Diners spill onto the sidewalk of a restaurant in bustling District 1, taking over the walkway for pedestrians. — VNS Photo Bồ Xuân Hiệp

HCM CITY — District 1 in HCM City on Thursday began a trial programme for renting out sections of sidewalks for various purposes such as parking and other businesses on eleven streets.

The selected streets include Hoàng Sa, Mạc Đỉnh Chi, Hải Triều, Chu Mạnh Trinh, Lê Thánh Tôn, Phan Bội Châu, Phan Chu Trinh, Hàm Nghi, Trần Hưng Đạo, Cô Bắc, and Võ Văn Kiệt.

Several city districts had previously submitted a list of over 100 streets for consideration for renting to the transport department.

According to a recent proposal by the department, eligible sidewalks must be at least three meters wide, with 1.5m designated for pedestrians and the remaining space available for leasing.

In the case of roads, two lanes in each direction are designated for cars and any extra space can be utilised for other purposes.

District 1 alone has identified 52 roads suitable for business activities and 12 for paid parking.

Management software will be implemented to facilitate fee collection and ensure transparency and efficiency.

The trial period will continue until September 30.

Last year, the city administration approved the use of sections of streets and sidewalks for parking and business rentals, marking the first implementation of such an initiative in the city.

Nearly 900 streets with sidewalks wider than three metres in five city districts have been identified by the department as qualifying for renting.

Rental fees will vary based on location, with higher fees in inner-city areas compared to suburban areas, ranging from VNĐ50,000 (US$2) to VNĐ350,000 per square metre per month.

Other activities will be charged VNĐ20,000-100,000.

The collected fees will be utilised for the maintenance of streets and sidewalks in the city.

The city has nearly 5,000 roads spanning at least five metres wide, with over 2,600 lacking sidewalks.

The initiative aims to tackle the issue of street encroachment for businesses and parking, a persistent issue in major cities such as HCM City and Hà Nội.

Hà Nội authorities have also announced plans to implement sidewalk rental fees this year.

While HCM City is expected to generate revenue by leasing out parts of sidewalks and streets to businesses, experts have warned of the potential consequences of the initiative.

They said sidewalks play an important part of the city’s landscape, and expressed concerns about the impact on tourism and the quality of life of residents if they are turned into markets.

The revenue generated from the collected fees may be offset by management and cleaning expenses.

Ensuring public hygiene, order, and pedestrian access must also be carefully considered.

A careful and practical approach is needed for the success of the scheme, experts noted. — VNS