Hanoi needs nearly VND260 trillion (US$12.9 billion) to deal with its traffic congestion within the next five years, according to the local transport department's proposal submitted to authorities Tuesday.
Under the proposal, the money will be spent on building beltways and urban thoroughfares, local news website VnExpress reported.
Around 40 parking lots are planned across the capital, while current sites will be improved and expanded, according to the department's proposal.
Nguyen Quoc Hung, director of the Department of Transport, said the funds will be raised from various sources including state budget and auctions of land rights.
However, at a recent municipal meeting many officials voiced their concerns over the huge investment, VnExpress reported.
Tran Duc Vu, vice director of the Department of Planning and Investment, said the city will only be able to raise half the funds, and suggested that it should make use of land resources to gain more capital.
A representative from the Hanoi Institute of Planning and Construction warned that without investment focus, many projects will not be completed within the projected five years. The representative added that it is impossible to build so many parking lots given the shortage of land.
Nguyen Van Khoi, vice chairman of Hanoi's People's Committee still agreed with the plan, asking for more parking lots on certain beltways, according to the VnExpress.