Ho Chi Minh City is considering a plan to charge a toll on all private cars driving into the city.
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The plan, which is estimated to cost VND1.2 trillion (US$57.6 million) plan, was initiated by the Innovative Technology Development Corporation (ITD) and is waiting for approval from the city.
According to ITD, 110,000 to 150,000 cars enter HCMC everyday, contributing to traffic congestion that frequently occurs especially in rush hours.
Under the plan, ITD will set up 35 stations to collect tolls. A car of 4 to 7 seats will be charged VND30,000 (US$1.44) per entry, and trucks, taxis, and other passenger vans except for buses will be charged VND50,000 per entry.
ITD’s General Director Lam Thieu Quan said if these tolls were applied, the number of cars entering HCMC might be reduced by 40 percent, while the use of motorcycles and buses would increase by 10 percent and 18 percent respectively.
In other countries, a reduction of 20 percent of the cars moving into a city is seen as a success in helping to ease traffic jams, Lam said.
Lam said if the project was operated effectively, it would save HCMC about VND16 billion ($768,000) per day.
According to Khuat Viet Hung, head of the Transport Planning and Management Department of the University of Transport, these proposed toll levels are reasonable.
Hung said in a recent survey about travel cost, most respondents who use cars said they agreed to pay US$8 per hour of travel if such a fee could help them save traveling time.