to categorize and process old vehicles based on their condition. Vehicles beyond repair may be repurposed or sold as scrap, while still-functional gasoline vehicles could be sent to localities with looser emission inspection regulations.
Gasoline Vehicle Emissions in Hà Nội
According to Hà Nội’s Department of Transport, vehicles (including cars, motorbikes, and buses) emitted approximately 5.2 million tons of CO₂ in 2024, accounting for nearly 40% of the city’s total greenhouse gas emissions.
Nguyễn Hoàng Ánh, head of the Environmental Quality Management Department at the Ministry of Agriculture and Environment (Bộ NN&MT), stated that in Hà Nội, vehicles are the main source of air pollution, responsible for over 60% of the problem.
However, she noted that her ministry’s research produced very different results. The research indicated that vehicle emissions accounted for only 12–15% and traffic-related dust contributed 23%, making traffic responsible for only about 38% of air pollution. Other major sources included construction (17–18%) and the burning of rice straw, tires, and other materials (15–16%).
It remains unclear which agency or office “Hà Nội” refers to in the report claiming 60% of pollution comes from traffic, and no methodology has been disclosed for that calculation. The discrepancy between local and federal assessments may cause overlaps and inconsistencies in policy and planning.
Research by Emissions Analytics (UK) shows that fine particulate matter from tire wear is nearly 2,000 times higher than car exhaust emissions. Globally, current vehicles produce more than 1,000 kg of particles smaller than 23 nanometers per kilometer traveled.
Even if all gasoline vehicles were replaced with electric models, fine particulate matter from tires would continue to pollute Hà Nội’s streets—a significant source of pollution largely ignored in policy discussions. It is unclear whether authorities are genuinely unaware or simply turning a blind eye while focusing solely on tailpipe emissions.
What Will Happen to Old EV Batteries?
Regulations for battery recycling were introduced in the 2020 Environmental Protection Law and Decree 08/2022. Manufacturers and importers of batteries must now comply with mandatory recycling obligations. In the first three years, companies must recycle at least 8% of all sold batteries, while recycling facilities must achieve a minimum 40% recovery rate of total processed waste to ensure technical efficiency and environmental protection.
According to the Việt Nam Automobile Manufacturers Association (VAMA), by 2028, the country will have around 1 million EVs on the road, potentially increasing to 3.5 million by 2040. Each EV battery has a lifespan of 8–10 years. Models sold between 2023 and 2025 are expected to reach end-of-life between 2031 and 2035, creating a massive influx of used batteries.
Việt Nam has built an EV battery factory in Hà Tĩnh with an investment exceeding 6,000 billion đồng, collaborating with Li-Cycle, a leading battery recycling company. The partnership included providing recycling solutions, developing EV battery recycling systems in Việt Nam, and applying Li-Cycle technology in Southeast Asia and globally.
However, Li-Cycle filed for bankruptcy in May 2025 in both the US and Canada, despite a $475 million loan approval from the US Department of Energy in November 2024. Financial difficulties arose due to cost overruns at the Rochester Hub chemical processing plant, escalating from $560 million to nearly $1 billion, causing the project to halt and making loan access impossible. Glencore, the company’s largest creditor, subsequently acquired Li-Cycle’s assets through a debt-for-asset settlement.
This collapse serves as a warning that Việt Nam’s EV battery ambitions should not rely too heavily on foreign partners.
Billions Wasted on Biofuel E5
The push for electric vehicles is happening alongside other “green” initiatives, such as the promotion of biofuels. Việt Nam has spent thousands of billions of đồng on producing and distributing biofuels like E5, intended to replace conventional gasoline and reduce emissions while supporting domestic agriculture.
Đào Duy Anh, deputy director of the Department of Innovation, Green Transition, and Industrial Promotion, stated that starting Jan. 1, 2026, E10 biofuel will be mandatory nationwide, replacing conventional gasoline. By 2031, the blend will increase to E15 or other ratios based on practical conditions.
E5 gasoline is a fuel blend made from 95% conventional petrol and 5% bio-ethanol, which can be produced from common crops such as cassava, corn, or sugarcane. When first introduced, E5 was expected to help cut emissions, partially replace fossil fuels, and create a new market for domestic agricultural products.
Three major state-funded projects were launched to produce E5: the Phú Thọ Biofuel Plant (Tam Nông District, Phú Thọ Province) with an investment of over 1.7 trillion đồng (≈ $64.5 million USD); the Dung Quất Ethanol Plant (Dung Quất Economic Zone, Quảng Ngãi Province) at around 2.1 trillion đồng ($79.6 million USD); and the Bình Phước Ethanol Plant (Bù Đăng District, Bình Phước Province) with about 1.6 trillion đồng ($60.7 million USD). All three were envisioned as key links in the E5 RON92 production chain, yet today they have been inactive for several years.
Private-sector ethanol production has faced similar struggles. Plants such as Đại Tân (Quảng Nam), Tùng Lâm (Đồng Nai), Đại Việt (Đắk Nông), and Đắk Tô (Kon Tum) are either barely operational, have halted production, or even negatively impact neighboring communities. Experts point out that domestic ethanol costs 500–1,000 đồng per liter more than imported alternatives, largely due to low cassava yields and high procurement and operational costs.
Thailand, by contrast, produces ethanol at a significantly lower cost, thanks to higher crop yields and optimized processing methods. As a result, domestic producers often rely on imported ethanol to blend E5 gasoline efficiently.
Switching to electric vehicles, adopting biofuels, or pursuing any other “green” initiative to improve Hà Nội’s environment is both urgent and necessary. But these solutions must address real-world challenges and put the welfare of millions of residents first—not follow trends or serve narrow interests. Only by grounding policy in practical realities can Hà Nội hope to achieve meaningful, lasting environmental progress.
Thạch Hãn wrote this article in Vietnamese and published it in Luật Khoa Magazine on Oct. 16, 2025. Đàm Vĩnh Hằng translated it into English for The Vietnamese Magazine.