The Ministry of Transport Inspectorate uncovered violations in the management and licensing of parking lots in both Hanoi and HCM City which resulted in the loss of tens of billions of VND in State revenue.
Wrongdoings in management and licensing of parking lots
Lax management, inconsistencies in administrative documents between agencies and wrongdoings in granting permission for using pavement were found to be the the main causes.
Construction sites and the high-rise buildings lacked parking lots while many parking areas encroached on streets and sidewalks.
The Hanoi Department of Transport allowed the Hanoi Parking Company to encroach Dao Tan, Doi Cung and Cao Dat streets, though these roads were too narrow for parking businesses.
Not only did they allow the Hanoi Parking Company to illegally open a parking lot, they also granted a business permits to Dong Xuan Company to operate on Ngo Gach, Hang But and Gia Ngu Street. Anh Du Company, De Nhat Company and a number of other parking companies were also approved to operate parking lots against regulation.
The inspectorate said that agencies have been neglecting the problem, giving too much focus on other regulations, such as the helmet law.
The difference in price for companies for the use of pavement the two major cities has led to unfair preferential treatment. For example, in 2011, Hanoi Parking Company paid less than VND1,000 per square metre per month while the others had to pay over VND30,000.
"The low price that was applied to Hanoi Parking Company cost the State at least VND20 billion each year." the inspectorate reported.
According to regulation, only the Provincial People's Committee has the authority to grant pavement use permits, but the inspection discovered that many of them were issued by the District People's Committee in Hanoi.
The Ministry of Transport ordered the Hanoi Department of Transport, along with the Hoan Kiem and Hai Ba Trung People's Committee to revoke any licenses that were illegally granted. They are also requested them to report back by August 15, 2012.
The Ministry of Transport proposed amendments to Resolution 23 issued on January, 9, 2009 and Resolution 07 issued on January 25, 2010 by Hanoi authorities to standardise prices for the use of road or pavement.
Parking lots set up on the street
Tens of billions lost in State revenue