Development of Smart Ticketing System for Public Transportation Network in Ho Chi Minh City, Vietnam

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Amount Raised

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Total Investors

Project Overview

In order to build an integrated public transit system for HCMC, the city authorities have been preparing to develop a Smart Ticketing System (STS) that is expected to be used for the whole bus system as well as the upcoming MRT lines and BRT lines in the future. The STS is also expected to be an integral part of the Smart City Strategy of HCMC issued in 2017. More specifically, within the Smart City Strategy, the city plans to use e-tickets for buses with the usage of a single smart card for bus users. In the future, e-tickets will be used interchangeably for all public transport systems of HCMC, including buses, BRT, MRT as well as ferry-boats.

The main outcomes of STS project therefore are (i) to develop Technical Standards Framework for STS in HCMC and (ii) to prepare for the development of a STS core system (Back Office Software (BOS) including Central Clearing House System) of public transportation network in Ho Chi Minh City. Two main outcomes will be accompanied by long-term development strategy with capacity building and public engagement strategy in order to facilitate integration of the whole public transportation system in the future.

Sectors

  • Transport & Mobility
US$15,000,000
Funding Goal
Vietnam
Country
Asia and the Pacific
Region

Objectives

The overall objective of the Intervention is fundamentally to support HCMC in achieving the Sustainable Development Goals Target 11.2 which is “to provide access to safe, affordable, accessible and sustainable transport systems for all, improving road safety, notably by expanding public transport, with special attention to the needs of those in vulnerable situations, women, children, persons with disabilities and older persons”. This is done through providing technical assistance and implementation of the pilot project to the development of Smart Ticketing System in Ho Chi Minh City. The project is expected to have a long-term impact on public transportation development of Ho Chi Minh City by increasing the ridership of public transportation, ensuring the integration of different modes of public transport such as MRT, BRT, Buses and Ferry Boats in the near future and enhancing the level of services.

Specifically, the intervention is also designed to achieve the following sub-objectives, as a result of creating STS in Ho Chi Minh City:
• Improve the quality of public transport
• Increase the ridership of public transport
• Provide comprehensive data to support decision-making process of government and stakeholders in related-issues.
• Improve the capacity of city authorities in delivering and managing public transport
• Transform the public transport sector in HCMC

In order to achieve the objectives above, the intervention will include the following main tasks:
• Task 1: Review and Assess Fare Policies and Ticket Technologies of Public Transport in HCMC
• Task 2: Develop Technical Standards Framework for STS for Public Transport in HCMC
• Task 3: Propose Fare Policies for Public Transport System in HCMC
• Task 4: Propose Institutional Settings and Financial Model for the Implementation for STS in HCMC
• Task 5: Define Detailed Technical Specifications for Back Office System (BOS), including Central Clearing House System for STS in HCMC; Deliver a Proof of Concept for BOS
• Task 6: Propose Public Engagement Strategy to Promote STS
• Task 7: Develop a Capacity Building Plan to Facilitate Implementation of STS

Progress Tracker

Phases

  • Phase 1

    Phase Ia - Technical Assistance (funded by UK FCDO)
    The ongoing project funded by UK FCDO, having the development of Technical Standard Framework and the demonstration of Proof of Concept (POC) for Smart Ticketing System in Ho Chi Minh City (HCMC)

    Phase Ib - Technical Assistance
    The development of a Set of Rules for city-wide Smart Ticketing System and the development of a Terms of Reference for an investment project of the city-wide STS (Back Office System, including Central Clearing House system)

  • Phase 2

    Phase II - Hardware and Software for Smart Ticketing System of bus network
    The implementation and operation of STS for bus network of HCMC.

  • Phase 3

    Phase III: Hardware and Software for the city-wide Smart Ticketing System
    The implementation and operation of the city-wide STS, including bus system, future BRT lines and MRT lines of HCMC.

Current Stage

Concept Stage

Timeline

N/A

Project Milestones

A part of Phase Ia has been completed (as per indicated in the first survey submitted in May 2021), including the on-going finalization of Technical Standard Framework for the city-wide Smart Ticketing System. POC will be implemented during August 2021 – March 2022.

ESG Impact

The project is expected to have a strategic impact to the development of Public Transportation system of Ho Chi Minh City and contribute to the achievement of the city towards SDGs, especially the target 11.2 “By 2030, provide access to safe, affordable, accessible and sustainable transport systems for all, improving road safety, notably by expanding public transport, with special attention to the needs of those in vulnerable situations, women, children, persons with disabilities and older persons”. By contributing to the achievement of the city towards SDGs, the implementation of STS project will also demonstrate the commitment of HCMC toward various visions and actions declared in the New Urban Agenda.

