The People’s Committee of Ho Chi Minh City has submitted a proposal to allocate 665 billion VND (approximately 26 million USD) to cover 100% of bus fares for a six-month period, according to official reports from the Vietnam News Agency. The initiative is designed to revitalize public transit usage, which currently accounts for only 1.6% of total travel demand in the city, significantly trailing the 7.23% target set for 2025.
The policy will be rolled out in two distinct phases. From July to September 2026, passengers will travel free of charge without identity verification. Starting in October, the program will transition to a system requiring passengers to scan a card or QR code to verify their identity, allowing the city to calculate subsidies based on real-time passenger data.
Of the proposed budget, 454 billion VND is earmarked for 109 existing subsidized routes, while 211 billion VND will support 26 non-subsidized routes. The city currently operates 180 bus routes, though the free fare policy specifically excludes inter-provincial services, airport shuttles, and open-top sightseeing buses. Current fares on subsidized routes typically range from 5,000 to 7,000 VND, with a reduced 3,000 VND rate for students.
Municipal authorities emphasized that the program is a social welfare initiative intended to reduce reliance on private vehicles and promote sustainable urban mobility. Previous attempts to boost ridership through temporary fare exemptions saw short-term gains, but officials hope the current long-term commitment will foster a more permanent shift in transport habits.