Vietnam - Legal struggle fails, ads on buses still banned in HCM City

VietNamNet Bridge – While posting ads on buses has been very popular in big cities like Hanoi, Hai Phong and Da Nang, the ads on buses still have been prohibited in HCM City for the last 10 years.

Over the last 10 years, ad firms have been trying every possible method and sending petitions to every competent agency to demand for the right to post ad pieces on buses. However, their efforts have been in vain: the HCM City still has not removed the ban on the advertisement on businesses, according to Nguyen Quy Cap, Deputy Chair of the HCM City Advertisement Association.

The ban has deprived ad firms of their business opportunities, while the city’s budget has lost a big source of income.

Prior to 2013, the Ordinance on Advertisement enacted by the National Assembly’s Standing Committee on November 16, 2011, was the highest-level legal document in the field. The legal document allowed to post ads on buses as a moveable subject.

The government’s Decree No. 24 issued on March 13, 2003, guiding the implementation of the ordinance, and other ministerial circulars all mentioned the advertisements on buses and the stipulated the fees for the ads.

Since January 1, 2013, the Advertisement Law has been taking effect, replacing the ordinance. The law also stipulates that means of transport are the allowed subjects for posting ads.

In fact, the first ads on buses appeared in HCM City in 1992 already, when there was no detailed regulation on the ads on transport means. However, in 2001, the city’s authorities suddenly decided that ads must not appear on public means of transport, which then stirred up the public.

In 2008, the HCM City Transport Department drafted a project on allowing commercial ads on bus bodies. The city’s authorities then released a new document with some changes with the advertisement procedures. However, the new document did not “pave the way” for posting ads on public means of transport.

In 2010, the Ministry of Culture, Sports and Tourism sent a document to the HCM City People’s Committee in 2010, stating that it is illegal to prohibit the ads on public means of transport and requesting the city authorities to settle the problem.

However, only in 2011 did the HCM City People’s Committee accept the request and assign Vision, a joint stock company, to draw up a plan on the exploitation of commercial ads on buses.

However, no further progress has been made in the field over the last two years.

State management agencies have pointed out that there has been no legal foundation for the HCM City to make the decision to prohibit ads on buses. This has also put the subjects in the national economy in an unfair playing field, while having caused a conflict of laws. A regulation could be legal in some places, but is prohibited in other places.

A paradox has been existing in HCM City over the last 10 years, that the buses belonging to HCM City must not have ad pieces on their bodies. However, the buses, also rolling on HCM City streets, but they are put under the control of other localities or the central agencies, can have ad pieces on their bodies.

A report showed that there are 143 bus routes in HCM City and 3,200 operational buses. If noting that a bus can earn VND33-50 million a year from ad pieces, the city budget would get VND120-150 billion a year.

DNSG

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Vietnam - Huge bus fare rises in capital

HANOI – From October 1 bus fares in Hanoi City increase by a whopping 40-75% subject to specific distances, according to Nguyen Hoang Hai, director of the Hanoi Urban Traffic Management and Operation Center.

Currently, bus rates are fixed based on Decision No. 35/2005/QD-UB issued on March 15, 2005 by the city authorities, Hai told a meeting with local media on Tuesday in Hanoi. But the rates are no longer suitable given higher input costs of public transport in recent times, Hai explained.

The State subsidized rate over the total expenses of public transport rose to 68% last year from 41% in 2006, and it will continue to soar and place pressure on the city budget if no fee adjustments are completed, Hai noted.

Figures from the city’s Department of Transport indicate the local budget has to set aside a large amount of money to subsidize public transport which steadily rises annually, from VND203 billion in 2006 to up to VND1.332 trillion last year.

Similarly, representatives of the transport department also support the fee increases, saying it is a good way to increase sales of involved companies and gradually reduce their financial dependence on the State Budget.

Thanks to the bus fare increases, transport firms’ income will increase by VND281.1 billion to VND690.4 billion a year if the number of monthly-ticket users remains unchanged, according to the department.

Bus fares are expected to rise 66% to VND5,000 for 25 kilometer or shorter journeys and by 75% to VND7,000 for 25-30 kilometer rides. Meanwhile, the priority prices applicable to students will be increased between VND45,000 to VND90,000 a month from the previous VND25,000-50,000.

As such, one passenger will pay 86% of the expenses on average for a single route, with the remainder sourced from the State Budget. Monthly-ticket users will pay 26% each, meaning the level subsidized by the State is up to 74%.

Minh Duc - The Saigon Times Daily

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Vietnam - 22 percent of inspected coaches are unsafe

VietNamNet Bridge – The Hanoi Department of Transport recently combined with the Vietnam Vehicle Registration Agency to check the quality of coaches in the city. Up to 22 percent of inspected coaches are unsafe, the department reported.

