Hanoi street usage fees come under fire

VietNamNet Bridge – A number of agencies and district-level authorities in Hanoi have proposed a reconsideration of the increase in street and pavement usage fees. They say it is too high in comparison with the current rate.

A parking lot on Dinh Tien Hoang Street in Hanoi. – VNA/VNS Photo

According to a proposal of Hanoi’s People’s Committee, the new rate of street and pavement usage fees will increase by at the most three times compared with the current rate.

The proposal will be discussed at a meeting of the city’s People’s Council next month.

If the proposal is realised, parking fees are also expected to increase.

The current street and pavement usage fees at the highest rate are VND80,000 (US$3.5) and VND45,000 ($2) per square metre per month, respectively. Motorbike parking fee is the highest at VND50,000 ($2.1) per month, or VND3,000 ($0.13) per time, while the fee for cars is VND1-2.5million ($44-108) per month, or VND20,000-40,000 ($0.8-1.7) per time.

According to a representative of the Planning and Urban Development Association, the proposal to increase street and pavement usage fees does not include a proposal on new vehicle parking fees.

“The proposal to increase street and pavement usage fees will increase the city’s budget, but it does not clarify how much people will have to pay as parking fees,” the representative said.

Representatives from Hanoi’s Planning and Urban Development Association and Hanoi’s Transport Association said the proposal is not clear and convincing.

President of Hanoi’s Fatherland Front Vu Hong Khanh said the proposal was made based on legal foundation, however it was not practical.

According to owners of licenced parking lots in Hoan Kiem and Hai Ba Trung districts, if the new street and pavement usage fees are applied, parking fees must also be adjusted.

Each car parked on the street accounts for 11sq.m and each motorbike takes up 1sq.m area. Adding all kinds of fees they have to bear, including taxes and wages paid to employees, the owners of the lots said car parking fee must increase to VND4-4.1 million ($174-178) per car per month, or VND130,000 ($5.5) every two hours. Motorbike parking fee would increase to VND230,000-240,000 ($10-10.5) per month, or VND10,900 per time ($0.5).

Dao Ngoc Nghiem, deputy head of Hanoi’s Planning and Urban Development Association, said this increase is “unimaginable” compared with general living standards.

“This decision leads to difficulties for people and units using streets and pavements,” he said.

Source: VNS