Bus fare exemptions are not enough; authorities to improve service quality and convenience.

Bus fare exemptions are not enough on their own; Ho Chi Minh City needs to improve the quality and convenience of bus service to encourage more residents to switch from private vehicles to public transport.

At a press briefing on April 9 on the city’s economic and social situation, Mr. Do Diep Gia Hop, Deputy Head of the Maintenance and Exploitation of Transportation Infrastructure Department under the City Construction Department, said the agency is submitting a proposal to the Ho Chi Minh City People’s Committee for consideration. The proposal will also be reported to the Standing Committee of the City Council to register a resolution supporting public passenger transport by bus.

Approval timeline and implementation plan

Accordingly, the Ho Chi Minh City People’s Committee has prepared Letter No. 362/TTr-UBND dated April 7, 2026 to register a resolution under streamlined procedures. The Department is collecting opinions from relevant agencies, reviewing and finalizing the plan to ensure transparency and efficiency while preventing policy exploitation, and preparing technical solutions including a passenger volume statistics system, payment methods, and a monitoring and inspection mechanism.

The resolution is expected to be submitted to the City People’s Council for approval within April 2026. If approved, the bus fare exemption policy could be implemented in 2026, with an expected application period covering the last eight months of the year.

Expected ridership shift and environmental benefits

Mr. Do Diep Gia Hop said the fare exemption policy has social welfare significance in the context of rising fuel prices, and it is also intended to improve the environment and reduce urban traffic congestion.

He cited earlier pilot results showing that ridership on public transport increased by 20% to 34% depending on route and time. With citywide application, the Department expects a significant shift from motorcycles and private cars to buses, particularly for short and medium trips, which would reduce daily traffic pressure.

Currently, about 56% of the city’s bus fleet uses clean energy such as electricity and CNG (1,367 out of 2,432 buses). Expanding the share of buses is expected to contribute to reductions in CO2, NOx, and fine particulates in urban areas.

The Department of Construction emphasized that the environmental effectiveness of the policy should be assessed not only through short-term outcomes, but more importantly through long-term changes in residents’ travel habits.

Capacity readiness and technology rollout

In its review, the Department assessed that the current system can handle passenger growth of about 20% to 30%. Ho Chi Minh City has 180 bus routes with more than 2,432 vehicles, and many routes are not operating at full capacity, especially during off-peak periods.

The electronic ticket system has been deployed on 109 routes and is expected to cover the entire network in Q2 2026. The Department said this platform will help manage output, optimize operations, and adjust routes in real time.

Going forward, the city plans to review and adjust the network, open new routes where appropriate, strengthen connections with other transport modes, and prioritize infrastructure such as stops and shelters in residential areas, industrial zones, and schools.

Fare exemptions as a necessary condition, with service improvements

The Department stated that fare exemptions are only a “necessary condition,” not the decisive factor for people to abandon private vehicles. The policy will therefore be implemented alongside multiple measures.

First, the city will raise service quality by ensuring punctuality, clean and safe vehicles, and professional, friendly staff. It will also increase convenience through connectivity between buses and the metro, river buses, and public bikes. The city will use technology such as MultiGo and electronic ticketing systems to support route lookup and cashless payment.

In parallel, the city will intensify communications to guide behavior and encourage residents to use public transport not only because it is free, but also for its convenience, civility, and sustainability. Policies to manage and restrict private vehicles in certain areas will also be studied and implemented alongside the bus fare exemption.

Monitoring and evaluation will be conducted regularly using criteria including passenger volume, costs, and passenger satisfaction, to allow timely adjustments to the policy.

The Department of Construction said bus fare exemptions are intended as a stimulus to boost the shift toward prioritizing public transport. The long-term goal is to build lasting habits of using public transport, reduce congestion and environmental pollution, promote cashless payments, and make Ho Chi Minh City a sustainable and livable city.