UNIVERSITY OF TRANSPORT HO CHI MINH CITY

ASSIGNMENT

COURSE: Transportation Economics and Logistics

UNIT: Final Assignment
TOPIC: Economic Solutions for Sustainable Transport Development in
Ho Chi Minh city

Student name: NGUYEN THIEN NHAN

Student ID: IEC21LSM047

Instructor: TANG MINH HUONG

Submission date: 20/05/2023

 Abstract
Sustainable transport development is becoming a primary priority for nations
when developing and executing development policy regimes. Sustainable
transport development is a well-balanced, efficient development process
based on three pillars: economic development, social inclusion, and good
environmental management. Vietnam is an urbanizing country. This process
exposes Vietnam's cities to a slew of serious issues and challenges,
particularly in terms of long-term economic development. Ho Chi Minh City is
the largest city in Vietnam. It is Vietnam's most dynamic city, having the
quickest socio economic development rate. The development of Ho Chi Minh
City is critical to the overall development of the country. However, according
to authorities and analysts, Ho Chi Minh City is growing slowly and has
numerous major issues. This paper suggests sets of options for sustainable
transport development in Ho Chi Minh City over the next decades based on
an analysis of the City's potentials and advantages, as well as the obstacles
and challenges of the current development context.
Keywords: sustainable transport development, sustainable economic
development, Ho Chi Minh City.

Economic Solutions for Sustainable Transport Development in Ho Chi

Minh city
 Sustainable transport development is a term which is popular in
modern life. Sustainable transport—with its objectives of universal balancess,
enhanced safety, reduced environmental and climate impact, improved
resilience, and greater efficiency—is central to sustainable development.
Apart from providing services and infrastructure for the mobility of people and
goods, sustainable transport is a cross-cutting accelerator that can fast-track
progress towards other crucial goals such as eradicating poverty in all its
dimensions, reducing inequality, empowering women, and combating climate
change. 
Because Vietnam is a developing country, the urbanisation process is
accelerating. It raises numerous major concerns and challenges in that
process, particularly establishing appropriate balance and harmony between
sustainable economic development, social inclusion, and environmental
management. The most significant aspect in the process of sustainable urban
development is sustainable transport development. This is common in
Vietnam's cities, particularly in large cities like Ho Chi Minh City.
Sustainable transport development is thus directly concerned with
raising the material standard of living of the poor at the "grassroots" level,
which can be quantified in terms of increased food, real income, educational
services, health-care, sanitation and water supply, emergency food and cash
stocks, and so on, and only indirectly concerned with aggregate, commonly
national, economic growth. In general, the fundamental goal is to reduce
global absolute poverty by providing long-term and sustainable livelihoods
that limit resource depletion, environmental degradation, cultural upheaval,
and social instability. 

Research Method
 Ho Chi Minh City’s Transportation and Infrastructure Overview
Ho Chi Minh City, usually known as Saigon, is the economic and
financial centre of Vietnam. This dynamic metropolis of over 10 million
inhabitants is widely regarded as one of the region's fastest expanding
markets for technology and industry, as well as the top emerging property
market in Asia-Pacific.
Under the view of a young logistics businessman, I believe that there
are 2 main roots: the huge number of vehicles and the infrastructures.

Vehicles
Ho Chi Minh City has the most motorbikes in the world, with almost 5
million, which is 710 motorbikes per 1000 people - the highest ratio in the
world (compared to neighbouring cities: Bangkok (265), Jakarta (160), and
Dehly (175)). It also has over 700.000 cars, 3.250 buses, and 100.000 taxis.
During rush hour, at least 70% of vehicles are on the road, resulting in
massive traffic bottlenecks in 37 hotspots throughout the city.

Figure 1. Tổng hợp số liệu xe máy và xe ô tô từ 8/2022 đến 9/2022.

Infrastructural systems
On average, there are about 221 new registered cars and 804
motorbikes every day. Currently, the city is managing 8.7 million vehicles,
including more than 850,000 cars and nearly 7.8 million motorbikes.

Figure 2. Population and land area statistics for ASEAN nations.

Main Findings
Some Problems about Sustainable Transport Development that Ho Chi Minh
City Are Facing
Large cities must address the present issues confronting modern
metropolitan areas. Modern cities have five key challenges: housing, jobs,
urban transportation, the environment, and clean water. These are the five
most important issues confronting modern cities.
Traffic congestion in Ho Chi Minh City is worsening. The cause of the
aforementioned scenario is that transportation infrastructure does not keep up
with the advancement of transportation modes. In which case, public
transportation only accounts for a very modest share, less than 10%.
We lack large-capacity public transportation, such as the subway,
despite the fact that this sort of public transportation first debuted more than
200 years ago.

