Traffic congestion costs Hà Nội $1.2 billion a year

February 02, 2026 - 07:39
Soaring traffic congestion is costing Hà Nội billions of dollars each year and increasingly constraining the capital’s socio-economic development.
Traffic congestion in Hà Nội during peak hours, a direct constraint on the capital’s socio-economic development. — VNA/VNS Photo

HÀ NỘI — Hà Nội is facing mounting urban traffic congestion as the rapid growth of private vehicles, combined with heavy inflows from neighbouring provinces, overwhelms infrastructure and directly constrains the capital’s socio-economic development.

According to the Hà Nội Department of Construction, the city’s population has reached 8.7 million, with a high annual mechanical growth rate of 1.96 per cent. Yet transport infrastructure has lagged far behind demand.

Road networks have achieved just over 43 per cent of planned capacity, while land for transport has expanded by only 0.3-0.35 per cent per year, compared with annual private vehicle growth of 4-5 per cent and car growth exceeding 11 per cent.

Hà Nội now has more than 9.2 million vehicles, of which motorcycles account for over 72 per cent.

Traffic pressure peaks sharply during rush hours, when 27 per cent of daily trips are concentrated in two, one-hour windows, 7.30-8.30am and 5.30-6.30pm.

The situation is exacerbated by roughly 1.45 million trips entering the city each day from surrounding provinces, overwhelming key gateways and ring roads that remain underdeveloped.

Đào Việt Long, deputy director of the Department of Construction, said traffic congestion was no longer merely a mobility problem but had become a direct obstacle to socio-economic development.

He said that congestion is estimated to cost Hà Nội about US$1.2 billion each year and has driven logistics costs to nearly 17 per cent of GDP, undermining productivity, environmental quality, and the city’s investment appeal.

Public transport has struggled to attract users, largely due to poor reliability and weak connectivity. Bus travel times can be more than double those of motorcycles on the same routes, while many passengers must walk over 500 meters to reach bus stops.

Although more than 70 per cent of inner-city trips are under six kilometres, distances well suited to public or non-motorised transport, motorcycles remain the preferred option due to convenience.

With land for new transport infrastructure severely limited, the city has identified technology and management reform as key levers.

Proposed solutions include a unified traffic data system, smart traffic signals, integrated e-ticketing, and a single digital platform linking metro, buses, taxis, ride-hailing services and public bicycles, signaling a shift from private vehicle ownership to on-demand mobility.

Hà Nội also plans to restrict private vehicles in central areas through emissions-based controls or congestion charges, alongside pilot programmes for public bicycles, shared electric motorbikes, feeder buses, and dedicated bus lanes on major corridors to improve speed and punctuality.

To support long-term change, the Department of Construction has called for a unified legal framework for data sharing and transport integration, greater investment in green mobility, and adoption of transit-oriented development (TOD) models that place public transport at the core of urban growth. — VNS

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