Vietnamese operators of EV sightseeing service fear shutdown due to 30kph speed limit regulation

Owners of 278 electric cars used for sightseeing service in Cua Lo Ward, Nghe An Province, north-central Vietnam are facing the grim prospect of suspending operations, as none of the local roads currently have 30kph speed limit signs as stipulated in a new government decree.

In December last year, all seven wards of Cua Lo, a former district-level town in Nghe An, and three communes of Nghi Loc District were merged into the provincial capital city of Vinh.

The current Cua Lo Ward is a combination of the seven wards of the town, effective from July 1, as part of the recent major administrative restructuring in which 63 Vietnamese provinces and cities were reduced to 34 and local administrations were divided into provinces/cities and wards/communes.

The central government allowed the former Cua Lo town’s administration to pilot a project using four-wheeled electric vehicles to serve tourists from 2011, with the number of eligible cars reaching 278 as of now.

However, Government Decree 165, effective from February 15 this year, mandates that these vehicles can only operate on roads that allow a maximum speed limit of 30kph, applicable to all vehicles.

At present, none of Cua Lo’s designated roads meet this requirement, as all have speed limits of at least 50kph.

This has left many electric vehicle owners, like 49-year-old Phan Thanh Hop, deeply worried.

“I borrowed VND300 million [US$11,500] to buy an electric car in 2023, and I haven’t paid off the debt,” Hop said.

“If this service is halted, our family will face serious hardship."

Nguyen Tien Loi, head of the electric vehicle association in Nghi Thuy Ward under the former Cua Lo town, proposed enforcing the 30kph limit on the road only during the three peak tourist months, usually from June to August, and suspending it for the rest of the year to ease the burden on drivers and ensure traffic safety.

He also warned that banning electric cars for sightseeing could worsen congestion as other transport options like taxis, motorbike taxis, and cyclos increase.

In 2022 and 2023, revenues generated from electric vehicle operations contributed over VND3 billion ($115,000) in local taxes and helped shape a sustainable, tourist-friendly environment in Cua Lo.

Nguyen Van Hung, vice-chairman of the Cua Lo Ward People’s Committee, said the ward had submitted proposals urging higher authorities to resolve the issue.

On July 3, Hoang Phu Hien, vice-chairman of the provincial administration, asked the provincial Department of Construction to work with police and local stakeholders to assess the impact of the regulation and propose solutions.

The provincial Department of Construction is a merger of the transport department and the construction department, as part of the nationwide administrative restructuring.

Minh Duy - Doan Hoa / Tuoi Tre News

(2025/07/10-18:47)