Collective economics major force in public transport

SGGP
Transport has been one of three collective economic fields strongly developing in HCM besides trade and service. Subsidized bus cooperatives now account for 75 percent public passenger transport market share and bus number.
 

A passenger gets off a bus of May 19 Transport Corporative in HCMC (Photo: SGGP)

A passenger gets off a bus of May 19 Transport Corporative in HCMC (Photo: SGGP)

HCMC Cooperative Alliance reported that transport cooperatives of the alliance achieved success last year because they have been supported with policies encouraging collective economic development issued by the Central Government and the city Government.
Many cooperatives including May 19 Transport Cooperative Union, Transport Cooperatives No.9 and No.15 have methodically invested in public passenger and cargo transport system, becoming leading birds in these fields in the city.
May 19 Cooperative has received many bus routes from Cooperatives Tan Hiep, Cu Chi, No.22 and No.16 after they were restructured.
At the end of 2012, the cooperative established May 19 Transport One Member Limited Liability Company. On behalf of the cooperative’s management members, the company has operated bus routes and maintains vehicles, distributed profit among the members, recruited employees and paid wages.
According to the directorial board of the cooperative, the company is a pilot implementation of a centralized management model, which might be a probe step for the cooperative to gradually change its operation method into the model.
Thanks to the new management model, May 19’s revenue reached VND21 billion (US$924,000) in 2015 and net profit hit VND1.5 billion ($66,000).
Cooperative No.15 was established in the 1980s, transported passengers mainly by Lambro three wheeler, facing with difficulties in fuel and spare part supply. At that time, it kept transporting passengers intermittently with the main route from suburban Thu Duc to the downtown areas.
After changing operation method in accordance with the Cooperative Law 2012, the cooperative has obtained a number of achievements. At present, it is managing 130 vehicles comprising 90 buses, 23 rental automobiles and 17 student shuttles.
In addition, the cooperative has purchased 28 new buses equipped with air conditioners, cameras and GPS navigation devices to replace downgraded buses; opened new bus routes and invested in compressed natural gas vehicles to protect environment.
The vehicle renew together with service improvement has helped attract millions of passengers. Four subsidized routes alone saw the number top nine million at the end of September last year with revenue hitting VND13.6 billion ($598,000) and paid tax nearing VND800 million.
Similarly, Transport Cooperative No.9 has strongly invested in material infrastructures. Beside 8,000 square meters of rent land, it has bought 4,000 square meters to build a management center, parking lot, filling station, repairing workshop, auto part shop.
After the Government banned import of secondhand automobiles, the cooperative has established a limited liability company, providing auto trade services to increase revenues, and a joint stock company to broaden the cooperative’s trading activities.

By THUY HAI, KIM CHUNG – Translated by Hai Mien

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