Under the proposal, car owners would pay an annual operating fee ranging from VND1.2 million (USD 67) per car, depending on the car’s engine capacity. The proposal also calls for new one-time-only registration fees for motorbike owners.

The fees would vary according to engine capacity, with VND300,000 (USD 17) per motorbike of less than 70-100cc.

For motorbikes of 70-100cc capacity, the fee would be VND600,000 (USD 34); for 100-175cc capacity, VND1 million (USD 56), and for 175cc capacity, VND1.5 million (USD 84).

All fees would be used for the road maintenance fund as the state budget can only meet 50–60 per cent of the demand, according to Le Manh Hung, deputy minister of transport.

Hung said that each USD 1 used to maintain roads would help save USD 3 for vehicle operations and maintenance.

The money collected from the annual car operating fee is expected to reach VND1.4 trillion (USD 78.65 million), and the amount from newly registered motorbikes VND2.1 trillion (USD 118.14 million).

The ministry has also asked the Government to transfer 50 per cent of fuel fees, including those charged on air transport, to the road maintenance fund.

The HCM City and Ha Noi authorities are proposing a separate operating fee on autos and motorbikes in an aim to reduce traffic congestion, but reports are unclear whether it would be an annual charge.