As part of the list of key projects during the 2016-2020 period released by the Da Nang People’s Council on 17 February 2018, a total of 2,500 billion VND will be poured into building new parking areas in the city. Of this, around 500 billion VND will come from the city budget, whilst the remainder will be appealed under the public-private partnership (PPP) format.

The automated parking garage at 255 Phan Chau Trinh in Hai Chau District

However, over the recent years, the development of parking system in the city has not yet met the demand from local residents due to the limited land fund.

Mr Bui Hong Trung, the Deputy Director of the municipal Department of Transport, said that parking garage projects would produce lower profits for their developers than other projects. Also, it will take the developers of these projects long time to complete their investment procedures.

In attempting to deal with the problem, the municipal authorities have issued some preferential policies to attract more domestic and foreign investors to pour their money into parking garage projects in the city.

This year, 16 temporary parking areas in total will be built across the city

In particular, investors will enjoy land lease fee exemptions over the whole life of their projects which use land to build parking areas in the city.

Also, they will enjoy import duty exemptions for equipment that cannot be domestically produced for their parking projects.

Investors will be eligible to access preferential-interest-rate loans from the Da Nang Investment and Development Fund.

Besides, they will be allowed to use up to 30% of the permitted construction density of their projects to offer other services, including car wash and repair, auto parts selling, and more.

On the other hand, the municipal authorities will encourage organisations, individuals and families in the city who have land-use and house ownership rights to pour their money into the building of private parking areas to offer their services to local residents.

By TRIEU TUNG - Translated by MAI DUNG