Currently, Ho Chi Minh City generates approximately 9,500 to 10,000 tons of household waste daily. Of this waste, 60 percent is collected by individual waste collectors. However, most of these waste collection vehicles do not meet requirements; they consist of old, makeshift carts and bins without lids. During transportation, leaks of wastewater onto the streets are common.
To address the issue of rudimentary waste collection vehicles on the roads, Deputy Director Bui Hoa An of the Ho Chi Minh City Department of Transport has recommended that the department collaborate with the Department of Natural Resources and Environment, the People’s Committee of Thu Duc City, and district authorities to explore solutions. The goal is to prevent the widespread practice of using motorbikes to pull waste carts and bins, which obstruct traffic, pose risks, and compromise safety for other road users.
Additionally, the department has instructed affiliated units to enhance patrols and inspections related to urban sanitation violations, encroachment on sidewalks, improper waste transportation, and strict enforcement against cases involving makeshift or unregulated vehicles.
According to the Ho Chi Minh City Department of Natural Resources and Environment, efforts have been made to improve waste collection activities. Recently, Ho Chi Minh City has encouraged households and individual waste collectors to form cooperatives or legal entities and transition from rudimentary waste collection vehicles (such as three-wheeled carts and makeshift vehicles) to environmentally compliant collection vehicles.
Between 2021 and the end of 2023, the People’s Committee of Thu Duc City and district authorities reviewed and converted 1,897 waste collection and transportation vehicles (including 956 660-liter bins and 941 garbage trucks). Based on updated reports from various units, as of the end of 2023, the total existing waste collection vehicles in Ho Chi Minh City amount to 6,414.
Among these, 2,378 vehicles do not meet standards (representing 37 percent), while 4,036 vehicles comply with standards (representing 63 percent). The demand for new waste collection and transportation vehicles is 1,883 (including 1,144 660-liter bins and 739 garbage trucks), with an estimated funding requirement of approximately VND228.89 billion from the Environmental Protection Fund.
Specifically, the Environmental Protection Fund has provided guidance and favorable loan interest rates for individuals, organizations, and businesses operating waste collection and transportation within the city. For small-scale waste collectors who lack funds to switch to motorized vehicles, those interested in purchasing new 660-liter bins, or those wishing to learn new skills for career transition, they can contact the Cooperative Union Capital Support Fund under the Ho Chi Minh City Cooperative Alliance to apply for unsecured loans, with a total borrowing limit of up to VND60 million.
According to statistics from the Ho Chi Minh City Environmental Protection Fund, from 2015 until November 22, 2023, the fund received 157 loan applications from cooperatives, individual waste collectors, and waste collection businesses. Out of these, 134 applications were approved, totaling nearly VND177 billion. Currently, 121 projects have been funded for the conversion of 160 waste collection and transportation vehicles, amounting to over VND166 billion. Specifically, 15 projects were funded for individual waste collectors, totaling nearly VND10 billion, private enterprises (including some individual waste collectors who transitioned to legal entities) received funding for 36 projects, totaling nearly VND41 billion and cooperatives and their members were funded for 44 projects, totaling VND35 billion.
Director Cao Phong Lan of the Ho Chi Minh City Environmental Protection Fund stated that the fund currently offers favorable financial support policies, including low and stable interest rates. The current interest rate is 3.86 percent per year, with a maximum loan limit of 70 percent of the total investment value of the project. The application process is efficient, and flexible collateral options are available to suit customer conditions (such as using assets formed from the loan capital or bank guarantee documents).
Customers borrowing from this fund will receive support in promoting their image, be recognized by local authorities, and have the opportunity to participate in annual environmental awards. Priority loan support is given to projects related to clean energy production, renewable energy, environmentally friendly products and services, waste management, pollution reduction, and waste collection vehicle conversion.
