Hanoi to rent out pavements in inner districts at $1.77/m2 per month

Authorities in Hanoi plan to charge VND45,000 (US$1.77) per square meter per month for renting pavement space on major thoroughfares in the city's four central districts.  

Food stalls on the pavement of Ly Thuong Kiet Street. Photo: Lai Tan/The Hanoi Times

The four central districts are Hoan Kiem, Ba Dinh, Hai Ba Trung and Dong Da.

In the remaining eight districts - Thanh Xuan, Cau Giay, Bac Tu Liem, Nam Tu Liem, Ha Dong, Long Bien, Tay Ho and Hoang Mai - the monthly fee is set at VND40,000 ($1.57) per square meter.

Son Tay Town would charge VND25,000 ($0.98) per square meter per month. In suburban and rural areas, pavement rent is VND20,000 ($0.79).

In Hoan Kiem District, parking fees for cars are VND240,000 ($9.43) per square meter per month on restricted roads and pavements and VND150,000 ($5.89) per square meter on other roads, while motorcycles and bicycles are VND135,000 ($5.30) per square meter and VND90,000 ($3.54) per square meter respectively.

According to the Hanoi Department of Construction, the pavement rental fees will be piloted in Hoan Kiem District. The department will analyze the outcomes and propose replication in other districts.

The plan has been submitted to the Municipal People's Committee for review and feedback. The department will also gather public and professional opinions and make adjustments to the plan as needed.

The construction department sees the plan as a solution to managing and maximizing the use of pavements.

Since 2021, the Hoan Kiem District authorities have made the pavements in front of four buildings available for rent. The buildings are located at No.94 and No.30 Ly Thuong Kiet Street, No.11 Le Phung Hieu Street and No.15 Ngo Quyen Street.

These buildings are large hotels and restaurants with a wide front. These walkways were leased so pedestrians had enough space to walk and ensure business operations.

Despite the positive results of the activity, the Hoan Kiem District authorities said that it is not applicable to all pavements in Hanoi due to differences in pavement size.

The district said that most of Hanoi's pavements are narrow; therefore, it needs precise considerations with the benefits of pedestrians the priority.

In June 2023, shop owners told The Hanoi Times that they were willing to pay for the pavement, but the rates should be reasonable based on the size. They also asked government agencies to be transparent about the plan.

The encroachment of pavements for private businesses in Hanoi has been going on for decades. Shop owners use sidewalks to display their products, which foreign tourists find one of the most attractive features.