MINISTRY OF EDUCATION AND TRAINNING
UNIVERSITY OF TRANSPORT AND COMMUNICATIONS

VU HONG TRUONG RESEARCH ON MANAGEMENT MODEL OF
PUBLIC TRANSPORT IN VIETNAM CITIES
Study Field: Transport Organization and Management
Code: 62.84.01.03

SUMMARY OF
Doctoral THESIS


The thesis can be found in the Information Center of Hanoi University of
Transport and Communications. LIST OF AUTHOR’S RESEARCHES PUBLISHED
1- Hans Orn, Vu Hong Truong: Urban transport changes in a Reform Economy:
The case of Hanoi; Asia pacific Journal of Transport - Volume 1/1996.
2- Vu Hong Truong: Development of public bus in Hanoi – the solution to
minimize the negative impacts to environment; Green Road Journal – June 1999
3- Vu Hong Truong: Urbanization – Risks and Challenges on Urban Transport in
Vietnam; Vietnam Road and Bridge Journal – June 1999.
4- Vu Hong Truong: Lesson learnt regarding success and failure of public
transport in regional cities; Transport and Communication Journal – September
1999.
5- Vu Hong Truong: Model for rationalizing traffic vehicle structure in big cities

during period of 1990-2011 is approximately 7.6% per year, which leads Vietnam to
become the developing business destination and attracting foreign investment and
reaching the social development goals.
The rapid economic growth and urbanization lead to the boom of traffic demand in
urban areas. This is the valuable opportunity as well as threat for the development of
urban transport system. On the basis of recognizing such issues, right from the
beginning of 1990s, the Government and big cities’ authority have been making big
efforts to establish appropriate tools in order to solve issues related with urban traffic,
in which public transport development is considered as the key solution. Before 2000,
bus service only existed in Hanoi and Ho Chi Minh City, but currently bus service is
developed in almost big cities in Vietnam.
In Hanoi, in comparison with 2001, the number of buses has been increased by 4
times, and the number of bus passengers increased by 30 times from 15.2 million in
2001 to 445 million in 2011 which is similar to the growth rate in Ho Chi Minh City.
Currently, the public transport management models have been established in Ha Noi
and Ho Chi Minh City with a public transport management and operation center under
DOTs to implement the function of state management while the bus transport
enterprises are responsible for operating and supplying bus services.
However, the public transport management and operation centers do not really
have sufficient ability to prepare and implement the master plan (managing big
investment projects) due to lack of legal authority and practical capacity.
Currently, in two big cities, development projects of mass public transport are
implemented without any agency having sufficient mandate for managing mass public
transport development. The development of such transport mode will easily lead to the
differences and risks of inconsistency as well as lack of connection among public
transport routes in the same network and among different modes.
In summary, the actual situation and development of public transport requires a
sufficient and systematic study in order to construct a management model for public
transport in Vietnam cities applicable in different development periods.
2- Purposes of the study

development period until 2020, oriented towards 2030.
Realistic contribution: to show disadvantages and inadequate issues in current
management model of public transport in Vietnam cities; to propose recommendation
to help cities’ authority in application of management model based on the
appropriation with development level, public vehicles, and real conditions in each
period of each urban area, firstly in Hanoi and Ho Chi Minh City and then in other
cities in Vietnam.

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OVERVIEW OF RESEARCH QUESTIONS
a- Analysis and assessment of Vietnam researches:
Recently, the researches in public transport management in our country are mostly
scientific studies such as: Scientific and Technology Program KC10-12 and Scientific
and Technology Program 10-02 of MOT coordinated by University of Transport and
Communication. Some projects financed by abroad organizations also mentioned
urban public transport management issues. Besides, there are some doctoral thesis
studying Public transport. However, there has been no research conducted to fully and
comprehensively study the management model for public transport in Vietnam cities
including all public transport modes
b- Researches in the world:
There are two major forms of management model in public transport including (i)
centralization model: there is a state management agency with overall function which
public transport is operated under the government control; (ii) decentralization model:
the state management agency has the small size with certain several functions while
the public transport services are operated in a competitive market. It is necessary to
review the researches’ results abroad, though it is impossible to apply full results in
Vietnam due to the particular characteristics

