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[news] News about VN
Headlines:
Traveling by rail set to become more interesting
We want Vietnam with song-birds
HCMC to pump US$100 million into infrastructure projects in 1997
Two thousand buses to be imported to HCMC
Planning parking spaces in HCMC
New tourism destination
HCMC's new key rail station planned
Ericsson markets new mobile phone model
Government decreases motorbike import quota
Can Tho fair joins APECC
MPI announces new list of import-substitutes
Red anabas breeding JV with Israeli firm starts
Vietnam ship-owners' association set up
VND110 billion for construction of Bac Lieu Trading Center
Big market for vehicle tire production
Nissan plant delayed
HCMC traffic problems: causes and solutions
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Traveling by rail set to become more interesting
By Hoang Long
Hanoi
The fact that the railroad sector has shortened the running time of the
HCMC-Hanoi train from 36 hours to 34 hours not only makes itself a more
convenient and economical means of communication to many, but also opens
up new potential for traveling programs by rail, a form of tourism with
many special characteristics.
Traveling by train has now become familiar with many passengers at home
and abroad. The most basic reason for this is that it has remarkable
strong points. Compared with buses, this form of travel offers
passengers more comfort as passengers are freed from packing themselves
on board like sardines. More importantly, if they choose, passengers can
spend an extra sum in exchange for a berth to relax safely and
conveniently. This is great for travelers taking short-distance trips in
the north such as Hanoi-Sapa, and Hanoi-Thanh Hoa-Vinh. These trips
involve spending one night on board, and when they wake up they can
admire the heavenly scenery passing by.
Traveling by rail is not as quick as traveling by air; however,
passengers have a chance to enjoy different landscapes and terrains as
they travel by train. In addition, train tickets are affordable to many;
a one day-one night tour in a train costs just VND130,000-VND150,000 per
person, while prices for long-distance trips vary between
VND250,000-VND290,000 per person, depending on the caliber of each kind
of service. Nowadays, when the railroad linking Vietnam and China is
open, a tour by train covers farther destination possibilities such as
Nanjing, Beijing, Shanghai, and Kunming, with five itineraries
available, each lasts from 4-11 days and costs between US$200-US$950 per
person.
The tourist operation and guidance center under the Hanoi Services and
Railway Tourist Company has organized domestic tours for around 100
groups with upwards of 3,000 travelers, and has carried approximately
300 local tourists on overseas tours.
We want Vietnam with song-birds
It is indeed astonishing and agonizing to see that a beautiful country
like Vietnam having abundant natural lush vegetation with a large
variety of trees and plants is devoid of the eye-pleasing sight and
ear-pleasing chattering and songs of birds, despite its extremely
salubrious and salutary surroundings for their habitation.
Ever since I arrived in Vietnam over a year ago, my heart and eyes have
been on the look out for birds both in HCMC and Hanoi but with only
despair (barring a few caged ones and a negligibly sporadic and sparse
number of sparrows and skylarks). Not even the common crows are seen, to
mention a name, which are very common in any part of the globe. I wonder
what could be the cause for this paradoxical phenomenon? Is it that
certain unscrupulous people have hunted out and annihilated the whole
population of birds for their voracity for meat delicacies, or what?
Whatever may be the reasons for the absence of birds, it is high time
that the government took stern and earnest remedial steps to reverse the
situation for growth and protection of free birds, without which, the
country looks incomplete in its naturalness.
Yours sincerely
P.I. Eapen
Hazama Corporation, 158-Trieu Viet Vuong Street, Hanoi
HCMC to pump US$100 million into infrastructure projects in 1997
"In 1997, HCMC plans to invest VND1,106 billion (approximately US$100
million) in several projects to develop roads, bridges, drains, canal
dredging and other public utilities.
Mr. Nguyen Dinh Vu, director of the HCMC Service of Communications and
Public Works, said this year, the city is pumping investment into seven
large-scale projects on roads and bridges, that is, building Nguyen Tri
Phuong bridge and street; lengthening Le Thanh Ton Street through HCMC
Zoo to Saigon Bridge; building streets alongside Nhieu Loc-Thi Nghe
Canal; repairing and building Bui Huu Nghia, Dan Xay and Hiep Phuoc
bridges; and upgrading Hung Vuong Street, Provincial Road 15-Nha Be, and
Village Road 34-39.
