Kinhtedothi - For public transport to truly develop, the 2024 Capital Law stipulates Article 31 "Urban development in the direction of public transport".
Priority given to the development of urban railway systems
In the Capital Law 2024, urban development oriented towards public transport (TOD model) is stipulated in Article 31.
Resolution No. 15-NQ/TW sets out the direction: "Unblocking, mobilizing and effectively using resources from land and resources associated with the development of infrastructure systems and socio-economic development planning, developing smart and modern Hanoi urban areas, gradually creating and perfecting the TOD model".
The Capital Law 2024 stipulates: “TOD model is a solution for urban planning, renovation, embellishment and development, taking urban railway traffic connection points or traffic connection points using other mass public passenger transport methods as residential, commercial service and office concentration points within walking distance to public transport to improve the efficiency of land use, public works, community health, reduce personal motor vehicles, reduce emissions causing environmental pollution, combined with preserving and promoting cultural values”.
TOD area is an area including stations, urban railway depots, pick-up and drop-off points of other types of mass public passenger transport and surrounding areas determined according to zoning plans or related detailed plans to build traffic routes, urban railways combined with urban renovation, beautification, and urban development investment (Clause 1, Article 31).
The implementation of TOD projects aims at land use planning and land reserve to effectively mobilize the value of land lots in the vicinity of urban railway stations, creating more resources for investment in urban railway development, creating synchronization in urban development and transportation.
Forming urban areas in TOD areas with mixed functions including: residential, commercial service business, office.
This model has been successfully and effectively implemented by many developed countries and some countries in the region such as Singapore, China, Hong Kong (China).
The Law stipulates a number of specific mechanisms and policies allowing the City to implement in the areas of planning, investment and finance related to the development of the TOD model: Specific regulations on the establishment, decision and management of urban railway system planning, planning of traffic routes using other mass public passenger transport methods and TOD areas (Clause 2, Article 31):
The City People's Committee is allowed to adjust the land use functions for land plots in the TOD area to exploit land funds and added value from land (point a, clause 2, Article 31).
The City People's Committee decides to apply planning criteria for architecture, technical infrastructure, social infrastructure, space and land use requirements different from those specified in national technical regulations on construction planning (Point b, Clause 2, Article 31).
The City People's Committee decides to approve the urban railway route plan or specify the TOD area in areas with approved zoning plans or equivalent, and has the value of replacing the local adjustment of the relevant regional planning without having to carry out local adjustment procedures (Point c, Clause 2, Article 31).
Regarding the regulation on prioritizing the application of the TOD model in urban railway development investment with specific measures (Clause 3, Article 31): The City People's Council decides on the investment policy for urban railway projects according to the TOD model according to investment phases in each stage; decides on separating the content of compensation, support, and resettlement into an independent project (Point a, Clause 3, Article 31).
The City People's Committee decides to invest in urban railway projects according to the TOD model, decides to invest or approves the investment policy of component projects that have been decided on by the People's Council, decides to invest in land acquisition, compensation, support, and resettlement projects (Point b, Clause 3, Article 31). The City People's Committee decides to choose to apply standards and norms for the city's urban railway lines (Point d, Clause 3, Article 31).
Special regulations on collection and use of revenues in the TOD area (Clause 4, Article 31). Accordingly, the City is allowed to collect some revenues from increased construction floor area; from exploiting the added value of land in the TOD area, infrastructure improvement fees and is allowed to use 100% of those revenues to develop the urban railway system, public transport system, technical infrastructure connecting with the public passenger transport system. The Law assigns the City People's Council to prescribe the method of determining the collection level; the authority, order and procedures for collecting money for revenues in the TOD area to ensure that there is no duplication with other taxes and fees (Clause 5, Article 31).
With the provisions of Article 31, the Capital Law 2024 sets out the basic principles for developing the TOD model and implementing the construction of traffic routes using mass public passenger transport, with the immediate priority being the urban railway system in Hanoi, creating convenience, shortening time, simplifying procedures for determining relevant plans and deciding on investment policies, effectively exploiting the urban railway system and TOD areas, ensuring the goal of completing the urban railway network in the city by 2035 as stated in Conclusion No. 49-KL/TW dated February 28, 2023 of the Politburo on the orientation for developing Vietnam's railway transport to 2030, with a vision to 2045.
Creating advantages for Hanoi to develop, rise to new heights and new positions
According to Deputy Director of Hanoi Department of Planning and Investment Le Trung Hieu, the Capital Law 2024 is a great opportunity, creating advantages for Hanoi to develop, rise to a new stature, a new position not only in the country but also in the region and the world.
Among the important policy groups in the Capital Law 2024, the most notable are the policy group on mobilizing and effectively using financial resources and budget for the development of the Capital; allowing the implementation of other forms than currently prescribed (PPP, BT, TOD); managing public assets and controlled experimental models; strong decentralization of investment decisions for the city; regulations on attracting strategic investors and incentives to attract investors.
According to statistics, Hanoi currently has about 6.4 million road vehicles (including about 5.6 million motorbikes and 685,000 cars of all kinds), not to mention 1.2 million vehicles from other provinces and cities participating in traffic in the capital. The imbalanced development between means of transport and infrastructure leads to overload and traffic congestion during rush hours. The consequences are high emissions and environmental pollution for the capital. Therefore, the Capital Law 2024 has new regulations on TOD.
TOD model is a comprehensive solution for urban development as a basis for urban planning, reconstruction and development, taking urban railway traffic hubs as a concentration point for residential areas, commercial services, and offices within walking distance to public transport to improve land use efficiency, public works, public health, reduce personal motor vehicles, reduce emissions causing environmental pollution, combined with preserving and promoting cultural values.
"The Capital Law 2024 also stipulates the mobilization of resources to develop urban railways according to TOD. With this regulation, Hanoi City can collect a significant amount of money from auctioning land use rights, underground construction rights, and elevated constructions in the TOD area to reinvest in developing urban railways and the city's public transport system..." - Deputy Director of Hanoi Department of Planning and Investment Le Trung Hieu informed.
Meanwhile, Dr. Le Duy Binh - Economic expert, CEO of Economica Vietnam said that the TOD mechanism brings great benefits to people, businesses, the State and the overall development of the Capital. TOD will create a mechanism for Hanoi to soon connect with new growth spaces, promoting the potential of other key projects being implemented. Notably, TOD is not only a mechanism to promote endogenous resources for infrastructure development but also an outstanding mechanism in harmonizing the interests of all parties when exploiting added value from land.
"The TOD mechanism as stipulated in the Capital Law 2024 will create the basis for accelerating the completion of the capital's urban railway network, contributing to realizing the vision of building Hanoi into a smart, modern, green, clean, and beautiful city as set out in Resolution 15-NQ/TW of the Politburo" - Dr. Le Duy Binh emphasized.
Source: https://kinhtedothi.vn/phat-tien-do-thi-theo-dinh-huong-giao-thong-cong-cong-trong-luat-thu-do-2024.html
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