Developing environmentally friendly transportation system

Ho Chi Minh City is accelerating the issuance and implementation of investment policies to “green” its transportation system and develop a sustainable and eco-friendly public transport network, prioritising clean, zero-emission vehicles.
According to Ho Chi Minh City’s roadmap, all newly launched bus routes in 2025 must use electric or green energy-powered vehicles.
According to Ho Chi Minh City’s roadmap, all newly launched bus routes in 2025 must use electric or green energy-powered vehicles.

Reducing pollution and carbon emissions

Opting for the newly launched electric bus route from her apartment complex to Rach Chiec Station to transfer to Metro Line 1 (Ben Thanh - Suoi Tien), Nguyen Thanh Huong, a resident of An Phu Ward, Thu Duc City, found the fare reasonable due to government subsidies, similar to regular buses. Additionally, she appreciated the environmental benefits, including reduced pollution and emissions. This electric bus route is part of 17 new electric bus lines introduced by Ho Chi Minh City’s Public Transport Management Centre to enhance access to Metro Line 1.

According to a recently proposed plan submitted by the People’s Committee to the City Council, Ho Chi Minh City will encourage transport operators to invest in and transition from gasoline- and diesel-powered buses to electric buses by 2030. The city aims to achieve a 100% transition to electric or green-energy-powered public buses by 2030. Furthermore, all new bus routes introduced from 2025 must use electric or green-energy vehicles.

Ngo Hai Duong, Head of the Road Transport Management Division at Ho Chi Minh City’s Department of Transport, stated that by 2030, the city is expected to have 3,317 buses. Without a timely transition plan and supportive policies for converting public buses to electric and green-energy alternatives, the number of vehicles on new routes could increase by 50% compared to current levels. This would exacerbate transportation-related pollution, negatively impact public health, and result in economic losses for the city. Ho Chi Minh City has 2,209 buses operating, including 528 running on CNG, emitting 553,000 tonnes of CO₂ annually.

In response to Deputy Prime Minister Tran Hong Ha’s directive on green transport development policies, Ho Chi Minh City’s People’s Committee is reviewing policies to support the transition from fossil fuel-based vehicles to clean energy alternatives. Measures will also be implemented to control vehicle emissions in high-pollution areas.

The Department of Transport has divided the vehicle control plan into two phases, including researching and developing policies to encourage the adoption of electric and green-energy public buses within the city and expanding policy support for transitioning other transportation modes, starting with pilot programmes in Can Gio District and select central districts.

Prioritising development of charging stations

The transition to electric vehicles requires an integrated energy infrastructure that aligns with the conversion plan and meets the demand for electric-powered vehicles. The feasibility of shifting to electric and green-energy public buses depends on the development of an adequate charging station network.

According to estimates, by 2030, Ho Chi Minh City’s 3,317 buses will require at least 25 charging stations equipped with 269 charging units. Additionally, the city’s 528 CNG-powered buses will need at least six CNG refueling stations. However, the current number of charging and CNG refueling stations is severely insufficient, with no clear development plan.

Nguyen Duy Khanh, Director of the Bus Transport Enterprise (Saigon Passenger Transport JSC), fully supports the transition to green vehicles, aligning with Vietnam’s Net Zero commitment. However, he raised concerns over investment costs, as an electric bus costs three to four times more than a diesel or CNG bus. Furthermore, the city lacks a public charging station network to support electric buses.

Khanh’s concerns reflect the challenges faced by transport businesses. At present, the only electric charging station in the city is operated by VinBus in Thu Duc City, exclusively serving the company’s fleet, without access for other operators. Therefore, Ho Chi Minh City must develop and implement a clear transition roadmap with supportive policies, particularly for electric public buses, to encourage investment in vehicle conversion and charging infrastructure.

The Public Transport Management Centre estimates that Ho Chi Minh City will require approximately 3.52 trillion VND (about 138 million USD) for the 2025-2030 public transport transition programme. This includes 2 trillion VND (78 million USD) in loan interest subsidies for vehicle conversion and 1.3 trillion VND (51 million USD) for charging station construction.

With attractive policies to encourage the shift from fossil fuel-based public transport to electric and green-energy alternatives, Ho Chi Minh City aims to ensure the timely implementation of its green energy transition roadmap. This effort is part of the government’s strategy to reduce carbon and methane emissions in the transportation sector, as outlined in Decision No. 876/QĐ-TTg, issued on July 22, 2022, by the Prime Minister.