Ho Chi Minh City adopts the model of "using land to fund projects".

The total cost of relocating 39,600 dilapidated houses along canals and waterways in Ho Chi Minh City amounts to over 220,000 billion VND. So how will the city manage to secure this enormous resource?

Determined to relocate 39,600 dilapidated houses along the canal within 5 years.

Recently, the Ho Chi Minh City People's Committee approved the Urban Renovation Project for residential areas along canals and waterways, aiming to relocate all 39,600 houses located along these areas by 2030. To ensure timely completion, the city has developed a specific implementation roadmap.

Specifically, 2025 will be the year to finalize the overall urban renovation plan, gather feedback from relevant parties, and submit it for approval. Simultaneously, a review and adjustment of the 1/2,000 scale zoning plan will be conducted in the areas slated for renovation. Following this, the period from 2025 to 2026 will focus on developing and approving detailed projects related to relocation, resettlement housing construction, social housing, and completing all investment procedures as required.

In the period of 2026-2027, the city plans to commence construction of resettlement housing projects. Simultaneously, work related to land acquisition, compensation, and site clearance will be carried out. From 2028-2030, the construction of technical infrastructure, transportation, drainage systems, embankments, parks, and public spaces will proceed; and the land created after clearance will be tendered and auctioned.

During a field survey on the relocation of houses along canals and waterways in the former District 8 area in mid-April 2025, the Chairman of the Ho Chi Minh City People's Committee, Nguyen Van Duoc, emphasized that the project to renovate houses along canals and waterways must be considered a top priority in the city's urban development program. The Chairman of the People's Committee requested the Department of Finance to advise on and allocate funding through various forms such as state budget, social mobilization, land development, etc., ensuring that the project's implementation requirements are met from now until 2030…

Implement the "using land to fund projects" model.

According to a report from the Ho Chi Minh City Department of Construction, in the past, the city's urban renovation and upgrading programs were more favorable due to the availability of ODA loans from the World Bank, including non-refundable grants or loans with preferential interest rates. The city also implemented a policy of selling state-owned housing to generate capital for the construction of resettlement areas and relocation. At that time, vacant land in the city was abundant, easily attracting investment through public-private partnerships (PPP).

However, the situation has changed significantly. There is almost no vacant land left, while relevant legal regulations have been adjusted to be stricter. These factors make the relocation of houses along canals and waterways much more difficult and complicated.

According to the Urban Renovation Project for Housing Areas Along Canals and Streams, Ho Chi Minh City needs more than 220,000 billion VND to relocate the remaining 39,600 dilapidated houses along rivers, canals, and streams. Of this amount, 130,680 billion VND is for compensation, support, and resettlement; 10,692 billion VND is for social housing construction; and the remaining 80,000 billion VND is for infrastructure construction and canal renovation. This is a colossal figure, equivalent to the total public investment of the former Ho Chi Minh City over two years.

To secure this substantial funding, the city plans to auction off land plots after clearance to generate revenue for the project. Preliminary calculations suggest that, after clearance, these land areas could generate up to 164,111 billion VND in revenue. The "land-to-project financing" model is expected to provide a viable and sustainable financial solution, helping the city ensure long-term capital balance.

Simultaneously, Ho Chi Minh City is actively reviewing the list of state-managed land plots that are underutilized, proposing changes in land use and conducting auctions to generate additional revenue for relocation projects.

Besides public funding, the city also proactively calls for private investment in social housing and resettlement housing projects through public-private partnerships (PPP). Accordingly, investors can participate in design, construction, operation, and leasing under preferential policies stipulated by the State. This approach not only helps Ho Chi Minh City mobilize social resources but also reduces pressure on the state budget.

Source: https://baodautu.vn/tphcm-ap-dung-mo-hinh-lay-dat-nuoi-du-an-d324967.html