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BUSINESS IN BRIEF 17/4
MBV posts sales
growth of 43%, doubles warranty
The manufacturer of luxury cars The company has just announced a sustained program to improve customer care services by introducing a two-year warranty for spare parts, with immediate effect this month. This program, together with the automaker’s plan to launch numerous new vehicles this year, is meant to assert its leading position in the local luxury car segment. With the warranty extension, The German-invested automaker announced the two-year warranty for parts purchased and installed at its 10 authorized service dealers throughout With the introduction of the two-year parts warranty, Mercedes-Benz sets the benchmark in service and underlines its leadership in the luxury segment in Vietnam, with a market share of more than 50% and has been rated as the leader in the after-sales service in the luxury segment in 2012 by the leading consumer watch group, J.D. Power. With such efforts, the number of sedans and sport-utility vehicles sold by the company in the first quarter this year rose 43% year-on-year, reaching 328 units, more than double the average growth of 21% as reported by VAMA. Mercedes-Benz globally delivered nearly 325,000 units to customers in March, posting the best sales month in the company’s history. The two-year warranty campaign for spare parts and a significant outperformance of the market are two of the five commitments of Mercedes-Benz this year. The other commitments are introducing a range of new and exciting cars to To celebrate the success of Mercedes-Benz in the first quarter and the Mercedes AMG Petronas F1 team, the automaker is inviting Vietnamese customers to support Lewis and Nico live in Rice market awaits news on Filipino buyers The local rice market was even flatter last week than a slow March after buying activities for the one-million-ton rice stockpiling program wrapped up, prompting rice exporters to turn to information on rice exports to the Philippines. According to experts from the farm produce market forecast firm Agromonitor, local companies are looking forward to information on signing government-to-government contracts with the There were rumors last week that VFA has just sent an announcement to corporate members, saying it will temporarily stop attesting rice export contracts clinched with the The Philippines reinstated the governmental-level rice buying program after its agricultural statistics department reported total rice volume in stock posted at its lowest level since 2008 as of March 1, 2013, at 1.94 million tons, shrinking 22% against early 2013 and 3.7% over the same period of 2012. Stockpiled rice volume of the The offering export price of Vietnamese rice saw a decline last week while that of Many Chinese traders have offered to buy Vietnamese rice but their payment methods make local sellers hesitant to sign export contracts, rice exporters in the Mekong Delta The country as of March 31 had exported 1.45 million tons of rice, up 35% in volume over the same period last year. Rice exports in the period brought home some US$641.35 million in FOB value, a surge of 22.7%, while the average export price only reached about US$442 a ton, a reduction of US$44.52. CapitaLand tops out second project in city CapitaLand Limited together with its partner Khang Dien House Trading and Investment Company on Wednesday held a topping out ceremony for PARCSpring, its second apartment project in HCMC. According to the Singaporean investor, the project’s structure consisting of three blocks of 12-18 floors on Yip Hoong Mun, Deputy CEO of CapitaLand ( CapitaLand does not take out bank loans but uses its own capital to develop the PARCSpring project, which requires total investment of around US$71 million. CapitaLand holds a 95% stake in the project and Khang Dien the balance. The price of PARCSpring apartments starts from VND1.5 billion per unit. To attract customers, the investor has offered some promotions such as a furniture package worth VND200 million as well as flexible payment methods and even no bank interests for customers taking out loans at Standard Chartered, VietinBank, HongLeong Bank and Military Bank. According to CapitaLand, although the property market is facing many challenges, CapitaLand is currently involved in six housing projects in Property trading to be put under tighter control Property enterprises may be subject to heavy fines or even have their licenses withdrawn if failing to comply with forthcoming regulations on property trading activities. The requirements are included in the draft decree on administrative sanctions prepared by the Ministry