Showing posts with label master plan. Show all posts
Showing posts with label master plan. Show all posts

Thursday, February 24, 2011

Ninh Thuan master plan awaits PM's nod

The central province of Ninh Thuan has more than 100km of coastline. Its beautiful beaches and fertile land are the envy of the rest of the country. It is the first province to have its socio-economic master plan drafted by foreign consultancy firms. — VNA/VNS Photo Anh Ton

The central province of Ninh Thuan has more than 100km of coastline. Its beautiful beaches and fertile land are the envy of the rest of the country. It is the first province to have its socio-economic master plan drafted by foreign consultancy firms. — VNA/VNS Photo Anh Ton

HA NOI — Viet Nam's first provincial socio-economic development master plan created by two world renowned consultancy firms has been approved by leaders of central Ninh Thuan Province and is awaiting the nod from the Prime Minister.

Ninh Thuan's socio-economic development master plan to 2020 with a vision to 2030, which was developed on the basis of its nuclear industry, was presented to the Ministry of Planning and Investment in Ha Noi on Tuesday.

"This is the first province in Viet Nam to invite international consultants to construct its master plan. In the past, other provinces usually used proposals developed by domestic research institutes," said Minister of Planning and Investment Vo Hong Phuc.

The coastal province, 60km south of Cam Ranh Airport and 350km north of HCM City, would become Viet Nam's leading nuclear power centre, and needed a new orientation and vision fitting of its new status, he said.

The US$3-million master plan adopts the strategy of "accelerating economic growth" in the next 10 years with four targets: enhancing competitiveness, improving infrastructure, branding and capacity building, and boosting the competence of State agencies in the province.

The blueprint, conceived by Monitor Group from the US and Britain's ARUP, was based on a "diamond framework", a new approach in Viet Nam, to analyse what existed in the coastal central province today that would provide opportunities in the province tomorrow, said the provincial People's Committee deputy chairman, Do Huu Nghi.

The framework, developed by Professor Michael Porter from Havard Business School, was built on observations of regulations and the nature of consumer demand in the province, together with identifying the current stage of the province's development, which Monitor director Chris Malone said were "the most important sources of strength in the plan".

"At different stages of development, they need to focus on different things. So provinces like Ninh Thuan which are at an early stage of development need to focus on identifying the factors that already exist in the province and generating income from those factors, such as using the location or climate in order to generate tourism income," he said.

The province with more than half a million people decided to go for the "fast and sustainable growth" option, which consists of a 19 per cent increase in GDP per year, instead of normal growth of 13 per cent or substantial growth of 22 per cent that were also considered at the beginning.

Nghi said the decision was made after its consultants pointed out that targeted programmes and human resources training couldn't produce immediate results in the coming period.

With that model, Ninh Thuan is expected to reach GDP per capita of US$2,800 in 2020, or 85 per cent of the country's average, with industry and services accounting for 80 per cent of GDP.

The poor province, where average annual income is just over $510, would need VND260,000 billion ($13 billion) in the next ten years for such development.

A unique point about the master plan that differentiates it from others is that it outlines a number of investment projects and their implementation road maps designed to raise the capital.

"The consultants contacted potential investors while working on the master plan to ensure its feasibility," said Nghi.

ARUP's senior urban designer Slavis Poczebutas said the biggest challenge for them in the one year-long project was to achieve a balance between economic development and an "almost untouched beautiful countryside" with fertile agricultural land, WWF-preserved forests and a rich maritime ecosystem.

"The type of challenges that Ninh Thuan faces are challenges that we see all around Viet Nam. It's important how the country uses the coastal economy to create jobs and increase prosperity," said Malone.

How the province developed its economy in a way that would genuinely help the poor and cope with climate change was important at this stage of development, he said.

The consultant also said tourism and Viet Nam's first nuclear power plant, construction of which would start in 2014, would definitely be able to co-exist if there was an integrated plan in advance.

"There's more than 100km of coastline in Ninh Thuan. The tourism areas are located in the far north while the industrial zones and nuclear power plant will be located in the south," he said. — VNS

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Friday, October 15, 2010

HCM City needs East-West balance

An overview of HCM City. Experts say it needs to develop a master plan with high feasibility and long-term vision for better management and adjustment. — VNS Photo Viet Thanh

An overview of HCM City. Experts say it needs to develop a master plan with high feasibility and long-term vision for better management and adjustment. — VNS Photo Viet Thanh

HCM CITY — HCM City needs to create a master plan that balances real-estate growth in the eastern and western parts of the city, according to Singaporean experts.

Commenting on the city's development plan to 2020 in a recent meeting with city authorities, James Chew of the Singaporean Planning Institute said most real estate projects had been focused in districts 2 and 9 in the eastern part of the city.

Chew advised city authorities to develop a long-term vision and divide the development plan into many sections for better management and adjustment.

