return icon

Authorities warn transport companies on fare prices

Fuel prices have fallen back to the pre-January level, but many transport firms still refuse to adjust their fares, according to authorities.
Vehicles at Giap Bat Bus Station. Authorities have warned firms unwilling to cut fares that their vehicle badges could be revoked. VNA/VNS Photo

Tran Bao Ngoc, Head of the Ministry of Transport's Transportation Department, estimated that fuel costs account for 30 to 40 per cent of transport firms' total costs.

As the firms raised fares to cover higher costs when fuel prices rose, it makes sense to require the firms to cut fares when prices fall.

Fare cuts take time because they involve administrative procedures. However, many firms use the time lag as an excuse for their slow reaction to falling fuel prices.

"Firms should not react too slowly to falling fuel prices. Fuel takes up 30 to 40 per cent of their total costs, but it has plunged in price, so any further delay in fare cut will be unacceptable," he said.

Ngoc urged transport firms to quickly submit new fare proposals to the local Departments of Transport for approval and announce the fares once approved.

He also said that his department would step up inspection in the short-term to ensure firms stick to their announced fares, preventing mere lip service.

"For firms which keep sitting tight amid falling fuel prices, the authorities will go so far as to revoke their vehicle badges," he added.

In a press conference in July, Deputy Minister of Transport Nguyen Xuan Sang underscored fuel as the key contributory factor in transport firms' cost structure.

He said 80 to 90 per cent of the firms lifted fares by about 15 per cent to cover higher costs when fuel prices were climbing, but not the other way around.

This is because the recent price falls were not large enough to incentivise firms to reverse course.

For this reason, the ministry has urged its agencies to inspect involuntary firms and request them to take action to slash fares.

The Ministry of Finance did likewise, asking relevant agencies to study transport fares and report their proposed fares to the ministry to develop suitable policies on price management.

The Prime Minister has requested ministries and agencies to keep a close watch on the situation to prevent opportunistic price rises and to keep inflation in check.

The PM also requested the ministries and agencies to assess the impact of falling fuel prices on firms' costs and call on firms to cut fares if possible. 

Source: Vietnam News


Fashion shows to spread quintessence of Vietnamese culture and heritage

The series is the brainchild of former supermodel Ha Vy and director Hoang Cong Cuong, who is the mastermind of several big events in Vietnam including the opening ceremony of the Southeast Asian Games (SEA Games) 31 in Hanoi in May.

Low-carbon rice production helps Vietnam meet emission target

Rice, which is Vietnam’s most important crop and grown on more than half of its agricultural land area, accounts for 48 per cent of the agriculture sector’s GHG emissions and over 75 per cent of methane emissions.


Number of air passengers down 14% in September

Vietnam needs highly skilled labour force to compete

The vocational training system of Vietnam needs reforming to create highly-skilled human resources that meet the requirements of the labour market in increasingly integrated international market, experts said.

Lengthy visa process a setback for FDI firms

The visa process does not always go smoothly. Sometimes, it moves so slowly that some specialists cannot enter Vietnam on schedule, leading to production disruptions.

Petrol and oil price stabilisation fund requires thorough appraisal

The Government needs to carefully evaluate the effectiveness of the petrol and oil price stabilisation fund in keeping the commodity’s retail prices stable before deciding to maintain or eliminate the tool, experts said.

Embedded finance the next big thing: summit

Embedded finance is the next big thing in the financial services industry as it has integrated seamlessly into the local fintech landscape in recent years, experts said at a meeting last Friday in HCM City.

Entertainment and cultural events of the week (September 26-October 2)

Upcoming entertainment and cultural events in Vietnam's major cities on September 26-October 2.


PM orders urgent measures against Storm Noru

Beauties wow in traditional costume contest at Miss Grand Vietnam

Vietnamese beauties boasted of their charm in a traditional costume segment of the ongoing Miss Grand Vietnam 2022 taking place on September 23.

State Bank’ rate hike necessary to defend VND, control inflation: ADB Country Director

ADB Country Director Andrew Jeffries has talked on the recent interest rate hike by the State Bank of Vietnam in the context of the Fed, ECB and a number of countries raising their rates to curb inflation.

Prop-tech has potential but faces challenges

Many prop-tech startups are facing challenges, though it is a new market with potential in Vietnam.

Prime Minister asked to stabilise rice price

India's restriction on rice exports is said to have an impact on the volume and price of Vietnamese rice exports.

Vietnamese artworks to go under the hammer in France

The auction’s highlight is Les Rapides de Cho Bo, a six-panel lacquer screen with gold highlights, painted in 1942 by Le Quoc Loc. The artwork is estimated to fetch €400,000 ($396,000), the highest price of the lot.

A pearl in mountainous province

Referred to as the “Halong Bay of the northwest region”, Nong Dung Lake has recently been attracting tourists as an ecotourism destination due to its emerald water and poetic scenery.