PANO – Deputies to the National Assembly listened to the government report about the Hanoi Urban Spatial Development Plan to 2030 and the vision to 2050, as well as reflections from the National Assembly Economic Committee on this plan.

The development plan attracted great attention from the Vietnamese public. The People’s Army Newspaper Online interviewed Mr. Nguyen The Thao, Chairman of the Hanoi People’s Committee along the sideline of the NA meeting.

Reporter: The total investment estimated for the infrastructure of the plan is at USD 90 billion. This is a huge number. Is it possible to mobilize this investment?

This is the main issue. However, this is the plan for 2030 and the vision to 2050. With the present economic growth rate and the mechanisms to attract domestic and international resources, I believe that it is possible.

Reporter: There have been rumours about wasteful “term plans”. What do you think of these?

I can confirm that this development plan is not like a term plan. The Hanoi Spatial Development Plan to 2020 was approved by the Prime Minister in 1998. According to the plan management mechanism, we are allowed to adjust the plan every five years. However, there have been no adjustments in the master development plan but some minor changes were made when Ha Tay Province merged with Hanoi. Therefore, it was time to make the changes so we could plan our city better.

Reporter: The plan has not been approved by the Prime Minister. However, the price of land in the Ba Vi and Thach That districts has increased sharply. What do you think of this?

This resulted from the nature of the market. Due to inflation, estate property price has stood still for a while and returned to is normal state when inflation was over. From the end of 2009 to early 2010, the land price increased sharply in the first and second quarter of 2010.

Through surveys, land which are under the city’s plan have had a fluctuation of prices. The reason for the price inflation is that the demand is greater than the supply for housing. In addition, Hanoi needs more public buildings, trade centres and hotels.

The other reason is that the plan gives us images and orientations about the infrastructure and living conditions that are good for residents so many others want to sell and buy lands in these projects. More transactions causes land prices to increase.

Reporter: What is the solution to stabilize the land price?

The solution is to complete the plan soon and to submit it for approval and to inform the public and investors of the plan and its roadmap. After surveying, most of land transactions are speculative.  In some cases people even submitted fake transactions to push land prices up. Once the information about the plan is clear, real estate prices will stabilize.

Reporter: According to the roadmap, when will these issues be solved?

Several issues such as environment pollution, traffic jams, flooding, urban awareness and rules are mentioned in the plan with 9 short-term and long-term strategic solutions. 

For example, to solve traffic jams in the city, there are many short-term measures such as upgrading the infrastructure, dividing routes, enhancing education, improving awareness on traffic laws among others.

In the long-term, these issues need comprehensive measures including speeding up the construction of public transport systems such as the railway and metro. In fact, Hanoi has developed the bus system to meet the demand of residents. However, the bus system is not the key measure for the issue. Investments into improving the railways, helping to increase traffic areas are one of long-term solutions to solve this issue.

Reporter: Thank you very much!

Translated by Ngoc Hung & Duy Minh