8:49:53 AM | 26/7/2011
The Prime Minister has approved a comprehensive plan for Hanoi’s socio-economic development to 2020 and orientation to 2030. Many hope this will be a real intensification for the real estate market in this present bleak situation. Yet many people evaluated that the plan is not more groundbreaking than the general orientation one year ago.
No more new points
According to an approved plan, the development of transport infrastructure will be implemented in association with solving traffic jams. The Ministry of Transport of Vietnam will coordinate with Hanoi Capital to build the modern and synchronisation infrastructure, to construct centripetal national highways and express highways, urban transport belts including the high lines and inter-regional transport belts. In addition, there will be the investment in construction of major public transport routes such as elevated suspension railways, subways and underground constructions.
The transport system of cities will be expanded with the opening of major transport axes to form the main passenger flows in Hanoi so as to connect the capital center with the new urban areas and the axis of the western area of the city.
With orientation to build Hanoi City to become a green, cultural, civilized and modern city on the basis of sustainable development, according to this comprehensive plan, Hanoi urban space will be developed based on urban cluster model consisting of the central city towns, satellite towns and towns and rural areas.
Central city town is determined to be expanded from the inner city to regions of Gia Lam and Long Bien in the East, to the region of Me Linh and Dong Anh in the North, and to the ring road 4 in the South and the West.
The five identified satellite towns are Hoa Lac, Son Tay, Xuan Mai, Phu Xuyen, and Soc Son. The satellite towns will be driven to develop with unique specific characteristics and mixed functions and operate relatively independently to support and share functions on training, industry, services and housing with the central city town.
Having evaluated the planning for Hanoi Capital, Mr Nguyen Huu Cuong - President of Real Estate Club in Hanoi said that although there is no surprising factor in the plan approved by the Prime Minister, it does meet expectations of the real estate business when things have become clear and more specific. That previously most of the businessmen on the real estate market are very vague on information makes the risks when running their business also increased significantly.
Identifiable information such as the axis of socio-economic development, transport infrastructure development, and development of satellite urban areas has been known from the Expansion Planning for Hanoi by most people and investors. Therefore, Mr Vu Cuong Quyet, Director of Dat Xanh Real Estate in the North region, assumed that the plan will not have many effects on real estate market in the coming time.
Expectation from the North-South axis
The newest point in this plan is the axis of North-South socio-economic development. This project has a relatively large scale, linking the beginning to the end of old Ha Tay province, 63km long. The project will connect a series of arterial roads such as National Highway 32, Lang Hoa Lac Road, National Highway 21, National Highway 6 and Phap Van-Cau Gie Road. Accordingly there will be a series of followed towns such as Chuong My, Quoc Oai, and Thach That. Investors evaluated that when this route is completed, it will promote strong economic growth of the western region.
The plan does not create any significant point to boost the market. The impact of the plan (if any) is only a macro-orientation for development of urban infrastructure. Therefore; in the coming time, the changes of the market will much depend on the credit policy of the State Bank.
Luong Tuan
Vietnamese