is also defined as the process of works movement from agricultural activities to non-
agricultural focused activities in appropriate areas, so-called urban areas.
1.1.2. Urbanization consequences
(i) Increasing urban population and size of urban areas (ii) Changing the labor
structure of residents (iii) changing the functions of resident areas and regions (iv)
Increasing the settlement and labor fluctuation. Increasing of transport demand and the
pressure of solving urban transport problems as well as environmental assurance
are more complicated.
1.1.3. Urbanization and urban areas classification in Vietnam
According to current regulation, urban areas in Vietnam are cities, county towns
and towns where population is more than 4.000, among which 65% is non-agricultural
labors and classified into 6 urban categories (Special urban area, category I, II, III, IV
and V) based on the urban function, population, area, and other socio – economic
conditions, especial criteria regarding urban infrastructure. The urban areas from
category III are named as “City”.
1.2. Overview of Urban Transport and Public Transport
1.2.1. Urban transport and the roles of urban transport in sustainable urban
development
The “Sustainable development” mentioned in the study is: “the development to
meet human demand at present without influencing the capacity to meet the demand of
future generation”.
Sustainable urban transport development is: Establishing a transport system
which plays a good role in supporting and promoting the urban economic development
while minimizing un-recycled resources usage; Assuring transport rights and fulfilling
transport demand of people at reasonable social expenses; Developing without
environmental pollution and with the assurance of environment protection.

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Roles of urban transport in sustainable urban development: An urban area can
only sustainably develop with a basement of a sustainable urban transport system, and

1.3.1. Overview of state management in urban transport
The nature of state management in urban area is an intervention of Government in
urban socio-economic development by authority in order to lead urban areas to become

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the regional centers of economy, politics, culture, technology and international
exchanges.
State management in urban transport is shown in main following aspects:
Establishment and completion of field law system; Issuing policies; Construction
investment planning; Infrastructure maintenance; Technical application and training;
international cooperation, etc.
1.3.2. State management in urban public transport
Main functions of state management in urban public transport:
- Orienting strategies of public transport development in corresponding with
general transport development orientation.
- Public transport development plan preparation must be ensured to be consistent
and compatible with the master plan and transportation plan.
- Creating an equalitarian business environment.
- Regulating, supervising and handling violations.
1.3.3. State management model in urban public transport
State management model definition: is an entity comprising of components which
have certain functions, rights and responsibilities, have interrelationship and be
arranged according to certain phases and levels in order to implement management
function for achieving proposed objectives.
Management model classification:
By the level, management model may comprise of Government level,
City/Provincial level, Department/District level, Division/ Ward level.
By the function, management model comprises of Legislature (National
Assembly), Executive bodies (Government, Ministries, People’s committee), Judiciary
(people’s procuracy, courts of justice)

defined which clearly assign personal responsibilities, and the process of information
collection and handling as well as decision making is efficiently and effectively
implemented.
Methods to effectiveness evaluation of urban public transport management:
- Statistic Analysis.
- Analytical Hierarchy Process.
- Expert interview method
- Cost Benefit Analysis
- Multi – Criteria Analysis, etc.
Principles to effectiveness evaluation of urban public transport management:
- Evaluating the effectiveness of public transport on the viewpoint of system and
general socio-economic efficiency by shadow price.
- Ensuring the harmony of goal and objectives of each object involved in public
transport system.
- Ensuring the objectiveness of evaluation.
- Evaluating by the viewpoint of development
Norms to evaluate the effectiveness of state management model in public
transport

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- Norms of evaluating the improvement in accessibility, service quality and
capacity to meet people’s traffic demand.
- Norms of evaluating the assurance of traffic safety
- Norms of evaluating the friendly effect to environment
- Norms of evaluating the uses of energy in public transport
- Norms of evaluating the improvement of investment efficiency and government
subsidy in public transport and the improvement of urban economy.
1.4. Lessons learnt in public transport management from the world
1.4.1. Public transport development policies
In the case of countries clearly defined objective in sustainable development,