of Construction. According to the draft decree, enterprises will be fined VND100-120 million if they do not sell their products via trading floors, fail to perform procedures orderly and provide inaccurate information about products for buyers. In addition to the fine, enterprises are required to correct false information, or they may lose their license for six months to two years if they violate the regulations a second time. Similarly, trading floors will be fined heavily if they sell products that are not qualified, such as apartments in projects with unfinished platform construction, or employing brokers who do not have trade certificates. Located in the heart of the capital city, the center has spent over US$20 million in the facelift, featuring 112 luxury brand names in high-end fashion, watches and perfume such as Christian Dior, Cartier, Burberry and Louis Vuitton. Up to 95% of retail space in this project is occupied. The renovation project was initiated by the State Capital Investment Corporation and Hanoi Trade Corporation, which hold 90% and 10% stake in the shopping center respectively. Imex Pan Pacific Group carried out the project. The center has an upgraded interior while its exterior architecture remains unchanged. The center restarted normal operation on January 30 before the official inauguration last week. HSBC HSBC Vietnam Bank in a statement released on Wednesday announced its pre-tax profit of nearly VND1.9 trillion in the fiscal year 2012, making it the first time this lender has unveiled earnings in the local market. HSBC Vietnam is one of five 100% foreign-owned banks in the country that won operation licenses in 2008. The four remaining banks have never announced business results in the local market. In 2012, the bank earned total revenues of around VND4 trillion while its total expenditure was nearly VND1.8 trillion. As of the end of last year, its credit risk provision funds accounted for around 1.1% of the total outstanding loan. HSBC Vietnam general director Sumit Dutta said that the bank last year had a capital adequacy ratio (CAR) of 12% compared to the minimum level of 9% as required by the central bank. Last year, its deposits added by VND5.3 trillion to VND44.6 trillion while credits rose VND9.2 trillion to VND32 trillion. HCMC should carefully review the program for the chip industry development, especially the aspects of consumption markets and competitiveness, said Deputy Prime Minister Nguyen Thien Nhan. The city should clarify whether chips would be made for export or just to reduce dependence on imports, said Deputy Minister of Planning and Investment Nguyen The Phuong. Sharing this view, Nhan questioned: “Does “Can a poor country with per capita income of US$1,300 per year compete with giants with long experience in this area?” he said at a meeting with HCMC Vice Chairman Le Manh Ha on Tuesday. Still, he recognized the importance of this industry to the economy and national security. Vice Chairman Ha hoped the HCMC chip industry development program would be a breakthrough in supporting industries for The HCMC government will stop providing investment capital for 86 projects having less than 30% of capital disbursed as of the end of last year. The city’s investment list for 2012 shows that up to 86 projects financed by the State budget in the city had less than 30% of their capital disbursed. The projects facing the axe include the Phu Dinh Port that has been arranged VND4 billion by the city’s authorities ten years ago, but only VND160 million has been spent on development, a disbursement ratio of a mere 4%. Other projects under tenterhooks include a project to upgrade infrastructure for poverty-stricken residential areas near the Another foot-dragging scheme is a VND20-billion project to improve Thu Duc District’s Go Dua intersection to tackle the chronic congestion there, but the work’s disbursement rate has only reached 0.9%, equivalent to a mere VND185 million. Besides, other necessary projects in the city like kindergartens, high schools, hospitals, transformer stations or site-clearance compensation for urban traffic schemes also suffer slow deployment. In an announcement sent to related agencies last Friday, the city’s government also criticized 53 agencies, district authorities and developers for slow-moving projects within their jurisdiction. Moreover, units and project owners of schemes having low disbursement ratio will face stricter penalties from the local authorities. Unlike others, more beer consumed in crisis Beer consumption sharply rose in contrast with the decline in macroeconomic indicators in 2012. About three billion liters of beer was sold last year, versus 2.6 