The first electric bus route in Ho Chi Minh City, numbered D4, has served some 2.8 million passengers, equivalent to 3,000 passengers per day, since it was put into operation nearly three years ago, according to a representative of VinBus Ecology Transport Services Company (VinBus), a subsidiary of major Vietnamese conglomerate Vingroup.

The e-bus route D4 starts at Vinhomes Grand Park in Thu Duc City and ends at Saigon Bus Station in District 1.

The route is one of the city’s busiest, according to a report from the Ho Chi Minh City Management Center of Public Transport.

The center noted that the e-bus service has gained strong support from residents, who appreciate its modern, eco-friendly features.

Passengers have praised the route for its spacious, air-conditioned buses, free Wi-Fi, quiet operation, and lack of pollution.

“During its trial period, the e-bus route D4 has gained trust among commuters. Many residents are opting to take e-bus rides to workplaces and school,” said the VinBus representative.

VinBus has received support from officials to operate the route, the representative stressed.

The e-bus route operator expected e-buses to not only meet residents’ commuting demand, but also contribute to encouraging people to shift to public transport means to ease traffic jams and reduce environmental pollution.

VinBus plans to attend tenders for the operation of bus routes to expand its e-bus route network.

Associate Prof. Dr. Vu Anh Tuan, director of the Vietnamese-German Transportation Research Center at the Vietnamese-German University, stated that Ho Chi Minh City's shift to e-buses follows a global trend.

He noted that the operational costs of e-buses are two to three times higher than those of traditional petrol-powered vehicles, placing significant financial strain on transport service providers.

To help offset these costs and encourage the expansion of the e-bus fleet, Dr. Tuan suggested that the city should offer incentives and subsidies.

He also highlighted the need to invest in charging infrastructure to support the growing number of electric vehicles.

Attractive policies for goal of transitioning to all-electric bus fleet by 2030

The Ho Chi Minh City Department of Transport has completed a plan for preferential policies to incentivize firms to shift to e-buses. 

The city aims to convert 100 percent of petrol-powered buses to e-buses by 2030.

Investors, firms, and cooperatives will be eligible for preferential loans from the Ho Chi Minh City Finance and Investment State-Owned Company to transition their vehicles to green energy or electric buses and to build charging stations.

The vehicle transition policy allows firms to borrow up to 85 percent of a project’s total investment.

Transport firms can get a preferential loan, with a fixed lending rate at three percent during the lending term.

The city’s budget will cover the gap between the rate set by the company and the fixed rate.

As for investments in charging infrastructure, transport firms can borrow 70 percent of a project’s total investment at the maximum.

Investors involved in building charging stations will receive preferential loan interest rates, equal to 50 percent of the rate set by the Ho Chi Minh City Finance and Investment State-Owned Company, while the city’s budget will cover the remaining half.

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