the effectiveness of management model; and finally, mentioning the lesson leant from
success and failure in cities’ urban transport development around the world.
Actually, there are many existing/existed management models, each model has
certain advantages and disadvantages. Based on the managerial objectives and specific
condition, an appropriate model is selected.
Chapter 2: ANALYSIS AND EVALUATION IN MANAGEMENT MODEL OF
PUBLIC TRANSPORT IN VIETNAM CITIES
2.1. Current situation of public transport in Vietnam cities
2.1.1. Current situation of public transport in Hanoi Capital
In Hanoi, the public transport has been developed for more than 100 years. It
started when the electric bus system was constructed by French and then developed
into 5 lines with 31.5 km of total length. Electric bus routes became the urban
development routes in Hanoi. Until 1988, electric bus routes were gradually removed
and then there has been only bus system in Hanoi.
Bus system establishment and development history in Hanoi is divided into 4
periods as follows: Hanoi bus system before the Innovation period (before 1986) Crisis
period of bus system (1986-1992); Rehabilitation period of bus system (1993-2001);
and the Total Innovation Period of bus system (2002 up to now)
Development of bus service in Hanoi in the last 10 years:
- Bus service area has been extended with the more and more increasing of
passengers: After 10 years (2001-2011), the number of bus routes is increased 2.1
times, the number of bus vehicles is increased 4.0 times and the number of bus
passengers increased 30 times from 15.2 million in 2001 to 445 million in 2011.
- Bus service positively contributes in decreasing traffic jam and ensuring traffic
safety.
- Capacity of bus operation has achieved high rate of effectiveness and been
reaching the system limitation.
- Bus service quality has been improve
- Organization and mechanism: the operational mechanism of bus service in
Hanoi has been renovated from service provided by state companies to service

of Quang Nam province as surrounding bus routes. The daily bus ridership is about
15,544 passengers (approximately 5.67 million passengers per year). This number is
much lower than expected number as proposal.
2.1.4. Current situation of public transport in Hai Phong City
Currently, there are 12 bus routes serving in Hai Phong City in which most of
routes are serving with the 15-20 minutes of frequency. The most effective route is
Dau Khi Hotel – Do Son Beach route due to the highest ridership.
2.1.5. Current situation of public transport in Can Tho City
Currently, there are 07 serving bus routes. At this time, bus service in Can Tho
city has not been applied subsidy policy, the fuel consumption norms for bus vehicles

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has not been calculated yet but the bus enterprises are doing business accounting by
themselves.
2.1.6. Current situation of public transport in other cities (grade 3 -urban areas).
For the cities directly under provinces, public bus system is currently in the
beginning and developing period. Bus routes are mostly interprovincial coach routes.
There is no connection among routes that causing the inconveniency for attracting
passengers in order to reduce uses of private vehicles.
2.1.7. Assessment on current situations of public transport in Vietnam cities
Summary of public transport service in Vietnam cities:
No
Items
Unit
Hanoi
HCMC
Da
Nang
Hai
Phong

4
10
8
3
No. of operating
vehicles
Veh.
1.254
2.951
108
121
140
4
No. of trips
10
3
trip/year
3.789
4.000
256
370
285
5
Ridership
10
3
pas.
445.700
316.610
20.000

>1
>1
1,2
Advantages: Public Bus service in 2 special cities (Hanoi and HCMC) has began
to meet the people’s traffic demand (served 8-10% cities’ traffic demand) and
contributed in reducing traffic jam and use of private vehicles. The annual bus
ridership increases in the cities. The lower bus fare is advantageous condition to reduce
passengers’ traffic costs.
Weaknesses: In some big cities such as Hai Phong, Da Nang, Can Tho, the bus
service area is small (served 1-2% cities’ traffic demand), especially in urban area
grade 3 (Cities directly under the provinces), bus service is in the beginning period.
Bus service quality has not generally met requirements. Vehicles operating in several
routes are from coaches so they are not reasonable. The training programs for driver
and on bus - service staff are still limited.
2.2. Analysis and evaluation of current situation of public transport management
model in Vietnam cities

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2.2.1. Current situation of public transport management model in Vietnam cities.
In Hanoi and HCMC: In 1997, the Management and Operation Center for Public
Transportation (MOCPT) was established in HCMC. In 1998, the Transportation
Management and Operation Center (TRAMOC) was established in Hanoi. These
centers are agencies which has revenue and legal personality under DOTs and
responsible to support Director of DOTs in public transport management and
operation. However, the scope of management is mostly public transport by busation
(not including other public transport modes).
In Da Nang City: Public transport is managed and operated by the Da Nang
Public transportation and Traffic signals control Center.
Management model in other cities: State management in public transport by bus
is directly implemented by units under DOT.

