Hanoi pushes private investment in parking projects

The Hanoi People’s Committee is seeking public feedback on a draft resolution aimed at encouraging investment in the construction and operation of bus terminals and parking facilities across the city.

The draft proposes a wide range of incentives covering administrative procedures, land access and financial support to attract private investors.

Under the proposal, the city will issue investment registration certificates within three working days for projects requiring investment policy approval and within ten working days for projects that do not require such approval.

Hanoi also plans to cut administrative processing times by 30% for procedures related to investment policy appraisal, detailed 1:500 planning approval, construction permits and land allocation, leasing, or conversion.

For land and site access, projects involving bus terminals or parking facilities serving mass public transport systems will be eligible for preferential mechanisms under the Law on Railways and National Assembly Resolution No. 188/2025/QH15.

Underground or multi-story parking projects will be allowed to use up to 25% of their total land area for commercial services without having to adjust land-use functions in approved plans.

For projects developed under the public-private partnership (PPP) model, site clearance, compensation and resettlement will be implemented as a separate public investment component.

The state capital contribution to the PPP component (construction, operation and management of underground or multi-story parking facilities) will not exceed 50% of the total investment. Developers of projects initially planned as surface parking lots will be allowed to modify them into underground or multi-story structures if needed.

Financial incentives include a 5% corporate income tax rate for underground and multi-story parking projects. These projects will also enjoy a four-year corporate income tax exemption, followed by a 50% tax reduction for the next nine years.

The city budget will cover 100% of import duties on equipment and technology directly used in these projects, 100% of land rent for the first ten years after payment obligations arise and 50% of loan interest costs for the duration of the borrowing period (up to five years).

The proposed resolution is expected to be reviewed and approved at the year-end session of the Hanoi People’s Council.