Observations on several streets within District 1, where fee-based sidewalk usage has been instituted – including Nguyen Dinh Chieu, Mac Dinh Chi (Da Kao Ward); Nguyen Du, Le Thanh Ton (Ben Nghe Ward); and Phan Boi Chau (Ben Thanh Ward) – reveal a marked improvement in sidewalk organization. Commercial establishments have arranged vehicles within designated motorcycle parking zones, and eateries as well as cafes operating on the sidewalk have adhered to established seating areas.
Nguyen Que Anh, a shop owner on Mac Dinh Chi Street, asserts that the local administration’s implementation of fee-based temporary sidewalk usage has contributed to sidewalk order stabilization, advocating for the replication of this model.
Similarly, in District 3, numerous streets subject to this fee-based sidewalk usage scheme, such as Pasteur, Nam Ky Khoi Nghia, Nguyen Dinh Chieu, and Tran Quang Dieu, have maintained orderly conditions while preserving pedestrian accessibility.
Reports from the District 1 People’s Committee reveal that the fee-based sidewalk usage pilot, initiated in mid-2024 on 11 streets, has expanded to 52 routes. District 1 has registered 880 users, covering 8,887 square meters, generating over VND4.7 billion (US$184,000) in fees.
While many streets have achieved stability and order, particularly in the city center, newly implemented routes exhibit disorganization due to residents’ unfamiliarity with operational procedures. Several pavements continue to exhibit disarray despite the imposition of fees.
De Tham Street, within Pham Ngu Lao and Cau Ong Lanh Wards (District 1), despite its ample width and designated fee-based usage zones, is frequently overrun with overflowing tables and chairs, haphazardly parked vehicles, and pedestrians forced to traverse the roadway. Similarly, Nguyen Thai Hoc Street (Cau Ong Lanh Ward, District 1), recently renovated and paved, remains plagued by encroachment from eateries, beer establishments, and produce stalls, despite its inclusion in the fee-based usage program.
In District 10, sidewalks are recurrently re-appropriated for parking and commercial activities. The intersection between Cach Mang Thang Tam-To Hien Thanh is particularly congested with mobile vending vehicles, impeding traffic flow and compromising sanitation. Nguyen Thi Mai (District 10 resident) reports persistent walkway and street encroachment, even in areas where fee-based usage is enforced.
Similarly, in Go Vap District, where Decision 32 has not been implemented reveals pervasive sidewalk appropriation by commercial establishments. On Quang Trung Street, a designated district-level model street, signage obstructs pedestrian pathways, compelling individuals to walk in the road. Conversely, Nguyen Van Bao Street (Ward 1, Go Vap District) is transformed into a makeshift market by eatery furniture and customer vehicles, with sidewalks serving as permanent commercial spaces.
Nguyen Thanh P., a business owner on Nguyen Van Bao Street, notes that while enforcement actions are periodically conducted, commercial activities resume upon the departure of authorities.
Furthermore, concurrent sidewalk renovation projects in District 1 have impeded the timely differentiation and allocation of fee-based usage areas. Recent meetings between the People’s Committee of the district and ward leaders have focused on reviewing fee-based usage routes and addressing street and sidewalk encroachment.
In District 3, over 6,000m2 of sidewalk have been leased, generating VND1.2 billion ($47,000). Deputy Head Tran Hai Nguyen of the District 3 Division of Economy, Infrastructure, and Urban acknowledges implementation challenges due to Decision 32’s misalignment with practical realities, such as construction material transport permits and defined sidewalk zones, which have increased financial burdens without adequate city funding guidance.
The HCMC Department of Transport and Public Works informed that the sidewalk fee system aims to enhance urban order, yet faces challenges. While fee collection has fostered some positive behavior, inconsistent implementation across districts creates inequality. Some operators bypass regulations, charging indirectly.
Decision 32 also clashes with national decrees like Decree No.165/2024, limiting its long-term feasibility. National laws define permissible sidewalk usage, restricting local autonomy. This necessitates regulatory reform to ensure compliance and fairness. The municipal Department of Transport and Public Works is proposing revised regulations to the city council, seeking to align local practices with national standards and achieve equitable sidewalk and street usage.
The HCMC Department of Transport and Public Works reports that after one year of fee-based street and sidewalk usage implementation, the city has collected approximately VND6.5 billion ($255,000), with nearly VND2.5 billion ($98,000) collected by the department itself.
