Overview
- In July, Vietnam ordered petrol motorbikes out of central Hanoi from mid‑2026 with broader restrictions planned for 2028, framing the move as an air‑quality measure.
- The Japanese embassy told Hanoi a sudden ban could threaten jobs in supporting industries and called for a preparation period with staged rules.
- A foreign makers’ group led by Honda warned of production interruptions and bankruptcy risks across nearly 2,000 dealers and about 200 parts suppliers.
- Honda holds roughly 80% of Vietnam’s two‑wheeler market, saw sales drop about 22% in August from July, and privately raised the possibility of scaling back production, while saying it has no plan to close factories.
- Vietnam has not moved to delay the policy as EV sales by VinFast climbed 55% in Q2 and a survey points to further growth, while petrol car sales fell 18% in September for VAMA members.