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Ho Chi Minh City
Wednesday, May 18, 2022

HCMC draws up plan to charge cars entering downtown area

The Saigon Times

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HCMC – The HCMC Department of Transport has proposed the municipal government assign the municipal Department of Planning and Investment to provide consultancy on developing a plan to charge cars entering the city’s downtown area.

The move was aimed at conducting a Government’s decree on enhancing traffic order and safety and reducing traffic congestion in the 2022-2025 period, the local media reported.

Accordingly, HCMC, Hanoi, Danang, Haiphong and Can Tho should develop plans to collect fees from autos and motorbikes entering areas prone to congestion and pollution.

This is the second time the proposal was made, after Innovative Technology Development Corporation had proposed a similar plan.

In particular, the fee collection system will be developed in the surrounding areas of districts 1 and 3 with an operating center.

The corporation estimated the needed investment in the project at nearly VND2.28 trillion, including some VND478 billion as the initial investment and VND1.8 trillion for the operation of the fee collection system in the next 10 years.

The fee, expected to be VND40,000 for each car and VND70,000 for each truck and coach, will be collected during peak hours. Taxis registered in HCMC would be granted a discount of some VND20,000 each.

Buses, fire trucks and ambulances would be exempted from the fee.

In 2010, the HCMC government approved Innovative Technology Development Corporation’s proposal, but the project was suspended later due to objection from the public and many experts.

Three years ago, the HCMC Department of Transport proposed building 34 collection booths in districts 1 and 3 and areas bordering districts 5 and 10 with an estimated investment of VND250 billion, using the city’s budget.

As of the end of 2021, HCMC has been managing more than 8.4 million vehicles, including 819,000 autos and over 7.6 million motorbikes. On average, 79 new autos and 309 motorbikes have been registered per day.

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