Japan government warns Vietnam of job losses as Hanoi motorbike ban hits Honda

The Japanese government and some of the nation's top manufacturers have warned Vietnam that a planned ban on petrol-powered motorbikes in Hanoi could spark job losses and disrupt a $4.6-billion market that is dominated by Honda, according to documents reviewed by Reuters and seven people familiar with the matter.

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In July, Vietnamese Prime Minister Pham Minh Chinh issued a directive prohibiting petrol motorbikes from entering the center of the capital from the middle of 2026, as the country seeks to reduce high levels of air pollution. Broader restrictions are due in 2028, and bans are expected to spread to other parts of the country.

In response, the Japanese embassy in Hanoi sent a letter to Vietnamese authorities saying a sudden ban could "affect employment in supporting industries" such as motorcycle dealers and parts suppliers, according to a statement from the embassy summarizing its letter. The embassy declined to share the full contents of the letter, which is being reported for the first time.

The embassy also urged Vietnamese authorities to consider an "appropriate roadmap" for electrification that would include a preparation period and staged implementation of regulations.

The embassy declined to say when the letter was sent, although one Japanese government official said it was relayed in September.

Vietnam's two-wheeler market is one of the world's largest - worth an estimated $4.6 billion this year, according to market research firm Mordor Intelligence - with the number of registered motorbikes last year approaching 80% of the country's population of 100 million, one of the highest ownership rates globally.

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