News Room - Business/Economics

Posted on 30 Jun 2008

$10.8b plan to boost infrastructure (Vietnam)

The Ministry of Construction has asked the Government for more than VND174 trillion (US$10.8 billion) to upgrade the infrastructure in 95 urban areas.

Minister of Construction Nguyen Hong Quan said increasing urbanisation and migration from the countryside to the cities was overstretching existing public services,leading to reduced living standards and pollution of the environment.

Under the ministry’s proposals, Quan said infrastructure and facilities in low income areas (LIA)‘s would be upgraded by 2020.

Meanwhile, the United Nations Population Fund predicts Viet Nam’s population will reach 104 million by 2020, with 40 per cent living in urban areas. Quan said UN figures supported Viet Nam’s prediction that urban populations would continue to grow over the next 15-20 years.

Under the national urban upgrading project (NUUP), priority will be given to upgrading facilities in Viet Tri, Dien Bien Phu, Ninh Binh, Hai Duong, Ca Mau, Kon Tum, Tra Vinh and Cao Bang, estimated to cost VND11.6 trillion ($725 million).

A recent survey of households in urban areas throughout the country, found that 882,000 did not have running water.

Furthermore, of 22 million urban households surveyed, more than 1 million had no way of hygienically disposing of solid waste, while about 1.8 million had toilets that were considered unhygienic.

The survey also found that 44,000 households were living in unsafe conditions and that 1.8 million houses were either temporary, unfit for human habitation or in desperate need of repair.

The survey also found that about 7,000km of urban roadway needed upgrading.

Although not classified as a priority area for renovation by the ministry, Ha Noi also has problems with its main water supply and drainage, according to chairman of the Water and Drainage Association Nguyen Ton.

Although the city tops other areas of the country in terms of access to fresh water (79 per cent of households), Ton said too many residents were reliant on wells, lakes and rivers for water, which were often polluted.

The report said 50 per cent of rural residents and 70 per cent of city dwellers had access to clean water.

Hoang Van Bay, deputy director of the Water Management Department, under the Ministry of Natural Resources and Environment, said many of the capital’s lakes and rivers were seriously polluted. He said Ha Noi released around 600,000 cu m of untreated waste into the environment, while HCM City released twice that amount.

Under the NUUP, 100 per cent of urban households will be connected to the mains and have hygienic toilets.

Houses that are considered unsafe will be knocked down, while loans will be offered to residents living in dilapidated housing to carry out repairs.

Capital for the project would be raised domestically and from abroad, the ministry said.

New urban model

In an unrelated development, Phu My Hung in HCM City’ s District 7 has been recognised by the ministry as the country’s first new urban model.

The recognition has been conferred based on its social infrastructure that can sustain long-term development, architectural works that are in harmony with natural settings, and uniform technical infrastructure, including standard roads, parking lots, hospitals, schools, and shopping centres.

According to the ministry, the natural environment and the allocation of 9sq.m of green space per capita are also among the criteria.

The 484.2ha Phu My Hung new urban area has a population of 100,000 people.

It borders Thay Tieu canal to the north, Dia and Roi rivers to the south, Ca Cam and Doi rivers to the east and Ong Kich canal to the west.