Under pressure to balance resources and implementation roadmap, Hanoi proposes narrowing the scope of support for green vehicle conversion, initially prioritizing poor households, policy families, and vulnerable groups instead of universal support as initially planned.
On the afternoon of June 12, during group discussions on the contents submitted to the Hanoi People's Council session, Chairman of the City People's Committee Vu Dai Thang clarified several issues related to the draft Resolution on policies to support the conversion of road vehicles from fossil fuels to clean energy and encourage the use of public transport in the city.
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According to the draft, Hanoi plans to provide direct cash support to individuals from poor households when they convert to green vehicles. The support level equals 100% of the value of the converted vehicle, but not exceeding 20 million VND.
Previously, in submissions regarding support for people converting vehicles, the city had proposed supporting residents living in the Ring Road 1 area and poor and near-poor households across the city when converting motorcycles and mopeds using fossil fuels to clean energy vehicles. Under this plan, ordinary households would receive 20% of the new vehicle's value, up to 5 million VND; near-poor households would receive 80%, up to 15 million VND; and poor households would receive 100%, up to 20 million VND.
However, in the draft resolution submitted to this session, the city has not yet applied the support policy for individuals who are permanent or temporary residents of Hanoi for at least two years when converting to electric motorcycles, with a support level of 20% of the vehicle's value, up to 5 million VND, as previously proposed.
According to Chairman Vu Dai Thang, the city has identified low-emission zones and is gradually implementing a roadmap for converting fossil fuel vehicles to green vehicles. Alongside this, the city is building support policies for vulnerable groups directly affected by the conversion process.
Mr. Vu Dai Thang stated that previously the city had considered a plan to support all residents in converting vehicles. However, based on practical assessment, implementing on a large scale would require a huge budget, exceeding the city's resource balancing capacity, while the conversion process needs to be carried out step by step and cannot be completed in a short time.
Therefore, at this session, the City People's Committee proposes prioritizing support for vulnerable groups, including poor households, policy families, and people with meritorious services to the revolution. For other groups, the city will study appropriate support methods to encourage residents to accompany the government in the process of transitioning to green vehicles.
In the submission to the City People's Council, the Hanoi City People's Committee stated that when formulating the policy, it oriented support towards organizations and individuals heavily impacted by the conversion process, especially vulnerable groups and those using vehicles for daily livelihoods.
Therefore, the initial draft proposed a fairly wide support scope, including poor and near-poor households, tech-based drivers, residents in the area, and transport business enterprises.
However, after receiving opinions from relevant agencies and the review comments of the City People's Council's Urban Committee, Hanoi recognized that expanding the number of beneficiaries too much would create significant pressure on the budget balancing capacity. At the same time, implementation also entails risks of difficult control and potential issues of fairness among beneficiary groups.
In the coming time, the Hanoi City People's Committee will continue to review and carefully evaluate support options to ensure feasibility, social equity, and compatibility with resource balancing capacity, serving as a basis for submitting to the City People's Council for consideration of additional support policies for residents and businesses.
According to the draft resolution, to be eligible for support, individuals from poor households must be owners of motorcycles or mopeds using fossil fuels that were registered before the effective date of the resolution. The conversion to green vehicles must be carried out from the effective date of the resolution until December 31, 2027.
Additionally, vehicle owners must complete the transfer, handover, or removal of fossil fuel vehicles from low-emission zones, or apply appropriate treatment measures as per regulations; and complete the registration procedures for new green vehicles to be considered for support.
