The first smart multi-storey car park in Da Nang, located at 255 Phan Chau Trinh in Hai Chau District, started its 3 month-long trial operation today, offering free-of-charge parking service. The operation of this parking service is the first real test of whether or not its technical infrastructure and technology solutions are use effectively. Besides, how to come up with many investment plans for other parking projects whose capital no longer heavily depends on State investment is also taken into account. 

Functional bodies inspecting technical standard of the automatic car park at 255 Phan Chau Trinh before it is put into trial operation

Covering a total area of more than 1,000m², the first stage of the steel framed parking garage costs over 25 billion VND funded from the city budget.

With a 2-year warranty, this newly-opened garage consists of two 6-storey blocks, together accommodating a total of 50 under 7-seater cars.

In particular, the pulley lift system, control equipment, advanced technologies, and such mechanical structures as frames and pallets, are imported from foreign countries which are famous for developing and providing technology transfer services.

During the trial operation, the garage operates daily from 6:30am till 7:00pm.

The municipal People's Committee has also approved an additional expense of over 600 million VND from the city budget for the 3-month trial operation and the development of such auxiliary items as security cameras, printers, and internet connection.

After the trial operation period ends, the Bridge and Road Management Company under the municipal Department of Transport will be in charge of carrying out another pilot operation lasting for 12 months, offering around-the-clock service and collecting parking fees.

Afterwards, public bidding for the use of the project functionality will be organised.

In August 2015, the municipal government approved the adjustment to the master plan for transport system development by 2020, with a vision towards 2030, featuring the construction of 158 parking areas. However, up to now, appeals for investment from the general public into other parking areas under the public-private partnership (PPP) format have been grinding to a standstill.

According to Department of Transport Director Le Van Trung, a list of parking projects in which the city is appealing for investment is available on the National Bidding Network and the Department’s official website, and in the mass media. However, every effort is in vain as no investors at home and abroad have signed investment contracts for these parking projects to date.

In his detailed explanations for this issue of concern, Trung pointed out to the fact that many investors have always suggested that the municipal government give more support to them in term of the investment process.

In particular, they asked for no land use fee collection within the first 12 - 15 years of the project operation. However, Trung affirmed, such a proposal, in fact, goes against the laws.

He added that, investors can only operate parking services without developing such other satellite services as catering and entertainment. These restricted regulations really discourage investors to pour their money into parking projects.

Besides, some businesses are reluctant to invest in smart parking facilities because of large initial investment capital, a small source of revenue, and a long payback period.

Also according to the municipal Department of Transport, no legal framework has yet to be developed to create incentives for parking investment.

In order to deal with these issues, the Department of Transport has given some suggestions to the municipal government to appeal for investment in public parking areas.

Notably, it is proposed that investors be allowed to submit their parking charges to the city authorities for approval, and open other trade services and utilities as prescribed by law whilst ensuring the basic functionality of car parks.

Another highly recommended suggestion is to facilitate investors to get preferential loans from the city’s Development Investment Fund.