In addition, a water pipeline will be built to convey water from the
Dong Nai River to Thu Duc Water Plant. Meanwhile, investment will
continue to be pumped into Saigon Water Plant so as to bring this
300,000cb.m/day waterworks into operation in 1998.
Apart from projects to be developed with funding from the city
authorities, next year the Ministry of Communications and Transport will
finance the construction of some other transportation projects in HCMC
including building Binh Loi Bridge and expanding Saigon Bridge are among
these projects.
The HCMC Service of communications and Public Works also has plans to
build and upgrade 11 streets, seven bridges and five junctions to submit
to the municipal government for approval.
Most projects which are currently under preparation are large-scale
ones, and are of vital importance to HCMC: the city's eastern border
road, the east-west road running in parallel with Ba Thang Hai Street,
from District 6 through districts 10 and 11, and Phu Nhuan District;
Provincial Road 15 running to Cat Lai; five bridges - Binh Khanh, Thu
Thiem 2, Saigon 2, Phu My, and Tan Thuan 2; and five traffic junctions -
Go Vap, Bay Hien, Phu Nhuan, Le Dai Hanh-Binh Thoi Intersection, and the
intersection leading to Thanh Da.
In 1996, investment for communication and drainage projects of HCMC was
just VND465,11 billion. The most noteworthy projects were Hang Xanh and
Phu Lam junctions, and the widening of Dien Bien Phu Street.
Two thousand buses to be imported to HCMC
By Thien Nhan
About 2,000 minibuses and about 1,000 buses of medium and large sizes
will be imported into HCMC from now through to the year 2000, said a
source from the HCMC Service of Communications and Public Works.
All these vehicles will be dedicated to a program to replace three-wheel
lambrettas with minibuses, thus improving the city's public transport by
bus.
Investment needed for this program is estimated at over VND709 billion
(some US$64.5 million). This can be collected from three sources:
non-refundable aid or loans from ODA (official development assistance),
and ADB (Asia Development Bank); loans from the national budget; or
asking suppliers to sell buses on the deferred-payment basis with low
interest rates.
In addition, in order to bring these vehicles into operation, the HCMC
Service of Communications and Public Works needs to invest a
supplementary VND43 billion in developing public transport utilities
such as bus-stations, bus-stops and waiting rooms for passengers.
According to the service's officials, the objective of this program is
to address 20%-30% of the city dwellers' demands for public transport
conveyances from now through to the year 2000.
Planning parking spaces in HCMC
By Thien Nhan
Ho Chi Minh City will plan the construction of vehicle parking spaces
here to improve the cityscape and facilitate the management of
responsible agencies, said a source from the HCMC Service of
Communications and Public Works.
With this in mind, a project to collect parking fees for different kinds
of automobiles in downtown HCMC is presently being worked out by the
Management and Operation Center for Public Passenger Transport, under
the HCMC Service of Communications and Public Works.
According to the draft project, this year the city will set up 1,442
parking lots in districts 1 and 3 on a pilot basis. These lots have a
total length of over 5,000 m, sited on big streets such as Nguyen Hue,
Le Loi, Dong Khoi, Ham Nghi and Nguyen Thi Minh Khai. It is planned that
parking spaces will be designed diagonally on broad streets, and
lengthwise on narrow ones.
Mr. Le Trung Tinh, vice director of the center, said the project
requires an initial investment of over VND160 million. This will be
spent on setting up signs, zoning lots and marking stripes, setting up
ticket collecting stations and guidance activities. Considering parking
fees, the project suggests a fee of VND10,000 for each parking time for
30-seater trucks of over 3.5 tons, VND5,000 for 12-seater automobiles of
less than one ton, and VND7,000 for 1-3.5-ton vehicles with a seating
capacity of 12-30.
According to Mr. Tinh, it will take about four months to experiment the
collection of parking fees in these spaces. Later on, the city will plan
the construction of parking spaces across the city. When this project is
implemented citywide, the collection of parking fees will be carried out
with the help of parking-meters in lieu of doing this by hand. Allowing
for this matter, the project plans an investment of more than VND50
billion to install 500 parking-meters in HCMC from now through to the
year 2000. The first 1,000 parking-meters will be installed here next
year.
