VietNamNet Bridge – Bus fares in Ha Noi will continue to rise after more cuts to government subsidies, Ha Huy Quang, deputy director of Ha Noi’s Transport Department said at a press conference on Tuesday.

Passengers take the bus in Ha Noi.

The prices have risen as the State budget can no longer fund the current level of subsidies, according to the official.

The city will balance fuel, insurance and maintenance costs from ticket revenues.

Increasing operating expenditures have also affected fare prices.

The current monthly ticket price on subsidised bus routes is VND55,000 (US$2.4) and VND100,000 (US$4.5) for college students, industrial zone workers and people above 60.     

One-way ticket prices range from VND7,000 to VND,9000.

The new fare prices were not made available at time of print.

State subsidies for many bus routes aim to encourage travel by bus to reduce traffic jams.

Over the last six months, the city budget has spent VND823 billion (US$36.5 million) on subsidising bus prices. While it spent VND973.6 billion ($43 million) for the whole 2015 and VND1,078 billion ($48 million) for 2014.    

At the conference, Quang said 40 bus-involved crimes were reported during the last six months.

Stealing, bus drivers breaking traffic laws and arguments between drivers and passengers were all reported.    

The department has reported that the bus system in the capital has improved quality of service and infrastructure over recent few years.

There are now 92 bus routes in the city, of which 72 routes use subsidised prices.

The department is expected to continue expanding routes in the coming years.

Over the last five months of this year, 24 bus routes have been upgraded.

Quang said the city invested VND2.8 billion ($125,000) to maintain signal boards and lighting systems at bus-stops.

The deputy director said the city would develop bus systems in new urban areas, industrial zones, and Ha Noi’s outskirts.

VNS