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Soaring petrol prices drive riders to plug in
As gas and oil prices sky-rocketed last week, so did the demand for electric bicycles.
As of Monday, gas and oil prices saw a record increase of 31 per cent, and electric bike shops in HCM City and Hanoi are reaping the benefits.
"My modest salary isn't enough for a motorbike given the recent escalation of petrol prices," said Pham Huy Tung, an employee of a private enterprise.
Tung explained that last month, the price of oil on the global market had spiked, impacting local prices in Vietnam, so many motorists could no longer afford the cost of driving. Like him they opted for an alternative - the electric bicycle.
The electricity cost for each bike is around VND2,000 per day, five times cheaper than the daily cost of petrol for a motorbike.
A manager at Martin 107 Co bicycle shop, Ho Thi Thu Suong, said that their number of customers had increased dramatically due to oil prices. Martin had sold between 15,000 and 20,000 electric bikes, an estimated 10 per cent increase.
"The quantity of electric bikes is increasing though the present price is about VND6.2 million (US$382), up VND200,000 per bike from before petrol rose," said a salesman at Thong Nhat Motorbike and Bicycle Co on Ba Trieu Street in Hanoi.
The situation is similar in HCM City, where various shops reported an increase of sales from 30-50 per cent in the days following the price hike.
A bicycle shop on Vo Thi Sau Street in District 3 said many customers visited the shop after the petrol price rose VND4,500 (US$0.3).
Most of them were students, housewives and government officials.
Nguyen Kieu Tien, a telephone company switchboard operator, said she decided to buy a bicycle, rather than use her motorbike, to ride to work.
"I live in District 7 but work on Hai Ba Trung Street in District 1. I now have to spend VND53,000 ($3.1) to buy petrol instead of VND35,000 ($2.1). So I have decided to buy a bicycle to save money," she said.
Smuggled in
Electric bicycles jumped so much in popularity all over the country that smuggling of used and electric bicycles over the south-west border with Cambodia grew as well.
There are six warehouses in Ta Mau Market on the Cambodian side bursting with bicycles ready to be smuggled into Vietnam.
The owner of one of them said he can supply any number.
Second-hand bicycles from Japan and Thailand are also flooding into Vietnam.
Depending on their quality and style, the price ranges from VND900,000 to VND3 million.
According to forecasts, the surging price of oil and gas together with the upcoming school year may further boost the number of electric bicycles sold.
Petrol sales down
Because of higher prices and more bicycle sales, - sales of petrol have gone down, market observers have said.
Le Thi Anh Man, deputy director of Sai Gon Petrol, said 40 general agents and 100 direct agents working for Sai Gon Petrol said sales had fallen 30-40 per cent, which represents 400-500 cubic metres a day.
"Petrol for VND19,000 ($1.14) a litre is not available anymore," she said.
According to a survey of several petrol retailers, the volume of petrol sold in the last several days has dropped about 20-30 per cent.
The return to bicycles, which were once very popular in Vietnam, is considered an encouraging development given the mounting concern over air pollution from motorbikes in urban areas.
VNS
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