Ho Chi Minh City has two projects at risk of falling behind schedule and spilling over into the next year: the Rach Chuyen Tam and Bo Bac Kenh Doi projects.
“The cost of site clearance for these two projects will exceed VND 10 trillion when the new Land Law 2024 (new land price framework) is applied,” said Mr. Phan Van Mai, Chairman of the Ho Chi Minh City People’s Committee, as an example.
Chairman of the Ho Chi Minh City People’s Committee, Mr. Phan Van Mai.
Rach Chuyen Tam, approximately 6.2km long, connects Vam Thuat River to Nhieu Loc – Thi Nghe Canal and runs through two districts: Binh Thanh and Go Vap. Rach Chuyen Tam has three branches totaling over 1.9km in length: Cau Son, Binh Trieu, and Binh Loi.
In May 2002, the Ho Chi Minh City People’s Committee approved the Rach Chuyen Tam improvement project with a budget of about VND 123 billion. However, the project was not implemented. In October 2023, the Committee re-approved the project with a total cost of more than VND 9,600 billion, including VND 6,339 billion for site clearance, and the rest for construction and other expenses.
Mr. Phan Van Mai, Chairman of the Ho Chi Minh City People’s Committee, directed the acceleration of the Rach Chuyen Tam project, which runs through Binh Thanh and Go Vap districts. Accordingly, the project in Binh Thanh district will commence in April 2025, and the project in Go Vap district will start earlier, in August 2024.
Rach Chuyen Tam is about 6.2km long, connecting Vam Thuat River to Nhieu Loc – Thi Nghe Canal and running through Binh Thanh and Go Vap districts.
Earlier, in an interview with VTC News, Mr. Nguyen Toan Thang, Director of the Department of Natural Resources and Environment, affirmed that the new land price framework significantly promotes the disbursement of public investment capital.
According to Mr. Thang, the current regulations on resettlement prices have not yet received full agreement from the people. If the new land price framework is not issued in time, it will be very difficult to arrange resettlement for the people.
“If people cannot be resettled, they will not hand over the land, and if the land is not handed over, public investment projects cannot be accelerated, and disbursement will not be achieved,” analyzed the Director of the Department of Natural Resources and Environment.
Therefore, Mr. Thang believes that applying the new land price framework is crucial in promoting the disbursement of public investment capital for projects involving land retrieval in Ho Chi Minh City, especially for public and key projects.
The Rach Chuyen Tam and Bo Bac Kenh Doi projects were also mentioned by the Director of the Department of Natural Resources and Environment as two projects that will help accelerate public investment disbursement when the new land price framework is applied.
According to Chairman Phan Van Mai, the city’s task for the remaining six months is to disburse VND 10 trillion each month. Although the fourth quarter of 2024 is usually the peak period for site clearance compensation and new projects, close monitoring is necessary to achieve a 95% disbursement rate.
Therefore, Mr. Mai requested that investors focus on accelerating construction progress, completing dossiers for disbursement, and committing to monthly disbursement amounts. At the same time, they must also commit to monthly disbursement amounts, accelerate construction progress, complete dossiers for disbursement, and carefully review the “disbursement peak” of each project.
Regarding real estate projects, Mr. Mai requested that Vice Chairman of the City People’s Committee, Mr. Bui Xuan Cuong, and the Department of Construction focus on removing obstacles.
In the first six months, there were initially only 1-2 projects, but now five projects have been unblocked. In the last six months, more obstacles need to be removed so that these projects can continue construction and implementation, ensuring that capital flows in this year.
