The Da Nang authorities have invested over VND 76 billion in a new smart parking lot in the city, but it currently stands largely empty as motorists are put off by the high prices.
The new parking lot, located at 166 Hai Phong in the Thanh Khe district, offers 170 parking spaces and was completed in December 2022. However, only 15-20 cars use the facility each day, with many drivers choosing to park illegally in the surrounding area instead.
One such driver, Mr. Viet, explained that he used to park at the site when it was a temporary car park and charges were much lower. At that time, he paid VND 20,000 per session (for parking between 6 am and 10 pm). Now, with the new hourly rates, his daily parking costs would amount to VND 150,000-170,000, which is unaffordable for him.
The smart parking lot at 166 Hai Phong, Da Nang, struggles to attract customers due to high prices.
Another local resident, Mr. Huan, shared a similar sentiment, stating that the daily parking rate of VND 150,000 was too expensive. As a result, he only uses his car on rainy days, opting for his motorbike on most occasions to save money.
Mr. Hai, who lives in a nearby alley, also chose to take his business to a private parking facility 3 kilometers away, as the new smart parking lot’s monthly rate of VND 2 million was more than three times what he used to pay.
Despite its modern design, convenient location, and robust security features, the parking lot remains underutilized. Constructed with a modular steel structure, the facility consists of five blocks with six floors each and a vehicle stacking system. However, only a handful of vehicles use the lot daily.
The newly constructed smart parking lot has significantly higher rates than the temporary car park it replaced.
Adjusting prices to attract customers
Mr. Nguyen Trung Nghia, Deputy Director of the Da Nang Department of Transport, acknowledged the issue, attributing it primarily to the higher prices at the new parking lot compared to other facilities in the area.
He explained that when the site was a temporary car park, the rates were much lower, in line with Decision 25/2017/QD-UBND, with a daily rate of VND 20,000 and a monthly rate of VND 650,000. However, with the new investment and construction, the rates have increased significantly, following Decision 17/2022/QD-UBND.
The current hourly rates are VND 15,000 for the first hour, VND 20,000 for the second, and VND 25,000 for subsequent hours. The monthly rate for both day and night parking is VND 2 million.
Mr. Nghia also noted that the experimental operation phase of the parking lot has limited promotional efforts and less stringent enforcement of parking regulations in the surrounding area, contributing to the low usage.
Only 15-20 cars use the VND 76 billion parking lot each day due to high prices.
To address this issue, the Department of Transport plans to work with the Department of Industry and Trade and the Department of Finance to review and propose adjusted parking rates to the Da Nang People’s Committee.
The proposed adjustments will include monthly, hourly, and daily rates to cater to the diverse needs of motorists. Additionally, they will request stricter enforcement of parking regulations in the area and suggest expanding the types of vehicles allowed to use the lot to include passenger cars with fewer than 16 seats and trucks with a payload of up to 2.5 tons.
The smart parking lot at 166 Hai Phong, Da Nang, was completed in December 2022 with an investment of over VND 76 billion from the city’s budget. It offers 170 parking spaces and is managed by the Da Nang Transport Infrastructure Development and Investment Project Management Board.
