DECISION

ON INCENTIVE MECHANISMS AND POLICIES FOR DEVELOPMENT OF PUBLIC TRANSPORT BUS SERVICES

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the December 16, 2002 Law on the State Budget;

Pursuant to the November 13, 2008 Law on Road Traffic;

Pursuant to the June 17, 2010 Law on Economical and Efficient Use of Energy;

Pursuant to the June 23, 2014 Law on Environmental Protection;

Pursuant to the Government's Resolution No. 35/NQ-CP of March 18, 2013, on a number of urgent issues in environmental protection;

At the proposal of the Minister of Transport,

The Prime Minister promulgates the Decision on incentive mechanisms and policies for development of public transport bus services.

Article 1. Scope of regulation

This Decision prescribes incentive mechanisms and policies for development of public transport bus services.

Article 2. Subjects of application

This Decision applies to organizations and individuals involved in the investment in and management, operation and use of public transport bus services nationwide.

Article 3. Interpretation of terms

In this Decision, the following terms and phrases are construed as follows:

1. Public transport bus service means the transportation of passengers by bus along a fixed route with stops according to an operation timetable.

2. Infrastructure system for public transport bus services means facilities serving the operation of public transport bus services, including bus only lanes; bus termini; bus stops; signs; bus stop shelters; transit points; bus parking areas; and operation centers, maintenance and repair centers and refueling stations for buses.

3. Vehicles for public transport bus services include clean energy buses and ordinary buses.

4. Ordinary bus means a bus running on only petrol and oil.

5. Clean energy bus means a bus running on liquefied gas, natural gas or electricity but not petrol and oil.

Article 4. Mechanisms and policies concerning infrastructure system development planning and investment

1. To prioritize allocation of adequate state budget funds for the making, adjustment and implementation of master plans on public transport bus services. Such master plan must specify the proportion of public transport bus services in public mass transit services, land funds, solutions for connection with other modes of transport, the rate of clean energy-powered vehicles and the rate of vehicles conformable with technical regulations on transport accessibility.

2. To prioritize access to concessional loans, including official development assistance (ODA) loans and preferential credit loans, for investment in infrastructure facilities for public transport bus services.

3. Depending on local resources, provincial-level People’s Committees shall support interests on loans taken out from credit institutions for investment projects to build infrastructure facilities for public transport bus services.

Article 5. Incentive mechanisms and policies for investment in vehicles

1. To exempt import duty on domestically unavailable parts and components for the manufacture and assembly of vehicles for public transport bus services.

2. To exempt registration fee for clean energy-powered vehicles for public transport bus services.

3. Depending on local resources, provincial-level People’s Committees shall support interests on loans taken out from credit institutions for investment projects on vehicles for public transport bus services.

Article 6. Mechanisms and policies to support transport operations

1. Depending on local resources, provincial-level People’s Committees shall subsidize or support funds for operations of public transport bus services.

2. To prioritize the building of a model center for management of operations of public transport bus services to supervise and manage bus service quality in localities.

Article 7. Mechanisms and policies on fare subsidies for passengers of public buses

Depending on local resources, provincial-level People’s Committees shall subsidize fares for passengers of public buses as follows:

1. To exempt fares for under-six children and persons with serious or particularly serious disabilities.

2. To reduce fares for persons with meritorious services to the revolution, the elderly, and students and pupils who are Vietnamese citizens.

Article 8. Conditions for entitlement to incentives in public transportation

1. A provider of public transport bus services entitled to the incentives prescribed in Articles 4 and 5 of this Decision must satisfy the following conditions:

a/ It complies with current regulations on commercial provision of public transport bus services;

b/ Its investment project on vehicles or infrastructure facilities for public transport bus services is approved by competent authorities.

2. In case different support policies from different programs and projects may concurrently apply, a policy beneficiary may choose to apply the most beneficial one.

