Điện Biên looks to boost public bus services with new support policies

ĐBP - Alongside continued investment in transport infrastructure, the province has been focusing on developing public passenger transport by bus to ease traffic congestion, reduce travel costs, and protect the environment. However, the system remains small-scale and underdeveloped due to a lack of mechanisms and supportive policies for both businesses and residents. There is now an urgent need for incentives to encourage private participation, fare reductions, and the gradual establishment of a modern, well-connected bus network.

Rich in historical and cultural tourism potential tied to the Điện Biên Phủ victory, Điện Biên province attracts hundreds of thousands of visitors annually to landmarks such as A1 Hill, De Castries’ Bunker, the Victory Monument, the Điện Biên Phủ Victory Museum, and the Mường Phăng Command Headquarters. The development of an intra-provincial bus network connecting these heritage sites with the city center and surrounding residential areas would not only enhance heritage value but also make travel more convenient for both locals and tourists.

In reality, bus operations across the province remain limited. Currently, six routes have been announced, but only one - the Điện Biên Phủ - Mường Ảng (former) route - is operational, running 12 trips per day, with about 2,180 trips per year at a fare of VND 35,000 per ride. The Department of Construction is completing procedures to launch two additional routes, expected to operate 16 trips daily and serve around 8,000 passengers per month, 15% of whom are priority groups.

According to Nguyễn Đức Long, Director of Xuân Long Tourism Joint Stock Company, the firm maintains 12 daily trips between downtown Điện Biên Phủ City and Mường Ảng. However, the efficiency remains low, with many buses running nearly empty, leading to operational losses. In 2024, the total ridership was just about 8,200 passengers, generating only VND 180 million in revenue, insufficient to cover costs. “Since we already invested in the route, we’re trying to keep it running despite the losses”, said Long.

Most bus stops are deserted; many buses are used mainly for carrying goods.

 

Compared with other passenger transport types, bus services require large initial investments -  about VND 1.5 billion per new vehicle - with long payback periods and relatively low service demand, making the sector unattractive to investors. Access to land for bus infrastructure and to capital for scaling operations or upgrading vehicles remains difficult, as operators currently bear 100% of vehicle costs. This discourages many transport businesses from entering the market.

To develop public bus transport and gradually shift citizens’ and tourists’ travel habits, supportive mechanisms and incentives are essential. These include policies to fund vehicle purchases, build bus infrastructure, and subsidize fares to encourage ridership, especially among workers and low-income residents. The province also aims to attract both local and external investors to expand fleets, improve infrastructure, and sustain long-term public transport services.

According to the Department of Construction, the provincial People’s Committee is reviewing a proposal to submit to the provincial People’s Council, seeking a resolution on interest-rate subsidies for credit loans related to bus investments and infrastructure projects, as well as fare reductions for bus users. These policies are designed to encourage companies to modernize their fleets and improve service quality while attracting more people to switch to public transport, cutting travel costs, reducing private vehicles, ensuring traffic safety, and protecting the environment.

Under the draft policy, the total loan amount eligible for interest-rate support would not exceed 50% of each project’s approved total investment. Projects involving electric or green-energy buses would receive a 70% interest-rate subsidy; other new bus purchases and infrastructure projects would receive 50%. Support would last for up to 60 months from the first loan disbursement.

The plan also proposes fare exemptions and reductions. Free fares would apply to children under six, Vietnamese heroic mothers, war invalids, heroes of the people’s armed forces, labor heroes, those affected by toxic chemicals during wartime, and people with severe or extremely severe disabilities. A 50% fare reduction on monthly passes would be offered to people with mild disabilities, students, and the elderly as defined under the Law on the Elderly. In addition, all Vietnamese citizens living or working in the province would receive a 30% discount on monthly passes.

Deputy Director of the Department of Construction Phạm Trọng Tài stated that the proposed bus transport support policy is expected to generate positive impacts. “The mechanism will make bus operations more organized and efficient, improve management capacity, and align with the province’s goals for sustainable urban development and transition from fossil fuels to green energy”, he said. The policy also aims to attract private investment, foster healthy competition, and motivate companies to upgrade fleets and improve services at reasonable costs. For the public, it would lower travel expenses, especially for low-income groups, students, and workers, while reducing emissions, protecting the environment, and improving mobility for the elderly, people with disabilities, and the poor.

The development of public bus transport is not only a practical solution to reduce private vehicle use, enhance traffic safety, and protect the environment, but also a key measure to improve quality of life and boost tourism and socio-economic growth. Once support mechanisms are in place and effectively implemented, with cooperation from both businesses and residents, Điện Biên is poised to build a modern, convenient, and sustainable bus network, turning public transport into a familiar, eco-friendly, and essential part of daily life.

Quốc Huy
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