The new fees, likely to be implemented next month, aim to apply more consistent rates across the entire city, according to the Ha Noi People’s Committee.

The new rates are set at VND32,000 (US$1.50) per sq.m per month in Hoan Kiem District and VND25,000 ($1.2) per sq.m per month in all other districts.

Current fees for the use of pavements and roadsides differ from district to district. On main streets in Hai Ba Trung, Hoan Kiem, Ba Dinh and Dong Da districts, the rate is VND45,000 (US$2.65) per sq.m per month.

Commercial operations on streets in Thanh Xuan, Cau Giay, Tay Ho, Long Bien, Hoang Mai and Ha Dong districts are at VND40,000 ($2.35) per sq.m per month, while for other suburban districts the rate is as low as VND20,000 ($1.17) per sq.m for a month.

Chairman of the municipal people’s committee Nguyen The Thao said authorities were trying to encourage establishment of motorbike parking lots to meet rising demand.

Thao said a specific fee level for vehicle parking would be set up to ensure that while parking businesses earn profits, customers will not be hit by exorbitant parking fees. Businesses running parking lots must pay 2 per cent of their revenue to city authorities.

Some parking lots are notorious for unusually high prices, but customers can do little except take their vehicle elsewhere.

“On weekdays, I am charged VND5,000 for each time I park my motorbike on Hoan Kiem District’s Hang Gai Street,” said local resident Luong Thanh Binh.

“During the weekend, I sometimes have to pay three to four times this amount.

“The people running parking spaces give customers tickets stamped with a price of VND1,000 or 2,000 but simply charge whatever price they want.”

Thao said that in the coming time, authorities would carry out a comprehensive inspection of roadside and pavement parking services in a bid to improve their management.

VNN/VNS