Insufficient infrastructure still existed in some parts of the city, he said, adding that traffic congestion would worsen if high-rises of 68 storeys, for example, were located on an 8-metre-wide road.

Other experts said the city should invest more in planning because of the high urbanisation rate in the country.

Paul James, general director of Vina Projects, said the rate in 1999 was 28 per cent but was expected to rise to 45 per cent by 2020.

"Good planning will help residents in urban areas enjoy a better standard of living," James said.

Chew said that quality professional planning would help the city be more appealing to investors, who would be more inclined to pour money into areas like the new Thu Thiem Urban Area in District 2.

Several experts at the meeting told authorities they should develop a master plan that has high feasibility, transparency and a long-term vision, with ample opportunities for investment. — VNS

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Thursday, October 7, 2010

Ha Noi property market goes west

The Nam Trung Yen apartment building in the west of Ha Noi's Trung Hoa District. The western areas have great opportunities and resources for real estate development projects. — VNA/VNS Photo Tuan Anh

The Nam Trung Yen apartment building in the west of Ha Noi's Trung Hoa District. The western areas have great opportunities and resources for real estate development projects. — VNA/VNS Photo Tuan Anh

HA NOI — Ha Noi's western areas have great opportunities and resources for real estate development projects, according to real estate experts.

Dang Hung Vo, former deputy minister of Natural Resources and Environment, told participants at a recent workshop focused on real estate and investment opportunities in the west of Ha Noi that investors and individuals had shown an interest in developing the western part of the city.

The decision to develop Ha Noi towards the west was decided by the Government and city authorities several years ago. This tendency towards westward development was confirmed again in the city's recent master construction plan.

Vo said the master plan of expanded Ha Noi was divided into two zones: nuclear urban area and neighbouring regions.

An overall plan for Ha Noi was established to expand these areas. The inner city area will stretch from the left bank of the Red River to the second ring road, reaching a population of about 1.2 million by 2030. High-rise buildings are restricted in this area.

The extensions of the nuclear urban centre, including a chain of urban areas along the fourth ring road and the southern region of the Red River, are expected to reach a population of 1.25 million people by 2030. Investors are being encouraged to build high-rise buildings in this area to shift the population from the inner city.

The series of urban areas to the north of the Red River will consist of Me Linh District, with about 0.45 million people, Dong Anh District, with 0.55 million and Long Bien-Gia Lam districts, with about 0.7 million by 2030.

Five urban satellite towns will include Hoa Lac, Son Tay, Xuan Mai, Phu Xuyen, Phu Minh and Soc Son. Each satellite town will include one or more specific characteristics to support and share the need for urban housing, high-quality training, industry and services, and job creation.

Duong Duc Tuan, deputy director of the Ha Noi Planning and Architecture Department, affirmed that with such development, the western area of Ha Noi would have many opportunities and resources to carry out real estate investment projects. He added that land funds were available for infrastructure projects in the form of build-transfer (BT) and build-operate-transfer (BOT) in this area.

According to many experts, finance problems have posed a challenge. Capital resources from official development assistance (ODA) and foreign direct investment (FDI) are currently difficult to mobilise and the State budget cannot afford the estimated US$70 billion investment.

As a result, capacity to implement the master plan can only rely on resources from the land fund. Appropriate mechanisms and policies should be developed to encourage real estate investors to get involved in the implementation of the master plan in combination with efficient use of land resources.

Land bubble

In the first quarter this year, a land bubble phenomenon occurred in the area around Ba Vi which saw land prices increase unexpectedly. Increases varied between 35 per cent to 45 per cent depending on the specific area, according to the Kim Bai and Ba Vi administrative centres.

During this land fever, land in the west of Ha Noi fetched high prices. For example, land in Van Khe, Ha Dong District ranged from VND70 million ($3,589) to 80 million ($4,102) per sq.m, and in Nam An Khanh the price was around VND30 million ($1,538) per sq.m.

However, fewer transactions are now taking place because many land traders have fled the area. Land prices have fallen by 70 per cent compared with peak land fever prices.

Vo said land fever in Ba Vi did not follow market rules. Traders did not carefully study information about the land but simply rushed to buy land under the herd mentality. Unfortunate consequences are inevitable, he said.

Nguyen Tran Nam, deputy minister of Construction, said commodity prices would follow the market rule which centred around the law of supply and demand and the law of value. Although real estate was a special kind of good, it still complied with economic laws and other factors.

Authorised agencies could regulate prices by increasing supply, he said.

Currently, major capital for the real estate market comes from banks, but financial institutions are beginning to narrow the flow of capital with strict regulations in order to prevent a real estate bubble.

The Ministry of Construction has proposed potential channels for mobilisation of capital for the real estate market in the future, such as real estate trust funds and savings funds on housing. — VNS

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