Below-par traffic infrastructure hindering IP growth

Below-par traffic infrastructure hindering IP growth

Transportation infrastructure issues, both within and around industrial areas, are affecting workers and secondary businesses while also impacting investment attraction.

Haiphong Industrial Parks (IPs) Trade Union, in mid-August, compiled feedback from workers in various IPs in the area. One of the most concerning issues for workers is the numerous shortcomings in terms of transport infrastructure in surrounding areas.

Specifically, workers at Dinh Vu Industrial Zone (IZ) reported that the transportation infrastructure in the Dinh Vu-Cat Hai area has several bottlenecks. Intersections such as Phu Xa Bridge-Mac Thai To, the DEEP C IZ-Lach Huyen roundabout, the bypass road to Lach Huyen Bridge, and the Nguyen Van Linh to Dinh Vu route frequently experience congestion during peak hours.

The high volume of container trucks, which often encroach on motorcycle lanes, poses significant safety risks to workers. Workers have proposed that the city consider implementing separate lanes for container trucks and motorcycles, banning container trucks during peak hours before and after shifts, installing traffic lights at key roundabouts, and exploring the addition of dedicated bus routes for workers.

Similarly, at the Japan-Haiphong IZ, workers have urged the city to invest in traffic safety on roads leading to the IZ during peak hours. They also called for an expansion of the public transportation network, with more bus routes to industrial areas to reduce the density of private vehicles.

Workers at An Duong and Do Son IPs reported to their grassroots unions that localised flooding on roads surrounding the IPs, caused by heavy rain, creates difficulties for commuting and causes damage to workers’ vehicles.

A similar situation also occurs in several localities, such as former Hai Duong province, and the existing Ha Tinh, and Dong Nai provinces. For example, in Dong Nai, businesses have reported that roads connecting to the Long Duc and An Phuoc IPs are degraded and flood during the rainy season, leading to congestion and safety hazards for workers.

At Vung Ang Economic Zone in the central province of Ha Tinh, for many years, the investor of the Ky Hung industrial cluster, Loi Chau Trading and Investment, submitted multiple requests to address the deterioration of the main road connecting the central urban area to Ky Ninh Tourism Urban Area in Ky Anh town.

Despite Ky Hung IZ having synchronised infrastructure since 2019, the investor has struggled to attract tenants due to the poor condition of the 2.2-km road, which cost nearly $1.2 million to build but deteriorated severely shortly after construction.

A representative from an IP developer in what is now Haiphong emphasised the importance of improving transportation infrastructure, both within and around industrial areas.

“Robust infrastructure facilitates the transport of goods and workers’ commutes, leading to greater satisfaction and long-term commitment from secondary businesses,” she said.

“Thus, IP developers are willing to collaborate with local authorities and even cover the full cost of building a bridge or an inter-commune road. However, implementation is often challenging. For instance, land clearance can be stalled if even a few households refuse compensation and relocation, halting project progress,” she added.

Another critical issue is planning constraints. “For a transportation project outside the approved IP planning, we must reapply for permits from scratch, which is time-consuming, costly, and extremely complex, causing significant frustration for businesses,” she explained.

She further noted that her company began constructing an inter-commune bridge earlier this year and secured the necessary financial resources. However, construction has not yet started due to a few households refusing to relocate, and the company is still navigating the process of obtaining additional permits to include the bridge in the approved IP planning. Another example is in Quang Ngai province, where transportation infrastructure surrounding the Tinh Phong and VSIP Quang Ngai IPs in Son Tinh district is degraded and narrow.

To address the overloading of National Highway 1A in the Quang Ngai-Son Tinh section, the Thach Bich-Tinh Phong road project has been initiated to divert traffic and reduce the volume of people and vehicles travelling from the Tinh Phong and VSIP Quang Ngai IP to the city. It was approved in 2019 at a cost of $28 million from the local budget, and is managed by Quang Ngai Traffic Construction Management Board. According to the initial plan, the construction was scheduled for implementation from 2019 to 2024; however, the venture is behind schedule, with only about 44 per cent of the workload completed so far.

Ngo Van Dung, director of the aforementioned management board, said the reason for the delay was due to site clearance.

“The problem is the calculation of specific land prices to establish, appraise and approve the compensation plan. Only when the compensation plan is established, appraised and approved will the people receive money and the site be cleared,” Dung said. “We hope that relevant units and localities will focus on calculating specific land prices to clear the site and hand it over to the investor for construction.”

VIR