During the second session of the 10th Ho Chi Minh City People’s Council for the 2021–2026 term on the morning of July 24, the Ho Chi Minh City People’s Committee presented a proposal on mechanisms for incentives and financial support for investors participating in renovation and reconstruction projects of apartment buildings across the city.
As reported by the Ho Chi Minh City People’s Committee, over the past years, departments and localities have been instructed to accelerate the renovation and reconstruction of deteriorating apartment buildings to ensure resident safety and support the city’s urban revitalization goals. However, the implementation progress remains slow and has yet to meet the set targets.
Under the proposal, the specific support policies focus on providing 50 percent of funding support for technical infrastructure within the project, with a cap of VND10 billion (US$381,868) per project.
This includes connecting roads to the project, power supply and public lighting systems, telecommunications systems, water supply and drainage, wastewater treatment, solid waste management and public sanitation systems, and excludes technical infrastructure located inside the apartment buildings.
At the same time, the Ho Chi Minh City People’s Committee proposed a specific support policy offering 50 percent of financial assistance for resident relocation and compulsory removal, in accordance with official decisions, helping to lessen initial investment costs.
The incentive scheme will be financed through Ho Chi Minh City’s regular budget, while the Ho Chi Minh City Department of Construction is responsible for managing the budget estimates and assessing the value of supported infrastructure items.
