Hanoi proposes to rent sidewalks to develop the night economy according to a 3-stage roadmap

Sidewalk leasing develops night economy

The Hanoi Department of Construction has just sent a dossier proposing a pilot project to exploit sidewalks for business to functional agencies. According to the draft Resolution developed by the Hanoi City People's Council, the city plans to allow the management, exploitation and temporary use of a part of the roadway and sidewalks for non-transportation purposes to serve business, urban economic development and night economy according to a 3-stage roadmap.

According to the proposal, the first phase will be implemented on some streets in Hoan Kiem and Cua Nam wards. Phase 2 expands to wards located in Ring Road 1 area and phase 3 will be implemented on some streets in Ring Road 3 area.

The draft Resolution clearly stipulates the criteria for streets to be allowed to pilot the temporary use of part of the roadway and sidewalk for business purposes and nighttime economic development.

The selected streets must have sidewalks at least 3m wide on one side; after arranging walkways of at least 1.5m, there is still space for exploitation. At the same time, the street is not located in the historical and cultural relic conservation area, there are no traffic jam points or traffic accident "black spots".

According to the plan, the pilot period lasts 5 years. Each street is piloted for a maximum of 2 years and can be extended 2 more times.

According to experts, sidewalk leasing can help increase budget revenue, while creating conditions for more transparent urban order management. However, this policy also raises concerns about the risk of encroachment, traffic pressure and people's right to use the frontage.

Dr. Ngo Tuan Anh (lecturer at the National Economics University) said that leasing sidewalks for economic development is reasonable because it creates additional revenue for the budget and promotes service and commercial activities.

People walking combined with entertainment, shopping will create a synergistic effect for many industries. However, the important thing is that exploitation must ensure urban aesthetics and limit environmental pollution" - Dr. Ngo Tuan Anh shared.

Currently, Hanoi has not issued an official price framework, so it is not possible to specifically determine the budget revenue from this model. However, if applied similarly to Ho Chi Minh City, the revenue can reach tens to hundreds of billions of VND per year, depending on the scale of implementation.

Assoc. Prof. Dr. Nguyen Hong Thai - Head of the Faculty of Economic Transport, University of Transport and Communications, said that sidewalk leasing can help effectively exploit public space, create budget revenue and promote the development of night economy, tourism, and urban services. However, the implementation needs to be strictly controlled to ensure that the main function of sidewalks is to serve pedestrians and traffic safety.

Increase revenue but need strict control

According to a survey by the Hanoi Department of Construction, there are currently about 273 streets with hundreds of sidewalk sections that are eligible for temporary use of part of the sidewalk to serve business, urban economic development and night economy.

Sidewalk leasing is assessed to bring many benefits such as increasing revenue for the city budget; supporting small businesses with legal business space; promoting tourism, night economy and urban services; and limiting spontaneous encroachment if managed transparently.

However, many opinions also expressed concern that sidewalk leasing may narrow pedestrian space, cause traffic congestion, affect urban aesthetics and generate chaotic business situations if there is no strict management. In addition, the issue of fairness between business households and street-front residents is also raised.

Also according to Assoc. Prof. Dr. Nguyen Hong Thai, Hanoi City needs to clearly plan the streets allowed to be exploited; ensure minimum walkways for people; publicize fees and licensing criteria; clearly stipulate operating hours; strengthen inspection of environmental sanitation, security and order, fire prevention and fighting; and apply digital technology in management and fee collection.

Experts believe that Hanoi City's pilot program in some areas with suitable conditions such as tourist streets, pedestrian streets, commercial areas or wide streets in Hoan Kiem and Cua Nam wards is reasonable, instead of being implemented simultaneously from the beginning. Only after evaluating the actual effectiveness will consider expanding the scope of application.

Sidewalk exploitation needs to put community interests first. Sidewalks must first serve traffic and pedestrians, then consider business goals. Therefore, the city needs to build a harmonious management mechanism between economic development and ensuring urban order and civilization" - Assoc. Prof. Dr. Nguyen Hong Thai emphasized.

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