Hanoi’s Chairman Nguyen The Thao has assigned relevant agencies to research on the controversial circulation fee. 

Earlier, the Ministry of Transport presented this solution to the Prime Minister and it caused strong protest from many people.

However, Hanoi authorities consider it as a measure to curb traffic jams in 2012 – the year of traffic safety.

On December 30, 2011, Minister of Transport Dinh La Thang proposed the government to ask the National Assembly Standing Committee to issue a resolution on circulation fee of personal vehicles and the fee on cars that enter the hub of big cities during peak hours.

According to the MoT’s proposal, the so-called circulation fee for personal overland vehicles will be imposed on motorbikes and cars in five biggest cities in Vietnam, including Hanoi, HCM City, Da Nang, Can Tho and Hai Phong.

Specifically, cars with less than 9 seats will pay a traffic fee of VND20 million – 50 million ($1,000-2,500) per year, depending on their cylinder capacities. Meanwhile, motorbike users will pay a fee of VND500,000-1 million ($25-50).

In addition to these annual fees, drivers of cars with up to seven seats entering the central areas of cities during rush hours (6-8.30am and 4-7pm every day, except Saturdays and Sundays) will pay a charge of VND30,000 ($1.5) per entry, and for cars of other kinds, the charge will be VND50,000 ($2.5). Government cars and buses will be exempted from the fee. Municipal authorities will define the areas and the fees.

However, many experts said such a fee would only help increase the State budget’s revenue while failing to reduce the use of personal vehicles. 

After experts raised their voices, Minister Thang on January 3 told the local media that the circulation fee is among solutions to deal with congestion, to reduce traffic accidents and to raise more fund for building transport infrastructure.

Thang said that this is also a measure to ensure “social equality” because motorbike and car owners have to join the state to build infrastructure while the poor who use public means of transport do not have to pay fee. For motorbike users, a monthly fee of less than VND50,000 ($2.5) a month is reasonable.

The Minister said that the Vehicle Registration Agency will collect the fee for cars and commune-war authorities will collect the fee for motorbikes.

“I do not confirm that this measure can completely solve congestion but only to reduce it. My point of view is to take urgent, tough and effective measures,” Thang added.

Source: VNN