billion liters in 2011, said Hoang Viet Ha, operation director of Bao Viet Holdings, at a press briefing held by Bao Viet. All economic indicators decreased year-on-year in 2012. GDP growth fell from 5.89% to 5.03%, while export saw its growth dwindle from 33.3% to 18.3%. Similarly, import growth slid from 24.7% to 7.1%, credit growth from 10.9% to 8.9%, total retail sales from 24% to 16% and State budget revenue from 13% to minus 10%. The growth of the insurance market also dropped 18% in 2011 to 12% in 2012. Bad debt ratio surged from 3-4% to 8.9%, pointing to a decline in debt quality Such unwelcome changes are clearly demonstrated in a report released by Vietnam Report Co. this Tuesday at a ceremony for announcement of the list of 500 fastest-growing companies in Vietnam (Fast500) in 2012. According to the report, finance and real estate firms last year suffered drastic growth slowdown unlike hot growth in the previous period. However, chemicals, mechanical engineering and especially food-beverage companies stand out, achieving the highest return-on-assets (ROA) ratios. The chemicals industry had the highest ROA of 12.44%, followed by food-beverage with 12.36%. On the other hand, 3.62% and 5.2% were the average ROA ratios of finance-banking and property respectively, meaning enterprises in these two seemingly profitable sectors earned less than one dong with every ten dongs spent. In the period 2007-2010, finance-banking had a compound annual growth rate (CAGR) of over 70%, while construction, real estate and building materials enjoyed a rate of more than 53%. However, in 2011, CAGR of the property sector dropped to 38%, while that of finance-banking stood at 47%. Cement firms move with quick feet Cement firms have their thinking caps on to sustain current market oversupply. In 2013’s first quarter, Vicem Hoang Thach Cement, based in Hai Duong province, sold nearly 700,000 tonnes of cement and around one million tonnes of clinker, a 38 per cent jump against the same period last year. Despite these positive sales, the company fears consumption could come to a standstill in the following months unless comprehensive measures were taken. In 2012, the company had dropped its consumption, revenue and profit targets. Accordingly, it raked in revenue of VND4.005 trillion ($190 million) against proposed VND5,002 trillion ($238 million) and profits of VND250 billion ($12 million) against a planned VND427 billion ($20.3 million). To abate unsold stock, from 2012 the company closely controlled input material sources to be certain it is close to production demands, according to company’s deputy general director Nguyen Thi Tao. Its concern came as cement sector production now reaches 68 million tonnes per year whereas consumption this year (including export) is forecast at around 54 million tonnes only, similar to that in 2012. Amid hardships in consumption, most cement firms set out modest revenue and profit targets. Vicem Hoang Thach set revenue at VND4.374 trillion ($208 million), a bit more than 2012’s actual level and profit at VND222 billion ($10.6 million) this year. In this context, Quan Trieu Cement based in Thai Nguyen province, contemplated running at 90 per cent of designed capacity only, generating 700,000 tonnes of cement with an estimated revenue of VND570 billion ($27 million). However, its sales in the first quarter were 135,000 tonnes only, leaving the task of achieving 2013 consumption target extremely hard. “Our company will make strides to increase sales in some pivotal areas like In other case Vicem Hoang Mai, based in north-central Nghe An province, set its profit target in 2013 at around VND90 billion ($4.3 million) against VND113 billion ($5.3 million) last year. The company had incurred losses of approximately VND10 billion ($476,000) in the first quarter of 2013. Vicem Hoang Mai has implemented wide-ranging cost-saving measures such as lowering power and calorie usage in clinker production to avoid hiking prices, an important factor to help it reach 2013 business targets, said company director Nguyen Truong Giang. According to Ministry of Construction figures, by the end of March 2013 cement and clinker inventory had exceeded 3.1 million tonnes, of this unsold clinker was 2.3 million tonnes and that of cement was 850,000 tonnes. Cement consumption was 11 million tonnes in the first quarter, 95 per cent compared to in 2012. Garment exports hit $3.8 billion in first quarter Vietnam’s garment exports fetched $1.3 billion in March, raising the total export turnover of this product in the first three months of 2013 to $3.8 billion. According to the Vietnam National Textile and Garment Group (Vinatex), Vietnamese