The project to collect parking fees for automobiles in downtown HCMC has
been submitted to the HCMC People's Committee for consideration.
New tourism destination
Van Phong-Dai Lanh Bay presented
(SGT-NHATRANG) Vietnam's National Administration for Tourism (VNAT)
called the attention of investors and concerned authorities to Van
Phong-Dai Lanh Bay, the potential tourist complex project in Khanh Hoa
Province, through the seminar, "Masterplan for the Development of Van
Phong-Dai Lanh Bay."
The seminar, hosted by the Institute for Tourism Development Research
(under VNAT) in coordination with the People's Committee of Khanh Hoa
Province, opened in Nha Trang yesterday.
This two-day seminar aims at collecting views from concerned
authorities, researchers and investors to map out a feasible project for
the development of Van Phong-Dai Lanh Bay into a large tourist complex,
said Madame Vo Thi Thang during the opening session.
"The master plan for the development of Vietnam's tourism industry in
the period 1996-2010, approved by the Prime Minister in May 1995,
emphasizes that Van Phong-Dai Lanh Bay, part of Nha Trang-Ninh Chu-Dalat
Focal Tourist Zone, is among Vietnam's top seven priorities for
development," Madame Thang said.
She said the decision dated November 9, 1994 by the Prime Minister
concerning the relocation of Vietnam's first oil refinery from Van
Phong-Dai Lanh Bay to Dung Quat Bay (in Quang Ngai) is vital to tourism
development in the country.
Van Phong-Dai Lanh Bay, which covers a large area (of 110 sq.m)
including Dai Lanh Beach, Hon Gom Peninsula and Van Phong Bay, is
located in Van Phuoc Commune, Van Ninh District, some 80 km to the north
of Nha Trang.
Dr. Vu Tuan Canh, chief of Vietnam's Institute for Tourism Development
Research, said the master plan to develop the bay into a sea resort of
international standard "which is regionally and internationally
competitive" will be completed in 1997 and 1998.
Dr. Canh said a number of foreign groups and companies have sought
opportunities for investment in tourist facilities and services in Van
Phong Bay. These include Lemon group/HCMC, Denniston Sdn. Bhd
(Malaysia), Sisma Group (Malaysia), Pacific Basin Group (Australia) and
Club Med (Singapore), just to name a few.
HCMC's new key rail station planned
(SGT-HCMC) Binh Trieu Rail Station will be turned into a key station of
HCMC to replace the current Hoa Hung Station, according to a source from
the Transport Development Research Center in the South (TDSI South).
The new station will have a total area of 36 hectares, threefold over
the existing Hoa Hung Rail Station. It is expected that 60 trains will
depart from and arrive at the new station per day while the current
figure at Hoa Hung is 24.
The project, estimated at VND370 billion (around US$33.6 million), will
begin construction by the end of 1998 and be completed within two years.
The new station will have a modern terminal capable of accommodating
1,000 passengers at a time, doubling the current figure of Hoa Hung,
according to the project owner, the Vietnam Union of Railway
Enterprises.
Engineer Ha Ngoc Truong with TDSI South said that it is necessary to
develop the new rail station as a 9-km elevated light railway will be
built from Hoa Hung to Binh Loi Bridge. After the new station in Thu Duc
District is put into operation, Hoa Hung will be the station for
elevated light trains.
Ericsson markets new mobile phone model
(SGT-HCMC) The Swedish Ericsson Company has marketed the new-generation
mobile phone model GF 788, the first of a series of the company's new
modern digital mobile phones. This is also one of the most compactly
designed mobile phones, just 10cm long and weighing 135g each, fitting
into one hand. According to Mr. Bjorn Almqvist, Ericsson's manager in
charge of mobile communications in Vietnam, said this model was designed
expressly for Asian people by Singaporean experts.
Compared with Motorola StarTac, GF 788 is a little bigger and heavier,
but it is much cheaper, just VND8 million per phone, while a Motorola
StarTac sells for VND14 million.
