Ho Chi Minh City to collect sidewalk and road usage fees from early 2024

The city plans to allow the use of part of the sidewalk and roadway for parking and business purposes, with a fee of 20,000-350,000 VND per square meter, from the beginning of 2024.

The content stated in the proposal on the fee for temporary use of roads and sidewalks has just been sent by the Department of Transport to the Ho Chi Minh City People's Committee to report to the City People's Council for approval.

Cases that are allowed to use the roadway and sidewalk and pay fees include: organizing cultural activities ( sports , parades, festivals) and car parking spots serving cultural activities; domestic waste transfer points of urban environmental sanitation enterprises; parking spots with service fees.

Other activities are points for organizing business services, buying and selling goods; points for arranging works and utilities serving public transport with user fees and installing temporary works on sidewalks and median strips; points for transferring materials and construction waste serving construction.

A coffee shop on Hoang Sa Street, District 1, uses the sidewalk as a parking space for customers, February 2023. Photo: Gia Minh — A coffee shop on Hoang Sa Street, District 1, uses the sidewalk as a parking space for customers, February 2023. Photo: *Gia Minh*

The proposed fee is based on the average land price in 5 areas, with the central routes being higher than the suburban ones. The lowest fee for parking is 50,000 VND, the highest is 350,000 VND/m2 per month. Other activities apply 20,000-100,000 VND/m2.

If the number of days using the roadway or sidewalk is less than 15, the rental fee will be calculated as half a month, from 15 days or more, it will be calculated as one month. It is expected that each year, the revenue from roadway and sidewalk usage fees will be more than 1,500 billion VND, which will be paid into the budget for roadway and sidewalk maintenance.

The toll collection is expected to start on January 1, 2024. The Department of Transport will be in charge of collecting tolls on routes under its management. Roads under the management of districts will be collected by the local authorities.

Currently, Ho Chi Minh City has 4,869 roads with a width of 5 meters or more, of which nearly 2,600 have no sidewalks. The situation of buying and selling and encroaching on sidewalks and roadsides is common, affecting traffic and urban aesthetics.

Previously in July, the Ho Chi Minh City government issued a new decision on the management and temporary use of part of the roadway and sidewalk, replacing the old decision that had been in effect for the past 15 years. The new regulations were implemented in a more decentralized manner for departments and districts, aiming to manage closely to reality as well as proactively handle cases of temporary use of the roadway and sidewalk.

Temporary use of sidewalks must ensure the principle of leaving at least 1.5 m for pedestrians and two lanes for cars in one direction for the roadway. Activities on sidewalks and roads must ensure order, safety and be suitable for the function and load-bearing structure of the roads.

Gia Minh

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