Urban development along major ring roads fuels debate

National Assembly delegates are at odds over whether urban areas and trade centers should be developed along Hanoi’s Ring Road 4 and Ho Chi Minh City’s Ring Road 3.

The two ring roads are among significant traffic projects for Vietnam’s development, expanding urban space, reducing traffic pressure on the central business districts, and connecting localities to major cities.

Prof. Hoang Van Cuong, vice-rector of National Economics University, told the legislative body's ongoing sitting Friday that plans for urban areas and trade hubs alongside the two ring roads should be made in parallel with those for the ring roads, with investors selected through bidding.

"The ring roads would definitely give rise to the formation of urban, trade, and distribution centers. Land prices in nearby areas have risen several times in recent months. Without exploiting the land along the roads, resources would be wasted, with benefits going to individuals," he argued.

Cuong's comment was endorsed by Finance and Budget Committee standing member Le Thanh Van: "Public investment is not for free, it should be exploited to create revenue for the state."

Meanwhile, a delegate representing Ben Tre province raised concerns about resources for site clearance when financing for the two ring road projects has yet to be available.

"We need cleared sites before conducting an auction. The question is how to simultaneously leverage the land funds and generate investment capital for both ring roads," said Nguyen Truc Son, Vice Chairman of Ben Tre.

Lawyer Truong Trong Nghia opposed development of urban areas along the ring roads as it would slow down traffic. "By utilizing these land funds, expressways would become medium- or low-speed roads."

He said travel time on expressways from HCMC to Dalat has climbed from four to seven hours. "The main issue is improper exploitation of the land funds," he claimed.

Nghia argued that the emergence of urban areas led to construction of roads connecting to expressways, causing insecurity and noise pollution. Many countries establish expressway barriers to isolate them from residential areas.

"Elsewhere, a supermarket or residential area must be several hundred meters from the expressway exit lane. Only gas stations and rest stops are permitted alongside the expressways, but no residential zones."

Minister of Planning and Investment Nguyen Chi Dung stated that the construction of the two ring roads should not only establish a transport corridor, but also an economic corridor.

"Benefits should be divided into three parts, with one coming to the state coffers, one to investors, and the rest to people, ensuring harmonization of interests," Dung said.

The government has proposed Ring Road 4 in the Hanoi region to have a total length of 112.8 kilometers, running through the capital and provinces of Hung Yen and Bac Ninh.

The Ring Road 3 project in HCMC would be 76.34 kilometers long and connect the economic hub with Dong Nai, Binh Duong, and Long An.

The government plans to implement the duo from 2022 to 2027. It expects the legislative body to allow a series of special mechanisms and policies to conduct investments.