GF 788 has 22 programs, corresponding to 22 functions. In addition, GF
788 supplies services such as announcing charges to be paid, fax and
data transmission, operating calls, receiving and transmitting messages,
and transferring calls to other phones.
Aside from GF 788, Ericsson has plans to market two other models in the
coming time.
Mr. Per Karlberg, director of Ericsson in Vietnam, said the company
presently holds 60% of the local mobile phone market, and 70% of the
hardware equipment provided for the mobile communication network in
Vietnam. At present, Ericsson sells 3,000-4,000 mobile phones monthly.
Government decreases motorbike import quota
(SGT-HCMC) The Government has decided to lower this year's import quota
of ready-to-operate motorbikes to 100,000 units from the previous
180,000 to protect local production.
Meanwhile, the quota for importing knockdown mo-torbikes will increase
to 250,000 units by the end of this year from the previous figure of
170,000, according to the decision. Statistics from the Mechanical
Engineering Department of the Government show that by early April, the
country had imported 15,000 ready-to-run motorbikes and 70,000
knockdowns for local assembly.
Motorbike plants chiefly assemble Honda's (Dream II), Suzuki's, Yamaha's
and several brands of Taiwanese VMEP. Most imported ready-to-operate
motorbikes are Citi's, Daelim's, Honda Spacy's, Honda Custom's,
Kawasaki's and Piaggio's.
Restrictions on imports of ready-to-run motorbikes can cause a surge in
prices.
Last month, the Ministry of Trade began to halt the granting of import
quotas for ready-to-run motorbikes and this has since resulted in a hike
in prices of several brands.
Between 470,000 to 500,000 motorbikes were sold in the country in 1995
and 1996 and due to this high demand, the Government decided to increase
the annual import quota to 350,000 units in September each year.
Reliable sources said this year's import quota will not go beyond
350,000 units and it is probable that the local market will face a
shortage of motorbikes by the end of the year.
Can Tho fair joins APECC
(SGT-HCMC) The Can Tho Exhibition and Fair Center (Can Tho EFC) became a
full member of the Asia-Pacific Exhibition and Convention Council
(APECC) during a recent APECC meeting in Washington, said Sai Gon Giai
Phong daily.
APECC is a non-governmental organization, chiefly focusing on trade
interests of its members by promoting cooperation relationships in
organizing exhibitions and conventions in Asia-Pacific Rim countries.
Can Tho EFC has attained sustainable growth over the past 10 years of
operations and it organizes two international periodical fairs and many
other events each year. Can Tho EFC has gained the confidence of
businesses in launching domestic and international exhibitions, fairs
and advertising campaigns.
MPI announces new list of import-substitutes
(SGT-HANOI) The Ministry of Planning and Investment (MPI) announced last
week a list of 14 commodities officially considered in 1997 as
import-substitute production.
Enterprises that produce commodities listed will enjoy a possible tax
break of 50% turnover tax for one to two years. Foreign-invested
enterprises that engage in import-substitute production will also enjoy
quotas in foreign currency exchange for their local product sales.
1. Industrial explosives. 2. Ammonia used for fertilizer production. 3.
PVC-coated canvases. 4. Starters for fluorescent lights. 5. Current
converters and electric converters. 6. Electric engines. 7. Industrial
pumps. 8. Concrete and asphalt mixing stations. 9. Pneumatic-tire rollers.
10. Television tubes. 11. Television beam converters. 12. Television FBT.
13. Construction white glass. 14. Cooking oil and shortening. (each
commodity has specific quality standards that must be certified by
Quality and Measurement Control authorities).
Compared to 1996, this year's list is eight items shorter and none of
the commodities listed as import substitutes in 1996 is on the new list.
Red anabas breeding JV with Israeli firm starts
(SGT-DONG THAP) The Vietnamese-Israeli joint venture company I SDOLAPIA,
specializing in breeding red anabas fish, on Sunday started operation in
the Mekong Delta province of Dong Thap.
The partners involved in this US$1-million joint venture company are the
Dong Thap-based Agricultural Irrigation Company and IG-Int'l Trading
(Pte) Ltd. of Israel. The local partner holds 21.8% of the shares.