Article 9. Organization of implementation

1. The Ministry of Transport

a/ To assume the prime responsibility for summarizing, examining and reviewing the implementation of the national master plan on public transport development, and concurrently coordinate with and guide provinces and centrally run cities in developing master plans on development of the public transport network;

b/ To assume the prime responsibility for, and coordinate with the Ministry of Science and Technology in, developing criteria for determination of clean energy vehicles for public transport bus services as the basis for registration fee exemption; to study and apply advanced technologies to the management and operation of the system of public transport bus services;

c/ To coordinate with the Ministry of Planning and Investment and the Ministry of Industry and Trade in promulgating a list of domestic parts and components for the manufacture and assembly of vehicles for public transport bus services as the basis for identifying domestically unavailable parts, components, machinery and equipment eligible for import duty exemption;

d/ To coordinate with the Ministry of Information and Communications, the Ministry of Education and Training, the Ministry of Labor, War Invalids and Social Affairs, and the National Traffic Safety Committee in carrying out public information work to encourage people to use public transport bus services;

dd/ To coordinate with the Ministry of Planning and Investment and provincial-level People’s Committees in reviewing and balancing annual budget funds for development of public transport bus services;

e/ To coordinate with the Ministry of Natural Resources and Environment in examining and inspecting the implementation of the laws on land and environmental protection in public transport bus services.

2. The Ministry of Finance

a/ To assume the prime responsibility for promulgating a circular guiding the import duty exemption for domestically unavailable parts and components for the manufacture and assembly of vehicles for public transport bus services;

b/ To assume the prime responsibility for, and coordinate with related ministries in, guiding the registration fee exemption for vehicles for public transport bus services;

c/ To assume the prime responsibility for, and coordinate with the State Bank of Vietnam in, guiding the support of loan interests at credit institutions for investment projects on vehicles or infrastructure facilities for public transport bus services.

3. The Ministry of Planning and Investment

a/ To assume the prime responsibility for, and coordinate with the Ministry of Transport and provincial-level People’s Committees in, reviewing and balancing annual budget funds for development of public transport bus services;

b/ To assume the prime responsibility for, and coordinate with the Ministry of Transport and the Ministry of Industry and Trade in, promulgating a list of domestic parts and components for the manufacture and assembly of vehicles for public transport bus services as the basis for identifying domestically unavailable parts, components, machinery and equipment eligible for import duty exemption.

4. The Ministry of Industry and Trade

To coordinate with the Ministry of Transport and the Ministry of Planning and Investment in promulgating a list of domestic parts and components for the manufacture and assembly of vehicles for public transport bus services as the basis for identifying domestically unavailable parts, components, machinery and equipment eligible for import duty exemption.

5. The Ministry of Science and Technology

To coordinate with the Ministry of Transport in developing criteria for determination of clean energy vehicles for public transport bus services as the basis for registration fee exemption; to study and apply advanced technologies to the management and operation of the system of public transport bus services.

6. The Ministry of Education and Training

To assume the prime responsibility for, and coordinate with the Ministry of Information and Communications, the Ministry of Transport and the National Traffic Safety Committee in, carrying out public information work to encourage students and pupils to use public transport bus services.

7. The Ministry of Information and Communications

To assume the prime responsibility for, and coordinate with the Ministry of Education and Training, the Ministry of Transport and the National Traffic Safety Committee in, carrying out public information work to encourage people to use public transport bus services.

8. The Ministry of Natural Resources and Environment

To assume the prime responsibility for, and coordinate with the Ministry of Transport in, examining and inspecting the implementation of the laws on land and environmental protection in the field of public transport bus services.

9. The National Traffic Safety Committee

a/ To annually make plans for the allocation of funds for public information work to encourage people to use public transport bus services;

b/ To coordinate with the Ministry of Education and Training, the Ministry of Transport and the Ministry of Information and Communications in carrying out public information work to encourage people to use public transport bus services.

10. The State Bank of Vietnam

To coordinate with the Ministry of Finance and the Ministry of Transport in guiding the support of loan interests at credit institutions for investment projects on vehicles or infrastructure facilities for public transport bus services.

11. Provincial-level People’s Committees

a/ To organize the proper implementation of the approved master plan on development of public transport bus services; to arrange adequate land for construction and development of the system of infrastructure facilities for public transport bus services;

b/ To call for investment in development of public transport bus services from all economic sectors:

c/ To coordinate with the Ministry of Planning and Investment and the Ministry of Transport in balancing annual budgets for development of public transport bus services;

d/ To set specific levels of support of loan interests at credit institutions for investment in vehicles and infrastructure facilities for public transport bus services and levels of fare subsidies for users in their localities;

dd/ To allocate local budgets in annual plans to subsidize part or all of service charges and prices in public transport bus services.

Article 10. Effect

This Decision takes effect on July 1, 2015.

Article 11. Implementation responsibilities

Ministers, heads of ministerial-level agencies and government-attached agencies and chairpersons of provincial-level People’s Committees shall implement this Decision.-