VietNamNet Bridge – High-rise parking lots might be the answer to parking congestion on Ha Noi streets, but costly construction and slow returns have deterred investors.


Unregulated parking on a street in Ha Noi. Figures from the city's Department of Transport show that Ha Noi has only about 1,000 official street spaces for cars, about 10 per cent of demand. (Photo: VNS)
Figures from the municipal Department of Transport show that Ha Noi has only about 1,000 official street spaces for cars, about 10 per cent of demand.


Thus, local authorities have been allowing certain pavements, roadsides and alleys to be used for parking.


But dozens of illegal parking lots have been set up on pavements and vacant public space throughout the city. Most charge high fees.


In the meantime, about 4,900 new cars (and 30,000 motorbikes) were registered in the city during the first six months of this year.


This brought the number of cars up to just over 380,000 - and the total number of motorbikes up to about 3.3 million.

To cope with the boom, the transport department has proposed that the People's Committee build about 50 parking lots, including 12 high-rise buildings.


Crackdown on parking

Ha Noi Police have reported nearly 20 parking lots for overcharging passengers since September 2.

Most of the lots do not have business licences and overcharge drivers up to 10 times the fees allowed.

One parking place in Dang Van Ngu Street charged a car driver VND60,000 (US$4), six times higher than regulated levels, while parking lots near Voi Phuc Temple in Thuy Khue and Thai Phien streets charge VND10,000 and VND20,000 per motorbike.

Under current regulations, parking lots will be fined VND30 million ($1,440) for the first two violations and have their licences revoked for a third.

During June and July, police fined 81 parking lots for illegally encroaching on pavements and overcharging.


Four high-rise parking lots have been approved in Tran Nhat Duat, Phung Hung-Hang Luoc, Nguyen Cong Hoan streets and the road along western To Lich River later this year. They range in space between 150sq.m and 35,000sq.m


The projects, which need investment capital of about VND80 billion (US$3.85 million), will be able to accommodate a total of 1,600 vehicles.


However, investors have showed little interest. Bui Dang Thang, director of Ha Noi Parking Company, which is in charge of the People's Committee parking project, blamed this on low parking fees and high investment costs.


He said a high-rise parking lot cost about VND20 billion ($960,000) while the fees of between VND1,000-3,000 per motorbike and VND10,000-20,000 per car were unreasonably low.


"With these fees, investors would have to spend at least 13 years to get their investment back," he said.


According to Thang, high-rise parking lots would be good for overcrowded Ha Noi as they would use much less land.


He suggested that fees be increased to attract investors.


VietNamNet/Viet Nam News