Viet Nam News
HCM CITY – The HCM City People’s Committee has approved a proposal by the Department of Transport to put up advertisements on local buses. The plan is intended to increase bus companies’ earnings, reducing their dependence on state subsidies.
The approval said the billboards should not cover more than 50 per cent of a vehicle’s surface and must be made of durable materials that will survive all weather conditions.
The department has been instructed to work with other agencies to ensure the contents of the ads conform to regulations.
On buses subsidised by the city, advertising agencies can bid for space, and the revenues from these contracts will go into the city’s coffers. In the case of non-subsidised buses, their owners can fix the prices.
The proposal was piloted on 10 routes for eight months starting in April 2016, and 171 subsidised buses brought the city VNĐ14.6 billion (US$642,100) in revenues.
With the programme now expanded to all 3,000 buses operating in the city, annual revenues are expected to top VNĐ170 billion ($7.48 million).
Twenty seven companies and brands, mostly from Việt Nam and Japan, last year participated in the pilot plan to advertise cosmetics, food, sauces and pharmaceutical products.Koa-Sha Việt Nam Ltd Company was the official agency executing the pilot project.
The department is calling for more companies, particularly those providing tourism and industrial products, to run ads on buses.
The Department of Transport worked with the Koa-Sha Việt Nam Ltd Company to conduct a survey on the public opinion of commuters and companies using bus ads. Most of the respondents said they agreed with the idea and that bus ads that have eye-catching colours would attract the attention of commuters.
Meanwhile many transport companies said bus ads would increase the satisfaction of commuters because they make buses look more appealing.
Bus ads had been banned in HCM City for more than 10 years.With buses gaining in popularity among commuters, students and even a number of foreigners, local businesses will benefit if their products and services are advertised on buses. — VNS