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Dec 01, 2017 / 14:32

Hanoi considers tripling pavement, roadbed rental fees

Recently, Hanoi government raises controversial issue when considers increasing the pavement and roadbed fees.

Specifically, under the proposal of the Hanoi People’s Committee, the pavement and roadbed rentals for car keeping at 12 major streets in city-core district (Hoan Kiem District) will be raised from VND80,000 (USD3.63) to VND240,000 (USD10.9) per square metre per month.
Meanwhile, the rentals for other streets in Hoan Kiem District will be tripled to VND150,000 (USD6.81) from VND60,000 (USD2.72) per square meter/month.
Parking lot in Hai Ba Trung Street, Hanoi.
Parking lot in Hai Ba Trung Street, Hanoi.

According to Hanoi Transport Department, there are about 653 licensed parking lots with total usage area of 124.900 square meters. In 2015, the budget revenue from Hanoi’s pavement, roadbed fees hits more than VND 40 billion (US$ 1.8 million).  With the increasing fees under the proposal, it’s expected that 2018 witnesses VND 113 bn (US$ 5.2 million) in Hanoi budget revenues from pavement rentals.  
According to Thai Dung Tien, vice head of Hanoi Tax Department, Hanoi keeps the pavement and roadbed rentals unchanged for many years. Many private units charge the rentals higher than municipal discipline. So, once raising the fees, the government aims to restrict private vehicles amid the city’s high traffic congestion as well as to add to the city’s budget revenues and can encourage smart parking lot projects also.
However, Nguyen Xuan Thuy, former director of Transportation Publishing House under the Ministry of Transport, said that Hanoi’s centre city was facing a serious shortage of parking lots, so, the pavement rental increases are not suitable. It would be more important to consider the construction of underground parking lots to serve people’s demand. The government needs to have preferential investment mechanisms to encourage investors for these projects.
In another hand, Dr. Dao Ngoc Nghiem, vice chairman of Hanoi Urban Planning and Development Association, supported the proposal, said it is totally appropriate for Hanoi’s current condition.
Nguyen Nguyen Quan, Head of Urban Division of the Hanoi People's Council, said that Hanoi People’s Committee had submitted the proposal to the municipal Council for consideration. Municipal authorities will seek public opinion on the proposal.