Clear rules sought to give businesses confidence to invest

Ho Chi Minh City’s business community is asking for clearer rules before the city implements its Urban Development Law. At a September 8 meeting chaired by city People’s Committee Chairman Nguyễn Văn Được, companies proposed policies covering underground space, rental offices, investment incentives for parks and marinas, social housing, metro-linked urban development and the use of investment funds as seed capital.

Lê Như Thạch, vice chairman of the Ho Chi Minh City Business Association and chairman of Bcons Group, said underground development should go beyond parking. He proposed using subterranean areas for shopping centers, services and nightlife venues that could attract tourists. With appropriate incentives, he said, underground space could also connect transport networks and help form underground urban areas.

“When developing underground space beneath a park, the investor should also be assigned management of the park,” Thạch said. He argued that this would ensure tighter management while giving the park more vitality.

Businesses also raised concerns about mineral permits used for public investment projects. Phan Tấn Đạt, chairman of the city’s Mineral Industry Association, said permits for Group 3 minerals are currently limited to three years. He proposed removing the time limit and regulating reserves and annual production instead, because public projects can take longer and administrative procedures alone can take a year. He also called for separate treatment of restoration rules for Group 3 and Group 4 minerals, noting that a quarried Group 3 site may become a water-filled area that cannot be returned to its original condition.

Justice Department Director Nguyễn Thị Hồng Hạnh said businesses should contribute from the beginning because they will help implement the law later. Chairman Nguyễn Văn Được instructed agencies to incorporate the proposals, complete the draft regulations and report them to the municipal Party Standing Committee before submitting them to the People’s Council on September 22. He said central areas with limited land could combine underground parking with commercial and service functions, while airports and outlying areas could use surface parking. Agencies should also set clear rules for connecting existing underground facilities with future projects.

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When developing underground space beneath a park, the investor should also be assigned management of the park.