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VietNamNews

Co-operative model fails to provide an effective answer to transport issue

Update: November, 24/2012 - 11:35

 

A bus operating under the co-operative model in Buon Ma Thuot City in the Central Highlands province of Dak Lak. — VNA/VNS Photo Hong Ky
HA NOI (VNS)— Transport co-operatives are not operating effectively in Viet Nam as they account for only 25 per cent of the nation's total passengers.

"There are nearly 58,000 vehicles run by transport co-operatives accounting for 56 per cent of the total number of transport vehicles nation-wide," said Nguyen Van Thinh, head of the Viet Nam Co-operative Alliance's development and policy department at a workshop yesterday in Ha Noi.

Poor management and service had been blamed for the ineffective operations, he said.

Dinh Phuoc Hung, chairman of Thong Nhat Transport Co-operative in central Phu Yen Province, said his co-operative had no money to buy new vehicles or improve old ones to meet customers' demands for service quality.

Therefore, the revenue continued to go down and members of the transport co-operatives dwindled, he said.

The province now had 12 transport co-operatives but only 4-5 of them worked well, he said.

Transport co-operatives that operated inefficiently should be dissolved or converted into new models, he said.

The State should create favourable conditions to lend transport co-operatives capital with preferential interest rates to buy new vehicles and improve service quality, he said.

Viet Nam has around 1,100 transport co-operatives. — VNS

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