The proposed bus rapid transit (BRT) route will run 26 km in District 1 and Thu Duc City along Vo Van Kiet and Mai Chi Tho boulevards.
The HCMC Urban Civil Works Construction Investment Management Authority, which belongs to the department and will build and operate the system, plans to deploy 42 buses.
The department said in a communication to the city administration that, besides emitting less noise and toxic emissions than diesel buses, electric buses are also cheaper to operate and maintain.
A switch to electric vehicles is the global trend and is endorsed by experts, it said.
It asked the city to allow the authority to choose the suitable electric bus model for the route before inviting bids for the works involved.
HCMC plans to have six BRT routes. BRT is a bus-based transit system that may include dedicated lanes, traffic signal priority, elevated platforms and enhanced stations.
The city currently has more than 2,000 buses operating on 127 routes.
In March the first electric bus line, D4, was launched to connect Vinhomes Grand Park in Thu Duc City and Saigon Bus Station in District 1
It is the first of five lines to be trialed, with the others to run from Vinhomes Grand Park to Emart Mall, Tan Son Nhat International Airport, New Mien Dong Station, and the Vietnam National University.
The latter are expected to be launched in the third and fourth quarters of this year.