The service is part of a memorandum of understanding (MoU) signed last week between the department and Grab Vietnam, the local unit of Singapore-based ride hailing firm.

Under the agreement, the two parties will jointly roll out the electric motorbike service to support the city’s public transportation system in downtown areas, then consider expanding it throughout the city by the end of next year.

They are also considering an electric bike rental service in the near future.

Grab Vietnam will also share its data with the department, including the journeys of all vehicles registered with its ride-hailing technology, in order that the latter can create a traffic database.

This database will allow the department to analyze, simulate and predict traffic on each route, and in turn, coordinate with Grab’s fleet to come up with solutions addressing the city’s current traffic constraints, the MoU said.

Providing this additional mode of public transport aims to limit the use of personal vehicles, reduce congestion, and limit environmental pollution, department director Tran Quang Lam said.

HCMC, the country's largest metropolis with 13 million people, has around 7.8 million motorbikes and about 750,000 cars, according to the city's police department. Car registrations in the city increased 15 percent in the first six months, while motorbikes 6 percent, according to the transport department.