Vietnam - Hanoi to increase fees and taxes to slash private vehicles

VietNamNet Bridge – Besides developing public transportation, Hanoi will raise vehicle registration fees, gas taxes, parking fees and restrict newly-registered vehicles on an annual basis in order to curb private vehicles.

The Hanoi People’s Council last week approved the city’s transportation planning to 2030. Under this plan, the city will focus on developing public transportation systems to satisfy 35 percent of the demand by 2020 and 50 percent by 2030.

At present, the public transport system can meet 10 percent of demand in the city’s hub. However, the figure may rise to 35-50 percent by 2020 when tramcar routes like Cat Linh-Ha Dong, Nhon – Bac Co, Nam Thang Long – Bac Co, Giap Bat and Gia Lam are put into operation.

From now to 2020, the city will give priority to developing subways, urban railways and BRT (bus rapid transport). It will also have separate lanes for cars of 12-seats upwards during rush hours.

While developing the public transportation system, the city will have policies to curb private vehicles, including setting higher conditions for getting driving licenses, raising vehicle registration fees, petrol taxes, parking fees, tolls, etc.

The capital city will also restrict the number of newly-registered vehicles on annual basis. At present, cars account for 2.5 percent of the total vehicles in the city. According the plan, the figure will be 8 percent by 2020 while motorcycles and bicycles will account for 55 percent.

Hanoi aims to give 18-20 percent of urban land to transportation by 2030. The city will build 9 expressways with 6-8 lanes, to expand nine highways into 4-6 lane roads, build overhead roads, 9 urban railway systems and railways to connect Hanoi’s centers to its satellite towns.

To implement this plan, Hanoi needs more than $50 billion, including $30 billion for railway projects.

Director of the Hanoi Department of Transportation, Mr. Nguyen Quoc Hung, said that the city will raise funds from various sources: ODA, private sources, state budget, etc.

Compiled by Mai Lan

Business & Investment Opportunities 
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Strategy, Investment and Management, focusing Healthcare and Life Science with expertise in ASEAN. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programmes. Many thanks for visiting www.yourvietnamexpert.com and/or contacting us at contact@yourvietnamexpert.com