VietNamNet Bridge – The northern port city of Hai Phong City has announced it will build a municipal administrative and political centre in Thuy Nguyen District at a huge cost of VND10 trillion (more than $446 million). Not long ago, many provinces and cities made similar announcements.

The administrative center of Da Nang.

For Hai Phong, the new administrative centre will be located on an area of 324ha, spread across three communes of Thuy Nguyen District and Minh Khai Ward of Hong Bang District. The project will include office buildings, the Hoang Van Thu Bridge and the main transport system.

The state budget will provide VND6,855 billion, while the rest of the funds will come from the city's budget and other sources. The three-stage project will begin this year and is expected to become operational in 2020.

The municipal authority has carried out the survey of the construction area, set up plans for ground clearance, compensation and resettlement of the affected local people, and has selected the investors.

The new administrative and political centre project is part of the master plan to expand the city to the north by 2025. The plan was approved by the Prime Minister in 2009. The new centre will replace the current centre in Hai Phong.

Apparently, Hai Phong is following the "fashionable trend" of building costly administrative centers in the country.

The administrative center of Binh Duong.

Earlier, cities and provinces such as Danang, Binh Duong, Ba Ria-Vung Tau and Lam Dong built high-rise buildings to house all their administrative agencies. These works all cost from $50 to $100 million.

Hai Duong, a small northern province, recently got the Prime Minister’s approval “in principle” for the construction of a new administrative center with a total investment of VND2,060 billion (nearly $100 million), including $50 million from the local budget.

According to the Hai Duong People's Committee, one of the main causes for the proposal is the offices of the People's Council, the People's Committee and the provincial National Assembly delegation are degrading.

The project will be implemented under the build-transfer (BT) format in Hai Duong City. Covering over 19 hectares, the center will be home to offices for 19 State agencies including those of the people’s council, people’s committee, National Assembly deputies delegation and departments, and convention facilities and parking lot.

HCM City is also working on a new administrative center on an 18,000-square-meter site surrounded by Dong Khoi, Le Thanh Ton, Pasteur and Ly Tu Trong streets in District 1. The city has yet to calculate the total cost of the project but the investor – HCMC House Trade Management Company Limited – has estimated it at trillions of dong (hundreds of millions of USD).

Dong Nai Province also plans to spend VND2.2 trillion ($100 million) on its center in Bien Hoa City while Khanh Hoa Province plans  to spend VND5.5 trillion (over $250 million) on relocation of its administrative center to the west of Nha Trang City. Binh Thuan, Binh Dinh and Nghe An provinces have also designed similar projects.

The administrative center of Lam Dong.

Most localities explain that such projects are necessary to better serve local people and manage State services more efficiently.

Explaining the development of its new administrative center, the central city of Danang said that as most State offices had degraded, departments and agencies were located in different parts of the city, making it difficult for citizens and businesses to work with State agencies.

Meanwhile, Binh Duong Province said the new center had helped downsize administration offices, and save costs for locals and State agencies.

However, while many localities have developed huge administrative centers but serve just a small number of locals.

In some provinces, it is not necessary to put all State agencies under the same roof. For example, Da Lat City is not suitable for hi-rise buildings and it should renovate old villas for State agencies. 

The administrative center of Ba Ria - Vung Tau.

The administrative center of Lai Chau Province, which was built at the cost of $25 million.

Duong Trung Quoc, a national assembly deputy, said the effectiveness of such administrative centers should be reconsidered. "As public debt grows, localities must be more careful in spending and put more effort into generating revenues," he said.

Bui Duc Thu, of the National Assembly's Finance and Budget Committee, said: "By the end of the year, Vietnam's public debt to GDP ratio might reach 61.3 percent and 63.2 percent by the end of 2016. Spending money on headquarters or statues is unsuitable right now."

National Assembly deputy Do Van Ve said there were more urgent public needs, and poor provinces should halt such plans.

Compiled by Khuyen Bui