Vietnam is advancing its efforts towards sustainable urban transport, with Ho Chi Minh City proposing a plan to transition its public transport system from compressed natural gas (CNG) to electric buses.

The Ho Chi Minh City People's Committee has submitted a proposal to the City People's Council for a resolution outlining a roadmap and support policies for the transition of public transport vehicles. The plan recommends a gradual replacement of CNG buses with electric ones, with the objective of establishing a green transport system.

According to the Committee, the transition aims to promote environmentally friendly transport, reduce greenhouse gas emissions, and improve urban air quality.

At present, the city operates 2,386 buses across 176 routes, including 627 electric buses (26.3%) and 451 CNG-powered buses (17.9%).

Under Circular No. 53/2024 issued by the Ministry of Transport, CNG buses are classified as environmentally friendly vehicles because they emit less carbon than petrol or diesel-powered buses.

However, they do not fall within the "clean or green energy" category, which includes electric, fuel cell, and hydrogen-powered vehicles.

As a result, all existing CNG buses will need to be converted to electric or other green-energy models in the near future.

Data show that the city's current bus fleet emitted approximately 553,000 tons of CO2 in 2024. If the number of routes increases to nearly 300, with more than 3,600 buses by 2030, but the transition to green energy has not been implemented, annual emissions could exceed 838,000 tons of CO2.

The transition is regarded as a necessary and long-term measure to reduce air pollution and greenhouse gas emissions in the transport sector.

Under Phase 1 of the city's vehicle emission control project, it is proposed that existing CNG buses be permitted to operate for a maximum of 15 years, allowing the continued use of efficient vehicles and limiting social costs.

Currently, around 96% of the city's buses have been in operation for no more than 15 years, with 96 buses aged between 11 and 15 years.

Between 2025 and 2030, the city plans to replace over 1,500 existing buses and invest in approximately 1,400 new ones, with the goal of achieving a fleet composed entirely of electric or green-energy buses by 2030.

The proposal also includes financial support policies:

The city will subsidise up to 85% of the investment loan for electric buses, capped at VND 300 billion (US$ 11.4 million) per project. Investors will pay an interest rate of 3% per year, and the difference will be covered by the city budget.

For charging stations, the city will fund up to 70% of construction costs and 85% of equipment costs, capped at VND 200 billion per project.

The interest rate support period will last for up to seven years, commencing from the date of the first disbursement.

Based on the legal framework and the contents of the proposal, the Ho Chi Minh City People's Committee has reported to the Standing Committee of the City Party Committee, seeking approval for the issuance of a City People's Council resolution to implement the transition plan.