I SDOLAPIA, which has a duration of 20 years, will rear Israeli breeder
and commercial red anabas on a total land area of 26 hectares and water
surface of one hectare in Can Binh, Cao Lanh Town of Dong Thap Province.
The joint venture company has made preparations for a test breeding of
110,000 red anabas.
Vietnam ship-owners' association set up
(SGT-HCMC) Representatives of 52 shipping businesses and owners of
sea-faring vessels have just agreed to set up the Ship-Owners'
Association in a congress convened in Hanoi.
This is the fourth association in the shipping industry to be
established in Vietnam, Vietnam News Agency reported. The other three
associations are Vietnam Forwarders' Association, the Association of
Shipping Agents and Brokerage, and the Vietnam Association of Seaports.
The Vietnam national fleet currently has 340 vessels with a combined
tonnage of over 920,000 deadweight tons (DWT), up to 80% of which are
operated by centrally-governed enterprises.
Currently, the national fleet assumes only 12% of the total
import-export cargoes, and 21% of the total throughput of cargoes at
Vietnamese seaports.
Under a master plan for developing the national fleet, Vietnam needs
US$2 billion between now and the year 2000 for acquiring and building
new vessels, and the figure for until the year 2010 is US$5 billion to
raise the total capacity of the fleet to 4.4 million DWTs.
VND110 billion for construction of Bac Lieu Trading Center
(SGT-BAC LIEU) Thai Duong Company of HCMC organized a ground-breaking
ceremony for the construction of Bac Lieu Trading Center on June 1.
According to this project, the trading center will cover an area of
40,200 sq.m, and will comprise a 2,000-sq.m central minimart, a
five-storied market, and five apartment blocks.
Thai Duong Company is the owner of this project. The trading center,
with an estimated cost of VND110 billion (equivalent to US$10 million),
will be completed in mid-1999.
Big market for vehicle tire production
Every year, about three million motor-cycle tires and 400,000 vehicle
tires are sold in Vietnam. Because of the bad condition of the roads in
Vietnam, only bias ply tires are used and almost all of the tires are
imported, chiefly from Japan, Taiwan, Korea and Indonesia. It is
estimated that another 400,000 car tires are smuggled into Vietnam every
year.
Several small local factories are making about 70,000 tires of inferior
quality compared to world standards, which are chiefly used for
low-speed agricultural vehicles.
The first foreign-invested tire manufacturing plant licensed earlier
this year is the joint venture between Singapore-based Asian Inoue
Rubber Pte. Ltd. with affiliate Inoue Rubber Plc. of Thailand and local
partner Sao Vang (Gold Star) Rubber Co. Asian Inoue will hold a 60%
stake in the US$32 million venture, with Inoue Rubber Plc. taking 10%,
and Sao Vang holding the remaining 30%. The plant will be located in the
northern Vinh Phu Province, about 25 kilometers from Hanoi, and will
produce rubber tires and inner tubes for bicycles and motorbikes. The
license for the joint venture is valid for 40 years.
Meanwhile, Daewoo and two other companies, one from Germany and the
other from the U.S., are planning the construction of a US$249 million
tire manufacturing plant in Vietnam in a 70/30-joint venture with the
Sao Vang Rubber Co.
The plant is expected to have an annual output of five million tires,
70% of which will be exported.
The Southern Rubber Company (Casumina) has submitted to the Ministry of
Planning and Investment an application to establish a JV to produce car
tires and tubes. The JV, with Yokohama (Japan) and Mitsubishi Trading
Co. as the foreign partners, will have an investment capital of US$55
million, a legal capital of US$19 million and a capacity of 500,000
units a year.
The motorbike tire and inner tube plant would be built in Hoc Mon near
Ho Chi Minh City while the auto tire and inner tube plant would be
located in Tuy Ha in Dong Nai province.
Expected to open in 1998, the Hoc Mon Plant will be able to produce 1.2
million units per year while the Tuy Ha Plant, expected to open in 1999,
will produce 500,000 units a year.
Currently, Vietnam's rubber processing industry is mostly concentrated
in the production of motorbike and bicycle tires and tubes. Casumina for
instance, had a turnover of VND130 billion in 1995 mainly from the sales
of its motorbike tires and bicycle and inner tubes which made up 80% of
the domestic market.
