Vietnam law aims to ease parking shortages in Ho Chi Minh City
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The Ho Chi Minh City government in Vietnam passed a new urban development law taking effect October 1, intending to encourage construction of underground and multi-story parking facilities. The law addresses problems of limited land, high costs, and slow returns on investment that previously stalled parking projects.
The legislation exempts developers from land rental and fees for using underground space throughout the project’s lifespan. Investors can also dedicate up to 25 percent of a project’s space to revenue-generating services.
The city will support businesses with interest rate assistance and import duty reductions for necessary high-tech equipment. Larger public parking projects, those costing at least 77 million US dollars, will receive priority consideration from strategic investors and additional benefits. The municipal People’s Council gained authority to create specific policies for developing parking spaces that combine parking with other functions.
Vo Thanh Hai, CEO of Total Parking, stated the law creates a framework for businesses to reinvest in parking facilities, moving beyond relying solely on parking revenue. However, Hai cautioned that a 77 million US dollar investment requirement could limit which companies qualify for the most significant incentives, suggesting evaluation of investor capacity should consider more than just equity. Businesses also requested simplified procedures for temporary parking structures and clearer planning guidelines to encourage faster project implementation.
