The Japanese government and some of the nation's top manufacturers have warned Vietnam that a planned ban on gas-powered motorbikes in Hanoi could spark job losses and disrupt a $4.6 billion market that is dominated by Honda, according to documents and seven people familiar with the matter.
In July, Vietnamese Prime Minister Pham Minh Chinh issued a directive prohibiting gas-powered 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.
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