HCM City plans to waive bus service fees to reduce traffic congestion, improve air quality
VGP - Ho Chi Minh City is planning to spend about VND7 trillion (about US$250 million) per year to make bus services free in an effort to reduce traffic congestion and improve air quality.
Ho Chi Minh City plans to provide free bus services for all residents
Secretary of the Ho Chi Minh City Party Committee Tran Luu Quang made the above statement at a meeting of the Municipal Party Committee held on April 1.
Tran noted that the Standing Committee of the Ho Chi Minh City Party Committee has agreed in principle to provide free bus services for residents in the city.
The southern metropolis city is currently offering free bus rides to people aged 60 and above and children aged six and below, with an annual budget of around VND1.7 trillion (US$64.5 million).
If the policy is expanded, the budget could increase by about 3.5 times, reaching approximately VND7 trillion per year, said Tran.
The expanded policy aims to encourage people to reduce the use of motorbikes and switch to buses, thus helping low-income residents to save on transportation costs.
Before the merger of Ho Chi Minh City with the neighboring provinces of Binh Duong and Ba Ria-Vung Tau in July last year, the city was home to 138 bus routes, of which 109 were subsidized. Each year, the city allocated more than VND1 trillion (US$38 million) from its budget to subsidize bus operations.
Now the city has 179 routes with 2,112 buses, including 1,301 electric buses, accounting for about 62 percent of the total. The number of electric buses is expected reach over 4,300 by the end of this decade./.
