Development of New Urban Areas Needs Harmony

The construction of new urban areas in such major cities as Hanoi and Ho Chi Minh City has been accelerated in recent years. However, during construction and development processes, new urban areas have exposed numerous defects which need correcting. 

Major defects of new urban areas

According to opinions collected from a conference on urban area development recently held by the Ministry of Construction in Hanoi, new urban areas need synchronous implementation in terms of housing(both high and low-rise buildings), infrastructure works (inside and outside urban area barriers) and service and public works.

Modernity must be a priority in infrastructure projects. This is a crucial measure to attract domestic investment sources especially from local residents for new urban areas and to encourage investment and consumption.

Many new urban areas in Vietnam have exposed shortfalls and imbalances in their architecture and construction plans. New urban areas are normally built on cultivated lands where no infrastructure works inside and outside barriers have previously been established.

As a result, there is large divergence in infrastructure conditions between projected urban areas and their surroundings. The construction of infrastructure works outside project areas like traffic, water and electricity systems and telecommunication network is not in accord with those in new urban areas. As for administrative mechanisms, there are still no specialised organs managing new urban areas to fulfil development requirements. Consequently, roads in new urban areas have been unnamed although they have been put into use. Land-use right certification processes are also too slow.

Powerful impetus from State needed

According to expertise statistics, new urban areas must always be attached to housing developments. Therefore, close regulations on the housing business market and land brokerage are necessary. Taxation tools and finance policies must be in compliance with market laws.

The development of the land and house market, which is oriented under the market mechanism with State control, is carried out by synchronous and modern investment projects, of which the supply-demand law is prioritised to attract investors into new urban area projects, and to speed up investment to enlarge housing funds to meet the current growing demand of city residents. Speedy housing development will help market transactions turn its eye to residences and reduce land transactions.

The establishment of new real estate enterprises dominated by State-run enterprises is also necessary for the State to be able to manage and regulate real estate businesses. It is also crucial to have sanctions to fight against violations in the housing business such as payment delays and insufficient payment for housing rental or regular instalments and implementation of other duties. In particular, according to construction engineers, building houses for people with low incomes should be taken into full consideration.

There should be financial mechanisms and policies for low-income earners such as soft loans to buy houses and to build infrastructure works. With long-term loans for these people, investors can regulate their housing construction and business under two forms: houses for all people at normal market prices and houses for low-income earners at preferential prices made possible by long-term instalments or houses for low-income earners to rent. Relevant local bodies, which monitor traffic, electricity, water supply and drainage and telecommunication systems and environment sanitation need co-operate with investors of new urban areas to outline and deploy plans to build items inside and outside the barriers of new urban areas. By doing so, newcomers will be able to enjoy all necessary services when they move in.

• Quynh Chi