Jul 30, 2011

Vietnam - Urban area plans fall into disarray


The scale of new urban area projects are generally small and built in a disorganised fashion, a ministry official has said.
Nguyen Manh Ha, head of the Ministry of Construction's Housing and Real Estate Management Department, said the design of houses and other construction projects in new urban area projects was inconsistent.
Because of the way the projects are completed, there is a lack of schools and health clinics and connections with water and electricity supply systems as well as roads and bridges, Ha told the Viet Nam Economic Times newspaper.
The country has 638 new urban area projects and more than 85 per cent of them have an area of less than 200 ha each, according to the Ministry of Construction.
Of the 638 new urban area projects, 538 has an area of less than 200 ha, 80 have an area of 200 – 1,000 ha and only 14 have an area of more than 1,000 ha.
The rapid development of new urban area projects without proper planning and management has resulted in poor infrastructure, a degraded environment, health problems caused by a lack of waste treatment, and an increase in motorbikes and traffic congestion, according to international experts.
Under current regulations, 20-25 per cent of the total land of urban areas must be used for transport, but in reality it is less than 10 per cent in Viet Nam.
Meanwhile, the rapid increase of the population and number of vehicles has led to more congestion and overcrowding in cities.
In addition, in large urban areas like Ha Noi, HCM City, Hai Phong and Da Nang, road density is only 4-4.5 km per square kilometre.
The land area used for transportation infrastructure is under 1 per cent of land in urban areas.
The land used for green space in new urban areas is too low, only 0.5 sq.m per person.
In Ha Noi and HCM City, green space is less than 2 sq.m per person compared to 20-25 sq.m per person in most modern cities.
Many new urban area projects use land to develop housing projects but neglect zoning for transport, green parks and entertainment areas.
The development of new trade centres and large apartment buildings has also overloaded infrastructure in older urban areas.
Cities and provinces have granted many investment licenses for housing projects in areas where adequate infrastructure has not been built to meet basic living conditions for residents.
Nguyen Tran Nam, Deputy Minister of Construction, said many investors, most of whom operate on a small scale, lacked professional qualifications.
These investors built housing projects for sale without any social amenities like schools or health clinics.
In addition, localities had not developed proper zoning plans to set up large and well-organised urban areas, he said.
Although the country has 1,717 companies that operate in housing and real estate sectors, most of them are small. Only 41 have capital of more than VND500 billion (US$23 million).
Capital sources for housing and real estate sectors are limited, especially medium – and long-term capital sources.
Housing and real estate companies do not work together to develop sufficient financial and operational capacity to implement large projects, experts say. 
Source: VNS
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