#Vietnam's Ho Chi Minh City to spend $280 Million a year to make bus travel free for all This is part of a broader push to curb traffic congestion and environmental pollution. Making bus rides free, will encourage people to shift away from private motorbikes toward public transport, city officials said. Ho Chi Minh City is preparing to allocate around VND7 trillion (US$280 million) annually to make bus travel free across the city, with authorities aiming to finalize the policy by late April. The plan, announced by the city's Party chief Tran Luu Quang on Wednesday, would eliminate fares on 135 intra-city bus routes while requiring additional investment in infrastructure and service frequency to accommodate rising demand. These routes form the backbone of the city's public transport network, while inter-provincial lines would remain excluded due to separate funding mechanisms. The city now spends about VND1.5 trillion each year subsidizing bus operations, said Bui Hoa An, deputy director of HCMC's Department of Construction. Even with fares removed, authorities plan to closely track passenger volumes through technology-based monitoring systems. The data will be used to guide budget allocation and system management, ensuring transparency in how public funds are deployed. Ridership is projected to increase by about 30% compared to 2025 levels, adding pressure on operational capacity. While many newer routes are currently underutilized, officials are assessing whether the existing fleet can absorb a sudden surge in demand. Plans include boosting bus frequency and optimizing high-traffic routes, particularly those linking schools, industrial zones, and residential areas. The proposal is expected to be finalized and submitted to the city's People's Council for approval at its next session later this month. Ho Chi Minh City currently operates around 179 bus routes with more than 2,100 vehicles. Currently, free travel is limited to specific groups, including seniors, young children, and people with disabilities, while standard fares on subsidized routes range from VND5,000 (US$0.19) to VND7,000 per trip. In 2025, the network carried nearly 97 million passengers, a 6% increase year-on-year, with further growth recorded in early 2026. Officials say initiatives such as electric bus rollouts, cashless payments, and occasional free-fare campaigns have already helped attract riders, trends they expect to accelerate under a fully subsidized model.
