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$3mn smart parking lot in Da Nang largely empty over unreasonable pricing

$3mn smart parking lot in Da Nang largely empty over unreasonable pricing

Tuesday, December 17, 2024, 15:02 GMT+7
$3mn smart parking lot in Da Nang largely empty over unreasonable pricing
The smart parking lot at 166 Hai Phong Street in Thanh Khe District, Da Nang City, central Vietnam. Photo: Truong Trung / Tuoi Tre

A smart parking lot worth US$3 million in the central area of Da Nang remains largely deserted because of unreasonable pricing, which has deterred drivers from using the facility.

Since its opening in March, the parking lot at 166 Hai Phong Street in Thanh Khe District, Da Nang has remained underutilized, with an occupancy rate of six percent.

Out of the six-story steel structure, which features 173 spaces and cost over VND76 billion ($3 million) from the city budget, only the first floor sees any activity.

The puzzle parking system, designed to transport cars to the upper floors, is rarely used, and the surrounding outdoor parking spaces also remain empty.

Only the first floor is regularly used in the new parking lot at 166 Hai Phong Street in Thanh Khe District, Da Nang City, Central Vietnam. Photo: Truong Trung / Tuoi Tre

Only the first floor is regularly used in the new parking lot at 166 Hai Phong Street in Thanh Khe District, Da Nang City, central Vietnam. Photo: Truong Trung / Tuoi Tre

Ho Thanh Hung, a resident of Hai Phong Street, believes that the parking lot is a much-needed solution to the city’s parking issues, especially in the nearby busy areas on Quang Trung, Hai Phong, Dong Da, and Ong Ich Khiem Streets. 

However, he points out that the parking lot is better suited for short-term parking rather than long-term use due to its high fees.

The parking fee of VND15,000 ($0.60) for one to two hours is comparable to regular parking lots on some streets. However, the monthly fee of up to VND2 million ($79) is seen as too expensive.

“In apartment buildings, the monthly parking fee is only about VND1 million [$39.4], so this smart parking lot is not affordable for local residents like me who need long-term parking,” Hung said.

A parking card dispenser at the smart parking lot at 166 Hai Phong Street in Thanh Khe District, Da Nang City, Central Vietnam. Photo: Truong Trung / Tuoi Tre

A parking card dispenser at the smart parking lot at 166 Hai Phong Street in Thanh Khe District, Da Nang City, central Vietnam. Photo: Truong Trung / Tuoi Tre

Bui Hong Trung, director of the Da Nang Department of Transport, agrees that one of the reasons for the low demand is the high parking fees.

He explains that the technology used at the new parking lot makes its fees more expensive.

Trung highlights that the city is in the process of adjusting pricing and expanding the types of vehicles eligible to park in the new lot in hopes of attracting more users.

“We are currently working with the municipal Department of Finance to finalize a new parking price plan, which will then be submitted to the municipal People’s Committee,” the official said. 

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Bao Anh - Truong Trung / Tuoi Tre News

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