Developers can receive subsidies of at least 20 percent of the interestrate when taking loans from banks to develop, upgrade or expand coachstations.

This is part of the incentives that thePrime Minister has approved to attract the private sector towards coachstation projects.

The Prime Minister assigned thePeople's Committees of cities and provinces directly under the centralgovernment, including Hanoi and Ho Chi Minh City, to make developmentplans for coach station networks and to invite investors.

The investors will also be exempted from paying land rents for areasused to build compulsory structures such as platforms, waiting rooms,ticket offices and green spaces.

Investors ofstation projects in disadvantaged districts will be exempted from payingland rent for the whole station area.

They willalso enjoy corporate income tax of 10 percent for 15 years on the incomegenerated from operating the coach station.

The rate is half of that imposed on other areas.

The corporate income tax, reduced from 25 to 22 percent last year, isexpected to drop to 20 percent next year. Small and medium-sizedbusinesses have enjoyed a 20 percent rate since the second half of 2013.

At a recent meeting with the Hanoi People'sCommittee, Transport Minister Dinh La Thang said the private sectorcould help improve the quality of transport services and suggested thecity should privatise all its coach stations.

General Director of the Directorate for Roads of Vietnam Nguyen VanHuyen said transparent bidding in transport projects will attractcompetent investors who would use investment effectively and improveservice delivery.-VNA