Hà Nội Metro, the operator of the Vietnamese capital’s urban railway lines, has reported a near tripling of its profits in the first half of 2025, a significant achievement amid the city’s broader struggle with traffic congestion, air pollution, and ambitious environmental goals. The company’s post-tax profit surged to VNĐ9.98 billion (~US$380,000), up 198 percent from VNĐ3.34 billion in the same period of 2024, driven largely by financial income from interest on deposits and loans. Yet, as Hà Nội pushes for greener transport solutions, including a potential ban on gasoline-powered motorbikes, the metro’s operational challenges and the city’s systemic issues cast a shadow over this financial success.
A Financial Turnaround
Hà Nội Metro One Member Limited Company, which operates the Cát Linh–Hà Đông and Nhổn–Hà Nội Station lines, has seen its financial performance bolstered by VNĐ23.6 billion in interest income from deposits and loans. By the end of the reporting period, the company’s bank deposits had nearly doubled to over VNĐ83 billion compared to the start of the year. This financial cushion has helped the metro system achieve more than 50 percent of its 2025 revenue target of VNĐ878.4 billion and nearly half of its post-tax profit goal of VNĐ20.7 billion.
In terms of operations, the company transported passengers with revenue reaching VNĐ111.5 billion in the first half of 2025, contributing about one-eighth of its total income. Hà Nội Metro aims to carry 19.3 million passengers this year across 159,732 train journeys. The Cát Linh–Hà Đông line, a 13-kilometer elevated route with 12 stations, can accommodate 960 passengers per train and completes its full route in 23 minutes. Meanwhile, the Nhổn–Hà Nội Station line, spanning 12.5 kilometers with both elevated and underground sections, has a similar capacity of 950 passengers per train. 
Despite these gains, the metro system has not been immune to operational hiccups. In May 2025, a malfunctioning air-conditioning system on the Cát Linh–Hà Đông line led to water leakage inside a carriage, forcing commuters to use umbrellas for protection. That same month, a power outage halted operations on the Nhổn–Hà Nội Station line for nearly an hour, disrupting afternoon commutes across four stations. Earlier in the year, underground sludge from metro construction flooded nearby homes, highlighting ongoing risks despite known concerns over outdated data.
A Choked Capital in Need of Solutions
Hà Nội’s urban transport woes extend far beyond metro malfunctions. With over 8 million vehicles—1.1 million cars and 6.9 million motorcycles—plus an additional 1.2 million vehicles from neighboring provinces, the city ranks among the most congested and polluted globally. The average Hanoian owns one personal vehicle, overwhelming an aging infrastructure where downtown roads often operate at six to eight times their designed capacity. According to estimates from the Vietnam Chamber of Commerce and Industry (VCCI), traffic jams cost the city US$1–1.2 billion annually in lost productivity and logistics expenses.
Air quality adds another layer of crisis. Hà Nội consistently ranks among the world’s worst for fine particulate matter (PM2.5) pollution, with 40 percent of residents exposed to levels five times higher than World Health Organization recommendations. Annual averages exceed national limits by 1.1 to 2.2 times, posing severe health risks, particularly to children and the elderly. A World Bank report attributes only 25 percent of PM2.5 emissions to traffic, with the majority stemming from industry (35 percent), agriculture (20 percent), household biomass burning (10 percent), and other sources like open field and waste burning. Geographical and meteorological factors, such as winter temperature inversions and the urban heat island effect, further trap pollutants in the inner city, unlike more windswept areas like Ho Chi Minh City.
Green Policies and Public Transport Goals
In response to these challenges, the Vietnamese government issued Directive No. 20 on July 12, 2024, urging Hà Nội to enforce stricter measures against air pollution. The city administration has since tasked agencies with drafting plans to restrict gasoline-powered motorbikes within Ring Road 1, an area home to approximately 600,000 residents. This aligns with Hà Nội’s 2017 Resolution 04/2017/NQ-HDND, which aimed for public transport to meet 30–35 percent of travel demand in central areas by 2020 and 50–55 percent by 2030. However, eight years on, only 18 percent of demand is met by public transport, with a fleet of just 2,000 buses—many of them outdated diesel models reliant on manual ticketing.
The slow pace of infrastructure development compounds the issue. The Cát Linh–Hà Đông metro line took 13 years to complete, and the city’s Bus Rapid Transit (BRT) network lacks proper integration. As a result, most residents continue to depend on personal motorcycles and cars. Urban planning goals target 410 kilometers of metro lines by 2035 and 616 kilometers by 2045, but achieving these will require far more accelerated and focused investment than the fragmented efforts seen to date.
While banning gasoline motorbikes within Ring Road 1 may offer localized air quality improvements, it addresses only a fraction of the pollution problem. Without tackling industrial emissions and other major sources, comprehensive change remains elusive. Moreover, such a ban raises logistical and social equity concerns. How will residents from outer rings manage without their vehicles at Ring Road 1’s edge? How will traffic flow be maintained? And critically, how will the livelihoods of hundreds of thousands of delivery workers, drivers, and commuters who rely on motorcycles be protected?
The Electric Vehicle Promise and Its Costs
Amid these challenges, Vietnam is poised to become a global hub for two-wheeler electric vehicles (E-2Ws), ranking second only to China. In 2022, E-2Ws accounted for 12 percent of total two-wheeler sales, and with falling prices and rising brand competition, adoption is growing among urban consumers. The World Bank projects that, depending on policy support, Vietnam could see 12 million E-2Ws by 2035 (42 percent market share) or up to 16 million under a fast-growth scenario (56 percent). Policies promoting affordable financing, safety standards, Li-ion batteries over lead-acid models, and the gradual retirement of aging gasoline bikes could accelerate this shift.
However, transitioning to electric vehicles carries significant costs. Replacing 600,000 motorcycles within Ring Road 1 at an estimated US$1,000 per vehicle would total US$600 million—a heavy burden, especially for low-income households. Beyond financial costs, citizens face behavioral changes, limited charging infrastructure, battery fire hazards, and maintenance concerns. Vietnam’s electric mobility infrastructure is not yet ready for mass conversion, and without careful planning, subpar imports could flood the market if domestic manufacturers fail to keep pace.
Striking a Balance for the Future
Hà Nội Metro’s profit surge is a bright spot in a city grappling with deep-rooted urban challenges. Yet, financial success alone cannot address the systemic issues of congestion, pollution, and inadequate public transport. The government’s push for green policies, including motorbike bans and electric vehicle adoption, signals a commitment to change, but implementation must be grounded in social equity and comprehensive impact assessments. Vulnerable groups—those whose livelihoods depend on traditional transport—must not be left behind.
Investing in public transit offers a more sustainable path forward. Expanding the metro, adding clean buses, building intermodal transfer stations, and digitizing ticketing systems are critical steps. Hà Nội must move beyond simply banning the old and focus on building the new, ensuring connectivity and accessibility for all. As the city navigates this complex transition, the balance between environmental goals and social needs will determine whether its urban future is one of progress or continued struggle.
