Accordingly, investors will benefit from subsidies on land rental, bank loans and incentives such as allowing investors to use part of the parking surface for other commercial purposes.
Hanoi’s budget will exempt land rent fee for the first 10 years (excluding the commercial area) of static traffic projects, according to Nguyen Xuan Thanh, Deputy Director of the Hanoi Department of Transport. Meanwhile, projects invested with private funding will be considered for land rent subsidies beyond the first decade.
Hanoi authority has approved incentive policies to attract investment in parking lots which are scarce in the capital city.
Moreover, Thanh said firms investing in static transport infrastructure will also get loans from Hanoi’s investment and development fund with preferential interest rates. Investments with loans from banks will benefit from interest subsidies of 50% in the first 5 years, he added.
Specifically, underground parking projects invested with private funding are allowed to use up to 30% of the floor space for other commercial purposes. Other projects including bus stations, logistics centers, interchanges, involving private capital are allowed to use up to 20% of the floor space for other businesses.
Meanwhile, the car parking rates, bus service and car keeping prices will need approval from the city People’s Committee on the basis of area, scale and level of technology applied on each project with a view to ensure reasonable time for capital return.
