Yet behind the prevalence of fuel motorcycles lies a string of issues. The cost of ownership is high: gasoline prices have continued to rise, and ongoing maintenance is expensive, placing substantial financial burdens on Vietnamese consumers. Moreover, the exhaust emissions from these motorcycles severely pollute the environment, directly conflicting with the country’s sustainable development goals.

To tackle these challenges, the Vietnamese government has accelerated its electrification agenda. Starting in 2025, cities like Hanoi and Ho Chi Minh City will prohibit fuel motorcycles from entering downtown areas. This policy is like a stone dropped into a still lake—sending ripples across the mobility market and opening up enormous space for electric two-wheelers to replace their fuel counterparts.

Compounding this shift, the Vietnamese dong experienced a sharp devaluation in 2024, while oil prices soared. These two forces further weakened consumer spending power for fuel motorcycles, pushing more buyers to seek affordable alternatives. While Japanese gas-powered motorcycles often retail between RMB ¥20,000 to ¥30,000, Chinese electric motorcycles cost only one-third to half of that. Over a six-year period, Vietnamese users can save approximately ¥20,000 in fuel expenses by using a Chinese EV model.

This dual benefit of “high cost-effectiveness + policy support” has made Vietnam one of the fastest-growing electric two-wheeler markets in Southeast Asia. In 2023, year-on-year sales grew by 30% to 35%.

The Chinese Electric Motorcycle Playbook for Vietnam

To overcome trade barriers, Chinese companies have shifted to local production. Yadea invested USD 100 million to build a factory in Bac Giang Province with an annual production capacity of 2 million units. The company also tailored its models to Vietnam’s hilly and rainy climate by improving waterproofing and suspension systems. Other brands like Aima and TailG are also rapidly establishing production bases in Southeast Asia, forming a strategy of “anchoring in Vietnam, radiating across ASEAN.”

At the same time, Chinese electric motorcycle brands are introducing their mature domestic smart technologies into the Vietnamese market. Yadea, for instance, equips its European-standard models with GPS navigation, tire pressure monitoring, and voice control features. These premium features are also being well received by Vietnamese consumers, helping the company take a high-end market route. Innovations in lithium battery technology, dynamic safety monitoring systems, and other breakthroughs are reshaping local perceptions of "Made in China" as low-quality.

TailG brought its proprietary Smart Cloud Power system to Vietnam, which automatically adjusts power output based on road conditions and rider behavior. It has also released models with smart connectivity features—such as Bluetooth pairing with smartphones for music streaming and call notifications.

Aima introduced its in-house developed intelligent anti-theft system. Through an app, users can remotely monitor their vehicle, receive movement alerts, and access smart battery displays and energy-saving prompts.

Considering the underdeveloped charging infrastructure in Vietnam, Chinese brands are partnering with local companies (like Vietnam Post) to install charging stations and promote battery-swap services. Yadea has established over 300 outlets across the country, forming a network that integrates sales, repairs, and battery swapping. Aima has partnered with convenience stores and gas stations to install charging points and introduced a battery leasing program, making EV usage far more accessible.

The Short-Lived Rise of China’s Fuel Motorcycles Abroad

In the 1990s, Chinese fuel motorcycle makers experienced massive success in Vietnam. At the time, China’s manufacturing sector was growing rapidly, and many motorbike companies viewed Vietnam as a promising frontier. Leveraging their cost advantage, they quickly entered the market. Affordable Chinese bikes flooded Vietnamese streets and became the go-to mobility solution for millions

However, beneath the surface of this boom lay hidden dangers. As more firms entered the space, competition intensified. Many companies resorted to price wars, cutting corners on materials and quality. Some used substandard components to save costs. Frames would bend under daily use; engines would fail prematurely. These recurring quality problems tarnished the reputation of Chinese motorbikes.

By contrast, Japanese brands remained committed to quality. Honda, for example, upheld its meticulous manufacturing standards and solid after-sales service—gradually earning the trust of Vietnamese consumers.

