New Solutions for HCM City's Sustainable Development

3:26:17 PM | 7/8/2005

The development and implementation of master plans in Ho Chi Minh City have become a headache for managers and the local people. Dr. Tran Du Lich, director of the Ho Chi Minh City Economics Institute, believes that a renewal in public awareness is required to harmonise the role of the State and the market in the present situation. Local authorities are making great efforts to review the situation and seek solutions for the city's sustainable development.

Poor coordination between master plans and development

According to the Ho Chi Minh City Department of Planning and Investment, investment capital attracted each year into the city accounts for more than 30 per cent of its gross domestic product (GDP). In 2003 alone, total realised investment was put at VND36,628 billion (US$2.333 billion), up by 13 per cent against one year earlier. Of this figure, VND6,568 billion (US$418.344 million) came from the city's budget, accounting for 16 per cent. Meanwhile, VND6,568 billion (US$2.333 billion) came from foreign investment, accounting for about 18 per cent, VND2,719 billion (US$173.184 million), from private enterprises, and VND10,993 billion (US$700.191 million), from other sources. However, the implementation of projects faces many obstacles due to an uninspiring combination of master plans developed by localities, ministries and central agencies in Ho Chi Minh City. The lack of harmony and legal basis for master plans has resulted in difficulties in their implementation.

A principle obstacle facing investors when developing their projects is the lack of legal basis for evaluation and approval of their projects. Many projects, such as the building of the East-West Boulevard, the JBIC water environment project, and ODA projects on environmental sanitation in Nhieu Loc, Thi Nghe, Tan Hoa and Lo Gom, have had to change or adjust their scale. Subprojects relating to site clearance and planning development for water drainage have had to alter their plans, resulting in negative impacts on the disbursement of funds. Domestic and International sponsors are urging Vietnam to eradicate these hindrances.

A Lack of harmony between master plans among agencies have made it difficult for investors to prepare for their investment and to carry out their projects, particularly in facilities relating to traffic, lighting, water supply, drainage and communication. The poor coordination between projects has created difficulties for agencies not only in evaluating projects but also creating a legal basis for urban construction management.

Regarding detailed master plans, architect Tran Chi Dung, deputy director of the Ho Chi Minh Department of Construction, said that the development of master plans for urban construction is ineffective from an economic, social, legal and practical point of view. Procedures for developing master plans seem unsuitable for Ho Chi Minh City. Director of the Ho Chi Minh City Department of Natural Resources and Environment Tran The Ngoc said that the slow implementation of detailed master plans had widened the gap between plans and their practical implementation. This has resulted in an imbalance in the development of technical infrastructure facilities and an inability to ensure satisfactory urban standards, thus causing waste due to the adjustments. Ngoc said that the overlapping between urban development master plans and plans of other services remains common.

Dr Nguyen Van Hiep from the Ho Chi Minh City Department of Construction said that infrastructure projects to develop residential areas, even in some industrial parks, have yet to receive proper attention to quality and examination, especially for projects which do not use investment from the State budget.

Solutions for the realisation of master plans

Managers said that for construction and development to become stable and sustainable, it is necessary to correctly implement master plans. The quality implementation of projects is the next step in concretising these plans.

The city's Department of Planning and Investment said that it was necessary to accelerate the development of detailed master plans on land use with a ratio of 1/2000. It is necessary to remove works and projects unsuitable with approved master plans and the demand of localities and services. Nguyen Dang Son, deputy director of the Institute of Urban Study and Infrastructure Development (IUSID), said that it was necessary to renew the development and implementation of master plans in accordance with increasingly rapid changes, so that the city can compete more effectively. Architect Tran Chi Dung said that a focus should be given to developing detailed master plans with a ratio of 1/2000, concentrating on land use and architectural space arrangement. Separate master plans are needed for each residential area, public work and park. Dr. Hiep warned that it was time localities and developers of major projects invited experienced master plan developers from countries in the region and other developed countries to provide assistance in creating practical master plans and managing investment. Experience in post-plan management of the Phu My Hung joint venture company should be improved in Ho Chi Minh City.