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Hanoi bus system on verge of shutdown

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Hanoi Bus System

Numerous bus operating companies in Hanoi still have not received their subsidies for their fiscal year, which could lead to them being shut down, according to VTV.

Due to the effect of Covid-19, the number of passengers throughout last year dwindled with revenues down about 20% in 2020, with signs not strong for 2021. Subsidies for operating costs of the first three months of 2020 have still not been paid, with bus companies forces to seek other sources of revenue for their survival.

Many of the bus companies are seeking loans from banks, totaling an amount of more than 200 billion VND, with an interest rate of 7 to 8% per annum.

If no solution is to be worked out within the next few weeks, the risk of a temporary shutdown is high, according to an in-depth analysis by Vietnam+.

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