The two agencies randomly checked 89 coaches at the coach stations of Giap Bat, My Dinh and Gia Lam on June 7. They detected 37 coaches that did not meet standards, equivalent to 41.5 percent, including 27 coaches that failed to meet criteria on exhaust fumes and 20 others did not satisfy standards on brake systems.

Inspections at My Dinh coach station on April 12 revealed seven out of 19 coaches did not meet standards.

Inspections at My Dinh and Giap Bat on April 16-17 detected 19 out of 46 coaches violated regulations on safety.

All drivers and representatives of related transport companies were summoned to make a commitment on upgrading vehicles to ensure conditions on safety.

The two agencies will continue inspecting coaches in June.

So far this year, traffic inspectors imposed fine worth nearly VND1 billion ($50,000) on over 2,600 coaches for violating traffic and safety rules.

The Hanoi Transport Corporation (Transerco) has announced to put into operation 52 new buses. It also confirmed that all of its busses are less than 10 years old.

Mai Lan

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Vietnam - Toll unlikely to help reduce personal vehicle use

In response to the Transport Minister’s proposal to levy yearly traffic fees on personal cars and motorbikes, as well as a charge on cars that enter the downtown area of cities during rush hours, many experts argue that this solution is unlikely to effectively ease traffic jams or reduce the use of personal vehicles.

According to the proposal, which was submitted to the government on December 30, 2011, cars with fewer than 9 seats will pay a traffic fee of VND20 million – 50 million (US$950) per year, depending on their cylinder capacities. Meanwhile, motorbike users will pay a fee of $24-48.

In addition to these annual fees, drivers of cars with up to seven seats entering the central areas of cities during rush hours will pay a charge of VND30,000 per entry, and for cars of other kinds, the charge will be VND50,000.

The rush hours have been determined to be from 6:00 to 8:30 am and from 4:00 to 7:00 pm every day, except Saturdays and Sundays.

However, many experts said such a fee would only help increase the State budget’s revenue while failing to reduce the use of personal vehicles.

Dr Nguyen Bach Phuc, chairman of the HCMC Association of Consultants in Science, Technology and Management, said congestion results from various factors, not only from the use of personal vehicles.

“Most residents prefer to use their own vehicles over any means of public transportation, so I think 99.9 percent of motorbike users are be ready to pay a fee of 1 million per year, or VND80,000 per month, so that they can continue to use their vehicles.”

As for car owners, as most of them are well-to-do, a fee of VND20-50 million per year is not even worth much though. They will continue using their own cars and will not use buses, Phuc said.

Le Hieu Dang, former deputy head of the HCMC Fatherland Front Committee, said it was not reasonable to impose such a fee while thinking that it would help diminish congestion, since the problem stems from other factors, including poor traffic infrastructure and traffic law compliance of vehicle operators.

“People have already incurred many fees with the cost of living on the rise. Having to pay one more fee is an additional burden on them,” he said.

Traffic infrastructure and traffic transportation means have yet to satisfy the demand of the public, so it is not appropriate to restrict the use of personal vehicles, he said.

“Such an imposition of traffic fees is not a sound solution, and will not reduce the use of personal vehicles or ease traffic congestion,” he added.

Considering the current traffic conditions in Vietnam’s urban areas, the levy of such a fee will not result in a reduction in use of personal vehicles, which have been the most effective means of travel for the public in general, said Dr. Nguyen Huu Nguyen at the Southern Economic Research Center.

Thai Van Chung, general secretary of the HCMC Cargo Transportation Association, said even if the State levies a higher fee, it is unlikely that people will abandon the use of their own vehicles, since they have no other choice: buses are failing to meet increasing travel demands, and any metro systems are still a long way off.

TUOITRENEWS

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Vietnam - Why I stop taking the bus

As a government employee in Hanoi, I tried taking the bus to work from mid-2011; however, I have given up on this public transportation due to several reasons.

Firstly, the pick-pocket issue. Many criminals have taken advantage of the overcrowded situation on the bus during rush hour to steal from passengers. After four months using the bus, I have twice lost my wallet.

I once pointed out a young man who I knew for sure had taken my wallet on the bus. However, he denied and even threatened to beat me. The least I could do is to beg for my wallet with my ID back. Of course VND1 million (US$50) inside had gone missing. People around me on the bus just looked on and stared at me indifferent. The bus driver and assistant did not do anything as their job was just to drive and check tickets.

Secondly, many buses in Hanoi have become overloaded. Over the past four months, I had to elbow my way to get on the bus and it was always impossible to find a seat. The bus quickly becomes jammed from 6am in the morning. Do I need to take a bus at 5am in the morning and go back at 7pm in the evening for my nine-to-five job?

