Brian Jeffrey
The Hanoi city government has recently given the green light to a plan aimed at expanding public transport through the use of electric and eco-friendly buses.
Hanoi’s officials have recognized the critical issue of air pollution affecting major urban areas like Hanoi and Ho Chi Minh City. Transitioning to clean energy solutions and lowering carbon emissions is viewed as essential for combating environmental challenges.
This initiative is in line with Vietnam’s commitments made during the 26th UN Climate Change Conference (COP26) and marks an important step towards sustainable development. It also presents an opportunity to modernize the transport sector, aligning it with global innovations and trends.
The strategy represents a significant enhancement in the quality of public transport, aiming to entice more residents to opt for bus services. This effort is part of Hanoi’s objective to increase the proportion of public transport in total passenger traffic to 30–35% by 2025, 50–55% by 2035, and 65–70% after 2035. These initiatives are expected to overhaul urban traffic in Hanoi, alleviate congestion, and promote a more respectful traffic culture.
The outline paves the way for a shift to electric and green-energy buses, adhering to the guidelines of the Prime Minister’s Decision No. 876/QD-TTg dated July 22, 2022. It also suggests comprehensive solutions to ensure the plan’s successful execution, targeting a goal of 100% eco-friendly public buses by 2035.
As of September 2024, Hanoi has implemented 10 electric bus routes overseen by Vinbus Eco Transport Services Co., Ltd., and these buses have gained positive feedback from residents, owing to their quality and environmental advantages.
In early 2025, with recommendations from transportation companies and support from city officials, four businesses will start pilot operations for five electric bus routes using a total of 76 vehicles (11 small and 65 medium-sized buses). These trials will help establish cost benchmarks for electric buses with different capacities.
From 2026 to 2030, Hanoi plans to switch 1,813 buses to electric or green-energy models, achieving a 93.4% conversion rate of the targeted fleet.
The subsequent phase (2031–2035) aims for the conversion of an additional 238 vehicles, ultimately reaching a complete conversion by 2035. This will include an even distribution between electric buses and CNG/LNG-powered vehicles.
The overall funding required for this initiative is estimated to be around VND 48.625 trillion (approximately $2 billion). Of this, VND 35.996 trillion ($1.5 billion) will come from Hanoi’s city budget, while private companies will need to secure the remaining VND 12.629 trillion ($515 million).
