Proposal for urban development according to TOD traffic orientation with high-speed railway HCMC

The Department of Agriculture and Environment of Ho Chi Minh City has just sent a document to the Department of Finance to comment on the proposal to implement the urban railway project connecting the center of Ho Chi Minh City - Can Gio of Vinspeed High-Speed Railway Investment and Development Joint Stock Company.

Đề nghị phát triển đô thị theo định hướng giao thông TOD với đường sắt tốc độ cao TP HCM- Cần Giờ- Ảnh 1. — The cost of compensation and site clearance for the Ho Chi Minh City - Can Gio urban railway project is expected to be more than VND7,462 billion, posing a big challenge for the city budget - Photo: HOANG TRIEU

Previously, the Department of Finance sent an official dispatch requesting an assessment of many contents related to the project, focusing on environmental impacts, legal basis for the use of about 85.78 hectares of protective forest land, impact on the Can Gio biosphere reserve, compensation plan for site clearance, financial capacity of the investor and socio- economic efficiency.

According to the Department of Agriculture and Environment, land allocation, land lease, and change of land use purpose of protective forests must be approved by the City People's Council or under the authority of the National Assembly and the Prime Minister according to the Land Law and Investment Law. Land users for projects must demonstrate financial capacity, not violate land laws, and meet the conditions for guarantee as prescribed.

The Ho Chi Minh City – Can Gio urban railway project is included in the general planning adjustment project of Ho Chi Minh City until 2040, with a vision to 2060, with an area of 325.19 hectares, passing through 6 wards and communes in District 7, Nha Be and Can Gio. In Can Gio alone, the railway line will run in the middle of the 40m traffic route leading to the Can Gio coastal urban area.

The Department of Agriculture and Environment proposed that it is necessary to simultaneously implement land acquisition, compensation, support, and resettlement for both the urban railway and the 40-meter wide road to avoid traffic congestion when the urban area reclaimed from the sea comes into operation.

Regarding investment responsibilities, the Department recommends that the City People's Committee assign the Compensation and Site Clearance Boards of District 7, Nha Be and Can Gio districts to be the investors in compensation and resettlement work in each locality. In case there is a commune-level Project Management Board, this unit will take on the role of investors in sub-projects.

Regarding funding, the Department cited current legal regulations stating that the State is responsible for ensuring all costs of compensation, support, and resettlement for land reserved for railways. For the urban railway project connecting Can Gio alone, the estimated cost of site clearance is up to more than VND7,462 billion, which could cause difficulties because the city budget must also be allocated for many other urgent projects.

Therefore, the Department of Agriculture and Environment proposed that the Department of Finance and the Department of Construction discuss with the investor a plan to advance funds for the city to repay in the period of 2026-2030. In case the budget cannot be arranged, the investor can deduct compensation costs by land exploitation method (TOD) at the planned Depot areas in Tan Thuan and Can Gio. For the 40m wide traffic route, compensation and resettlement costs will be paid by the city budget, and construction costs will be sponsored by Vingroup Corporation.

In addition, the Department also emphasized that compensation, support and resettlement must fully comply with the 2024 Land Law and related decrees and guiding decisions on land prices, crop compensation, job support and resettlement. At the same time, the alternative forestation plan must comply with the Forestry Law and Circular 16/2025 of the Ministry of Agriculture and Environment.

Regarding environmental impact assessment, the Ho Chi Minh City Department of Environmental Protection has sent a document to the Department of Finance to synthesize opinions.

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