Ho Chi Minh City saves nearly 1,300 billion VND thanks to bus subsidy bidding

(Chinhphu.vn) - The policy of bidding for bus subsidies in Ho Chi Minh City has been around for 20 years, but after nearly two decades of "waiting", the bidding for bus subsidies in Ho Chi Minh City officially became active at the end of 2023, bringing with it a strong wind of reform and the results achieved exceeded expectations.

Phuong Trang electric buses (manufactured by Kim Long Motor) serve passengers in Ho Chi Minh City

Bus subsidy auctions have saved the city budget nearly VND1,300 billion, bursting the "milk bottle" of bus subsidies that had existed for many years.

The emergence of large transport companies, especially Phuong Trang Passenger Transport Joint Stock Company - FUTABUSLINES, has broken the "monopoly" in the public bus sector, contributing to creating a more healthy, transparent and effective competitive environment than ever before. More importantly, people have the opportunity to access clean, beautiful, modern, comfortable vehicles at very competitive prices.

According to data from the national bidding network, from the end of 2023 to now, Ho Chi Minh City has organized bidding for 76 subsidized bus routes, saving about 1,295 billion VND for the budget. Specifically: in 2023, 22 routes were bid, saving 252 billion VND; in 2024, 17 routes connecting Metro Line 1 were bid, saving 278 billion VND; in the second quarter of 2025, 37 routes will continue to be bid, expected to save an additional 765 billion VND.

The savings rate of 20% to 72% in each bid package shows the real effectiveness of the competition mechanism. In particular, bus route 33 is a typical example: with the participation of 4 major contractors…

The slow implementation of bidding over the past years has caused serious waste to the city budget. However, recent practice has proven: the more transparent – ​​the more economical, the more reputable businesses participate – the more improved service quality.

Ho Chi Minh City needs to continue to firmly implement the comprehensive bidding roadmap for the remaining routes, as an irreversible step to reduce the burden of subsidies, improve the efficiency of public investment and better serve the people. Not only Ho Chi Minh City, other provinces and cities also need to implement bus bidding to save the state budget, people can use high-quality, clean and comfortable buses. If it is public, transparent, objective and not negative, there will be the best service to serve the people.

Source: https://baochinhphu.vn/tp-ho-chi-minh-tiet-kiem-gan-1300-ty-dong-nho-dau-thau-tro-gia-xe-buyt-10225050914490648.htm