Some expected strategic impacts of the intervention include:
• TS will eliminate the need for users to queue for tickets and reduce the burden on service providers to process fare transactions. Therefore, it will provide more efficient and convenient transport services to public transport users and will lead to an improved business environment for Public Transport and the increasing number of PT users;
• STS will enable public transport providers and city authorities to collect comprehensive data on the travel behavior of commuters. Therefore, they are able to understand the needs of users and can adjust their services towards more efficient system;
• STS can positively contribute to the reduction of fraud in purchasing and using tickets;
• As a wider perspective of integration, ticketing schemes can be extended to include things like parking, taxi payment or shared bicycles;
• STS can enable a variety of options for topping-up and payment methods;
• STS can contribute to the establishment and implementation of incentive schemes for many groups, including vulnerable groups such as elderly people, people with disability, poor households and low-income people, young groups including students, etc. Therefore, the accessibility to public transportation for those marginalized group will be increased;
• STS can support wider policies such by enabling Local Authorities to promote more sustainable mobility and changing people behaviors from private mode of transport to lower carbon alternatives such as Public Transport Modes;
• STS will help to promote age- and gender-responsive planning and investment for sustainable, safe and accessible urban mobility for all and resource-efficient transport systems for passengers and freight, effectively linking people, places, goods, services and economic opportunities;
• STS will be the demonstration for the commitment of HCMC to adopting a smart-city approach that makes use of opportunities from digitalization and innovative transport technologies, thus providing options for inhabitants to make more environmentally friendly choices and boost sustainable economic growth;
• STS will contribute to the increase in accessible, safe, efficient, affordable and sustainable infrastructure for public transport, as well as non-motorized options such as walking and cycling, prioritizing them over private motorized transportation;
• STS will support the development of clear, transparent and accountable contractual relationships between local governments and transport and mobility service providers, including on data management, which further protect the public interest and individual privacy and define mutual obligations.

Beneficiaries

HCMC authorities and HCMC citizens and visitors will be the direct beneficiaries of the project. As of 2020, HCMC has about 10 millions people, about 5% of the daily trips have been covered by public transport and it is expected that with the operation of STS, the ratio of coverage of public transport will be significantly increased.

SDG Goals

SDG 1: No PovertySDG 2: Zero HungerSDG 3: Good Health and Well-beingSDG 4: Quality EducationSDG 5: Gender EqualitySDG 6: Clean Water and SanitationSDG 7: Affordable and Clean EnergySDG 8: Decent Work and Economic GrowthSDG 9: Industry, Innovation and InfrastructureSDG 10: Reduced InequalitySDG 11: Sustainable Cities and CommunitiesSDG 12: Responsible Consumption and ProductionSDG 13: Climate ActionSDG 14: Life Below WaterSDG 15: Life on LandSDG 16: Peace and Justice Strong InstitutionsSDG 17: Partnerships to achieve the Goals

Rationale

The project is expected to have a strategic impact to the development of Public Transportation system of Ho Chi Minh City and contribute to the achievement of the city towards SDGs, especially the target 11.2 “By 2030, provide access to safe, affordable, accessible and sustainable transport systems for all, improving road safety, notably by expanding public transport, with special attention to the needs of those in vulnerable situations, women, children, persons with disabilities and older persons”. By contributing to the achievement of the city towards SDGs, the implementation of project will also demonstrate the commitment of HCMC toward various visions and actions declared in the New Urban Agenda.

Risks and Limitations

What are the key risks, constraints and dependencies related to the project?

As of now there is no available information regarding these issues.

Risk mitigation and continuity

MOU (between UK FCDO and PC and then DOT) were signed for the on-going STS project.

Another MOU between PC and potential funding agency can be initiated if required.

Financing

Funding Goal

US$15,000,000

Type of Investment

Grant; Debt

Financing Structure

Public Private Partnership

Secured Investment

US$3,000,000, by UK FCDO

Committed Government Funding

Yes, HCMC authorities have commitment for the co-funding of project and the Operation & Management (O&M) cost for the STS system once the project is completed. As this moment, no details on the committed amount is available, however it is reasonably expected that after one year from the date of completion of the ongoing project (Phase I mentioned above), the governmental co-financing and especially the partnership commitment from authorities of HCMC can be secured.

Committed Private Funding

No, at of June 2021 there is no committed funding from private sector.

Support

Technical Support Required

The next working steps that are required to transform STS project into deliverable reality are (i) the approval of Technical Standard Framework (TSF) from city authorities in form of an Official Decision; (ii) the development of a Set of Rules for city-wide Smart Ticketing System (iii) the development of a Terms of Reference for an investment project of the city-wide STS (Back Office System, including Central Clearing House system).

Stakeholders

Governmental Buy-in

Yes, the project has been supported by People Committee of HCMC and its Department of Transport (DOT) and Management Centre of Public Transport (MCPT).

Other Forms of Governmental Support

Beside funding, HCMC authorities is willing to offer institutional collaboration and governmental support for the implementation of the prospective project. Besides, they are expecting to receive support with relevant Technical Assistance and in-depth Technical Training regarding STS.

National Ministries Involved

N/A

SubNational Ministries Involved

Department of Transport (DOT) and Management Centre of Public Transport (MCPT).

Other Entities Involved

Public stakeholders:
+ MAUR - Management Authority for Urban Railways
+ TCIP - Transportation Works Construction Investment Project Management Authority
+ HURC1: Ho Chi Minh City Urban Railways No.1 Company Limited
+ DPI: Department of Planning and Investment
Private sector stakeholders: Zion, Vietbank, Momo

Licenses and Permits


N/A

Updates

Supporting Documents

No supporting documents included.

FAQs

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