Tran Thi Bich Tram, vice chairwoman of District 11, where the street is situated, said the city government's approval is awaited.
The 300-meter-long street will be off-limits to vehicles from 4 p.m. to 10 p.m. on Fridays, Saturdays and Sundays starting in the third quarter of this year.
It will have around 70 stalls selling food, fashion items and souvenirs, a parking lot and mobile toilets.
The conversion will be funded by private sources.
Ha Ton Quyen Street is part of Chinatown, which straddles districts 5, 6, 10, and 11, and for generations has been well known as a place where Chinese families selling wonton soup.
HCMC already has three no-vehicle areas, the center strip on Nguyen Hue street and Bui Vien Street in District 1, and around the Quang Trung Monument in District 10.