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

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 passed. To realize this goal, one of the three strategic breakthroughs the city will implement is infrastructure development, which is considered a "support", a factor that can immediately contribute to the city's growth in the short term.

The 10,000 billion VND flood prevention project in Ho Chi Minh City, invested by public-private partnership under the BT (build-transfer) model in the previous phase, has been stalled for about 5 years due to regulations stopping payment by land fund for BT projects.

Now the project is facing the opportunity to resume construction. The Government recently issued Resolution 212, empowering the Ho Chi Minh City government to pay with land funds or compensate the difference with money from public investment capital to complete the project soon.

Not only is the current infrastructure projects being dismantled, but new mechanisms and methods to attract private capital into infrastructure are also being implemented. Especially after the merger of three localities, Ho Chi Minh City has the opportunity to rapidly and synchronously develop nearly 300 km of belt roads, 355 km of urban railways...

When the urban railway lines are formed, the areas around these lines will be auctioned for land for commercial development based on the TOD model - that is, urban development based on traffic orientation. With Ho Chi Minh City being formed after the merger, TOD development can be synchronized immediately.

Up to now, Ho Chi Minh City has identified a land fund of up to 32,000 hectares for TOD model development, expected to collect about 120,000 billion VND from land fund auction. This is one of the components that helps form new urban areas to develop high-quality trade and services.

Mr. Nguyen Van Duoc - Chairman of the People's Committee of Ho Chi Minh City said: "Wards and communes need to pay special attention to site clearance, especially for key projects of the city... Propose public investment projects for 2026 and the next term. Select key projects that have the potential to make a breakthrough for the city's economy in the coming time."

To implement about 400 infrastructure projects, it is estimated that each year Ho Chi Minh City will need to mobilize from 400,000 to 600,000 billion VND in investment capital from the private sector. According to experts, to do this, the "key" is reform, creating institutional breakthroughs.

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