garments enjoyed a growth of over 10pct in the Meanwhile, the EU market showed signs of increasing demand for textile products from At present, local textile and garment businesses are focusing on producing products meeting high technical and quality requirements, thus raising the export turnover. Forum smoothes the way for exports The Vietnam Export Promotion Forum 2013 took place at Giang Vo Trade Fair and Exhibition Centre in Themed “Promoting sustainable export development”, the forum focused on exchanging issues of common concern for Vietnamese exporters, including market updates, impacts of new policies on exports, and experience sharing in trade and export promotion, in order to help enterprises boost export efficiency. Opening the event, Do Thang Hai, Director General of the Trade Promotion Agency (VIETRADE) under the Ministry of Industry and Trade (MoIT) - the organiser - said that in 2012, despite economic difficulties, Vietnam’s foreign trade gained remarkable achievements, with total export turnover reaching its highest ever level of over 114.5 billion USD, an increase of 18.2 percent against 2011. The result helped the country reach a trade surplus of 780 million USD for the first time in 20 years, he noted. Export growth was seen in almost all key export products, and in both domestic and foreign direct investment (FDI) business sectors. Export turnovers to all markets increased positively, with 16.9 percent in the At the forum, local and international experts analysed export opportunities brought by free trade agreements (FTA), especially that between According to Tran Thanh Hai, deputy head of the MoIT’s Import-Export Department, FTAs play an import role in boosting Vietnamese exports as they help increase products’ competitiveness in big markets. However, experts said Vietnamese businesses failed to capitalise on the opening of markets that FTAs bring about, saying many neither understand nor pay due attention to tariff preferences, thus reducing their competitiveness overseas. The MoIT is speeding up negotiation of FTAs, considering it a key solution to increasing exports from now until 2020. In his presentation, Dao Ngoc Chuong, Deputy Director of the MoIT’s Asia-Pacific Department provided an overview on trade and expectation of Also at the forum, Dao Thu Trang, an expert from Currently, Most recently, the SBV has fixed ceiling short-term loan rates at 11 percent per year for businesses operating in five prioritised fields and at 12-15 percent for those in other fields. In addition, interest rates for individuals buying houses or cars hover around 15 percent. In the meantime, loan rates are much lower from foreign commercial banks, for instance, around 5-6.5 percent at the People’s Bank of China, 7.3-8 percent at Bangkok Bank and 8.25 percent at HSBC and Deutsche Bank AG in The Bank of Indonesia (BI) in particular has managed well to fix interest rates at 5.75 percent but other banks in The crux of the matter is that Since 2008, Economist Bui KienThanh says the discount rate is 0.1-0.25 percent in the Thanh cites some reasons such as overheated growth, sharp increases in credit funding and bank loan rates. Another reason is that commercial banks operate inefficiently and simply apply high interest rates to make a quick profit. Consequently, domestic businesses have become so cash-strapped and weak to compete with others in the region which operate within the WTO platform. High interest rates often make production costs higher, and domestic products less competitive than imported ones. Thanh confirms that no businesses in the world can manage well with interest rates as high as in Former Governor of the State Bank of He insists that it is imperative to lower interest rates to help businesses access more capital so that they can stand firm on home turf. The Government has already requested the State Bank of Garment business potential not yet fully tapped Garment businesses are not yet taking full advantage of the country’s political stability, incentive policies, low labour costs and long working hours that allow them to fill their orders quickly. They also need to clarify the reasons foreign partners chose to order their goods from The remarks were made by experts at a recent workshop in Therefore, Some experts said the country has proven its ability to ship and deliver a wide range of products in a timely manner. The validity of a future Vietnam-EU Free Trade Agreement (FTA) is another advantage for the garment sector to boost exports to the market. Dhyana Van Der Pols, CBI senior expert, advised Vietnamese businesses to focus on a specific market and work out appropriate export strategies for their goods. Hanoi