Diners spill onto the sidewalk outside a restaurant in downtown HCM City, leaving little space for pedestrians. — VNS Photo Bồ Xuân Hiệp

HCM CITY — HCM City authorities have suspended the collection of pavement and roadway usage fees as the city prepares a new management plan in line with the new national traffic laws.

The Department of Construction recently announced that all temporary permits and fee collections for commercial use of sidewalks and roadways under Decision 32 have been halted.

The move comes in response to the new Law on Roads and Law on Road Traffic Order and Safety set to take effect in 2025, which prohibit provincial-level governments from issuing their own regulations for using public walkways for business activities.

The suspension comes amid rising public frustration over pavement encroachment as well as motor vehicles using sidewalks, which continue to pose serious threats to pedestrian safety and urban order.

Officials said the upcoming framework aims to protect pedestrian rights while managing shared public space more effectively.

Under Decision 32, issued in July 2023, the city began allowing commercial and cultural activities to temporarily use pavements for a fee starting in early 2024. In just over a year, the city collected over VNĐ7 billion (US$275,000) from the activities.

While the policy was initially praised for helping legalise and organise sidewalk use, inconsistent enforcement led to persistent violations.

Several areas saw ongoing obstruction and disorder, triggering public criticism over a lack of fairness and transparency.

In the meantime, the city has paused the issuance of new permits. Only previously granted permits that remain valid will be honoured.

Certain uses such as vehicle parking, material transport, and waste collection may still be reviewed under new guidelines.

The department is working with the HCM City Institute for Development Studies to design a comprehensive, citywide strategy for managing sidewalk and roadway usage.

The plan will also account for the city’s expanded administrative boundaries following its merger with the former provinces of Bình Dương and Bà Rịa-Vũng Tàu.

The draft is expected to be completed within 12 months. If approved, it will be piloted in selected central wards before being implemented more broadly across the city. — VNS