Hanoi authorities are struggling to find ways to attract investors for major parking lot projects.
Statistics from the Department of Transport show that Hanoi has nearly 6.5 million vehicles, not including those from other provinces. There is an annual 6.7% growth rate in motorbikes and a 10.2% increase in car numbers, well beyond the road capacity. Parking space only meets 10% of demand.
In the inner districts, there are 590 parking lots, covering a total of 37.88 hectares.
Since 2003, Hanoi authorities have had plans to build a total of 34 underground and multi-story parking lots. In 2012, the Viet Bac Company was approved as investor in an underground parking lot at the Friendship Palace. Two other underground parking lot projects were also approved in the same year. However, nothing has been done.
According to experts, the parking lot projects are still on paper because of cumbersome procedures, long break-even periods because of the regulated level of parking fees. Due to these issues, the projects are practical only when they are completely built by the government and transferred to the private sector to manage.
When being asked about seven major parking lot projects that have been planned, Hanoi Department of Transport said investors had carried out their own research so the next steps would be making detail plans. The projects must be carried out carefully so that they will connect with other projects.
Hanoi’s authorities have asked about problems with procedures and directed related agencies to quickly deal with administrative problems for the investors. They discussed with the investors on how to reach the breakeven point since those are large projects.
The local authorities suggested letting investors open some services at the parking lots to earn money without affecting the function and capacity of the projects. The authorities are considering preferential treatments for investors in terms of bank loans, land rental fees and use of technology.