Hanoi city will support 100% of land-rent fee for the first 10 years for the underground parking cellar in Thu Le park.

The Hanoi People's Committee has approved a plan to build underground parking in Thu Le park, in Ba Dinh district, with a total investment of over VND1.7 trillion (US$73.1 million), the government portal reported.

The underground parking lot in Thu Le park will be built by Him Lam BC Investment Joint Stock Company, and is expected to be completed in the fourth quarter of 2020.

The total area of the underground parking is about 72,000m2 with five floors of 16,100m2 each. Once being completed, Hanoi Zoo Limited Company can operate the parking lot together with Him Lam BC Investment JSC.

 Hanoi city will support 100% of land-rent fee for the first 10 years for the underground parking. In addition, investors will enjoy other preferential policies in accordance with state regulations.

 Hanoi currently has about 6.5 million vehicles of all kinds, not to mention special-use vehicles and those coming from other provinces. The number of vehicles increases remarkably every year while the metropolitan area reserved for static traffic and public parking lots only meets about 8-10% of the demand.

 Local media on April 11 quoted Chairman of the Hanoi People's Committee Nguyen Duc Chung as saying that since 2013, Hanoi’s authority has approved a resolution to encourage and lure investment in developing underground spaces, including parking cellars and the areas below the ground level at large crossroads.

 Chung added that from 2016 to 2018, the local government released an investment  portfolio of nearly 40 underground parking projects, but so far only five investors have registered to invest in.

 Hanoi’s authority has recently studied building an underground parking able to house nearly 900 cars in Cau Giay park. It is planned to cover an area of about 14,500m2, with a total investment of about VND565 billion (US$24.3 million).

 Architect Pham Thanh Tung noted that the construction of parking cellars at squares or parks is necessary, in accordance with the world trend.

 Parking lot construction should be in line with the planning, without affecting residential community, environmental landscape and social security, Tung stressed.

 Deputy Director of the Hanoi Department of Transport Nguyen Xuan Thanh said that Hanoi city is pondering the issuance of a number of specific mechanisms to attract private investors in projects of smart parking lots and parking cellars.

 The city’s authority will consider allowing investors of underground parking lots to incorporate a number of utility service functions, as long as they ensure functionality and parking capacity of the lot, Thanh noted.