Losing out to ride hailing operators and social distancing, amongst others, HCMC bus services are struggling to reroute impacts of low demand.
Ho Chi Minh City’s Transport Department recently asked the city for a public bus subsidy of VND1.31 trillion ($56.8 million) this year, up 14 percent from an earlier estimate.
The reason cited for the increase is low demand during and after the social distancing period. Resumption of services has only reached 80 percent of the target and companies say they need to pay staff and service their debts during the social distancing period despite revenues plummeting.
Without the increase in subsidies, the department said it might have to cut 15 percent of bus trips in the last six months of the year.