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Ho Chi Minh City to Spend $280M Annually for Free Bus Travel

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Ho Chi Minh City is poised to introduce free bus travel across its 135 intra-city routes, allocating approximately VND7 trillion (US$280 million) annually to support the initiative. This move aims to eliminate fares while enhancing infrastructure and service frequency to meet rising demand. The plan, announced by Party chief Tran Luu Quang, is expected to be finalized by late April.

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Currently, the city spends around VND1.5 trillion annually on subsidies for bus operations. Despite removing fares, the city will monitor passenger numbers through tech-based systems to ensure efficient budget management and maintain transparency in fund allocation. Ridership is anticipated to increase by about 30% compared to 2025 levels, putting pressure on operational capacity.

Authorities are evaluating whether the bus fleet can handle increased demand, focusing on boosting bus frequency and optimizing routes, particularly those connecting schools, industrial zones, and residential areas. The proposal is set to be reviewed by the city's People's Council later this month.

Ho Chi Minh City manages roughly 179 bus routes with over 2,100 vehicles. Free travel currently applies to seniors, young children, and people with disabilities. Standard fares on subsidized routes range from VND5,000 (US$0.19) to VND7,000 per trip. In 2025, nearly 97 million passengers used the network, marking a 6% year-on-year increase.

Efforts like electric bus rollouts and cashless payments have already drawn more users, a trend expected to continue under a fully subsidized model. The initiative aims to further enhance accessibility and improve public transportation usage city-wide.

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image.png  Adapted by ASEAN Now · VN Express · 03 Apr 2026

There is no free. Someone pays.

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