Business
HCM City bus co-operatives face suspension due to financial difficulties
  • | dtinews.vn, NLD | July 08, 2020 08:18 AM

Many bus co-operatives in HCM City may suspend operations from August 15 due to financial difficulties.

Nguyen Van Leo, general director of HCM City Transport Joint Stock Company, said that the firm and 11 bus co-operatives in HCM City had rejected the city’s bus subsidy plan.

  

A bus in HCM City


The subsidy for bus enterprises accounted for just half of that of last year, which operators claim is not enough to cover their operational costs.

Meanwhile, the HCM City Department of Transport has recommended increasing the bus subsidy this year by VND161 billion (USD7 million) from the current VND1.31 trillion (USD56.52 million).

If the recommendation is not approved, many bus companies in HCM City would have to halt operation or reduce bus routes following the sharp fall in passenger numbers as a result of the Covid-19 pandemic.

Many bus routes in HCM City were suspended because of their modest passenger numbers. Most recently, the Ben Thanh-Mien Tay Station (number 2), Mien Tay Station-Cu Xa Nhieu Loc (number 144) and Ben Thanh-Dam Sen (number 11) routes stopped operations from July 1.

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