Prime Minister Nguyen Tan Dung has issued policies on encouraging buscompanies to develop public transport bus services, includinginfrastructure development, investment in buses and subsidies ofpassengers' bus fares.

The policies, which take effect in July,are expected to reduce traffic congestion, accidents and environmentalpollution nationwide.

Specifically, bus enterprises will beprioritised to receive funds from State budgets for infrastructureinvestment and development, including land funds, facilities to connectbetween buses and other means of transport, investment in clean-energybuses, and enterprises will become eligible to receive loans withfavourable interest rates.

Bus enterprises will also receive taxexemptions on imported automobile parts to produce and assemble buses.Those whose buses use clean energy will be free from paying ownershipfees.

Further, people's committees in cities and provinces will be required to support interest rates of loans for bus enterprises.

Thecommittees will also take responsibility for supporting theconstruction of management centres for buses to allow staffs tosupervise the quality of service offered by buses in their localities.

Basedupon their financial resources, the committees will determine theamounts of subsidies for bus fares, such as free travel for childrenunder six, people with disabilities and reduced fares for the elderly,students and others.-VNA