Demands of Bias Ply Automobile Tires and Tubes (LTB/TBB)
Unit: Set/Year 1996 1997 1998 1999 2000
Replace PCR 98,000 112,000 126,000 140,000 153,000
LTB 200,000 220,000 238,000 256,000 275,000
LTR 67,000 74,000 80,000 86,000 92,000
TBB 355,000 370,000 384,000 398,000 413,000
OE PCR 10,000 10,000 10,000 10,000 10,000
LTB 24,000 37,000 57,000 76,000 91,000
TBB 2,500 4,000 6,000 8,500 9,000
Total PCR 108,000 122,000 136,000 150,000 163,000
LTB 224,000 257,000 295,000 332,000 366,000
LTR 67,000 74,000 80,000 86,000 92,000
TBB 357,000 374,000 390,000 406,500 422,000
Nissan plant delayed
The construction of Nissan Auto Plant in Danang scheduled to start on
May 19 did not go ahead. Although the local partner, CKOTO in the joint
venture has done a lot of preparatory work, it could not clear the site
in time for the ground-breaking ceremony.
By Huynh Hoa
SGT-Danang
Nissan TMC Vietnam was the fourteenth auto assembly joint venture
licensed last year. This is a joint venture between three foreign
partners (Nissan Motors Corp., Marubeni Trading Corp. (Japan), and Tan
Chong Motor (Malaysia) and one local partner - the Auto Danang
Mechanical Factory (CKOTO) under the Ministry of Communications and
Transport.
The three foreign partners take a combined 75% stake while CKOTO takes
25%.
The US$110 million-automobile assembly plant will be built outside the
central Vietnamese city of Danang, an area where the Government has been
trying to encourage industrial development despite its isolation from
the main markets in the North and South of the country.
The initial stage of the project costing about US$50 million is
scheduled for completion by early 1998.
The difficulties that CKOTO faced included high compensation demands
from the people evicted from the plant site. CKOTO could not secure the
land lot to be used for relocation of these people, either.
Nissan TMC Vietnam faces a bigger difficulty in determining the duration
of the joint venture. In their application documents, the partners
planned for a 50-year project. On that basis, they determined that the
investment capital of the project is US$110 million and its legal
capital US$18 million.
The Vietnamese partner holds 25% of the share in the form of existing
facilities and the land use right of 16 hectares over 50 years.
But the license issued to Nissan TMC Vietnam says the duration of the
joint venture is just 40 years. The land rent, therefore, is
automatically reduced to US$0.680 million. To maintain a 25% stake in
the joint venture, the Vietnamese side has either to contribute more
cash or petition for another 10 years added to the life of the project.
The latest words from the Danang City authorities were that they are
trying to help the joint venture to obtain the site so that the
construction of Danang's first auto plant can start in June.
Mr. Tan Hoe Pin, TMC's general director, said that after reaching the
capacity of 3,000 vehicles per year in 2002, Nissan TMC Vietnam would
build several parts production factories so that it can reach a ratio of
35% parts produced locally.
HCMC traffic problems: causes and solutions
One thing that is often cited as a barrier to the development of
Vietnam's auto industry is its poor networks of transportation.
Bottlenecks in HCMC discourage people from buying cars, if they can
afford to that is. They are seen as a hurdle to every aspect of economic
development for the city. Mr. Vo Dung, deputy director of HCMC Service
of Communications and Public Works recently talked with Tan Duc from the
Saigon Times Daily about the issue.
SGT: What do you think are the main reasons behind the worsening of the
traffic situation in HCMC?
Mr. Vo Dung: I think the main reason is that the city's road networks
have not developed as fast as the economic growth and the increase of
the population. HCMC now has a population of 4.87 million. If you add
one million visitors and immigrants, we have a permanent population of
nearly six million. At the same time, because of the lack of funding and
land clearance, not many city streets have been widened in the past few
years. The density of urban streets is only five kilometers per one
square kilometer. It's lower for suburban streets - just 0.51km per
sq.km.
