Hanoi (VNS/VNA) - Vietnam expects to have more regulations oninvestment and managing green cities and climate-resilient urban areas as theMinistry of Construction is compiling a draft decree on the issue.

The draft revised decree on Investment, Management of urban development wouldreplace the current one from seven years ago.

According to the Ministry of Construction, Decree 11/2013/ND-CP regulatesinvestments in urban development but does not have any specific policy projectsthat apply advanced models like smart urban areas, environmentally-friendlyurban areas.

This leaves investors of urban development projects still confused overimplementing such advanced models, and needs Government’s assistance.

Until now, investors self-announce their projects meet criteria of greenbuildings or biological urban areas without inspection, verification fromfunctioned agencies, which, in some cases, affect the rights and benefits ofhouse buyers in those projects.

The ministry has found it necessary to issue regulations to further promote thediversification of advance urban development models.

Under the draft revised decree, the ministry would add regulations onrequirements to identify urban areas’ types including green growth urban areas,biological urban areas, smart urban areas, climate-resilient urban areas,energy efficiency buildings and environmentally friendly buildings.

The draft would also include regulations on incentives for projects thatdevelop such advance urban development models.

In Vietnam, rapid urbanisation has appeared since 1986 when the country startedits Doi moi (Renewal) policies with sweeping liberalisation in all sectors. Thecountry had about 500 urban areas in 1990, then 646 urban areas in 2000 andnow, more 800 urban areas.

The current urbanisation rate is about 37.5 percent, urban areas contributesabout 70 percent of the country’s gross domestic production.

Currently, 86 percent of people living in urban areas can access clean water.About 87.5 percent of solid waste in urban areas is collected and treated.Street lights are available in all main roads and 90 percent of branch roadsand more than 65 percent of hamlet roads. 

Urban areas are usually hubs of economy, politics, culture, education,healthcare, tourism or entertainment in regions or of the country. Economicactivities in urban areas also help create jobs and make use of the redundantlabour in rural areas.

However, Vietnam’s urban areas face challenges including low growth quality,poor infrastructure and urban link as well as modest urban management.

The urban infrastructure development has failed to catch up with theurbanisation pace, resulting in problems like traffic congestion, trafficaccidents or environmental pollution.

Due to the lack of standards for green urban areas, some people misunderstandthat green urban areas are simply those with many trees.

General Secretary of Vietnam Real Estate Association Do Viet Chien said thattrees are just one factor that makes an urban area green, chinhphu.vn reported.

“A green urban area must control its waste, recycle the waste, use cleanenergy, use energy efficiently and use environment-friendly materials,” hesays, adding that the areas are also operated and managed in manners that arefriendly to the environment.

Standardised green urban areas will help improve living standards for localresidents and minimise negative impacts on the environment and avoid waste tonatural resources.

Developing modern sustainable urban areas is a trend of global real estate butthe conception of modern urban areas is still controversial, according to Chien.

In Vietnam, Hanoi and many other cities are expanding but the way they havebeen urbanised affected the quality of the living conditions, creating arisingproblems in environment, planning, infrastructure and public services.

“The urbanisation is happening too fast while relevant regulations/legalframework or policies on urban development are failing to catch up,” Chiensaid./.