HANOI, April 2 (Xinhua) -- Vietnam's southern hub Ho Chi Minh City plans to allocate about 7 trillion Vietnamese dong (about 278.86 million U.S. dollars) per year to make bus services free for all residents to encourage public transport in the city, local media outlet VnExpress reported Thursday.
At a conference on Wednesday, Secretary of Municipal Party Committee Tran Luu Quang said the policy is intended to ease traffic congestion and curb environmental pollution, according to the report.
Currently, free bus rides are provided to people aged 60 and above, children under 6, people who rendered service to the nation, and people with disabilities, at an annual cost of 1.7 trillion Vietnamese dong (67.74 million dollars).
According to Quang, alongside offering free fares, the city will improve service quality and expand route networks to enhance efficiency and the passenger experience, the report added.
The city, which operates around 2,300 buses, including 1,300 electric vehicles, is seeking to increase the share of electric buses through financial mechanisms.
