Ho Chi Minh City set a target of reaching approximately VND110 trillion (US$4.3 billion) in total disbursement, including carryover capital from 2024.
Proactive site handover
In late March, various households affected by the dredging, environmental improvement and infrastructure construction project along Xuyen Tam Canal through Go Vap and Binh Thanh districts, Ho Chi Minh City voluntarily dismantled their homes and structures to hand over sites to the investor for project commencement.
The project has a total investment of over VND17,229 billion (US$671 million), comprising more than VND13,937 billion (US$544 million) allocated for compensation, resettlement support and technical infrastructure relocation.
Among the early land handover cases, resident Nguyen Thi Nga from Ward 5, Go Vap District, shared that she lives in a less than 20-square-meter tiny house after handing over 19 square meters for the project implementation. Initially, upon receiving the notification from local authorities regarding land acquisition, she was initially hesitant, but later agreed to accept compensation and dismantle her house after being encouraged by local authorities.
Not far away from the house of the case above, the family of resident Nguyen Tien Ngoc from Ward 5, Go Vap District, has also completed the demolition of the house on a more than 300-square-meter plot of land.
According to the resident, the repeated propaganda efforts by local authorities to affected residents helped him realize that the project is not only crucial for environmental improvement but also contributes to enhancing the overall quality of life for the locals.
Therefore, his family agreed to accept the compensation cost and promptly handed over the site for the project.
Currently, many households in District 8 are also rushing to dismantle their homes and hand over the site for the dredging, infrastructure construction and environmental improvement project along the northern bank of Doi Canal.
According to Chairwoman of the Hung Phu Ward People’s Committee, District 8 Do Thuy Van, there have been 803 out of a total of 1,617 cases affected by the project in the ward. So far, about 90 percent of the households subject to land acquisition have agreed to hand over their land to commence the project.
Head of the District 8 Land Clearance Compensation Board Nguyen Hong Thuan informed that the district would complete negotiations with all affected households by the end of March.
District 8 is also focusing on handing over key land areas to ensure the project commencement by April 30; and strives to complete 20 percent of the land clearance work by the first quarter of 2025, 60 percent by the second quarter, 90 percent by the third quarter and essentially finalize the process by the end of the year.
Efforts to ensure project progress
Head of the Land Clearance Compensation Board of Go Vap District Nguyen Van Hung reported that 138 cases in the district are affected by the Xuyen Tam Canal renovation project, with a total compensation budget of over VND535.4 billion (US$20.9 million).
As of mid-March, 91 cases have agreed to the compensation plan. It is expected that the district will hand over the entire land area to the investor by April.
As for 43 cases receiving compensation decisions issued before August 1, 2024 (the effective date of the 2024 Land Law), the Ho Chi Minh City Department of Natural Resources and Environment is reporting to the Ho Chi Minh City People's Committee to consider additional compensation costs.
The Ho Chi Minh City Department of Natural Resources and Environment is also reporting to the Ho Chi Minh City People's Committee to provide guidance on resolving cases involving land division, purchase and transfer through handwritten documents or bailiff’s reports.
Meanwhile, Binh Thanh District has 2,077 affected households, with a total land clearance compensation budget exceeding VND13.221 trillion (US$516 million). Among them, 381 have agreed to the compensation plan.
In a recent survey about project progress, Vice Chairman of the Ho Chi Minh City People’s Committee Bui Xuan Cuong urged Binh Thanh District along with relevant departments and agencies to continue compensation, support and resettlement efforts for residents affected by the Xuyen Tam Canal renovation project to ensure the project commencement in April 2025.
The Ho Chi Minh City Urban Infrastructure Investment Project Management Board is working with local authorities to accelerate land clearance compensation to start construction on the Xuyen Tam Canal renovation project in April and the dredging, infrastructure development and environmental improvement project along the northern bank of Doi Canal in early September.
The unit now oversees and manages 89 projects with a total budget of over VND11,220 billion (US$438 million) for this year; and coordinates with relevant units to accelerate land clearance and construction, aiming to achieve a disbursement rate of at least 95 percent by the end of the year.
The Ho Chi Minh City Transport Infrastructure Investment Project Management Board also indicated that the unit has completed the placement of boundary markers for land clearance, compensation, support and resettlement for the first phase of the Ho Chi Minh City – Moc Bai Expressway investment and construction project.
The project is expected to allocate VND5,270 billion (US$206 million) for compensation, support and resettlement for the section passing through Ho Chi Minh City.
The land survey and measurement work is set to be completed in April, while approval of the compensation and resettlement sub-project is scheduled for June.
These works will facilitate the groundbreaking of the sub-project for the construction of service roads and overpasses on September 2, as well as the expressway construction in early 2026.
Director of the Ho Chi Minh City Department of Finance Le Thi Huynh Mai stated that the city's allocated public investment budget for 2025 is more than VND84,149 billion (US$3.3 billion).
As of mid-March, Ho Chi Minh City has fully allocated the central government funds, including 79.3 percent of the allocated local funds and the remaining 20.7 percent reserved as contingency capital.
For 2025, Ho Chi Minh City set a target of achieving a public investment disbursement rate of at least 95 percent.
The Ho Chi Minh City Department of Finance has also consulted and provided initiatives on tasks and timelines for specific project groups.
Regarding projects that received land clearance compensation funds in 2024, relevant agencies, units and localities must complete disbursement no later than April 2025.
All compensation funds must undergo final procedures and be fully disbursed by June, and land handover must be completed by September.
