Ho Chi Minh City Approves Stricter Street Vending Rules for Thousands

HO CHI MINH CITY, The Ho Chi Minh City People's Council has passed a comprehensive new ordinance aimed at regulating sidewalk commerce and street vending, a decision that will directly impact thousands of small-scale entrepreneurs and alter the use of public space across the metropolis. The vote, which took place on Tuesday, finalises a plan that establishes designated zones where vendors can legally operate, while increasing enforcement against unlicensed selling in high-traffic areas, particularly in District 1 and District 3.

This policy addresses a long-standing challenge for city administrators: balancing the preservation of Ho Chi Minh City’s world-renowned street food culture with the growing needs of a modern city grappling with traffic congestion and pedestrian safety. For years, officials have debated how to manage the informal economy that occupies much of the city's pavement. The new framework represents the most structured attempt yet to formalise these businesses, following a path trodden by other major Southeast Asian capitals that have sought to impose greater order on their public spaces.

What the New Rules Mean for Daily Life

For residents and vendors, the changes will be tangible. Under the new ordinance, vendors wishing to operate in the city center will need to apply for permits and will be restricted to specifically marked zones, with operating hours also subject to regulation. A banh mi seller who has occupied the same corner on Le Loi Street for a decade may need to relocate to a designated area a block away, or cease operations if they cannot secure a permit. The plan is intended to ensure sidewalks remain clear for pedestrians and accessible for people with disabilities.

The city's Department of Transport has been tasked with identifying and marking these commercial zones over the coming months. Officials have stated the policy aims to improve public hygiene and streamline urban management, but small business advocates have raised concerns about the transition. The key question for many vendors is whether enough licensed spots will be available to accommodate those who rely on street-side sales for their livelihood. City authorities say a public information campaign will precede the formal rollout to guide vendors through the new application process.

A Familiar Strategy in Urban Asia

Ho Chi Minh City's new approach is not happening in isolation. It reflects a broader trend across Asia's megacities. Urban planners point to similar initiatives in Bangkok, which has undertaken significant efforts to clear its famous sidewalks of vendors to improve pedestrian flow, and Jakarta, which has also experimented with formalising its street traders. In contrast, Singapore's model of consolidating vendors into government-regulated hawker centres is often cited as a different path to the same goal of sanitation and order.

The success of Ho Chi Minh City’s plan will likely depend on its implementation. Policy analysts note that the effectiveness of such regulations often hinges on consistent enforcement and providing viable, affordable alternatives for the vendors being displaced. The official plan approved by the council calls for a phased implementation, beginning with pilot programs in key commercial and tourist hubs before expanding city-wide. The first phase is projected to begin early next year. The full budget allocation for enforcement and the creation of the new vendor zones has not yet been detailed in public documents.