Within a few short years, Chinese motorcycles lost almost all their market share in Vietnam—falling from 80% to just 1%. This was a painful lesson in unsustainable, low-quality growth during China’s early stage of globalization.

Vietnam: An Opportunity Riddled with Risks

Today, Chinese electric motorcycle companies are once again targeting Vietnam—but the lessons of the past remain vivid. Many of the same risks still apply.

Some companies, eager to grab quick market share, have resorted to aggressive pricing and cost-cutting on critical components like batteries. To reduce costs, they source low-end batteries that may feature false capacity claims, short range, or even severe safety risks.

In other regions, incidents involving low-quality EV batteries have already caused fires and explosions—resulting in casualties and property losses. These events triggered public distrust in the entire EV category and severely damaged the sales of affected brands. If Chinese EV brands in Vietnam repeat these mistakes, the damage to the industry’s global reputation could be irreversible.

Vietnamese consumers have distinct preferences and local consumption habits. They tend to be brand-agnostic, focusing more on product performance. Vietnam’s terrain is mostly mountainous and hilly with complex road conditions. The high number of street vendors and small businesses creates demand for extended range and strong payload capacity.

However, some Chinese brands have failed to localize properly. They enter the Vietnamese market with domestic models and copy-paste marketing tactics—without adequate local market research.

Japanese firms, on the other hand, have fully embraced localization. Honda plans to launch 10 electric motorcycle models for Southeast Asia by 2025—each designed based on deep research into Vietnam’s geography, climate, and consumer usage patterns.

Local Vietnamese brand VinFast is also ramping up R&D and launching new models tailored to consumer demand. Without timely product and strategy adjustments, Chinese brands could be left behind in this new round of competition.

In addition to product and brand competition, Vietnam’s regulatory environment poses significant compliance risks. Tax policies and environmental standards are evolving. If Chinese firms fail to adapt quickly, they may face fines or bans.

For instance, Vietnam adjusts tax policies based on macroeconomic conditions. Shifts in import tariffs or corporate tax rates could directly impact profit margins. On the environmental front, authorities are imposing stricter regulations on battery recycling and emissions. Brands that fall short may be barred from entering the market—or incur heavy fines.

Some Chinese brands have already encountered these issues. Products were delayed because they failed to meet environmental inspection standards, resulting in financial losses and missed market windows.

From Exporting Products to Exporting Brands: A Global Leap

In Vietnam, China’s electric two-wheeler industry is undergoing a crucial transformation—from “exporting products” to “exporting brands.” This is more than just a contest over market share; it’s a milestone in China’s push toward higher-end, globally competitive manufacturing.

According to the "2024 China Electric Two-Wheeler Industry White Paper" published by EVTank and the China EV Economic Research Institute, Southeast Asia continues to show strong market growth, with Vietnam standing out as a high-potential region. This presents huge development opportunities for Chinese companies—but also fierce competition, policy complexity, and increasingly diverse consumer demands.

To complete the leap from export to global brand, Chinese firms must focus on three pillars: technological innovation, deep localization, and industry self-discipline.

• Technological innovation enhances product competitiveness. Companies should increase investment in solid-state batteries (which offer higher energy density and safety than traditional lithium-ion batteries) and in smart connectivity for real-time vehicle monitoring and remote control, enriching the user experience.

• Localization is essential for market integration. Vietnam’s unique geography, culture, and consumer behavior demand tailored solutions. Research shows Vietnamese buyers value range, cargo space, and comfort. Chinese brands should develop models suited for mountain roads and rainy weather, and establish local service networks for repair and parts.

• Industry self-discipline ensures sustainable development. Companies must avoid another race to the bottom. Through industry associations, they can develop unified quality standards, share market intelligence, and collaborate on compliance. Joint R&D, for example, could help mitigate regulatory risk.

Looking forward, if Chinese electric two-wheeler brands can continue investing in innovation, local adaptability, and responsible business practices, they will evolve from being simply “cost-effective” to being globally trusted brands. In Vietnam—and beyond—they can lead the transformation toward sustainable mobility and establish China as a world-class powerhouse in green transportation.