With a population of nearly 15 million and over 9.6 million vehicles, Ho Chi Minh City's transportation infrastructure is under immense pressure. While many modern cities allocate around 20-25% of their land to transportation, this figure is currently only about 10% in the city.

The significant disparity between the rate of urbanization and infrastructure capacity has led to frequent congestion on many gateway routes, eastern and southern arteries, and the Tan Son Nhat airport area. This prolonged congestion increases logistics costs, reduces labor productivity, and negatively impacts the investment environment.

The My Thuy intersection connects many major traffic arteries in the eastern part of Ho Chi Minh City. Photo: TRAN UT

Beyond just infrastructure issues, Ho Chi Minh City's traffic bottleneck is also institutional in nature. The current legal system governing urban development and transportation is fragmented across numerous laws, such as the Land Law, the Planning Law, the Construction Law, and the Public Investment Law. This forces strategic projects to navigate multiple layers of bureaucracy, lacking a unified coordination mechanism and sufficient decision-making authority. This institutional overlap is clearly reflected in the practical implementation of major projects. The Ben Thanh-Suoi Tien Metro Line 1 project took over a decade to complete; the Ben Thanh-Tham Luong Metro Line 2 project remains behind schedule due to land acquisition and investment procedures; and many underground parking projects in the city center have yet to be implemented.

In this context, the draft Law on Urban Development specifically proposes a fundamental change, shifting from a mindset of "expanding transportation infrastructure" to "transportation-oriented development (TOD)." When the model of urban development linked to public transportation is legalized, areas around metro stations will become new growth poles, simultaneously integrating commercial, service, housing, and employment functions within a single development space.

From an institutional perspective, the draft law is expected to grant Ho Chi Minh City more autonomy in adjusting local planning, land acquisition, streamlining investment procedures, and exploiting the added value from land around the metro line for infrastructure reinvestment. Mr. Huynh Thanh Khiet, Deputy Director of the Ho Chi Minh City Department of Construction, believes the city needs a special mechanism for underground construction and modern transportation infrastructure. This approach is also consistent with the trend of many large cities worldwide , aiming to reduce reliance on private vehicles, alleviate traffic congestion, and improve the quality of life for residents. The Law on Special Urban Areas presents an opportunity to design a new governance model for a globally competitive megacity.

The city is expected to finalize the dossier and submit it to the competent authorities by early July 2026, and then present it to the National Assembly for consideration in 2026.

    Source: https://www.qdnd.vn/xa-hoi/cac-van-de/tao-hanh-lang-phap-ly-cho-do-thi-hien-dai-1041959