Passenger transport enterprises are still reluctant to invest in vehicles running on compressed natural gas (CNG) as they are awaiting more tax and credit incentives from the Government.
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| A CNG-fueled bus runs on Bus Route No. 1 connecting Ben Thanh Market and Cho Lon in HCMC |
Passenger transport enterprises are still reluctant to invest in vehicles running on compressed natural gas (CNG) as they are awaiting more tax and credit incentives from the Government.
At a conference in HCMC on April 6 on use of CNG for transportation in the south, Le Hoang Minh, deputy director of the HCMC Department of Transport, said that since 2011 Saigon Passenger Transport Co Ltd (Saigon Bus) has test used 21 CNG buses imported from South Korea for Bus Route No. 1.
Fuel consumption of these vehicles is 23% lower than diesel-fueled buses, Minh said. In addition to smooth operation, CNG buses’ carbon dioxide emissions are 20% lower than normal buses.
Firms investing in CNG buses in HCMC are backed with loan interest rates. However, Minh said the incentive is not sufficient to attract investment in the field because the cost of CNG vehicles is high. There are only 137 buses running on CNG among around 3,000 buses in service in the city.
Tran Van Quan, deputy director of Dong Nai Province’s Department of Transport, said demand for CNG vehicles in the southern provinces is huge. However, incentives relating to taxes, charges and bus development must be in accordance with the country’s relevant regulations and the master zoning plan of the Ministry of Transport.
He pointed out issues relating to the interest rate for loans used to buy CNG buses, the incentives for land used for bus parking lots and CNG recharging stations, and import duties on components for assembling CNG buses in Vietnam.
Quan said HCMC and neighboring Dong Nai and Binh Duong provinces should join hands to ask the Government, the ministries of transport and finance for more incentives for CNG buses.
At the conference, transport enterprises said a CNG bus costs VND2.7 billion (US$121,000), well above VND1 billion (US$44,840) for a diesel bus. Therefore, firms need support from the Government to lower costs and ensure the efficient operation of environmentally-friendly vehicles.
(Source:SGT)
