Ho Chi Minh City estimates it could earn nearly VND43 billion (US$2.4 million) a year from renting sidewalks

A Ho Chi Minh City plan to charge fees on the use of sidewalks for business needs to be more specific to reel in big bucks the metropolis’ leaders expect, said experts at a conference on Thursday.

The representative also told the conference, held to collect feedback on a draft proposal on the initiative, that different locations in a district can bring different benefits to businesses there,

The official said the fact that the city announces a new land price list each year, while the fees set up by the draft are to be applied for five years would also make things difficult.

Written by the Joint Department of Finance and Transport, the draft planned to charge monthly fees of VND46,000 ($2.58) per square meter in central districts like District 1, and VND1,000 ($0.05) in outer areas like Can Gio District, said Ta Quang Vinh, vice director of HCMC Finance Department.

Another plan would be to set up average fees for three groups of districts: VND19,000 per square meter a month for ten central districts, VND6,000 for nine suburban districts, and VND3,000 for the five outer districts of Can Gio, Nha Be, Cu Chi, Binh Chanh, and Hoc Mon, Vinh said.

Some participants proposed the fees be multiplied five to ten times for those who used sidewalks for advertising, construction, or parking lots.

Construction encroaching on sidewalks always causes problems for pedestrians, said Nguyen Thanh Cu from the Fatherland Front Committee in District 3.

Other participants like Nguyen Dinh Khoa from Binh Thanh District suggested the drafters zone sidewalks properly, as not everywhere along the sidewalks should be put out for rent.

Some people are willing to rent a whole street for their business, Khoa said, warning that there then wouldn’t be any space for pedestrians.

The nearly VND43 billion (US$2.4 million) a year the city could earn from renting sidewalks could be used to improve and repair streets, the draft’s supporters said.

The central city of Da Nang and Hanoi are already charging sidewalk business fees.

Source: Thanh Nien, Tuoi Tre