Ho Chi Minh City will issue a resolution to abolish the road-use fee for motorbikes that has not been collected efficiently, deputy chairman Nguyen Huu Tin has said.
The move follows both a decision issued by the central government in December and public demand, he said at a meeting with constituents Thursday.
The fee is VND180,000-1.44 million ($8.60-67) a month for cars and VND80,000-180,000 a year for motorbikes.
When the transport ministry announced its plan to impose the fee in 2012, it provoked widespread criticism with many people saying road users in Vietnam were already burdened with too many fees.
Hanoi was the first locality to collect the fee in August 2013.
Ho Chi Minh City was the last, only starting early this year.
A total of more than VND300 billion (US$13.4 million) was expected to be collected from nearly seven million motorbikes.
However, only District 9 managed to collect the fee, netting nearly VND1.2 billion from 12,920 vehicles.
Central agencies have admitted it has been difficult to persuade motorbike owners to pay up, with the transport ministry pointing out that the main reason has been the lack of penalties against violators.
In Quang Ngai Province, for instance, only 2.8 percent of motorbike owners paid.
Over 45 million motorbikes and 2.5 million cars are registered in Vietnam.