Prime Minister Nguyen Tan Dung instructed Ho Chi Minh City authorities and the finance ministry to establish a "specific financial mechanism" to facilitate fundraising for infrastructure development.
Alongside the effort, the government would offer Ho Chi Minh City credit guarantees so long as its infrastructure projects effectively eased flooding and traffic in the city, officials said at the meeting between Prime Minister Dung and municipal authorities on Monday.
Dung approved a proposal to raise traffic fines to between VND200,000-1 million (US$10.7-53.5) from VND50,000-100,000, as a way to help the city raise funds.
HCMC needed tens of billions of dollars for traffic infrastructure projects within the next few years, including VND50 trillion (US$2.6 billion) for four elevated roads, the city's People's Committee reported at the meeting.
Ministry leaders suggested the city implement other measures to curb its worsening traffic jams. They recommended that restrictions on private vehicle ownership could go alongside developing infrastructure.
Dung has also approved a HCMC plan to increase car licensing fees from VND2 million to VND20 million.
The city also plans to collect VND500,000 a year in circulation fees for motorbikes and VND5 million for non-business cars with less than seven seats.