The HCM City Department of Transport has asked the municipal People's Committee to approve five new subsidized electric-bus routes that will be operated by Vingroup and run on a pilot basis for 24 months.

HCM City has proposed five new electric-bus routes. Most city buses run on diesel fuel
or compressed natural gas.

The move is in line with the city’s drive to reduce air pollution, diversify means of green public transport, and upgrade service quality, the Department of Transport said.

The department added that it sought advice from the Department of Construction, Department of Natural Resources and Environment, and People's Committee of District 9.

The five routes will connect Vingroup's Vinhome Grand Park in District 9 to important destinations, including the Korean E-mart supermarket in Go Vap district, Tan Son Nhat International Airport, Sai Gon Bus Station in District 1, the new Mien Dong (Eastern) Bus Station in District 9, and the Vietnam National University-HCM City campus in Thu Duc district.

The investor will add nine new bus stops on the five routes. A depot and a bus station covering 12,200sq.m will be built in the Vinhome Grand Park urban area.

A total of 77 eco-friendly electric vehicles will be put into use during the trial run.

Each 65-70 seat bus, running on fast-charging lithium ion batteries, will cost about VND6.5 billion (US$280,000).

Vingroup has asked the city for a subsidy equal to 44.1% of operating expenses, which is the same as that of compressed natural gas-fuelled and diesel-burning vehicles.

The subsidy will be provided for a maximum of 12 months.

The subsidised fare is VND5,000 - VND7,000 (US$0.22 – US$0.3) per trip. A student ticket is VND3,000 (US$0.13) per trip.

In October 2020, Vingroup received approval from the Ministry of Transport to implement its electric bus scheme in Hanoi and HCM City.

Nguyen Thi Thanh My, deputy director of the city's Department of Natural Resources and Environment, said that environmental programmes since 2016 have reduced 70% of the total volume of emissions from transport.

Bui Hoa An, deputy director of the city's Department of Transport, said the department has worked with many transport enterprises to replace old polluting buses and has put 1,680 new buses into use on 52 streets.

According to the Ministry of Natural Resources and Environment, HCM City has one of the highest levels of greenhouse gas emissions in the country, producing 38.5 million of tonnes of CO2. This accounts for nearly 16% of the country’s total emissions. Of this, emissions from vehicles account for 45%.