The HCMC – Moc Bai Expressway project, spanning approximately 24.66km, is set to traverse 11 communes in Cu Chi District. A total of 1,808 households are projected to be affected by land acquisition, with 336 eligible for resettlement. To date, local authorities have collected information from 1,794 out of the 1,808 affected households, representing a 99-percent completion rate.
As stipulated in 2024 the Land Law and accompanying guidelines, the Cu Chi District People's Committee has estimated the total cost of compensation, support, and resettlement for the above project at over VND7.1 trillion (US$286 million).
Specifically, the cost of land clearance for organizations and individuals is estimated at VND6.33 trillion ($255 million), with the remaining funds allocated for compensation, clearance, forced eviction, and contingency costs. This is an increase of VND1.8 trillion ($73.5 million) compared to the preliminary cost estimate in the previously approved feasibility study for the project.
Similarly, the Xuyen Tam Canal improvement project, eagerly anticipated to contribute to urban beautification and alleviate pollution in various districts of HCMC, has recently had its draft compensation and resettlement plan approved for the section passing through Binh Thanh District. This plan involves the acquisition of 537,100m2 of land, affecting 2,077 households, including 824 partial and 1,253 full acquisitions.
Meanwhile, the North bank of Doi Canal improvement project, encompassing six wards in District 8, was approved by the HCMC People's Council at the end of 2023 with a total investment of nearly VND5 trillion ($201.5 million), three-thirds of which is for compensation. Statistics from the People's Committee of District 8 reveal that 1,633 households will need to be cleared and relocated, including 1,023 full relocations.
The HCMC Urban Infrastructure Construction Investment Projects Management Board (main investor) confirmed that at the time of approval, the project's compensation and resettlement costs were estimated at around VND3.5 trillion ($141 million). However, with the application of the new compensation policy under the 2024 Land Law, the costs for payments and support to affected residents are expected to increase by an additional VND2.48 trillion ($100 million).
The HCMC – Moc Bai Expressway project has the significant advantage of primarily involving agricultural land. The city is leveraging the special mechanisms of Resolution 98 and the 2024 Land Law to ensure that residents benefit maximally when handing over land from April 2025 to facilitate the commencement of the first technical infrastructure relocation package of the project. In Cu Chi District, 11 relevant communes have been instructed to distribute land compensation and support the resettlement process of affected people.
For the Xuyen Tam Canal improvement project, Deputy Head Nguyen Van Quang of the Land Clearance Compensation Board of Binh Thanh District stated that the new compensation regulations and policies of the 2024 Land Law, the compensation plan ensure more favorable outcomes for residents. In particular, HCMC is considering issuing policies to support houses on and along canals for each case based on the duration of use, with the maximum support level being 70 percent of the land compensation value.
Those who do not meet the criteria for social housing are also planned for suitable support. Households allocated resettlement land plots will receive additional temporary accommodation allowances while waiting for the completion of their new homes, with an allowance for six months from the date of signing the resettlement land plot acceptance record.
The application of the new Land Law will result in increased compensation costs for this project compared to the approved estimate of VND13 trillion ($523.8 million). After approval, this amount will be disseminated to all affected households, expectedly from this December, and the entire site will be handed over for project construction in April 2025.
Deputy Director Vo Trung Truc of the HCMC Department of Natural Resources and Environment stated that the department's approach is to apply the best policies to ensure the rights of those affected by projects. For example, for the North bank of Doi Canal project, the Department of Natural Resources and Environment has proposed to the HCMC People's Committee that households with houses on or along the canal within the project area be provided with sufficient funds to purchase at least one minimum resettlement housing unit.
In addition, households may also be considered for installment payments for apartments in the resettlement area with a maximum term of 15 years. The Department of Natural Resources and Environment has submitted a proposal to the Chairman of the HCMC People's Committee regarding a number of support policies for those whose houses on and along canals are acquired.
This policy helps to address previous obstacles in implementing projects involving the acquisition of houses and land on and along rivers and canals, while also increasing the level of support for affected people, ensuring that those whose land is acquired have a stable life.
