Faced with huge capital pressure and the need for sustainable urban development, the public transport-oriented urban model (TOD) is considered a key solution.
However, implementation practice shows that for this model to be truly effective, it is necessary to soon complete the institutional system, creating conditions for Ho Chi Minh City to develop a modern metro network associated with the TOD model.
Identify bottlenecks
According to the Department of Planning and Architecture of Ho Chi Minh City, the city has identified 11 locations along metro line 1 (Ben Thanh - Suoi Tien), metro line 2 (Ben Thanh - Tham Luong) and Ring Road 3 to pilot development according to the TOD model.
These areas all have the potential to form "compressed urban areas", commercial - service centers, offices and high-density housing, thereby maximizing land value.
Up to now, the People's Council of Ho Chi Minh City has passed Resolution 38, creating the initial legal basis for implementing the above development orientation.
Mr. Nguyen Tat Thang, Deputy Head of the Technical Infrastructure Planning Department, Department of Planning and Architecture of Ho Chi Minh City, said that the city is reviewing land funds along metro lines: more than 160 hectares of land along metro line No. 1 (in Thu Duc, Long Binh, Long Truong wards...); studying the 500-1,000m range around metro stations No. 2 to effectively exploit land resources. TOD projects along Ring Roads 2 and 3 are also expected to complete procedures to be able to start construction by the end of 2025.
However, according to the Ho Chi Minh City Department of Construction, TOD implementation is facing many challenges due to the lack of an integrated legal framework. Specifically, regulations related to land, planning, transportation, resettlement, finance and public-private partnership (PPP)... are not synchronized, leading to procedures having to go through many levels, many departments and branches but lacking a focal point with sufficient authority to coordinate the whole.
A typical example is that many stations on metro line 1 are currently built with purely traffic functions, not integrated with commercial and service spaces or synchronously connected with surrounding urban areas - core requirements of the TOD model.
Meanwhile, TOD was included in the planning later, so implementation became difficult due to high site clearance costs and lack of consistency.
To resolve the issue, the HCMC People's Committee has proposed that the Government consider studying and proposing to supplement a number of regulations related to the Land Law and the Urban Planning Law. HCMC proposed to clearly establish TOD zones with specific construction density, land use coefficient, population targets and mixed functions; and proposed a mechanism to shorten land acquisition procedures.
In particular, it is proposed to add a mechanism to recover increased land value (Land Value Capture) when investing in transport infrastructure, to create resources for reinvestment in metro and public infrastructure.
One of the important groups of solutions proposed by Ho Chi Minh City is to adjust the urban planning system towards prioritizing public transport axes.
Accordingly, areas within a radius of 300-500m around metro stations will be studied to increase building height, increase land use coefficient and encourage the development of multi-functional complexes.
Areas such as Thu Duc, Tan Kien, Tan Tao, along metro line 2 and BRT (bus rapid transit) line 1 are oriented to become satellite urban centers with the ability to attract residents and businesses.
Perfecting the special mechanism
TOD projects are only feasible when there is a mechanism to effectively exploit land funds around metro lines. Therefore, Ho Chi Minh City proposes to apply auctions, long-term land leases and call for investment in the form of PPP in areas near stations, thereby creating a source of revenue to support the development of transport infrastructure.
Ho Chi Minh City also proposed the Government to allow the establishment of an Urban Transport Development Fund, focusing on revenue from parking fees, traffic congestion reduction fees, land exploitation and commercial services around the station. This fund will be used to supplement capital for the construction of metro and BRT lines.
In addition, Ho Chi Minh City proposed establishing a TOD Development Agency, which will play a role in coordinating, managing land funds and calling for investment, to resolve the overlapping situation between departments and branches. This agency will also publicize planning data and TOD maps so that businesses can easily access information.
In the submission to the Government on the draft Resolution of the National Assembly amending and supplementing a number of articles of Resolution No. 98/2023/QH15 of the National Assembly on piloting a number of specific mechanisms and policies for the development of Ho Chi Minh City, the Ministry of Finance informed that the draft focuses on amending and supplementing policies on conditions for strategic investors; simplifying procedures for project registration and investor selection; and supplementing regulations on investment incentives for infrastructure projects.
The new point of the draft is to allow Ho Chi Minh City to assess the conformity with the planning when appraising, approving investment policies, approving projects, selecting investors and granting investment registration certificates based on one of the provincial planning, urban planning, national sector planning, and technical and specialized planning.
Along with that, the city is allowed to decide on land use targets in addition to the land use targets allocated according to the national land use plan within the city, ensuring compliance with the requirements of urban infrastructure development.
Another important point is the proposal to replace the “hard criteria” on charter capital, total assets and investment experience with the proportion of equity contributed to the project. This adjustment is in line with international practice, creating conditions to attract strategic investors.
At the same time, the process and procedures for selecting strategic investors are simplified, ensuring transparency and consistency with the laws on investment, bidding and PPP.
In particular, empowering investors to independently establish and adjust detailed zoning plans... This is considered the solution to remove the biggest bottleneck in implementing large-scale investment projects such as TOD.
Comrade BUI XUAN CUONG, Vice Chairman of HCMC People's Committee:
Support to synchronously remove obstacles
Ho Chi Minh City is at a pivotal stage and needs breakthrough solutions to take advantage of the opportunity to restructure urban space, linked with the public transport system.
The pilot of 11 TOD locations is an important step, but to be successful, Ho Chi Minh City recommends that the Central Government support the synchronous removal of legal, land and financial mechanism obstacles.
At the same time, the city will improve its organizational structure to ensure unified and effective implementation.
Dr. Architect Ngo Viet Nam Son:
Three breakthroughs in TOD development
To realize the TOD model, Ho Chi Minh City needs three breakthroughs. These are completing an integrated legal framework (including land mechanisms, land valuation, PPP and commercial exploitation at metro stations); establishing a specialized TOD agency with strong coordination authority; developing metro according to a priority roadmap, ensuring public transport infrastructure goes before or in parallel with urban planning.
In particular, the city needs to expand PPP, attract private and international investment; prioritize piloting some TOD clusters in Thu Duc ward before expanding.
Associate Professor, Dr. VU ANH TUAN, Director of the Center for Traffic and Transport Research (Vietnam-Germany University):
Establish a competent specialized agency
Many countries have established urban development - public transport agencies with centralized power models, allowing for quick processing of land, investment and planning procedures without relying too much on separate departments and offices as at present.
Therefore, to effectively implement TOD, Ho Chi Minh City needs to soon establish a specialized agency with sufficient authority to quickly resolve procedures related to land, investment, planning and overall supervision; at the same time, invite international experts and consultants to participate to ensure quality and progress.
Source: https://www.sggp.org.vn/hoan-thien-khung-the-che-de-tphcm-but-pha-bai-5-khoi-thong-nguon-luc-ha-tang-post826077.html
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