Ho Chi Minh City removes bottlenecks to accelerate growth.

Ho Chi Minh City set a target of disbursing 100% of public investment capital in 2026, equivalent to VND 148,000 billion, but by the end of April, only 10.5% had been disbursed. Without decisive implementation of solutions, the set target will be difficult to achieve.

The contractor is facing difficulties with materials.

The Ho Chi Minh City Ring Road 3 construction project was assigned a deadline of completion and commissioning before June 30th. However, the project's investor, the Ho Chi Minh City Investment and Construction Project Management Board for Transportation Works (Transportation Board), reports that the project is facing many difficulties.

To date, the total value of construction work completed has reached approximately 76%. The biggest challenge during this period is the impact of the conflict in the Middle East, which has driven up fuel prices dramatically, leading to higher prices for materials such as sand and stone, and increased transportation costs. In addition, the shortage of imported asphalt and asphalt concrete has directly affected construction. The investor is striving to complete the entire project by the end of 2026.

Construction of the An Phu interchange is being accelerated. PHOTO: HOANG HUNG

Previously, the Ho Chi Minh City Urban Infrastructure Investment and Construction Project Management Board (Infrastructure Board), the investor of the Tham Luong - Ben Cat - Rach Nuoc Len canal construction project, stated that the project's progress was facing difficulties due to a shortage of sand, asphalt, etc. This is a key environmental infrastructure project of Ho Chi Minh City, with the entire 60km route expected to be completed this year.

Besides land acquisition issues, the project is facing difficulties due to the scarcity and high prices of construction materials. By the end of March, only 50% of the stone and sand needed was available, and only 30% of the asphalt needed. By the end of April, the overall project progress had reached 66.3%.

According to Hoang Vu Thanh, Director of the Ho Chi Minh City Department of Finance, as of April 30th, Ho Chi Minh City had disbursed over 15,500 billion VND, reaching 10.5% of the capital plan assigned by the Prime Minister . This result shows a more positive improvement compared to the same period in 2025 (when the disbursement rate reached 7.2%), but it is still low compared to the set requirements and has not yet created a ripple effect on private investment.

In addition to the aforementioned difficulties regarding materials and costs, according to the Ho Chi Minh City Department of Finance, 2026 is the first year of implementing the medium-term public investment plan for the 2026-2030 period, so many projects are in the investment preparation phase and require time to complete investment procedures. Some projects face difficulties in land compensation and clearance, relocation of technical infrastructure, legal issues related to sludge receiving sites, and international contract disputes. Some newly formed communes and wards are slow in preparing the disbursement plan for public investment capital in 2026…

"3 shifts, 4 teams," green lane arrangement.

In Plan No. 44 of the Ho Chi Minh City People's Committee on promoting double-digit growth in Ho Chi Minh City by 2026, the city identifies investment as a key driver of growth. Specifically, public investment aims to achieve 100% disbursement of planned capital, equivalent to 148,000 billion VND.

Construction work is underway to expand the Ho Chi Minh City - Long Thanh - Dau Giay expressway in Binh Trung ward, Ho Chi Minh City. PHOTO: HOANG HUNG

The Ho Chi Minh City People's Committee requires each agency and unit assigned the 2026 public investment plan to complete the disbursement plan before February 10th, with detailed plans for implementing each related task (roadmap, specific completion dates, and monthly disbursement targets for each project); and to effectively utilize the special task force and public investment disbursement task forces to promptly direct and resolve obstacles according to the principle of "making decisions on the spot, resolving issues on the spot," especially with land clearance work.

To ensure the completion of the public investment disbursement target for 2026, the Department of Finance advises the Ho Chi Minh City People's Committee to direct localities and units to thoroughly understand the disbursement target for the second quarter, aiming for 30%-35%, identifying this as a particularly important political task. Disbursement must be in line with project implementation progress and organized according to the "six clear principles": clear person, clear task, clear time, clear responsibility, clear product, and clear authority.

Simultaneously, focus on mobilizing fuel and materials to accelerate construction progress using a "3 shifts, 4 teams" mechanism, aiming to add 15%-20% of the planned volume. Within 4 working days of the completion of the work volume, promptly finalize legal documents and procedures, and submit the completed work acceptance documents to the State Treasury as a basis for control, payment, and reimbursement according to regulations.

To address difficulties regarding construction materials, localities and units will closely monitor the situation and developments in the construction materials market, promptly proposing solutions to overcome difficulties and obstacles in ensuring supply and controlling construction material prices. The Ho Chi Minh City Department of Construction will continue to compile a list of key projects and works that investors and contractors register to execute under the "3 shifts, 4 teams" system, along with the projected additional volume, for monitoring purposes.

Based on this, the authorities will consider and implement several solutions such as arranging green lanes for materials, allowing access to restricted roads/hourly restrictions, etc. Large, key projects will be prioritized for funding allocation, avoiding scattered investments.

Based on the current situation, Mr. Nguyen Khac Hoang, Head of Statistics of Ho Chi Minh City, suggested that the city should accelerate the disbursement of public investment. This includes researching and improving the mechanism for assignment and decentralization, clearly defining responsibilities for investors and project management boards; enhancing proactiveness in implementation; shortening processing times; and minimizing intermediate steps, especially in the process of soliciting opinions from relevant units.

Regarding land clearance work, Ms. Nguyen Thi Bich Thuy, Deputy Director of the Ho Chi Minh City Department of Agriculture and Environment, said that the department has proposed building a framework of principles to protect officials carrying out compensation and land clearance tasks, aiming to create conditions for officials to work with peace of mind; proactively advise and handle difficulties and obstacles in the practical implementation of projects.

In 2026, the total compensation capital for land clearance in Ho Chi Minh City is over 33,600 billion VND. As of May 11th, the disbursed compensation capital is over 13,400 billion VND, reaching 39.82% of the plan.

MAI HOA

Source: https://www.sggp.org.vn/tphcm-go-nut-that-de-tang-toc-post853833.html