The HCMC Department of Transport has proposed the city government adopt a quota system for new car registrations by individuals as Singapore does to limit private vehicles on the city’s increasingly crowded roads.  

The department has requested the city to seek the central Government’s approval to restrict the private ownership of vehicles, mainly cars, and license a certain number of new cars for those winning annual tenders.

Other measures mulled by the department are to increase special consumption tax and registration fees and to collect an environmental protection fee from owners of new automobiles.

However, experts have snubbed the proposed measures, saying now is not the right time to restrict private car ownership in the city.

The most controversial measure is to force citizens to join tenders for the auto registration right and pay for registering new cars. On top of that, residents in the central areas of big cities must prove that they have parking spaces if they want to have their autos licensed.

The department also suggested more ways to restrict private car ownership by imposing higher fuel, road and parking taxes and fees. This means citizens will have to pay more when they drive more.

As envisioned in a transport development plan for HCMC until 2020 with a vision toward 2030, the city would have 2.8-3 million autos with 50% of them privately owned. But the department wants a registration quota to restrict the number of autos sold and registered.

The department also suggests certain licensing periods for motorbikes to run on the streets.    

Commenting on the proposal, Dr. Nguyen Van Thu, former head of the Institute of Transport Planning and Management at the University of Transport and Communications in Hanoi, said it is necessary to limit private car ownership in major cities, but now is not the right time to do that.

“Public transportation has yet to meet demand and people do not have alternatives, so any restrictions now can affect them. In addition, the number of privately owned cars is smaller than those of taxicabs and autos registered by State agencies,” Thu said.

Transport expert Pham Sanh said the department wants to do as Singapore does but public buses and metro systems in the island state are in good condition.

Meanwhile, HCMC only has commuter buses but they are not punctual and convenient. No one is sure when metro lines are put into service in this city. Therefore, restricting private cars and copying the Singapore model will not work.

Sanh noted that if the department’s auto registration bidding plan was approved, both individuals and Government agencies should take part in the bidding on an equal footing.