the future? For example, at which level will state owned enterprises be privatized in
the field of public transport in Hanoi; and in HCMC, how will the Local Government
solve the actualities in order to ensure the main roles of Local Government?, etc.
2.3.3. Management regulations in public transport
The basic issue is quite similar in management regulation among cities while
characteristics of public transport are actually different depending on different types of
city. This is the reason why the management regulations are not practiced or low
efficiency.
2.3.4. Decentralization of management in public transport
Public transport management agency has limited rights in public transport due to
its administrative boundary while public transport routes is also across out of this
boundary, thus there are many issues related with surrounding area which could not be
solved by management agency. Besides, the public transport management agency do
not implement the function of land use planning thus the development of public
transport is based on the actual demand but not based on the long - term plan leading
to the low efficiency of implementation.
2.3.5. Management and function implementation model of state management
agencies in public transport
There is overlap in several management contents among MOT, DOT and the
public transport management agencies. DOT is the agency managing all of situations
but it is not only responsible for public transport, thus the decision may not be feasible.
The centers of management and operation in public transport have not enough rights to
combine public transport modes in the cities.
In the cities directly under provinces, there are no management agencies
responsible to manage public transport but the management is directly implemented by
units under DOT. Ở các thành phố trực thuộc tỉnh, mô hình phổ biến hiện tại là không
có cơ quan quản lý VTHKCC mà việc quản lý VTHKCC được thực hiện trực tiếp bởi
các phòng ban của sở GTVT.
Summary: In chapter 2, based on the results of investigation and analyzing the
statistic data, the study can be summarized as follows:

6.5%
20-25%
3
Hai Phong
1.0-1.5%
10-15%
4
Da Nang
1.5-2.0%
5
Can Tho
1.0- 1.5%
6
Cities directly under provinces
< 1.0%
3-5%
(3) The main reasons of these issues are: the management model has not been
appropriate with actual condition yet; the management decentralization is still not
reasonable; the overlap of function and tasks; and the incompatibility between
functions – tasks and rights – responsibility, etc.
Chapter 3: PROPOSAL OF STATE MANAGEMENT MODEL FOR PUBLIC
TRANSPORT IN THE VIETNAM CITIES
3.1. Orientation for the development of urban areas and urban transport in the
Vietnam cities
3.1.1. Urban development policies in Vietnam
In order to reach the country of prosperity and friendly environment, urban areas
are searching a future to become the live-able cities with the sustainable environment,
developed economy and harmonious society. The proposal of urban development in
Vietnam until 2020 and orienting towards 2030 is: preventing the trend of
development in which huge independent cities with multi-functions are developed, but

functions implemented by cooperation between Government and enterprises.
State management by Central and Local Government: to enhance Local
Government’s rights and responsibilities and reduce the direct intervention of the
Central Government. The Central Government should only focus on construct the
institution frameworks and cooperate with Local Government in preparing the
transport modal plan and supporting for the key infrastructure investment if necessary
in localities.
The decentralization for management agencies in public transport: The study
proposes that in the special urban areas, the management agencies are not only
responsible to control its public transport but also responsible to directly act as an
advisor for the People’s Committees in land use planning which supports to propose
and implement the policies related to public transport.

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The relationship among Management Agency – Enterprise – Passengers: The
relationship between Management Agency and Enterprise is an equal relationship with
A-B contract in providing the public transport service which related with the real
benefit to passengers.
3.2. Systematization and bases of factors impact to the selection and proposal of
state management model for the public transport in Vietnam cities
Based on the similar characteristics in socio-economic conditions and especially
in demand and traffic vehicles factors as well as infrastructure condition in Vietnam
cities, the study divides the cities into 3 groups which are:
- Group 1: Special - grade urban areas (Hanoi city and HCMC)
- Group 2: comprises of cities directly under the Central Government and urban
areas grade I – II directly under Provinces which the size of population, economic
condition and transport characteristics are similar with cities grade I-II directly under
the Central Government) (hereafter called “Cities grade I –II).
- Group 3: Urban areas directly belong provinces which has not reached the
standards of Category 2 yet and urban areas grade III (Hereafter called “Cities directly

highly concentrated leading the traffic issues in certain areas.
For the category of cities grade III (cities directly under provinces): The density
of population around the Central is sparse thus the capacity of passenger flow is not
highly concentrated and then no traffic issue occurs.
For “traffic jam” issue: In the special cities, traffic jam usually occurs. It is
beginning to occur in the urban areas grade I-II such as Hai Phong, Da Nang, Can Tho
Cities but it has not been serious and continuous issue yet.
3.2.4. Argument in requirements and contents of state management for public
transport applicable with different urban categories in Vietnam
Based on the development status of urban areas in Vietnam, the study argues the
requirements and different levels of management for different cities according to cities
size, traffic demands and vehicles.
Results of bases systematization for establishing the public transport
management model applicable for cities in Vietnam are as follow:
Urban categories

