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COST CONTROL IN HANOI ROAD PASSENGER TRANSPORTATION
ENTERPRISES WITHIN IT ENVIRONMENT

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Pham Van Tuan* , Nguyen Thanh Trang , Pham Mai Lan , Vu Thi Viet Thanh ,
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Phan Thi Hong Tham , Nguyen Viet Hung 6
1, 2, 3, 4, 5, 6 Hanoi Open University, Hanoi, Vietnam.
(*E-mail: tuanpv.kt@hou.edu.vn)
ABSTRACT
Costs in Hanoi's road passenger transport enterprise currently account for a
significant proportion of total expenses, particularly with rising fuel prices and increasing
demand for sustainable development. The process of generating these costs is prone to
risks and irregularities due to various reasons, particularly now that these businesses
operate in an IT environment. This article used a quantitative method to study factors
affecting cost control at 81 road passenger transport businesses in Hanoi (selected from
the list of businesses providing passenger transportation services by the Hanoi Transport
Association). The results of the research will serve as a basis for businesses to improve the
quality of their internal cost control operations, thereby enhancing their operational
efficiency.
Keywords: Affecting factors, cost control, road passenger transport enterprise, IT
environment.

1. Introduction
Hanoi, as the political, cultural, and economic center of Vietnam, has experienced
rapid urbanization and increasing travel demand, placing considerable pressure on its
urban transport system. According to data from the Hanoi People’s Committee, the city
currently has 1,370 main roads with a total length of 2,333 km, 573 bridges, 115
underpasses, four inland waterways spanning 63.5 km, 24 ferry terminals, and one metro
line. In addition, there are 1,791 residential areas and over 15,000 roads, streets, alleys,
and lanes of varying conditions. Despite these developments, the transport infrastructure
is under significant strain, as it is currently serving approximately 7.9 million vehicles,
including 1.1 million cars, 6.6 million motorbikes, and 0.2 million electric vehicles, with
additional traffic pressure from around 12 million vehicles entering the city from
surrounding provinces. The rapid growth rate—over 10% annually for cars and more than
3% for motorbikes between 2019 and 2022—has further intensified congestion,
particularly during peak hours.
In this context, road passenger transport services, including buses, taxis, and
motorbike taxis, play a crucial role in meeting urban mobility needs due to their flexibility
and accessibility. However, the actual number of users of these services has not met
expectations, leading to inefficiencies in business operations and continued reliance on
private vehicles. This situation highlights a critical managerial problem: how to improve
the operational efficiency of urban passenger transport enterprises in a highly dynamic
and resource-constrained environment.
Among the various challenges faced by these enterprises, cost control has become
increasingly important. Production and operating costs account for a significant
proportion of total expenses, while firms must simultaneously cope with rising fuel prices,

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