In Ho Chi Minh City the HCM City Transport Co-operatives Union has inaugurated a fleet of five South Korean manufactured compressed natural gas (CNG) buses, making it the second company in the country to provide environmentally friendly buses. In 2011 state-owned Sai Gon Bus Company launched a fleet of 21 CNG buses, the first to be used in Viet Nam.
According to Duong Hong Thanh, Deputy Director of the Department of Transportation, the Department will study investment in about 300 new CNG buses to replace older diesel buses in 2012.
To support and encourage investors in the programme, the Department has proposed to the municipal People’s Committee to develop policies on tax exemption and subsidies. At present private companies cannot access the favourable tax and business conditions afforded government enterprises.
Buses running on CNG gas can save 30-40 per cent of fuel costs compared to the ones that run on diesel oil, according to Phung Dang Hai, the union’s general director, reports Viet Nam News.
Ho Chi Minh City’s public transportation is currently provided by a fleet of approximately 3000 vehicles.