Service quality is still limited

Transport firms have yet to make a good investment not only in modes
of transportation but also in human resources: today, modes of transportation
are primitive and do not meet safety standards. Because human resources
are still restricted in terms of credentials, competence, and professionalism,
they have not yet earned complete client trust.

Supply More Than Demand Lets Unequal Competition

As supply grows, demand falls, resulting in an excess of a large
number of modes of transportation, which will disrupt transportation planning.
The appearance of a competitive pricing element has a direct influence on
service quality and service provider professionalism.
As a result, firms with a large fleet of cars must spend on staff and
administration to increase service quality. In addition to the efforts of
businesses, it is vital to have the attention and influence of authorities, as well
as the assistance of the transportation association, in investigating and
solving transportation issues.
In particular, implement the freight transport floor price and create a
tariff framework for each method of transportation.

City Locking Time Is Up Increase Create Traffic

As the number of private automobiles grows, the infrastructure cannot
match the city's growth demands, resulting in traffic congestion in the inner
city, particularly during peak hours.
As a result, the city takes traffic-calming measures such as prohibiting
trucks from entering the inner city and prohibiting trucks from operating in the
city during rush hours. The following hours are now prohibited in two major
cities, Hanoi and Ho Chi Minh City:
 Small trucks weighing less than 1.25 tons are forbidden from operating
during peak hours.
- Permitted to travel in the city between 9am and 4pm.
- From 9 p.m. to 6 a.m.
  Vehicles weighing more than 1.25 tons
Travel throughout the city is only permitted between 9 p.m. and 6 a.m.
the following day and requires a circulation permit.
Vehicles weighing more than ten tons, super-long and super-heavy
freight trucks, and construction motorcycles:
It is only permitted to function from 9 p.m. to 6 a.m. the following day
and requires a special circulation permission.

Transportation Security is highly intricate, with a great deal of insecurity

In recent decades, there has been a continual scenario of obstructing
cars to loot, rob commodities, hurl stones on transport trucks, and so on on
highways from the lowland to the mountain, from the North to the South.
Customers are confused and concerned as security vulnerabilities in the
transportation business are threatened.

Tax Policy Is Not Coordinated

Some rules in the tax calculation schedule for transportation firms are
rigid and inconsistent, current tolls are not included in the cost, and the
method of calculating fuel use remains contentious. cannot decide what is
good or wrong.
 Group of Solutions 

1. Controlling transportation demand:

Controlling and reducing traffic demand requires urban planning that
prioritises public transportation. Land use design should favour short journeys
and be linked to the primary modes of transportation's features (velocity,
capacity). Along urban axes, public transportation, non-motorized traffic, and
passenger-focused land use design are all required. It is important, in
particular, to enhance the density of housing and offices, to plan metro lines,
quick buses in the middle, and roads for vehicles and buses on both sides.

2. Media selection control:

To transition from high-risk, low-capacity vehicles (such as
motorcycles) to safe, high-capacity vehicles (such as metro, buses), the
notion of "making private vehicles less appealing while making public
transportation more appealing" was used. Some alternatives include the
installation of pedestrian pathways, bicycle lanes, bus priority signals, bus
priority lanes, bus express (BRT), and a metro system. Build public parking
spaces at railway stations and bus stops to promote multimodal transportation
using the following models: Park + Ride, Bike + Ride, and carpooling.

3. Using taxes and fees to control transport demand:

Taxes and fees are not only a financial instrument for raising funds for
the upkeep and building of new transportation infrastructure, but they are also
the most effective weapon for controlling demand. Vehicle taxes, fuel taxes,
tolls, parking fees, public transportation price reductions, and preferred public
transportation fares for students and the elderly have all been implemented
across the world. Congestion toll collection not only modifies the method of
transport, but it also reallocates the trip's departure schedule to decrease
congestion.

4. Flexible operation and exploitation of transport infrastructure:

While traffic demand varies with time and location, the capacity of the
transportation infrastructure system does not, resulting in a situation in which
demand exceeds supply, producing congestion and environmental harm. As a
result, it is vital to consider how to run the current infrastructure in a flexible
manner in order to adapt to variations in traffic demand. Examples include
traffic signal regulation based on vehicle traffic, dynamic speed restrictions,
dynamic route signage, and on-demand public transportation services.
Simultaneously, depending on the time and situation, it is required to
coordinate between public and private transportation.

5. Promote new mobility services

 People's life values and travel behaviour have been influenced by
information technology (Internet, cellphones, GPS global satellite location). It
provides customers with rapid and accurate access to information on multi
modal public transportation, auto rental, carpooling, bicycle rental, taxi
sharing, and people directions. walk. Uber and Grab taxi are taxi services that
use cutting-edge telecommunications technology to provide an efficient new
means of transportation that can help improve urban traffic management.

