In a report released at a Thursday press conference, the department announced that the D4 bus route operated by the VinBus Company using large electric passenger buses incurred losses of nearly VND30 billion after a nearly two-year pilot.
According to the department, the D4 route which connects Saigon Bus Station and Vinhomes Grand Park Urban Area transported 819,075 passengers on 28,842 trips in the first nine months of this year.
"These buses have helped ease traffic congestion and reduce pollution on local streets," the department said. "The service has also received good feedback from customers, getting marks 89-95 out of 100."
However, VinBus said that the state subsidy of 44.10 percent was too low, leading to losses of VND 16.10 billion in 2022, and VND12.50 billion in the first eight months of 2023.
The company proposed that the government raise the subsidy from 44.10 percent to 64.80 percent. If their proposal was not approved, VinBus may have to stop operating the route by the end of this year.
The D4 bus route runs 29 kilometres from Vinhomes Grand Park Urban Area in Thu Duc City to Saigon Bus Station in District 1.
This is the first public bus route using electric vehicles being piloted in HCM City. The city is planning to launch four more routes by May next year.