resolves to improve PCI Hanoi is determined to improve its provincial competitiveness index (PCI) this year, in the wake of its sharp drop in 2012. The capital dropped 15 places to number 51 in the 2012 CPI ranking due to complaints about its cumbersome administrative procedures, poor management of the real estate market, lack of adequate support for the business community and labourers, and weak FDI attraction. Chairman of the municipal People’s Committee Nguyen The Thao, has asked relevant agencies to clarify the causes behind these problems and work out effective ways to address them in 2013. He said the city will devise strict and drastic measures to restore its economic growth, tackle business challenges and boost production and trade. The seven areas of focus include supporting the market; dealing with goods inventories; facilitating access to capital to boost production and trade; effectively implementing fiscal policies; resolving difficulties in the real estate market; improving the investment, production and trade environment; enhancing mass media information campaigns and establishing a steering committee to monitor measures that address these issues. The city has organised two dialogues between the authorities, banks and businesses in the city to listen to investors’ needs and demands. Since the beginning of this year, the capital has seen positive economic signs. In the first quarter, the gross regional domestic product (GRDP) rose 7.5 percent over the same period last year, with the service and agricultural sectors both reporting improvements. However, industry and construction plunged and the real estate market still shows no signs of recovery, while a number of construction projects have been delayed or rescheduled. US$20 mln factory granted licence in Dong Nai The southern The US$20 million plant will be built at the Long Duc Industrial Zone, in Long Thanh District. The plant is the 11th project in Dong Nai for the first quarter of 2013 with total investment in the province totaling US$155.5 million. The province’s industrial zones have attracted US$288 million of foreign direct investment and US$59 million of domestic investment in this period. Vinacomin exports 4 million tonnes of coal in Q1 The Vietnam National Coal and Internal Industries Group (Vinacomin) sold 10.7 million tonnes of coal in the first quarter of this year, 4 million tonnes of which were exported. The group earned VND24,046 billion in the first quarter, up 6 percent over the same period last year. Of that figure, VND14,250 billion from coal earnings (up 8 percent), VND825 billion from minerals (up 62 percent) VND2,309 billion from electricity (up 52 percent), and VND6,661 billion from other fields. The average monthly income for its workers was VND7.5 million. However, the group only fulfilled 23.8 percent of this year's targeted revenues due to low coal prices. Vinacomin’s sales will continue to face more challenges because of the negative global and domestic economic situation. It expects to sell around 10.5-11 million tonnes of coal in the second quarter, including 3 - 3.2 million tonnes for exports.The group is still planning to meet more than half of its basic targets set for the first half of 2013. Boosting Vietnamese exports to Hong Kong Vietnamese businesses need to the make the best of Economic experts highlighted Director of the Export Assistance Centre under the Vietnam Trade Promotion Agency, Le Xuan Duong, said despite its population of more than seven million, the Hong Kong Administrative Region recorded a very high per capita income of US$36,000 in 2012. Agriculture makes no contribution to the region’s GDP while services, including transport, telecom, banking, finance, healthcare and education, constitute nearly 93 percent. Its main advantages are modern transport infrastructure, low tax rates, minimal government interference in business, and well developed services for retail and wholesale trade. The region also has the busiest airport in the world for transporting international cargo and the third busiest container port. As an important financial and trade centre for Asia and the world, Hong Kong is considered an ideal destination for major Asia Pacific companies as well as a trade and investment gateway linking China with other countries. The region ranks 11th in global trade volume with an import turnover of US$504 billion in 2012, up 3.9 percent, and US$443 billion in export earnings, up 2.9 percent over the previous year. The double tax avoidance agreement between In 2012, Key Vietnamese exports include agricultural produce, office and telecommunication equipment, computers, electronic and semi-conductor components. Vietnamese