On the other hand, the system of public transportation is quite
underdeveloped, meeting only 5% of the transportation need of the
people. City people have given up the habit of going to work by bus and
have taken up the habit of using their own means of transportation. In
other developed countries, public transportation systems are able to
handle about 60-70% of the need. I think we should mention another
important reason: local people's lack of observance of traffic rules.
Street pavements and sidewalks are used as shopping places and parking
lots; all these make the traffic situation worse.
SGT: HCMC authorities decided last year to gradually increase the
efficiency of public transportation networks so that they can handle up
to 30% of the traffic volume. What do you think should be done to
achieve that?
Mr. Vo Dung: The objective of our transportation industry is to increase
the frequency and the quantity of bus systems so that they can handle
30% of the passenger volume by the year 2000. This, in its turn, will
help ease the traffic bottlenecks and contribute to the development of
the city. If we cannot do that, soon the traffic situation here will be
worse than in Bangkok. In our plan of restoring and developing the public
transport systems, we have to do several things at the same time:
re-drawing bus routes, finding funds to buy more buses, re-organizing
bus services so as to make them more attractive and convenient for the
people.
To carry out this plan, we need VND726.2 billion. The problem is how to
work out plans to mobilize investment from domestic and overseas sources
for the success of the plan.
SGT: What are the priorities in solving traffic problems in the years to come?
Mr. Vo Dung: First of all, we will continue the re-organization of
traffic flows at certain streets, bridges and junctions. We have been
working on small projects like upgrading and expanding several
junctions, open side streets for two-wheeled vehicles on Tran Hung Dao
and Nguyen Van Cu streets.
HCMC now has 1,200 intersections but only 151 of them have got traffic
lights. So we have to install more traffic lights and re-set the time
lapse for traffic light change at some junctions according to the real
traffic flows.
We have been doing that on a trial basis on several streets in Districts
1 and 3. Traffic control on Chu Y and Saigon Bridges should also be
improved.
Traffic controllers need more equipment, vehicles and walkie-talkies to
improve their ability to prevent traffic jams. We need to have more
traffic controllers at places where bottlenecks often occur. Sidewalks
at these places should be cleared of obstacles.
The city has banned mobile vendors on dozens of streets in HCMC. We have
been able to paint yellow zones for temporary car parks along major
streets. We are working on a plan to determine places where car-owners
can park on odd and even days.
Another thing that causes traffic jams and that should be controlled is
the groundwork carried out by power and telephone people. This should be
done under close supervision so as to limit traffic hindrance.
I think we should study the working hours and study hours of offices and
schools to avoid rush hours caused by different types of transport.
SGT: How about long-term planning?
Mr. Vo Dung: From now to the year 2000, several junctions will be
upgraded including Go Vap Intersection, Dai Liet Si Intersection, Phu
Nhuan Intersection, Bay Hien Intersection and Le Dai Hanh - Binh Thoi
Junction. Solutions should be found for bottlenecks at gateways to the
city like the stretch of Xo Viet Nghe Tinh Street at Binh Thanh
District.
A central traffic control center will be set up to control and manage
traffic flows. We will install traffic lights at 121 intersections.
Four traffic corridors will be built: Hung Vuong - Ba Thang Hai - Dien
Bien Phu; Nguyen Tat Thanh - Ton Duc Thang - Dinh Tien Hoang; Nguyen Van
Troi - Nam Ky Khoi Nghia - Pasteur; Cach Mang Thang Tam - Ham Nghi.
SGT: Lowering the population density in the downtown area is one of the
possible solutions to HCMC traffic problems. Do the city authorities
have any plans to encourage people to move to suburban areas?
Mr. Vo Dung: This is a big issue that involves more than one branch of
Government. In the master plan of developing HCMC, it is decided that
the population of HCMC inner areas should be limited to three million.
This means we have to relocate 712,000 people to suburban areas. In
order to do this, I think the city should give strong incentives like
tax holidays or tax reduction for businesses that agree to set up
outside the city proper; a subsidized housing policy for those who buy
houses in suburban districts, including price reduction or longer
payment terms. Land prices and land use transfer fees at these areas
should be lowered.
I think the Government should prepare good infrastructure facilities and
other public facilities in suburban areas to encourage more people to
relocate there.
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