The government has allowed Ho Chi Minh City to collect tolls from its downtown area as part of solutions to reduce worsening traffic gridlocks.

Hai also asked the Ministry of Construction to boost the development of satellite cities nearby to lower population density, and hence traffic flow, in Ho Chi Minh City.

The government has ordered the city to take other measures to curb traffic problems, including restricting personal vehicles, modernizing public transportation systems and speeding up roadworks.

The HCMC administration considered in 2008 imposing an annual traffic fee of VND10 million on cars (US$540) with less than seven seats in the city. The proposal was rejected by the Finance Ministry.

Last year, the city mulled setting up an electronic toll system in its central area to reduce gridlocks and raise funds for new traffic projects.

Many experts criticized the plan, saying it would not be a strong deterrent for car usage. They also said the new system could cause new problems as more cars would choose to drive on smaller roads where tolls are not applied.

The city authorities have not decided on executing the plan.

Gridlocks in HCMC have become more critical and can last for hours. According to a report published by online newspaper VnExpress last year, there were around 400,000 cars in the city and 100 new ones were hitting the roads every day.

Source: Thanh Nien, VNA