The HCMC Department of Natural Resources and Environment has just submitted a proposal to the municipal People's Committee outlining a plan to develop and exploit land resources in the vicinity of metro line stations 1 and 2, as well as the Ring Road 3 intersections.
This initiative is in line with the National Assembly’s Resolution No.98/2023/QH15, which provides HCMC with specific mechanisms and policies to pilot urban development following a public transport-oriented development (TOD) model.
Director of the above mentioned department Nguyen Toan Thang reported that agricultural land in the city is currently underutilized. Thousands of hectares of agricultural land owned by state agencies and organizations along the planned metro lines, Ring Road 3, and major traffic routes remain unexploited.
To address this, Director Thang proposed more sensible projects to use these land resources for resettlement areas, social housing, urban improvement, urban district establishment, and even bidding to gain more revenues for the city budget to fund other traffic projects.
Calculations show that by implementing the bidding of certain plots of land owned by state agencies adjacent to metro lines No.1, 2, and Ring Road 3 (during the 2025-2027 period), the city will invest VND8.6 trillion (US$342 million) in infrastructure development for these plots.
After this investment, the city is expected to earn VND116.1 trillion ($4.59 billion) from the bidding. In particular, the bidding for the plots along metro lines 1 and 2 are expected to generate VND25.3 trillion ($1 billion), while the one for those along Ring Road 3 are estimated to earn VND90.8 trillion ($3.59 billion).
Director Thang further added that the plan also proposes creating a land fund by compensating agricultural land with other land or housing in areas managed by organizations, households, and individuals. By implementing seven projects with a total compensation, support, and resettlement cost of over VND104 trillion ($4.1 billion), the city can acquire an additional land fund of 105 hectares, valued at no less than VND52.9 trillion ($2.1 billion).
This land fund can be used for resettlement and social housing construction. After completing these land fund projects, HCMC will have a total exploitable land area (with a construction density of 40 percent of the 90.3-hectare area) valued at a minimum of VND453.7 trillion ($18 billion).
Dr Pham Tran Hai from the HCMC Institute for Development Studies suggested that for suburban areas with low population density, the government could compensate residents, reclaim land, and reorganize urban spaces.
For existing urban areas, readjusting land to reorganize the space around metro stations would be more suitable. In this case, the government would not reclaim land, but residents would contribute their land use rights to urban development projects and receive smaller land areas or floor areas. The remaining land area could be used for parks, social facilities, technical infrastructure, and project management costs.
“This model has been strongly applied in South Korea, Japan, and Brazil, contributing significantly to urban development in these countries during the 20th century. This model can be fully applied to Hanoi and HCMC,” said Dr Pham Tran Hai.
He also pointed out the advantages of developing a TOD model in the city, saying that Article 219 of the 2024 Land Law allows for the contribution of land use rights and land readjustment. This is the legal basis for reorganizing urban spaces with the participation (contributing land and receiving a smaller land area) of the local community.
The resources generated from land and from development projects under the TOD model create a mutually supportive process, driving socio-economic growth not only for the project area but also for the surrounding ones.
