VinFast recorded a nearly sixfold increase in e-scooter sales in 2025, outpacing Honda's marginal growth and a decline at Yamaha in Vietnam.

Petrol-powered two-wheelers are losing appeal in Vietnam, the world's most two-wheeler-dense market, as stricter emissions regulations and changing consumer preferences contribute to a shift towards electric alternatives.

Domestic electric vehicle manufacturer VinFast moved into the higher ranks of Vietnam's two-wheeler market following an increase in e-scooter deliveries in 2025. The company described this performance as "record-breaking."

This increase placed VinFast in second place overall, according to a market research firm, in a market that also experienced year-on-year growth.

Electric scooters accounted for the majority of the increase. In addition to VinFast's gains, Chinese manufacturer Yadea reported 61.6% growth, while domestic brands Pega and Dibao expanded by 60% and 75%, respectively.

In contrast, Japan's historically dominant brands recorded slower growth. Honda, the market leader in Vietnam for more than seven decades, recorded 1.3% growth in 2025, while Yamaha saw a 17.3% decline, losing its second-place position to VinFast.

Data from the Vietnam Association of Motorcycle Manufacturers, comprising Honda, Yamaha, Piaggio, Suzuki and SYM, indicated a similar trend, with total sales of petrol two-wheelers falling by 1.5% in 2025.

The downturn intensified in the second half of the year, with third- and fourth-quarter sales declining by 9.4% and 6.8%, respectively, following announcements of internal combustion engine vehicle restrictions in Hanoi and Ho Chi Minh City aimed at reducing air pollution.

Vietnam is the fourth-largest two-wheeler market globally. While two-wheelers remain convenient and affordable - ranging from roughly US$ 300 to US$ 500 for used basic models and US$ 1,000 to US$ 3,000 for new scooters - authorities cite them as a significant source of urban transport emissions.

In November 2025, Hanoi announced that petrol two-wheelers would face time-based and area-based restrictions within Ring Road 1 from July 2026. While an outright ban was not introduced, the rules will apply to personal vehicles and ride-hailing services during designated hours.

Ho Chi Minh City is pursuing a similar timeline, planning to introduce a low-emission zone in early 2027, followed by a full ban on petrol two-wheelers in central areas by 2028. Emissions inspections could commence in July 2027, with peak-hour restrictions for two-wheelers that fail to meet Euro 2 standards.

The city has also proposed a roadmap to fully convert ride-hailing two-wheelers to electric vehicles by 2029, with interim targets of 30% by the end of 2025, 50% by 2026, and 80% by 2027.

Policy shifts have prompted platform operators such as Grab and Be to accelerate EV partnerships, while e-bike manufacturers have sought additional capital to expand operations amid supportive regulations.

VinFast capitalises on market shift

Following its position in Vietnam's electric car market, VinFast has moved to respond to the shift in two-wheeler policies. Its Evo lineup, with multiple price points from US$ 600 to US$ 1,000 and one- or two-battery configurations, was the leading e-scooter range in 2025.

In addition to rolling out service workshops and public e-scooter charging stations, VinFast has installed battery-swapping stations, with plans for further expansion by the end of the first quarter of 2026.

Users receive free charging at V-Green stations through mid-2027, along with complimentary battery swapping for up to one year for drivers operating under Xanh SM, VinFast's ride-hailing affiliate.

Vietnamese EV manufacturers now operate a network of authorised e-scooter dealers nationwide. VinFast offers consumer incentives, including zero-down-payment financing, retail discounts, and support for vehicle registration fees.

Hoang Ha, chief executive officer of VinFast's e-scooter business in Vietnam, stated, "2025 marks a significant year in Vietnam's green mobility transition. It is expected that 2026 will continue to see developments in the sector."