The People’s Committee of Ho Chi Minh City believes that it could potentially generate over 1.5 trillion VND per year for the city’s budget by collecting fees for temporary use of road and sidewalk space.
On August 15th, People’s Committee of Ho Chi Minh City submitted a proposal to the Standing Committee of the Ho Chi Minh City People’s Council requesting the development of a resolution to establish fees for the temporary usage of road lanes and sidewalks within the city’s jurisdiction. The proposed proposal’s content is expected to be presented to the Standing Committee of the Ho Chi Minh City People’s Council during its upcoming session.
If approved, Ho Chi Minh City could collect more than 1,500 billion VND per year for its budget. The responsibility for fee collection would be assigned to the Department of Transportation and the People’s Committee of Thu Duc and the districts, as per the decision on the transfer of road infrastructure assets.
Ho Chi Minh City stipulates 5 specific areas to apply tolls for temporary use of roadbeds and sidewalks. Photo: Ngo Tung
According to the plan, the fee levels would be calculated based on the average land prices in each area. There are five areas along road routes, districts, and central city areas where temporary road and sidewalk usage fees would be applied.
The projected fees for using road lanes and sidewalks for business purposes are set at 20,000 – 100,000 VND per square meter per month, and for parking purposes, the fees range from 50,000 – 350,000 VND per square meter per month, depending on the location of the road routes.
According to the proposal, cases requiring payment for temporary road usage include: organizing cultural activities and parking spots for cultural event-related car parking; locations for the transfer of urban waste by environmental sanitation companies; setting up parking spots for motorcycles, mopeds, and bicycles that charge for parking services.
Cases necessitating fees for using sidewalks include: organizing cultural activities (sports events, parades, festivals) and parking spots for cultural event-related car parking; utilizing sidewalks for business activities, buying, and selling goods (in accordance with the list issued by the district-level People’s Committee); establishing structures and facilities for public transportation (with user fees), installing temporary structures on sidewalks, median strips, traffic islands; setting up materials transfer points and construction waste for project implementation; arranging parking and guarding spots with parking service charges.
In the proposal submitted to the Standing Committee of the Ho Chi Minh City People’s Council, People’s Committee of Ho Chi Minh City also outlined certain cases eligible for temporary road and sidewalk usage fee exemptions, such as: organizing cultural activities, promoting the policies and plans of the People’s Committee of Ho Chi Minh City; establishing parking spots for car parking during cultural and political events; setting up structures and facilities for public transportation; installing temporary political propaganda structures, transportation-related structures on sidewalks, median strips, traffic islands…
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