1. Legal Framework and Permissibility
The use of sidewalks (vỉa hè) for private or commercial purposes in Vietnam—such as placing tables, parking, or vending—has long been a practical solution in crowded urban areas. However, under Vietnamese law, sidewalks are considered public infrastructure. The Land Law 2013 (Article 5) and Law on Road Traffic 2008 (Article 36) affirm that sidewalks are part of the transportation infrastructure and must be used for public traffic purposes. As such, the use of sidewalks for commercial gain, including rental to private parties, is generally restricted unless specifically permitted by competent authorities.
Despite the legal restriction, there have been efforts in major cities like Ho Chi Minh City and Hanoi to pilot or regulate sidewalk usage in limited contexts. For example, some districts have allowed the temporary use of sidewalks for parking or small business operations during off-peak hours. This is often regulated through local People’s Committee decisions or pilot programs. However, these initiatives are administrative in nature and subject to change or revocation at any time.
2. Can Sidewalks Be Leased?
Formally leasing sidewalks—i.e., allowing individuals or businesses to pay rent for exclusive use—is not clearly regulated under national law. No legal instrument currently recognizes sidewalks as a leasable asset under the Law on Public Property 2017. Article 56 of this law allows for the use of public property for business purposes but requires that such use be authorized by the state, through auction or bidding, and must follow strict financial management rules.
Some local governments have proposed policies to collect fees from vendors or businesses using sidewalks. For example, in 2023, District 1 in Ho Chi Minh City suggested collecting usage fees for sidewalk occupation to fund urban management. However, this proposal faced legal challenges, as there is no uniform national legal basis for such leasing. In most cases, what is called a “rental” is in fact a temporary license to use public space—not a true lease under the Civil Code.
Under Article 110 of the Law on Public Property, the local government has the right to authorize temporary use of public property for commercial or service purposes, but such use must not obstruct public traffic or violate land-use planning. Therefore, even when sidewalk usage is “allowed,” it is conditional, revocable, and not equivalent to a civil lease between two parties.
3. Risks and Recommendations for Businesses
Businesses seeking to use sidewalk space—for example, restaurants placing tables or stores allowing customers to park—should be aware of the legal and practical risks. Firstly, unauthorized use of sidewalks can lead to administrative penalties under Decree 100/2019/NĐ-CP, with fines ranging from VND 2 to 5 million for obstructing public roads or sidewalks. In more serious cases, forced removal or confiscation of property may apply.
Secondly, any informal payments made to use sidewalk space may be deemed illegal or subject to anti-corruption scrutiny. Businesses should avoid entering into any unofficial “rental” agreements with local officials or ward-level authorities without formal documentation.
To reduce risk, businesses should:
– Apply for temporary use permits if such programs exist in the locality.
– Comply with all regulations on traffic safety, hygiene, and hours of operation.
– Avoid constructing permanent structures or making exclusive claims over sidewalk space.
– Seek legal consultation if planning to include sidewalk use in a lease or business plan.
Conclusion
While sidewalk rentals in Vietnam may appear to offer convenience or commercial advantage, the legal framework does not currently support the formal leasing of public sidewalks. Temporary use may be allowed in specific areas with local authorization, but this is not equivalent to a private lease and comes with legal uncertainty. For businesses, the use of sidewalk space remains a legally sensitive issue—one that should be approached with caution, transparency, and a full understanding of local regulations.
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1. Lawyer Vu Thi Phuong Thanh, Manager of TLA Law LLC, Ha Noi Bar Association
Email: vtpthanh@tlalaw.vn
2. Lawyer Tran My Le, Chairman of the Members’ Council, Ha Noi Bar Association
Email: tmle@tlalaw.vn.
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