Electric and CNG buses face difficulties
In 2022, the Ho Chi Minh City People's Committee approved the pilot project of 5 electric bus routes , operated by VinBus Ecological Transport Services Co., Ltd. The D4 electric bus route (Vinhomes Grand Park - Saigon Bus Station) is the first route to be put into operation since March 2022, and has quickly won the hearts of passengers, with the number of passengers doubling compared to the initial period of operation.
However, the remaining 4 electric bus routes in the pilot program have not yet come into operation. The main reason is that the construction of the depot in Thu Duc City has encountered many difficulties, especially complicated legal procedures and long appraisal time.
Besides, financial problems are also a major barrier to the development of electric buses in Ho Chi Minh City.
Currently, the subsidy rate for the D4 electric bus route is only two-thirds of that for routes running on diesel or compressed natural gas (CNG), while the operating cost of the electric bus is significantly higher. This has caused the operating company to incur a loss of more than VND33 billion after nearly two years of operation.
In addition to electric buses, since 2010, Ho Chi Minh City has begun piloting buses using CNG with the aim of reducing CO2 emissions. However, operating CNG buses also faces many difficulties, especially in fuel supply. Currently, the entire city has only 3 CNG filling stations, causing drivers to have to wait for a long time and face difficulties in case the station has problems.
According to statistics, bus operations in Ho Chi Minh City currently emit more than 6,700 tons of CO2 from diesel vehicles, more than 1,100 tons from CNG vehicles, while electric buses only emit about 27 tons. This shows that switching to electric buses will help reduce CO2 emissions by up to 48.93%, in line with the "Net Zero" orientation.
Need breakthrough policy
According to Mr. Pham Vuong Bao - Deputy Director of the Ho Chi Minh City Public Transport Management Center, the city currently has 2,209 buses in operation, of which 546 use electricity and CNG. The city is studying a proposal to convert all new buses from now until 2025 to use CNG and electric vehicles. By 2030, 100% of buses in Ho Chi Minh City will use green energy.
However, to achieve this goal, the city needs to have breakthrough policies. One of the issues that needs to be solved is to build a set of standard prices for electric buses so that appropriate subsidies can be applied.
Associate Professor Dr. Vu Anh Tuan - Director of the Vietnam - Germany Transport Research Center - emphasized that Ho Chi Minh City needs to have a long-term planning for infrastructure, especially the charging station system and incentive and subsidy policies in the initial stage for people and businesses to participate in the conversion. Mr. Tuan also proposed that the State and the private sector need to cooperate in converting public vehicles from using gasoline and diesel to running on electricity.
Converting all buses to electric buses is a big challenge, requiring strong support from the State, especially in the initial investment phase. Therefore, sharing and support from the State is needed.
According to Mr. Tuan, Ho Chi Minh City can refer to experiences from countries around the world and apply them appropriately to the city's characteristics.
“When electric buses operate, they will bring better value, and ticket prices can be adjusted higher to offset investment costs,” said Mr. Tuan.
Mr. Tran Quang Lam - Director of the Ho Chi Minh City Department of Transport - said that Resolution 98 of the National Assembly has allowed the City People's Council to issue policy mechanisms to convert vehicles using fossil fuels to green energy, while at the same time linking it with the development of public transport. According to Mr. Lam, to develop green transport, it is necessary to have a separate mechanism.
The green transport roadmap in the city is divided into two phases. Phase 1 (from now until September 2024) will focus on completing the mechanism for converting public vehicles to electric or CNG vehicles. Phase 2 (after 2025), the city will convert all vehicles, including public vehicles, private vehicles, motorbikes and cars, to use electric energy. The city will also implement the conversion according to each region, area and specific target group, with clear control procedures and standards.
