HCM City seeks better parking investors

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• Hanoi offers incentive for home-based parking services

Speaking at a recent meeting on car parking lot projects, Chairman Phong said that investors lacking financial capacity must be replaced and that a new call for investor should be launched.

Phong also asked the department to identify more locations for underground parking lots and to work closely with the Department of Planning and Investment to ensure the progress of the projects.

He urged the department to work with the Department of Construction to compile statistics on the parking capacity of existing underground parking lots of buildings in the city. The data would be posted on the internet for the public.

Under a city traffic development plan by 2020, the total area for bus stations and parking lots would be 1,146 hectares, of which 520 ha would be for automobile parking.

The city has determined four locations to build underground parking lots in District 1, including Le Van Tam Park, Trong Dong Stage, Tao Dan Cultural Park and Hoa Lu Stadium.

However, all the four underground parking lot projects in District 1 have been delayed since 2005 due to complex administrative procedures and investors’ lack of capital, according to a report by the Transport Department.

The project under Le Van Tam Park, invested in by the Investment Development for Underground Space Corp with VND1.748 trillion (US$77 million), would have a capacity of 2,024 motorbikes, 1,260 cars and 27 buses, trucks and minibuses.

The project has been delayed due to the investor’s lack of financial capacity.
Meanwhile, the project under Trong Dong Stage, invested in by the Dong Duong Group, has only completed the technical design assessment.

In addition, the parking project under Tao Dan Park, invested in by the joint-venture of the Vingroup and the Saigon Sports and Culture Investment Company, with a total investment of VND1,055 billion (US$46.48 million), would have a capacity of 1,198 automobiles and 896 motorbikes.

Another project of the joint-venture is the parking lot under Hoa Lu Stadium with an investment of VND3.419 trillion (US$150 million).

However, the two projects have only finished the technical study report.

The city also plans to build an additional three underground parking lots for automobiles in the newly expanded centre area of districts 1 and 3, and parts of District 4 and Binh Thanh, according to the Department of Transport.

Locations being considered include September 23 Park, Ben Thanh Market, Quach Thi Trang Park, Bach Dang Wharf, Nguyen Hue Street and Chi Lang Park.

An additional 29 parking lots with a total area of 508 ha will be allocated to districts and outlying districts, but locations have not been decided.

In addition to underground parking projects, the department has worked with investors to suggest building multi-storey, assembled parking lots in District 10 and Binh Thanh and others at hospitals in the city.

The city rejected the construction of a multi-storey assembled parking lot at Lam Son Square Street, saying it would affect the urban landscape.

Phong also said that multi-storey assembled parking lots would be used exclusively for parking, not for commercial purposes.

The Department of Transport has asked the city to instruct the Department of Finance to issue incentives and favourable policies to lure investment in parking lots.

The department also wants the city to ask the Department of Planning and Architecture to specify underground construction norms so the city can develop a master plan for underground parking.

Phong asked the Department of Transport to work with four investors in underground parking lots in District 1 and help them resolve any hurdles. If the investors are unable to continue the projects, the agency should replace them and choose other investors, he said.

Agencies should also submit proposals to the city for incentives and assistance to investors. If the city cannot resolve the problems, they will submit proposals to the Government for approval.

According to the Department of Construction, there are about 59 high-rise buildings with one to five basements each for parking in a 500-metre radius in the downtown area.

Around 13 of the buildings have three to five parking basements each, including Kumho Asiana Plaza Saigon, Eden, Saigon Center and Sunwah.

The downtown area is also home to 46 high-rise buildings whose parking facilities have a smaller capacity on Hai Ba Trung, Dong Khoi, and Nguyen Hue streets.

More than half of the 4,869 streets in HCM City have areas mostly for parking motorcycles, according to the department.