The Ministry of Transport has given approval to Vietnam’s biggest private conglomerate, Vingroup, to roll out a new passenger transport system using electric buses in Hanoi and Ho Chi Minh City.
In an official document sent to authorities of the two cities, the ministry said it had received and approved Vingroup’s proposal which aims to improve public transport networks and reduce environmental pollution in the country.
The project also aligns with the government’s target of developing the local automotive industry by 2025.
Authorities of Hanoi and Ho Chi Minh City are requested to ensure Vingroup follows all regulations on business operations and standards for transport service provision.
Notably, the electric buses must meet national technical regulations on safety and environmental protection standards.
As the vehicles have not been used in Vietnam, the country has yet to set bidding rules, legal frameworks, and service prices for them.
Therefore, the ministry asked the two cities to report on temporary special mechanisms given to this project.
Earlier, Vingroup had sought approval from the government to launch 15 electric bus routes in Hanoi and Ho Chi Minh City.
The buses can reach a maximum speed of 80 kilometers per hour and are capable of carrying 65 to 70 passengers each.