The administration in District 1, Ho Chi Minh City has kicked off a pilot project to rent out part of the sidewalks on 11 streets for trade and service activities.

District authorities on Thursday held a conference to launch the pilot project and announced the first 11 streets involved in the pilot project, including Hoang Sa, Mac Dinh Chi, Hai Trieu, Chu Manh Trinh, Le Thanh Ton, Phan Boi Chau, Phan Chu Trinh, Ham Nghi, Tran Hung Dao, Co Bac, and Vo Van Kiet.

The pilot phase of the project will last until the end of September this year and District 1 is the first one in the southern metropolis to be involved in the initiative.

According to Nguyen Thanh Phat, head of the District 1 urban management division, the pilot plan was aimed at improving the management of sidewalks in a public and transparent manner using digital transformation to assist residents and enterprises.

Following the pilot period, the district will assess the efficiency of the project before expanding the model to the entire district.

Residents can register to lease sidewalk sections using an app.

Revenue from the sidewalk rental will be submitted directly to the state budget, with non-cash payment methods receiving a priority.

Tran Huy Hoang, the owner of a business on Hai Trieu Street in District 1, said he was excited that the rental process could be done digitally.

Chairman of the District 1 People’s Committee Le Duc Thanh stressed that the district would tighten the use and management of sidewalks to ensure space for pedestrians and prevent street encroachment.

He tasked ward leaders in the district with introducing the sidewalk leasing registration app to local households and businesses.

Approvals to use part of the sidewalks will be granted for the organization of cultural activities, such as sport events, parades, and festivals, and parking services for these activities, as well as business and service activities.

In December last year, the municipal Department of Transport released a list of nearly 900 streets that have sidewalks wider than three meters each, eligible to be leased for commercial use.

A minimum of 1.5 meters of sidewalk must be reserved for pedestrian use.

The municipal People’s Council has also approved a resolution on the fees to use sidewalks for business.

In particular, the parking fee ranges from VND50,000 (US$2) to VND350,000 ($13.7) per square meter per month, depending on the area.

Other activities will be charged VND20,000-100,000 ($0.8-3.9) per square meter per month.

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