businesses should seize opportunities and take advantage of low-cost product promotion packages to achieve greater penetration in other markets through The Hong Kong Trade Development Council (HKTDC) will coordinate with Vietnamese businesses can also approach international customers and seek potential clients through HKTDC comprehensive marketing solutions such as advertising products online at hktdc.com and in HKTDC magazines, Duong said. First rubber expo kicks off in The country’s first international rubber and tyre industry exhibition opened on April 12 at the Saigon Exhibition and Convention Centre in Conferences and seminars will be held during the three-day exhibition to discuss the future development of the local natural rubber industry. Co-organised by the Minh Vi Exhibition and Advertisement Services Co., Ltd and the China National Chemical Information Centre, Rubber and Tyre Vietnam 2013 will provide a forum for domestic and foreign companies to compare notes and explore business opportunities . Speaking at the opening ceremony, Bui Thi Thanh An, deputy director of the Vietnam Trade Promotion Agency in Since 2006, the industry had recorded annual export revenue of more than 1 billion USD. Build-transfer projects in Hanoi remain stagnant A number of build-transfer (BT) projects in Hanoi are incurring lots of problems and need re-planning due to capital shortage or site clearance issues. The municipal Department of Planning and Investment said the capital has caused delays to 63 BT projects. Of the total, 12 projects are underway, 20 have selected investors, 25 got approval from the prime minister but yet to find investors and six have good chances for their proposals. To date, only five projects have been completed, of which four have been put in operation since October 2010, including the Hanoi Museum, Tri Thuc or Intelligentsia Palace, Bac Ha Dong Road and extended Le Van Luong Road. Yen So Wastewater Treatment Plant was completed last year and should be handed over to local authorities soon. Of those five completed projects, only the Among seven projects that have signed construction contracts, five have started building. Due to slow site clearance, construction of several projects has been stagnant including Bac-Nam road route in Ha Tay, Le Duc Tho – Xuan Phuong road route, and the Do Xa – Quan Son road. The department said total investment of some of such projects would have to be adjusted or some provisions of the contracts may have to be changed to accelerate the construction. The department attributed the stagnant construction to the impact of the economic downturn, hindering capital mobilisation. The slump in the real estate market has also affected the construction of new urban areas and apartment buildings, impeding the implementation of such BT infrastructure projects. Urban and satellite planning have yet to be approved, which hindered the scope of several BT projects, the department noted. The lack of cooperation between contract management agencies and investors as well as slow site clearance has also affected the construction process of these projects. The department proposed that the municipal government to require the contract management agencies of five completed projects to speed up the completion of a balance sheet. Official: Vice Chairman of the HCM City People’s Committee Le Minh Tri made the suggestion at a meeting on a project to restore and develop the city’s traditional handicraft villages in the 2013-2015 period, with a vision to 2020. The local Department of Agriculture and Rural Development proposed restoring, preserving and developing 13 traditional handicraft villages between 2013 and 2015. During the 2016-2020 period, the city will boost trade promotion programmes to seek outlets for these village’s products. Le Hong Hoanh, Deputy Director of the Department of Agriculture and Rural Development said these villages have a long development process, including the Thai My weaving village and Phu Hoa Dong girdle cake village in Cu Chi District which has been around for more than 80 years. However, the vice chairman said the focus should be put on suburban handicraft villages, not those in inner-city areas. He instructed the local Department of Agriculture and Rural Development to define those villages which should be preserved to best promote economic development and which should be focused on for their cultural value. Vietnam’s garment export growth rate highest in the world On Apr 13, the conference "Competitiveness of Vietnam textile industry: perspective in the eyes of international experts" was jointly held in HCMC by the Vietnam National Textile and Garment Group (Vinatex) and