Bus operators in HCM City are reeling under high losses and want the administration to increase the rate of subsidy that has not been adjusted for the last two years.

Bus operators have asked HCM City authorities to increase the rate of subsidy due to losses they are facing.

But the Alliance of Transport Co-operatives is in the biggest jam with a loss of VND40 billion.

The general director of the alliance, Phung Dang Hai, said the subsidy paid by the city for the bus system has remained unchanged for the last two years despite soaring fuel prices and labour and other costs.

He also blamed the losses on the congested roads and a 10 per cent fall in passenger numbers since people prefer to travel by motorbikes that move easier on crowded streets.

Dozens of buses now stand idle because their owners refuse to operate them for fear of enlarging the losses.

The alliance has asked the People’s Committee to quickly readjust the subsidy rates and ticket prices and take measures to clear the congestion on the roads, including by limiting the number of motorbikes, which has been increasing rapidly.

VietNamNet/Viet Nam News