An auction for leasing advertising space on Ho Chi Minh City’s buses will be held between June 21 and July 18 following four previous unsuccessful attempts.

llustrative image (Source: VNA)

Up to 71 packages will be tendered out this time. The advertisements can be placed on both sides of buses though with their size not exceeding 50 percent of the vehicle's side. The advertisements are not permitted in the front or back or on the top.

Bidders can choose how long they want to lease ranging from six months to three years.

They will have to pay a deposit ranging from 5 percent of the reserve price for a three-year contract and 15 percent for six-month contracts.

According to the HCM City Property Auction Service Centre, where the auction will be held, of the 71 packages on offer, the lowest-priced offers advertising spaces on only four buses and starts at 205 million VND (8,700 USD) for six months and over 1.2 billion VND (51,4000 USD) for three years.

The centre said the values of the contracts have been fixed by the relevant authorities.

Tran Chi Trung, director of the centre, said in preparation for the auction, the centre discussed customers’ requirements with regard to hoardings on buses with advertising firms.

The large number of packages this time would offer bidders more options to choose from, he added.

Cao Thanh Binh, deputy head of the municipal People’s Council's economic and budget division, said the revenues from the advertising are expected to help the city to improve its bus services, improve infrastructure including terminals for buses and reduce subsidies.

Binh said the leasing could yield up to 200 billion VND (8.6 million USD) a year, which would help reduce the subsidies the city pays for bus services.

Around 1,000 non-subsidized buses that are in operation are expected to use the advertising revenues to improve the quality of their services.

HCM City spends more than 1 trillion VND (42.85 million USD) a year to subsidise bus services, according to its Department of Transport.