Commercial rental applications made

Districts in HCM City have submitted a list of more than 100 streets with sidewalks wider than three metres for commercial rental purposes to the municipal Department of Transport.

According to the department, eligible sidewalks must be at least 3m wide, with 1.5m allocated for pedestrians and the remaining space available for lease.

Districts 1, 10, and 11 have submitted their lists of qualifying roads to the department for review.

In District 1 alone, there are 52 roads suitable for business activities and 12 for paid parking, including well-known streets such as Bùi Thị Xuân, Cao Bá Quát, and Đề Thám.

Last year, the country’s largest city approved the usage of sections of streets and sidewalks for various purposes, including parking and businesses.

Fees for street and sidewalk usage are expected to range from VNĐ20,000-350,000 (US$0.8-14) per month, depending on the average land prices in the area.

The revenue generated from these activities is estimated to reach around VNĐ800 billion ($32 million) annually, with collection set to begin from 2024.

The revenue will be used for the maintenance of streets and sidewalks in the city.

The city's districts and communes are currently compiling lists of roads qualified for fee-based activities as part of the city’s efforts to regulate street and sidewalk usage.

The transport department has identified nearly 900 streets with sidewalks wider than three metres in five districts of the city that meet the conditions for commercial rental.

Rental fees will vary based on location, with inner-city areas commanding higher fees compared to suburban areas.

The department is working on developing management software to facilitate fee collection and ensure transparency and efficiency.

The initiative to lease sidewalks for commercial use aims to address the issue of street encroachment for business and parking, which has been a long-term problem in major cities in Việt Nam such as Hà Nội and HCM City.