Japanese group proposes to develop trade centers along HCMC metro line

Japanese Tokyu Group has recently sent a proposal to HCMC leaders to build trade centers along the city’s first metro line Ben Thanh-Suoi Tien, which trial run is scheduled in 2020.

An under-construction stretch of Ben Thanh-Suoi Tien metro line in HCMC (Photo: SGGP)
An under-construction stretch of Ben Thanh-Suoi Tien metro line in HCMC (Photo: SGGP)
Mr. Honino, director of the group, said that Tokyu has 100 years of experience in developing urban areas of southwest of Tokyo, where metro system has strongly developed. The group has attracted about five million residents to live and do business along metro lines there.
Japanese experts said that when developing metro lines from center areas to outskirts, strategic planners usually hope that residents in suburban districts will travel to center areas to work, do shopping or enjoy themselves in the morning and return home in the afternoon. And, that is reason why Tokyu Group has had its proposal to the city. 
Alongside metro line development, hospitals and schools in the environs should be able to lure people from the center area through metro routes to suburban areas.
Metro lines linking downtown Tokyo and southwest area, where Tokyu Group has developed satellite cities, have attracted three millions passengers a day, affirmed Mr. Honino.
He emphasized the importance of developing urban areas along metro lines to contribute in two-way transport and efficient exploitation of metro routes.
As per Tokyu Group's proposal, surveys by Japan International Corporation Agency (JICA) show that the area along the first metro line is suitable for developing trade centers and residential areas in long term.
New Mien Dong Coach Station is being built in the intersection area of HCMC, Binh Duong and Dong Nai provinces.  Locating in the end of the first metro line is Suoi Tien tourist site, HCMC National University and Saigon Hi-Tech Park. The densely populated area receives lot of people going to and from  a day.
Therefore, it is eligible for developing a key urban area to create a foundation for spreading to other areas.
Trade and services urban center development will contribute quickly in developing the area. Tokyu Group said it has also surveyed the area since 2014 and it is time now to start investment.
At a meeting with HCMC People’s Committee recently, Tokyu Group has proposed to establish a joint venture between the group and Sai Gon Mechanical Engineering Corporation (Samco), investor of new Mien Dong Coach Station, to implement a trade and services center at the station over 30,000 square meters with the total capital of US$100 million.
The first phase will need about US$25 million that Samco will contribute capital by land use right value and Tokyu will pay the remaining funds for equipment, construction and operation. 
Samco representatives said that the first phase of the 16 hectare station will be built at the end of 2018 for gradual removal of the old one from Binh Thanh district.
Deputy chairman of HCMC People’ Committee Tran Vinh Tuyen welcomed the investment plan of the group and appreciated the project’s target of contributing in the city’s efforts to remove residents from the center area to the outskirts.
Mr. Tuyen has assigned Samco and relevant agencies to consider legal framework on land lease and land allocation for the joint venture to implement the project.

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