According to Hanoi People's Committee, from 1 January 2018, street and pavements using fees will increase by 300% on 12 streets in Hoan Kiem district.
In addition, parking fee in areas from the center to Ring Road 3 will also be increased by 200% with the roads from the Ring Road 1 to the urban areas. From Ring Road 2 to Ring Road 1 and from Ring Road 3 to Ring Road 2, this fee shall increase by 130%. Fee from outside the Ring Road 3 to suburban areas stay unchanged.
As forecast, annual revenue from pavement rentals of Hanoi will hit VND 113.4bn (~US$ 4.9bn)
Areas with iPaking application shall be subjected to 30% of the revenue.
Parking fee for cars under 9 seats in twelve streets within Hoan Kiem district such as Ly Thai To, Nguyen Xi, Dinh Le, Tran Hung Dao, Ly Thuong Kiet... is VND 60,000 / 2 hours (previously VND 30,000 / 2 hours); VND 3 million per month in daytime; VND 4 million / month in both day and night. Besides, people must pay VND 50,000 / 2 hours; VND 2 million per month in daytime; VND 3 million / month in both day and night wwhen parking in the remaining streets of Hoan Kiem District
In streets inside Ring Road 3, parking fee is 30,000 - 40,000 VND / 2 hours and from VND 1.5 million to 1.8 million per month.
Fee outside Ring Road 3 stays unchanged. "So, with the plan to raise fees up to three times and collect basing on area, Department of Transportation expects revenue in 2018 is VND 113.4 billion", said Representatives of Hanoi Parking Company.
Mr. Ngo Manh Tuan, deputy director of Hanoi Department of Transportation, said that the city is currently in shortage of parking area, so raising parking prices is considered a solution to reduce personal vehicles into the center, contributing to reduce traffic congestion.
Mr. Tuan also affirmed that the increase in parking fee to three times higher than before may encounter some objection but it was decided by the city authority and shall not be adjusted.
Currently, total number of parking lots under pavement and sidewalks permitted by the Department of Transportation and district authority is 653 with using area of 124,900m2. In which, 403 areas is subjected to fee collection and 250 areas is for free. Besides, Department of Transportation allowed 237 parking lots (mainly in street) and the district authorities allowed 416 parking lots (mainly in the sidewalks).
At present, the charging fee is calculated in two methods: by revenue (upto 6% of revenue / month) and in m2 (upto 80,000 VND / m2 / month). However, besides the official parking lots, there are also many spontaneous parking lots.
Mr. Bui Danh Lien, chairman of Hanoi Transport Association, said that this increase amount is too high and unreasonable, causing burden for car users.
According to Dr. Pham Sy Liem, the increase in parking services is true but should follows the detailed roadmap in suitable amount. In addition, it is necessary to have clear and transparent management measures to avoid some individuals taking advantage for profits, causing state budget loss and directly affecting the people lives.
According to a survey, in some areas in Thanh Xuan, Cau Giay, Nam Tu Liem and Bac Tu Liem districts (outside the Ring Road 3), many parking lots become overloaded as cars from Ring Road 3 come to park overnight. Some spontaneous parking lots started to bloom, increasing the parking fee.