The Japanese government and major manufacturers have cautioned Vietnam that Hanoi’s planned ban on petrol-powered motorbikes could trigger job losses and disrupt a $4.6 billion market dominated by Honda, Reuters reported on Tuesday, citing official documents and people familiar with the matter.

In July, Vietnamese Prime Minister Pham Minh Chinh issued a directive that will prohibit petrol motorbikes from entering the capital’s center starting mid-2026 as part of efforts to tackle severe air pollution. Broader restrictions are expected in 2028, with similar bans likely to expand to other regions across the country.