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HCMC allows advertising on 2,000 buses

Released at: 19:00, 09/05/2017

HCMC allows advertising on 2,000 buses

Photo: VOH Online

Advertising allowed on sides of subsidized buses following successful trial.

by Tue Lam

Ho Chi Minh City has permitted advertising on its more than 2,000 subsidized buses, which is expected to generate VND110 billion ($4.48 million) a year for the city’s budget.

According to the city’s Department of Transport, the “Advertising on Buses in the City” project has been approved by the Ho Chi Minh City People’s Committee with the aim of increasing revenue and reducing subsidies needed for public transport.

The advertisements will be placed on both sides of the buses, with the advertising area not to exceed 50 per cent of the space on the sides. Ads on the front, top, and back of the bus are not permitted. Contracts between bus operators and advertisers will be for three years at a maximum.

It is estimated that if advertising is placed on more than 2,000 buses, the city will earn up to VND110 billion ($4.48 million) each year, easing the need for subsidies.

About 1,000 non-subsidized buses will also use the proceeds from advertising on subsidized buses, of about VND60 billion ($2.64 million), to improve the quality of passenger services.

Ho Chi Minh City must outlay more than VND1 trillion ($44 million) each year to subsidize its public transport.

The Department of Transport organized pilot advertising on 171 subsidized buses last year on ten routes. Koa Sha Media Vietnam, a subsidiary of Japan’s Koa Sha advertising agency, won the bid for the pilot project. It brought in VND14.6 billion ($642,000) in revenue for the city, 40 per cent more than official expectations, according to Nikkei Asia.

Bus advertising was banned in Ho Chi Minh City in 2002 because of official concerns that it “might distract drivers and cause traffic accidents” or be “culturally inappropriate or offensive, particularly for children.” The ban, however, was lifted in 2011.

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