HCM City's pilot public vehicle rental which took effect on May 1 is expected to save more than 100 million VND (4,400 USD) per month for the State budget. — (Photo: nld.com.vn) HCM City (VNA) – Ho Chi Minh City’s pilotcar rental service for Government officials that began on May 1 isexpected to save more than 100 million VND (4,400 USD) per month for the Statebudget.
Le Thanh Khoa, director of the HCMCity Voluntary Youth Public Benefit Service Company (BESCO), said thecompany had begun receiving public cars and drivers from agencies for rent toState units.
Pham Khanh Phong Lan, head of the HCMCity Food Safety Management Board, said the board was ready to rent publicvehicles to the agency’s head and deputy heads.
The two public cars previously managed by theagency will be handed over to the authorities or auctioned, she said.
The rental price is 11,000 VND per km (based onthe current average price of taxi companies) or 19.8 million VND per month percar, according Le Ngoc Thuy Trang, Deputy Director of the Department ofFinance.
Trang said the rental price was carefullycalculated by the Department of Finance, ensuring more savings for the budget.
According to Trang, public vehicles used by theunits will be sold or transferred to BESCO.
The driver of the units will be laid off andthose who wish to continue their work will be referred to BESCO for work undercontract.
According to the municipal People’s Committee,the pilot units must report the results of the pilot scheme to the Departmentof Finance before October 30. The department will then report to the People’sCommittee by November 30.
It is expected that the city’s People’sCommittee will consider extending the pilot project to all departments anddistricts from early next year.
The pilot has begun in five State agencies andunits, including the municipal People’s Committee Office, Department ofFinance, Binh Thanh district’s People’s Committee, Binh Chanh district’sPeople’s Committee, and the city’s Food Safety Management Board.
Under the pilot, two cars will be arranged foreach unit under a Government decision on the management and use of cars inState agencies and units.
The agencies and units must sign monthly carrental contracts with the company. During the pilot period, 26 cars will beavailable for use for five units.
BESCO will also arrange 10 cars for 24-hourservice to meet urgent needs on weekends, overtime or public holidays. Thetrips will be charged per journey or by kilometre.
To reserve a vehicle, userswill call a reservation centre or use the TNXP CAR phone app orcomputer via the internet.
The salaries of drivers, escorts and securityforces will be approved by the city’s Department of Finance.
HCM City has an excess of around 700public cars, most of them old and damaged. Each year, the city pays a greatdeal of money to maintain and repair public cars.
Before the pilot began, each agency managed fiveto eight cars at a cost of about 15 million VND per car per month. But now eachunit has only two cars, with a cost of 20 million VND per car per month.
With the pilot, the city expects savings of morethan 100 million VND per month, equivalent to over 1.2 billion VND eachyear.
Further savings will occur because of reducedspending on new car purchases.
The city’s old vehicles will be revoked andproceeds from sales will be remitted to the State budget.
Vietnam has about 34,241 public cars, each ofwhich costs around 320 million VND, equivalent to 13 trillion VND (572.7million USD) a year.
The Government plans to reduce the number ofpublic cars in the country to 30-50 percent by 2020, which is expected to save the Statebudget about 3.4 trillion VND (150 million USD) per year.-VNA
Le Thanh Khoa, director of the HCMCity Voluntary Youth Public Benefit Service Company (BESCO), said thecompany had begun receiving public cars and drivers from agencies for rent toState units.
Pham Khanh Phong Lan, head of the HCMCity Food Safety Management Board, said the board was ready to rent publicvehicles to the agency’s head and deputy heads.
The two public cars previously managed by theagency will be handed over to the authorities or auctioned, she said.
The rental price is 11,000 VND per km (based onthe current average price of taxi companies) or 19.8 million VND per month percar, according Le Ngoc Thuy Trang, Deputy Director of the Department ofFinance.
Trang said the rental price was carefullycalculated by the Department of Finance, ensuring more savings for the budget.
According to Trang, public vehicles used by theunits will be sold or transferred to BESCO.
The driver of the units will be laid off andthose who wish to continue their work will be referred to BESCO for work undercontract.
According to the municipal People’s Committee,the pilot units must report the results of the pilot scheme to the Departmentof Finance before October 30. The department will then report to the People’sCommittee by November 30.
It is expected that the city’s People’sCommittee will consider extending the pilot project to all departments anddistricts from early next year.
The pilot has begun in five State agencies andunits, including the municipal People’s Committee Office, Department ofFinance, Binh Thanh district’s People’s Committee, Binh Chanh district’sPeople’s Committee, and the city’s Food Safety Management Board.
Under the pilot, two cars will be arranged foreach unit under a Government decision on the management and use of cars inState agencies and units.
The agencies and units must sign monthly carrental contracts with the company. During the pilot period, 26 cars will beavailable for use for five units.
BESCO will also arrange 10 cars for 24-hourservice to meet urgent needs on weekends, overtime or public holidays. Thetrips will be charged per journey or by kilometre.
To reserve a vehicle, userswill call a reservation centre or use the TNXP CAR phone app orcomputer via the internet.
The salaries of drivers, escorts and securityforces will be approved by the city’s Department of Finance.
HCM City has an excess of around 700public cars, most of them old and damaged. Each year, the city pays a greatdeal of money to maintain and repair public cars.
Before the pilot began, each agency managed fiveto eight cars at a cost of about 15 million VND per car per month. But now eachunit has only two cars, with a cost of 20 million VND per car per month.
With the pilot, the city expects savings of morethan 100 million VND per month, equivalent to over 1.2 billion VND eachyear.
Further savings will occur because of reducedspending on new car purchases.
The city’s old vehicles will be revoked andproceeds from sales will be remitted to the State budget.
Vietnam has about 34,241 public cars, each ofwhich costs around 320 million VND, equivalent to 13 trillion VND (572.7million USD) a year.
The Government plans to reduce the number ofpublic cars in the country to 30-50 percent by 2020, which is expected to save the Statebudget about 3.4 trillion VND (150 million USD) per year.-VNA
VNA
