Vietnam’s Hanoi Motorbike Ban Expected to Impact Thousands of Japanese Industry Jobs

Vietnam plans to ban gasoline-powered motorbikes in central Hanoi starting mid-2026, aiming to reduce urban air pollution, with broader restrictions expected by 2028 and possibly extended to other cities. This policy has alarmed the Japanese government and major motorcycle manufacturers like Honda, Yamaha, and Suzuki, which dominate Vietnam's two-wheeler market valued at about $4.6 billion. Japan's embassy in Hanoi and these manufacturers have warned that an abrupt ban could lead to mass layoffs, bankruptcies, and supply chain disruptions affecting thousands of dealerships and parts suppliers. They have urged the Vietnamese government to implement a phased transition period of at least two to three years to allow the industry to adapt production lines, develop charging infrastructure, and update safety standards. Despite these appeals, Vietnamese officials have so far maintained their commitment to the ban, prioritizing environmental concerns over the economic risks cited by Japan and the industry. Meanwhile, local electric motorbike brands like VinFast are gaining market share amid declining petrol bike sales, indicating a significant market shift during this transition.