CITY (VNS) — The HCM City People's Committee has approved a pilot project to place Department of Transport advertisements on buses to increase revenue and reduce subsidies for public buses.
|Ha Noi has allowed advertisements on public buses for many years. — Photo Vnexpress.net
It is also a good chance for domestic enterprises to introduce their products and help change the image of the bus system.
Under the project, ads will be placed on 156 buses plying 10 routes, where bus fares are currently subsidised, mainly in the downtown area. The maximum period for leasing an advertisement on a bus is one year.
The revenue from bus advertisements will contribute to the city's budget after expenses are deducted.
The city's Department of Transportation was authorised to review the project to decide whether it could be applied on a large scale.
Public buses have borne advertisements in cities and provinces across the country for many years. However, the HCM City's People's Committee began prohibiting advertising on public vehicles in 2009 after a long debate on whether such ads and billboards mar the city's aesthetic appeal.
In 2011, HCM authorities repealed the ban and tasked the concerned agencies with building a trademark system and exploiting advertisements on public buses.
According to the Department of Transport, advertisements on buses will bring in at least VND100 billion (US$4.4 million) per year. — VNS