Thirdly, I found many staff on the bus are hot-tempered and often shout at passengers. At first, I thought some of them were not polite but later I came to understand that they are all like that. Talking to the drivers and assistants, I got to know that they are always under stress. Their work is intense and exhausting and their pay is low. They can even lose their monthly wage if the bus has any accident, however minor it is. Thus it is impossible to ask for politeness and gentleness from them.

Last but not least, the current bus system lacks both quantity and quality. There are not enough buses servicing passengers during rush hour. As a result, many people get squeezed inside a small bus, making it a perfect place for pickpockets. Besides, passengers have to wait a long time for buses to arrive.

In addition, buses in Hanoi are too old to attract the public. The relevant authorities should understand that buses nowadays are not a means of transportation for the poor but they are meant for everyone living in the city.

It is great that the Minister of Transport initiated a campaign encouraging citizens to take a bus to work. However, there should be more improvements to this public transportation before we are willing to leave our bikes at home and rely on the bus for our daily commute.

TRAN NGUYEN VAN

* This is a translation from a reader’s letter posted on VnExpress site.

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Vietnam - Motorbikes or no motorbikes?

The government has asked the Transport Ministry to draft a plan restricting the circulation of motorcycles in major cities to curb the country’s worsening traffic problem.

The ministry has been ordered to submit the plan to the government by the end of 2012.Â

In another resolution issued late last month, the government also asked Hanoi and Ho Chi Minh City to ban motorcycles and cars on certain streets during certain hours.

This is not the first time the government has considered banning motorcycles to clear clogged streets in motorbike-dominated Vietnam.

In 2003, the Ministry of Public Security issued a circular limiting each person to one motorcycle registration only. The circular was issued after the number of motorcycles was found to have increased up to 21 percent that year.

However, the decision was soon abolished, as it was found to have violated an article in the constitution on the right of ownership.

Also in 2003, Hanoi issued a decision to halt the granting of motorbike licenses in four districts – Hoan Kiem, Ba Dinh, Dong Da and Hai Ba Trung. Those were later followed by Cau Giay, Thanh Xuan and Tay Ho districts.

However, in 2005, this decision, too, was abolished.

Currently, there are around 3.8 million motorcycles and 368,000 cars in the capital city, with a population of more than six million people.

Between January and July this year, Hanoi licensed an additional 4,000 cars and 20,000 motorbikes each month.

HCMC, with a population of more than seven million, has around 4.7 million motorcycles. Each year, an estimated 300,000-350,000 new motorcycles are licensed in the city.

The Transport Ministry forecast that there will be 36 million motorcycles in the country by 2020.

Motorbikes have long been blamed for traffic in big cities. A recent study by the HCMC University of Technology said motorbikes and their consequences – such as fuel, pollution, traffic jams and accidents and injuries — cost an estimated annual US$1.07 billion in losses for the southern metro, or 11.2 percent of its gross domestic product (GDP).

Motorbikes are pulling the city’s growth rate down, and reducing motorbikes means improving the quality of life in the city, the study concluded.

Substitutes Nguyen Hoang Linh, deputy chief of the Hanoi transport department, told Thanh Nien there should be no immediate ban on people’s property ownership, including vehicles.

Authorities should only issue regulations on the operation of vehicles, he said.

“In my opinion, we should develop and facilitate the use of public transportation for people first.

“Gradually, we can take measures to ban private vehicles like motorcycles and cars on certain streets during certain hours.”

According to the Hanoi Transport Corporation, there are more than 70 bus routes in Hanoi with over 1,000 buses and 1,300 stations, catering to more than 400 million trips a year.

However, others argue that the number of bus passengers has not increased over the last few years due to low service quality.

Subway projects are expected to be substitutes for buses, but most of them are delayed.

Cautious steps

Vietnamese authorities are still handling personal vehicle issues with caution. The public has protested against any possible ban on motorbikes and cars in the near future.

Vo Kim Cuong, chief of the HCMC Urban Management Study Program, said the best way to handle the traffic problem is to make public transport effective enough so that people will give up their personal vehicles.

“We should not force people to get rid of motorbikes in order to make room for buses.

“Motorbike and bus: it is a healthy competition; whichever is more convenient, will win.”

Nguyen Huu Nguyen of the Southern Economic Research Center warned that any immediate ban on motorbikes may cause disorder in the daily lives of HCMC residents.

“Sad but true, motorbikes have proven to be the most convenient and effective means of transport for people in the city.

“In many residential areas, where people live in small alleys, they have no option but to drive motorbikes because there are no buses that go to their homes.”

By Mai Ha-Phuong Thanh, Thanh Nien News

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