Items
Grade III
Grade II, I
Special-grade cities
1- Population (1000
people)
300
300-5.000
> 5.000
2- Density of urban
residents (people/km
2
)
8.000

Special-grade cities
6- Main vehicles for trip
Bicycles
Motorcycle
Car (few)
Taxi
* In the cities that
population is > 100
thousand people, it is
necessary to operate
standard bus service
Bicycles
Motorcycles
Car (average)
Taxi
Standard bus
Large bus
* In the cities that population
is > 1 mil. people, it is
necessary to study
investment of urban railway
Bicycles (few)
Motorcycle
Car (a lot)
Taxi
Standard Bus
Large bus
Metro
Urban railway
7- Management

9- Management objects
A less number of
enterprises
A number of enterprises
Lots of enterprises
10- Management tool
Simple
Fairly complex
Modern and very
complex
11- Resource
Limited
Fairly sufficient
Diversified and
sufficient
12- Authority
Decentralization
Based on normally
management
decentralization
Based on normally
management
decentralization
According to special
mechanism
3.3. Proposing management model for public transport applicable to the cities in
Vietnam
3.3.1. Public transport management model applicable to special-grade cities
For this category of cities, the study argues and proposes to improve the Center
of Management and Operation for public transport and enhance the management

Dept. of Public Transport

Division of
land use
planning

Division of
public
transport
planning

Division of
ticket
control

Division of
general
coordinat-
ion

Division of
service
supply
managem-
ent

Division of

Providers of bus transport service
Providers of taxi transport service
Providers of other transport modes service (if any) Directly management relation
Function based relation
Cooperation Relation Strategic & Planning
Grade
Providers of bus transport and taxi service
Providers of other transport modes such as urban railway, metro (if any)
National Highway across managed location
DOT
MOT
City People’s Committee
Hanoi Public Transport Authority

Implementing
unit
Divisions under DOT

Directly management relation
Function based relation
Cooperation Relation

units
MOT
Management unit for public transport
Directly management relation

Function based relation

Combination Relation
Public transport Operation & Management Center

Division
of land
use
planning
Division
of public
transport
planning

Division
of ticket
control

Division of
general
coordinat-
ion

Division
of

3.5. Appraisal of proposed management models
Since the management models have not been applied in real life, the appraisal is
carried out based on qualitative point of view only.
City People’s Committee
DOT
Providers of
bus and taxi
services
Public transport
operation &
management center

Division under DOT

Mgmt. Agency
for urban
railway
MOT
Providers of
urban railway
services and
metro services
Directly management relation

Function based relation Combination Relation

Strategic &

CONCLUSION AND RECOMMENDATION
A. Conclusion
Urbanization is an inevitable and objective trend of the development in many
countries. One of urbanization consequences is the pressure on urban transport
problems, especially in developing countries as Vietnam.
Recently, the traffic density in big cities, especially in Hanoi and Ho Chi Minh
City, is more and more increasing, leading to the situation of increasing traffic
congestion, decreasing average traffic speed, increasing traffic accidents and
environmental pollution at the alarming level. These issues have been becoming heavy
challenges for Vietnam industrialization and modernization process.
In order to solve above issues, one of important solutions is to develop public
transport and to appropriately manage the usage of private vehicles. In which, the
completion of management model for public transport is one of important content to
implement the above strategy.
Based on the need from real life, the study focused on research of state
management model for public transport in Vietnam cities during the period up to 2020
and oriented towards 2030. Contribution results of the study are as follows:
(1) Systematization and diversification of argument foundation for state management
in urban public transport in which the development strategies, function and task and types
of management models, lesson learned from urban transport development in the world are
deeply analyzed and systematized. The new recoveries are:
- Scientific foundation and confirmation: the urban transport development
oriented towards public transport is important factor for urban sustainable
development.
- From general methodological approach, the study concretized the effectiveness
evaluation norms for state management model in urban public transport.
- Summary of lesson learned from the success and failure of urban transport in
the world in aspects of awareness, planning, development of public transport and
intervention roles of Government.
(2) Evaluation on current situation of public transport management model in