The "three pillars" for sustainable development.

Harmonizing the interests of the three parties—the state, investors, and the people—in the process of urban spatial restructuring is the "three-legged stool" for sustainable development. This was the key argument presented at a workshop on the development potential of the North Red River urban area, held in Hanoi on June 2nd.

According to Dr. Nguyen Duc Kien, Chairman of the Scientific Council of the Institute for Digital Economic Development Strategy and former Vice Chairman of the National Assembly's Economic Committee, Hanoi is bearing enormous burdens: logistics costs account for 16-18% of GDP, traffic congestion losses reach up to 6 billion USD annually, and housing pressure is high as house prices are estimated to be 22.2 times the average annual income by 2025 (assuming all income is used and no other expenses are covered). If people rent, they have to spend 56-58% of their monthly income on housing.

According to Dr. Nguyen Duc Kien, developing the urban area north of the Red River is an inevitable solution to reduce financial and housing pressure on residents. However, relocation or urban expansion should not be a step backward, but rather an opportunity for people to have a better living environment. Ensuring the rights of residents is not only reflected in one-time compensation payments, but also in opening up new value zones – multi-polar public transport-oriented urban areas.

To achieve this, it is first necessary to develop a public transportation system, specifically metro lines combined with the TOD (Transit-Oriented Development) model. “In mature real estate markets, property values ​​are calculated based on the walking distance to the station and the quality of the ecosystem in the area.”

"The train station becomes a center for living, working, and shopping, not just a boarding point," the expert stated. By bringing metro and the TOD (Transit-Oriented Development) model to restructured areas, relocated residents will shift to owning assets with sustainable value appreciation, and living costs (transportation, rent) will be significantly reduced.

A prerequisite for the smooth operation of this mechanism is the early completion of the legal framework for urban development based on the TOD model. This must be the most solid foundation to protect the rights of all parties, especially the mechanism for sharing the added value from land when metro infrastructure passes through.

Another crucial principle is ensuring fairness and transparency in the implementation of land and compensation policies, avoiding conflicts of interest that delay project progress and cause social instability. For successful urban restructuring, the decisive factor is not just the number of miles of railway, but the consensus of the people based on a harmonious and humane policy.

ANH THU

Source: https://www.sggp.org.vn/kieng-ba-chan-cho-su-phat-trien-ben-vung-post855670.html