Traffic jams worry investors

by Le Hung Vong

Foreign investors have voiced strong concerns about traffic problems in HCM City, especially the recent gridlocks on roads linking the Ha Noi Highway to Cat Lai at the eastern entrance to the city.

In a letter sent to HCM City People’s Committee recently, they said they were worried about the traffic jams in the evening, especially the congestion on the section of the Ha Noi Highway from the Sai Gon Hi-tech Park to the Sai Gon Bridge.

The traffic jams have reached an alarming level and affected commuters’ safety and hindered stable operations of enterprises located along the Ha Noi Highway sections, according to Tuoi Tre newspaper.

The investors have proposed that city authorities send more traffic policemen to this section during peak hours, enhance the traffic signal systems, take "strong" measures and hand out serious punishment to violators of traffic regulations.

They have also asked the city to accelerate work on the expansion of the Ha Noi Highway and the road to Cat Lai.

"These traffic problems, if not solved soon, will affect the country’s investment environment, because it will add more expenses to enterprises’ production costs," the investors noted.

City authorities have said this is the first time they have received a letter complaining about traffic problems from the foreign investors’ community.

Central Highlands

At a time the Central Highlands is preparing for a major forum to call for capital investment of some VND100 trillion (US$55 billion) for 122 projects, the People’s Committee of Lam Dong Province has made a decision to cancel 22 tourism projects.

"Lam Dong has to declare void these projects as investors have failed to follow required procedures to get them rolling," said Tran Quang Thai, deputy chairman of the provincial committee, at a press briefing held in HCM City last week to introduce the investment forum.

The licences for these projects, located in Tuyen Lam and Lac Duong Tourist Parks in the resort city of Da Lat’s Lac Duong Commune, will be withdrawn, because the investors have made no move since winning the approval-in-principle from the provincial authority, according to him.

These are locally-invested projects capitalised at some VND20 billion (US$1.1 million) each. Most of the investors are from HCM City and Ha Noi.

"After being approved in principle by the provincial authority, the investors have six months to prepare paperwork to be submitted to related agencies for licensing. In the case of these projects, they have made no progress for 18 months to two years," said Thai.

The province had to revoke these projects "as we cannot wait any longer," he added.

He noted that financial incapacity and the impacts of the global economic crisis could be the main reasons behind the investors’ delay in implementing the projects.

These delays have affected the plans made by Lam Dong to attract investment in tourism development and undermined the province’s strategy for economic development.

"The decision to cancel these projects now offers an opportunity for other investors to contribute to tourism development in the province," said Thai.

With its mild-climate and scenic views offering highly favourable conditions for tourism development, Lam Dong has so far licensed more than 260 tourism projects, 30 per cent of which are operational or under construction. — VNS

Source: Viet Nam News