Infrastructure development - The "support" for economic growth in Ho Chi Minh City

VTV.vn - Ho Chi Minh City's economy aims to grow 10 - 11% per year - a double-digit increase in the next 5 years.

This is an economic target – a very important political task in the Resolution of the 1st Congress of the Ho Chi Minh City Party Committee, term 2025-2030, which has just been approved. To realize this goal, one of the three strategic breakthroughs the city will implement is infrastructure development, considered a "foundation" that can immediately contribute to the city's growth in the short term.

The 10 trillion VND flood control project in Ho Chi Minh City, initially a public-private partnership under the BT (build-transfer) model, has been stalled for approximately five years due to regulations halting land-based payments for BT projects.

The project now has the opportunity to resume construction. The government recently issued Resolution 212, empowering the Ho Chi Minh City authorities to pay for the project with land funds or compensate for the difference with money from public investment capital to expedite its completion.

It's not just about removing obstacles to existing infrastructure projects; new mechanisms and approaches to attract private capital into infrastructure are also being implemented. Especially after the merger of the three localities, Ho Chi Minh City now has the opportunity to develop rapidly and synchronously nearly 300 km of ring roads and 355 km of urban railway lines...

When urban railway lines are established, the land surrounding these lines will be auctioned off for commercial development based on the TOD model – transport-oriented urban development. With the formation of Ho Chi Minh City after the merger, TOD development can be implemented immediately.

To date, Ho Chi Minh City has identified up to 32,000 hectares of land for the TOD (Transit-Oriented Development) model, expected to generate approximately 120,000 billion VND from land auctions. This is one of the components that will help form new urban areas for the development of high-quality commerce and services.

Mr. Nguyen Van Duoc, Chairman of the People's Committee of Ho Chi Minh City, stated: "Communes and wards need to pay special attention to land clearance work, especially for key projects of the city… Propose public investment projects for 2026 and the next term. Select key projects with the potential to create breakthroughs for the city's economy in the coming period."

To implement approximately 400 infrastructure projects, Ho Chi Minh City is estimated to need to mobilize between 400,000 and 600,000 billion VND in investment capital from the private sector each year. According to experts, the key to achieving this is reform and creating breakthroughs in institutional frameworks.

Source: https://vtv.vn/phat-trien-ha-tang-be-do-tang-truong-cua-kinh-te-tp-ho-chi-minh-100251030050628341.htm