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HCM City to collect VND 1.55 trillion a year from street space rental

HCM City Department of Transport has just proposed a detailed plan on the use of road and pavements for commercial purposes, which could bring in an estimated annual revenue of VND 1.55 trillion (USD63.48 million).

HCM City Department of Transport has just proposed a detailed plan on the use of road and pavements for commercial purposes, which could bring in an estimated annual revenue of VND 1.55 trillion (USD63.48 million).

HCM City to collect VND 1.55 trillion a year from street space rental - 1


A parking lot on the pavement in HCM City.

According to the proposal, the fees will vary with the highest applied for the central areas including districts 1,3,4,5,10, Phu Nhuan, and Thu Thiem New Urban Area. In this area, the fees to hire a square metre of pavement and road are between VND180,000-350,000 for parking services, and VND50,000-100,000 per month for other purposes.

Under a new decision issued by the HCM City People’s Committee, parts of many local roads and pavements can be leased for business activities such as cultural events, stalls and parking lots. The revenues will be used for road maintenance work.

However, after being leased at least 1.50 metres pavement for pedestrians must be ensured. Meanwhile, roads must ensure at least two one-way lanes for cars.

According to the Department of Transport, HCM City is now home to around 600 roads which are nine metres wide. Currently, 1,143 local roads have a minimum pavement width of three metres. Leasing these pavements for commercial purposes could provide the city with revenues of VND 1.55 trillion (USD63.48 million) annually.

Content link: https://dtinews.dantri.com.vn/vietnam-today/hcm-city-to-collect-vnd-155-trillion-a-year-from-street-space-rental-20230810095351627.htm