SMART CITY DEVELOPMENT SHOULD BE CONSIDERED FROM THE PRIVATE ENTERPRISES
19/07/2023
(KTSG Online) – Ho Chi Minh City needs to put the urban development model oriented on rapid mass transit (TOD) into the city’s general planning, while build a mechanism to attract private resources to participate in development surrounding urban areas, thereby realizing the goal of a smart city.
The seminar “Developing smart cities associated with TOD model” was organized by Saigon Economic Review in collaboration with Arcadia Consulting Vietnam Co., Ltd on April 19.
TOD solves many problems of urbanization
Mr. Vu Anh Tuan – Traffic expert, Director of Viet Duc Traffic Research Center, Viet Duc University, said that urban development is oriented towards fast public transport with large capacity (TOD) is a strategy to help cities solve challenges in investment, development, and effective management and exploitation of urban railway lines and land resources.
“This model opens up opportunities for investors to participate in the process of planning, designing and investing in developing real estate projects, trading in commercial services around urban railway stations market”, Mr. Tuan shared.
Mr. Awirut Imoun – Business Strategy Advisor of SC Asset Group, said that the TOD model has helped Thailand increase mobility, increase mobility and connectivity. The large-capacity public transport system has led to the development of real estate.
According to Mr. Awirut Imoun, land prices along the public transport network increased rapidly, averaging about 6% per year. In addition, the TOD model combined with walking paths helps people to move easily to everywhere in the city, connecting every corner of the city together.
“Asoke and Silom-Sathorn are two financial centers of Bangkok that have developed under the TOD model. These are the two intersection areas between the sky train system and the subway. Currently, there are more and more commercial centers, restaurants, hotels, and residential areas around these two locations,” said Mr. Awirut Imoun.
Build a mechanism to attract private participation
Mr. Vu Anh Tuan – Traffic expert, Director of Viet Duc Traffic Research Center, Viet Duc University, said that the TOD model opens up opportunities for sustainable urban development. However, Ho Chi Minh City as well as other major cities in Vietnam do not currently have a TOD-oriented development plan.
“Resolution 54 is the basis for Ho Chi Minh City to include the TOD model in the city’s general planning and develop this model to the suburbs such as Cu Chi, Hiep Phuoc, Thu Duc”, Mr. Tuan said. In recent years, planners have also realized the potential of the TOD model and this model has also received more attention through researches and reports,.
According to Mr. Tuan, in order to realize TOD, the integration of urban development and transport infrastructure must take place in the process of urban planning and design. This model requires close coordination between 3 houses including the State, consultants and investors.
In particular, the State ensures the principles of TOD model, opportunities to capture added value from land and real estate in the planning process. The consultant gives the city development vision and strategy and the appropriate investment strategy. Investors research efficiency, commerciality and ensure human-oriented real estate design.
In the case of Ho Chi Minh City, Mr. Tuan said that the city needs to build a mechanism to attract private investors to invest in railway lines and urban areas around the station. In particular, clearly define the role of the government, the mechanism of cost and benefit sharing cooperation. At the same time, the central government proposes to pilot TOD projects along metro lines 1, 2, 5″, Mr. Tuan gave an example.
In the same opinion, Mr. Awirut Imoun, Business Strategy Advisor of SC Asset Group, said that the biggest challenge for the development of TOD is investment. Specifically, it is necessary to synergize the government with private companies to develop infrastructure for TOD.
“The Thai government has a lot of incentives for investors, especially individual investors. The government has developed a 5-year strategy to attract investment from abroad,” Mr. Awirut Imoun shared about how Thailand seeks investment capital.
At the same time, the expert, who is also a business strategy consultant of SC Asset Group, said that investing in building a sustainable infrastructure system is the foundation to attract investors to real estate. produce.
