The move is aimed to contribute to raising the city’s budget revenues and also encourage the construction of smart parking lots.

Under the proposal of the Hanoi People’s Committee, the pavement and roadbed rentals for car keeping at 12 major streets in Hoan Kiem District will be raised from VND80,000 (USD3.63) to VND240,000 (USD10.9) per square metre per month. 

Many pavements and roadbeds in Hanoi used as parking lots

The rentals for other streets in Hoan Kiem District will be increased to VND150,000 (USD6.81) from VND60,000 (USD2.72) per square metre per month. 

Meanwhile, the fees will be adjusted to VND135,000 (USD6.1) from VND45,000 (USD2.04) per square metre per month for motorbike keeping at 12 major streets in Hoan Kiem District. For other areas, the rentals will be raised to VND90,000 per square metre per month from VND45,000. 

According to Thai Tien Dung, deputy head of Hanoi Tax Department, Hanoi kept pavement and roadbed rentals unchanged for many years. So, the higher rentals are aimed to restrict private vehicles amid the city’s serious traffic jams and help to add to the city’s budget revenues. 

This would also encourage firms to invest in smart parking lot projects.

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.

Lawyer Tran Tuan Anh from Hanoi Lawyers Association said that increasing the pavement rentals is a way to raise the city’s budget, however, it was vital for Hanoi to think of how to use and manage this source of funding in an effective way to avoid waste.

However, 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.