A report by property
consultants Savills Vietnam said that the rate of people that use public
transport in urban is the lowest in Southeast Asia.
According to the report, which assesses the impacts of transport
infrastructure on real estate markets, the rate of Hanoi and HCM City land
allocated for transport infrastructure development is lower than that for other
cities in the region.
Traffic jam on a street in Hanoi (Photo by
Car sales in Vietnam have experienced an annual rise of 35% over
the past five years and the rate is forecasted to be much higher by 2025 in
Hanoi and HCM City. This is attributed to the country's economic growth and
higher per capita income. Meanwhile, more people continue flocking to Hanoi and
HCM City to live, while the transport infrastructure development remains
limited, which has added more pressure to traffic problems in the two cities.
Savills also indicated that parking fees in many
central areas in Hanoi and HCM City Mức surpass regional cities like Bangkok,
Manila or Jakarta. The overly-high costs are because of the limited parking
spaces available in Hanoi and HCM City in contrast to the development of
The rate of people who use means of public
transport in Hanoi and HCM City is the lowest in the region as these two cities
are now only in the first stages developing their urban metro rail links, a
similar situation to which Bangkok went through in the 1990s.
Savills also suggested that Vietnam should learn
from Bangkok’s experiences in dealing with traffic problems, particularly metro
development and air pollution.
The company added that public transport
development, especially urban railway systems, would have positive impacts on
the real estate market in cities.