The Hanoi People's Committee Office has announced the conclusions of Vice Chairman Truong Viet Dung following a meeting on the development of the city's parking infrastructure.
Inner-city car parks prioritised
Hanoi authorities acknowledged that investment in parking facilities has been slow, failing to meet demand, particularly in central areas, while private capital has yet to be effectively mobilised.
Dung instructed the Department of Construction to urgently review parking plans, available land and proposed projects, prioritising developments within Ring Road 3.
Relevant agencies were also asked to identify obstacles, propose solutions and accelerate project implementation.
The Department of Finance will work with the Department of Construction to propose incentives to attract private investment and examine the use of public funds for urgently needed car parks that fail to attract investors.
The departments must submit their recommendations to the municipal People's Committee before November 15, taking account of legal requirements and budget constraints.
Investors invited to develop parking facilities
Of Hanoi's 1,690 planned public car parks, just 72 are operational, 61 are under development and 1,557 have yet to be implemented.
With parking demand particularly high in inner-city areas and public funding limited, authorities consider private investment essential to easing congestion and improving urban order.
The Department of Construction said car parks were also important for reorganising urban traffic, establishing low-emission zones and expanding public transport.
However, private investment has remained limited because of high construction costs, long payback periods and parking fees that often fail to cover operating expenses.
Widespread informal parking facilities offering cheaper services have also created uneven competition for professionally developed projects.
To address the shortage, the department has invited businesses and investors to develop car parks within Ring Road 3, where demand and commercial potential are particularly high.
It has issued an invitation to financially capable investors with management and operational experience to examine proposed projects and submit investment plans using private capital or public-private partnerships.
Potential developments include underground and multi-storey car parks, smart parking facilities, commercial services and electric vehicle charging stations.
The department pledged to coordinate with relevant agencies to help investors complete procedures transparently and minimise preparation time.
It also invited businesses to recommend policy changes to improve investment conditions, including loan interest subsidies, eligibility for financing support and the proportion of parking facilities permitted for commercial use.
Other proposals could address land-use incentives, rental terms aligned with investment recovery periods and more flexible parking fees based on location and time of day.
The department is also seeking views on gradually reducing on-street and pavement parking, alongside incentives for park-and-ride facilities near metro stations and low-emission zones.
The proposals will be compiled with the Department of Finance and submitted to the municipal People's Committee for consideration before potential policy adjustments are presented to the Hanoi People's Council.