May 10, 2012

Vietnam - Road maintenance fee proposal draws fire


VietNamNet Bridge – The Government should put off collecting the road-maintenance fee until the economy recovers, transport operators told a conference in HCM City yesterday, May 9.

According to the Ministry of Transport's proposal, the lowest rate will be VND180,000 per month levied on cars with less than 12 seats and trucks of less than two tonnes.

At the other end will be a VND1.44 million levy on trucks weighing above 27 tonnes and 40-foot container trucks.

Tran Huy Hien, general secretary of the Viet Nam Freight Forwarders Association, said logistics costs in Viet Nam were already the highest in the world, with transport accounting for 50-60 per cent of it.

The new fee would push up logistics costs even more, reducing the competitiveness of Vietnamese products, he warned.

Admitting that collecting the fee would help the Government maintain roads and improve infrastructure, he said however that it should not be imposed at a time when the global and Vietnamese economies remain unstable.

Dinh Nam Dinh, deputy chairman of the HCM City Goods Transport Association, said the fee would exacerbate an already difficult situation for transporters.

Many delegates also wanted the ministry to review the fee regime, saying it was unreasonable. "A container truck had to pay separate rates for its cabin and trailer, an unreasonable demand because they are a combination," they said.

Besides, the fee would be levied on all the vehicles an individual or organisation owns, which was again unfair since they could own many but only use one or a few at a time, they said.

More irrationally, Hien said, the fee would be collected every time a vehicle was certified as roadworthy, which could be several times a year depending on its make.

The Government should pay heed to citizens, experts, and industry associations before introducing the new fee, he said.
Dinh also urged the Government to consider the rates to ensure fair treatment to all.

He said relevant agencies should closely control the quality of roads. If they are built in accordance with the quality standards, repair costs, to be sourced from the fee, would be lower, he said.

Delegates said there had to be a clear and transparent mechanism to manage and use the fund.

The fee was earlier planned to be collected from June 1, but the Government recently put it off to January.

VietNamNet/Viet Nam News



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