6. Intelligent Traffic Application (ITS)

In traffic management, ITS may help enhance vehicle flow, traffic
safety, security, traffic law infractions, public transit quality, and transportation
efficiency. commodities while reducing environmental effect. The appeal of
public transportation is determined by passengers' capacity to get information
regarding routes, fares, time... before, during, and after the trip. Passengers
are also drawn in by the convenience of electronic card payments.

7. Pay due attention to traffic safety and environmental pollution

Priority must be given to traffic safety and pollution generated by
motorised traffic operations. At the COP21 summit in Paris on December 12,
2015, politicians, scholars, and environmental organisations emphasised the
need of lowering CO2 emissions, combating climate change, and limiting
global warming. Fine particulate matter (PM2.5, PM10) produced by motor
vehicle chimneys kills persons at an exponential rate when compared to traffic
accidents at the local level. 
In the United Kingdom and Germany, the number of deaths from traffic-
related air pollution is three times that of traffic accidents. Despite the lack of
information, the situation in Vietnam may be considerably worse. As a result,
traffic management must be environmentally friendly, and there must be a
complete monitoring system for traffic circumstances and environmental
factors. It is critical to promote the growth of public transportation, e-bikes,
and electric scooters, while also contributing to environmental conservation
through technical advancement and tightening emission requirements.

8. Transparency of information and always improve the quality of traffic

services
People frequently lack information on traffic quality (average speed,
safety, dependability, and so on), so they worry if investments in upgrading
infrastructure, reorganizing routes, and so on would be beneficial. Whether or
not to enhance traffic quality. As a result, a monitoring system to measure the
quality of the transportation system is required in order to examine, evaluate,
and continually improve the operational quality of the transportation system. In
general, hiring an independent consultant for research and assessment is
required. The evaluation report serves as evidence for the public to illustrate
the quality of the transportation system and to assist choices regarding
resource distribution among transportation systems.
9. Provide sufficient and sustainable capital for traffic
Reform of capital provision and financial investment in transportation
infrastructure and services is essential for an efficient, secure, and
interconnected transportation network. The toll system should be utilised to
generate income and raise cash. To encourage road users to accept extra
charges, it is critical that these new earnings be used to improve the
transportation system rather than deplete current budgets. Furthermore,
financial assistance might be obtained from other sources, such as
commercial housing complexes and nearby properties.

10. Appropriate institutional framework for multimodal transport

management
Traffic should be a smooth system from the user's standpoint. Different
modes of transportation must be coordinated and integrated to ensure that
people and cargo are moved continuously, smoothly, and securely under all
circumstances. As a result, a traffic management agency that integrates
public transportation capabilities and road network operations at both the local
and regional levels is required to assist the study and implementation of the
solutions indicated above.

Conclusion
 Ho Chi Minh metropolis has long been recognized as a lively,
innovative, and rapidly rising metropolis in Vietnam.
Ho Chi Minh City's socioeconomic growth, as well as transportation
development, both contribute significantly to the country's overall
development. However, Ho Chi Minh City's general growth and transportation
development face several obstacles and challenges, as well as numerous
major concerns. For sustainable transportation development in Ho Chi Minh
City, the city's authorities should execute several groups of solutions
synchronously and effectively in order to capitalise on the city's potential and
advantages, as well as to seize possibilities in the new development
environment.

References
Bonds for Sustainable Development
https://thedocs.worldbank.org/en/doc/770351529080670295-
0340022018/original/WorldBankInvestorNewsletter.pdf 
TỔNG HỢP SỐ LIỆU PHƯƠNG TIỆN GIAO THÔNG TRONG CẢ
NƯỚC
http://www.vr.org.vn/thong-ke/Pages/tong-hop-so-lieu-phuong-tien-giao-
thong-trong-ca-nuoc.aspx 
Population and land area statistics for ASEAN nations
https://www.researchgate.net/figure/Population-and-land-area-statistics-
for-ASEAN-nations_tbl1_347423382 
NHỮNG KHÓ KHĂN NGÀNH VẬN TẢI ĐƯỜNG BỘ ĐANG PHẢI
ĐỐI MẶT
https://vantaibactrungnam.vn/tin-tuc/nhung-kho-khan-nganh-van-tai-
duong-bo-dang-phai-doi-mat
Gợi ý 10 nhóm giải pháp quản lý giao thông đô thị bền vững
https://thanhnien.vn/goi-y-10-nhom-giai-phap-quan-ly-giao-thong-do-thi-
ben-vung-185530425.htm