Ho Chi Minh City Mayor Reviews Transport, Utility Costs Amid Rising Inflation

Ho Chi Minh City's municipal government has launched a formal review of public transport fares and utility charges following sustained pressure on household budgets across the city, the People's Committee announced this week. The review, initiated by the Mayor's office and involving the Department of Transport and the Department of Natural Resources and Environment, will examine whether current pricing structures remain sustainable for the city's 9 million residents as inflation continues to erode purchasing power.

The move reflects growing concern about the cumulative effect of rising costs on families. Since January 2024, electricity rates have increased twice-by 3.89 percent in March and again in June-while water charges have risen 2.5 percent year-on-year. Bus fares on the city's main routes operated by Saigon Transport have remained stable at 9,000 Vietnamese dong for standard journeys since 2022, but maintenance costs and fuel expenses have climbed. Low-income households in outer districts such as Thu Duc City and Can Tho have reported spending up to 18 percent of monthly income on utilities and transport combined, according to data compiled by the Ho Chi Minh City Department of Labor, Invalids and Social Affairs.

What the Review Covers

The scope of the policy review includes four main areas: electricity pricing for residential and small business customers; water supply and wastewater charges; public bus and metro fares across the city's expanding transport network; and potential targeted subsidies for elderly residents, students, and low-income households. The government says the review will be completed by October 2026, with any price adjustments taking effect no earlier than November. Officials have stated that any changes will be phased and will include advance public consultation.

For residents, the immediate concern is whether fares and utility costs will rise further. A family of four in District 1 currently pays approximately 2.2 million dong monthly for electricity, 800,000 dong for water, and around 1.8 million dong for bus passes if three members commute daily. Under current municipal budget projections, utility revenue has fallen 6.7 percent behind target this fiscal year, creating pressure to either raise prices or cut services. Transport officials have noted that operating costs for Bus Route 1 (running from Ben Thanh Market to Binh Dien) now exceed revenue by 12 percent annually.

Timeline and Next Steps

The People's Committee has instructed all relevant departments to submit preliminary findings by August 15, 2026. Public hearings are scheduled for September at district level, with particular attention to testimony from household representatives, business associations, and labor unions. The government says it will also seek input from the Ho Chi Minh City Fatherland Front, the official mass organization representing community interests.

Any approved changes will require formal approval from the People's Committee before implementation. Officials have indicated that subsidy schemes for eligible groups-pensioners aged 70 and above, full-time students, and households earning below 1.5 times the minimum wage-are being developed in parallel. The minimum wage in Ho Chi Minh City stands at 4.65 million dong monthly as of July 2026.

The review comes as residents across the city adjust to cumulative cost pressures. Surveys by the Ho Chi Minh City Statistics Office earlier this year found that 34 percent of households had reduced discretionary spending in the previous six months to manage rising bills. For working families and retirees on fixed incomes, any further increases in essential services will force difficult choices between utilities, transport, and food expenses.