the Centre for the Promotion of Imports from developing countries (CBI) under the Netherlands Ministry of Foreign Affairs. Dhyana Van Der Pols, Consultant CBI of the Netherlands Ministry of Foreign Affairs said, according to the latest research is published, the growth rate of garment exports in the period 2005-2011 in Vietnam reached the highest in the world with 32 pct While the similar speed of China is 15 pct, India 10 pct, Turkey, Malaysia, Thailand are about 7 pct. Dhyana Van Der Pols, CBI senior expert, advised Vietnamese businesses to focus on a specific market and work out appropriate export strategies for their goods In addition to the advantages of political stability, productivity, labor costs in Some experts said Thus, The validity of a future Vietnam-EU Free Trade Agreement (FTA) is another advantage for the garment sector to boost exports to the market. Despite the real estate slump, land and housing around Real estate experts said that land in the area is still the most expensive in Nguyen Hai Minh, an Overseas Vietnamese who lives in “I was surprised to get to know that land prices around the lake could reach hundreds of millions of VND per square metre. Some good land lots are offered at as high as VND600 million (USD28,625) per square metre,” Minh said. He estimated that it would cost him from VND80-100 billion (USD3.81 million-4.77 million) to buy an expected land lot for the plan. Real estate broker Thanh is offering to sell a 165-square-metre villa near the Sheraton Hotel at VND350 million (USD15,698) per square metre. According to Thanh, larger houses that have a garage often have higher prices. Buyers are mainly Overseas Vietnamese or businesspeople while lessees are often foreigners who are working in the capital. Land prices in the area average at from VND300-500 million (USD14,312-USD23,854) per square metre. Land in Quang An Ward is the most expensive, at from VND500-600 million (USD23,854-USD28,625) per square metre. Prices of apartments in the area reach VND85 million (USD4,055) per square metre. Despite high prices, many better-off people are still interested in buying and trading in land there due to good geomancy and environment. Tran Quyet Thang, from a real estate firm, said several investors have plans to build houses to lease to foreigners. Nguyen Hai Minh has the same plan. He said that one of his friends is leasing a house in the area to a foreign agency at VND80 million (USD3,816) per month. Reports by real estate consultancy companies showed that BRT routes should be prioritized over metro systems: experts It is better to build up bus rapid transit (BRT) routes first in HCMC to identify which route has the most passengers to develop metro routes citywide accordingly, experts said at a seminar organized by the Ministry of Construction and the World Bank on Thursday. With low investment capital but large transport capacity and environmentally friendly feature, BRT is believed to help reduce traffic overload in Comparing expenses and construction complications between the two transport modes, Vu Thi Vinh of the Vietnam Urban Association said one kilometer of metro costs around US$100 million, or 20 times higher than BRT’s investment. Meanwhile, she said, construction of metro takes much longer time than that of BRT. In HCMC, development of the Metro Line No.1 and 2 is many years behind schedule, so BRT will be a suitable solution for the city until the two metro lines and others get started, she said. With the metro system in place, BRT will become the transit mean between metro and other transport facilities. Echoing Vinh’s view, Nguyen Trong Hoa, director of the HCMC Institute for Development Studies, noted the city should develop BRT first, and those BRT routes with sizeable numbers of passengers will be replaced by the metro system later. Some cities in recent times have rushed to study developing public transport system with costly investments like metro instead of adopting an appropriate road map, he stressed. Hoa warned that urban areas like Danang and In related development, vice chairman Nguyen Huu Tin and representatives of the World Bank (WB) at a meeting on the same day agreed on some contents relating to the Mien Tay Coach Station-Thu Thiem-Cat Lai BRT route. At the meeting, vice chairman Tin informed Mien Tay Coach Station would be relocated to a new location in 2015-2016, so the route direction earlier prepared must be revised. Tin also proposed Ajay Kumar, lead transport economist of WB, consider opening one more auxiliary route along the Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR |
Thứ Ba, 16 tháng 4, 2013
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