Starting in 2024, Ho Chi Minh City (HCMC) to Implement Road and Sidewalk Usage Fees

Ho Chi Minh City (HCMC) is considering implementing fees for the utilization of certain sections of streets and sidewalks, allowing them to be used for parking and businesses, among other activities. The proposal, outlined in a report submitted by the Department of Transport to the HCMC People’s Committee, is awaiting approval from the municipal People’s Council. The designated areas could also be utilized for cultural events, as well as serving as intermediary locations for waste and construction materials, and public service infrastructure.

The fees for street and sidewalk usage will be determined based on the average land prices in the respective areas. For parking, fees will range from VND50,000 to VND350,000 per square meter per month, while other activities will incur fees ranging from VND20,000 to VND100,000 per square meter. It is estimated that these fees will generate approximately VND800 billion annually, which will be allocated to the national budget for the maintenance of streets and sidewalks.

The collection of fees is scheduled to commence on January 1, 2024. The Department of Transport will be responsible for collecting fees in areas under its management, while local authorities will handle fee collection in other areas. Currently, HCMC has 4,869 roads that are at least 5 meters wide, with approximately 2,600 of them lacking sidewalks. The unauthorized occupation of streets and sidewalks for parking and commercial purposes has had adverse effects on traffic flow and the overall aesthetic appeal of the city.