VietNamNet Bridge – The 636 meter high TV tower project of the State-owned Vietnam Television (VTV) needs at least US$1.5 billion of capital, which goes against the world trend.

The sketch of VTV's 636m TV tower.

According to the dispatch submitted to the Prime Minister by VTV Deputy General Director Nguyen Thanh Luong, VTV and its two partners - the State Capital Investment Corporation (SCIC) and the BRG Group - have founded the Vietnam TV Tower JSC to build the 636 meter TV tower - the world's highest TV tower- in the Tay Ho Tay (West West Lake) urban area in Hanoi.

To make it the highest TV tower in the world, VTV set the height at 636 meters, only 2 m taller than the current highest TV tower in the world – the 634m Tokyo Skytree in Japan. This project will be carried out over six years and will be put into operation in 2021.

VTV will not only build the tower and support with a total area of about 14.1 hectares, but also auxiliary works, including apartment buildings, office buildings, service and entertainment facilities.

In the plan submitted to the Government by VTV, luxury apartment buildings will account for 30% to 50% of the area (approximately 300,000 to 600,000 m2).

The national television broadcaster also asked the government to grant special incentives in terms of capital that are only for the projects in extremely disadvantaged areas as well as the highest preferences such as corporate income tax exemption in the first four years, a 50 percent reduction of corporate income tax in the next 9 years, and a tax rate of 10 percent in the following years, as well as exemption of import tax on materials, equipment, components, etc.

The fund for the project is huge, from $1.3 to $1.5 billion, of which $900 million is for the tower only. According to VTV, the capital will be mobilized from the equitization of VTV subsidiary and its own fund and contributed by its partners – the State-owned SCIC and BRG Group.

Currently, VTV, SCIC and BRG have ordered Nikken Sekkei Co. Ltd. (Japan) to make pre-feasibility studies, with two investment plans to submit to the Prime Minister.

Is VTV chasing after a world record?

Prof. Dr. Pham Ngoc Dang, chairman of the Vietnam Construction Environment Association, said the building of such a television tower at this time is unreasonable. In the context of economic difficulty, capital should be mobilized for economic development, infrastructure construction, and urban development, not to chase after records.

Dang said other countries are longer been keen on the construction of high TV towers. Japan built the Tokyo Skytree towers to serve television services, not for business purpose like the VTV.

This project also goes against the trend in the world today because all countries have switched to cable and satellite TV services. It is unrealistic that VTV asked for special incentives for this project.

"A project that is not for the TV industry, not for development purpose, but to show off is unnecessary in the current situation, when the State budget is still narrow. That amount of money should be used to build schools, hospitals and transport works," Dang said.

Dr. Pham Sy Liem - Vice Chair of the Vietnam Construction Association, former Deputy Minister of Construction – said that this project aims purely at profit because it does not benefit the economy and the community.

NLD