HCMC develops plan to charge cars entering city center

ByShannon J. Cortes

Apr 17, 2022

The move aimed to adopt a government decree on improving traffic order and safety and reducing traffic congestion in the period 2022-2025, local media reported.

As a result, HCMC, Hanoi, Danang, Haiphong and Can Tho should develop plans to collect fees on cars and motorbikes entering areas prone to congestion and pollution.

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

In particular, the fee collection system will be developed around districts 1 and 3 with an operations centre.

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

The fee, which should be 40,000 VND for each car and 70,000 VND for each truck and coach, will be collected during peak hours. HCMC registered taxis would get a discount of around 20,000 VND each.

Buses, fire trucks and ambulances would be exempt from the charge.

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

Three years ago, the HCMC Ministry of Transport proposed to build 34 collection booths in Districts 1 and 3 and adjoining areas of Districts 5 and 10 with an estimated investment of VND 250 billion, using the budget of the city.

By the end of 2021, HCMC managed over 8.4 million vehicles, including 819,000 automobiles and over 7.6 million motorcycles. On average, 79 new cars and 309 motorcycles were registered per day.

Source: Saigon Times