Ho Chi Minh City is proposing to gradually restrict petrol- and diesel-powered vehicles from its downtown area from mid-2027 as part of a planned low-emission zone (LEZ), according to media sources, citing city authorities.

Under the proposal, the city would pilot the LEZ from July 2027 in its core downtown area and the new Thu Thiem urban area, covering roughly 930 hectares (2,300 acres or 3.59 square miles). After two years of pilot operations, the LEZ would expand from early 2029 to areas within the city's Ring Road 2, where heavy trucks and sleeper buses are already restricted during certain hours.

The revised timeline is later than an earlier proposal to implement the LEZ in early 2026. The changes are intended to align the scope and implementation milestones with the development of green transport infrastructure and provide residents and businesses with additional time to switch to cleaner vehicles.

Buses will be the first vehicle category required to transition, with buses entering the LEZ from 2027 required to operate on electricity or other clean energy. Motorcycle-taxi drivers and delivery riders will follow, while other categories, including taxis, will face restrictions at later stages.

The proposal remains subject to further review before formal approval. The plan comes as other Vietnamese cities consider restrictions on petrol-powered vehicles. Hanoi said in June that it planned to phase out petrol-powered ride-hailing motorbikes from low-emission zones, initially through voluntary restrictions before introducing a ban from January 2027.