Ho Chi Minh City department seeks for road fee cuts to ease pressure on transport firms

The municipal department has written to the Ministry of Construction and the Department for Roads of Vietnam, highlighting mounting challenges in managing and stabilizing road transport fares, and outlining a series of proposals aimed at supporting enterprises in the sector.

According to the municipal department, fuel expenses account for some 30-40 percent of transport companies’ total operating costs.

Recent fluctuations in fuel prices have significantly increased financial pressure, forcing many firms to scale back operations.

“Several companies have had to cut between 20 and 70 percent of their trips, with some operating at minimal capacity or even incurring losses,” the department stated.

To address these difficulties, the municipal department has urged the Ministry of Construction to consider reducing or waiving road usage and service fees in line with current economic conditions.

It also recommended that relevant agencies explore policies to defer or reduce certain financial obligations during this challenging period, enabling transport firms to maintain operations.

In addition, the municipal department proposed the Department for Roads of Vietnam study and develop a national database system for road transport fare declarations.

The system would be integrated between central and local levels, enhancing regulatory oversight and improving market forecasting amid fuel price instability.

For fixed-route passenger transport services, the municipal department suggested that provincial and municipal People’s Committees instruct bus station operators to coordinate with the provincial and municipal Departments of Finance to offer fee reductions to vehicles entering and exiting stations to ensure consistency in policy implementation nationwide.

In addition, under current regulations, passenger transport companies operating a fixed route are required to maintain at least 70 percent of their registered trips each month.

If a vehicle fails to operate at least 70 percent of its scheduled trips, its operating slot will be revoked.

If all slots on a route fall below 70 percent, the operator will lose its right to run that route.

To help stabilize transport operations amid fluctuating fuel prices, the municipal Department of Construction proposed temporarily lowering the minimum trip requirement that companies must meet each month.

Accordingly, authorities would refrain from revoking route operation rights for fixed-route passenger transport companies that complete at least 50 percent of their registered trips in a month.

The conflict involving the U.S., Israel, and Iran in the Middle East, which erupted on February 28, has caused sharp fluctuations in global energy prices, especially crude oil and natural gas.

Supply disruptions have pushed global oil prices upward, directly affecting Vietnam’s domestic fuel market and creating short-term price spikes that burden businesses and consumers.