Billions of VND spent on connecting HCMC and Long An
There has hardly been a time when the west of Ho Chi Minh City, particularly Long An, has been mentioned as much as it is now. The continuous flow of positive information about transport infrastructure investments has helped to bridge the gap between HCMC, Long An, and other regions.
Recently, Ho Chi Minh City allocated VND 17,200 billion for the construction of two new roads connecting to Long An. The first project involves extending Vo Van Kiet Street (in HCMC) to Duc Hoa (in Long An) with a total investment of approximately VND 8,400 billion. This route will also include a fully integrated interchange with Ho Chi Minh City’s Ring Road 3. The HCMC Department of Transport will prepare a pre-feasibility study report for submission to the competent authorities for investment policy approval for the 2024–2030 period.
The second route is a new 8-kilometer-long road in the northwest, with a width of 40 meters and a total investment of about VND 8,800 billion in the form of a public-private partnership (PPP).
These two routes, once completed, will facilitate travel from the west to the center of HCMC through Vo Van Kiet Street, helping to alleviate frequent traffic congestion in Binh Chanh and Hoc Mon districts (HCMC) and Duc Hoa district (Long An). They will also form a cross-city axis connecting Ring Road 2 to Ring Road 4 and the dynamic Duc Hoa axis.
This will contribute to more efficient cargo transportation from local industrial parks to important ports in HCMC and Long An.
Infrastructure development has helped reduce travel time from the west to the center of HCMC. Illustration
In the northwestern region, to enhance connectivity with Long An, the HCMC Department of Transport also proposed a project to widen Nguyen Van Bua Street to 32-40 meters (from Ngã Ba Giồng to Tỉnh lộ 9 Bridge) and to build two new bridges, each 58 meters long and 17.5 meters wide. In addition, the existing Tỉnh lộ 9 Bridge will be widened. The total investment for this project is over VND 2,421 billion, funded by the HCMC budget, and will be implemented during the 2024–2028 period.
Most recently, Long An Province announced that in 2024, it was allocated VND 2,886 billion for investment in local transport infrastructure projects. In particular, the focus is on key projects that enhance regional connectivity, such as Ho Chi Minh City’s Ring Road 3 and Ring Road 4, as well as provincial roads 823D and 830E, National Highway 50B, and National Highway N1.
Among these, the 823D provincial road, which starts in Duc Hoa, Long An, and ends in HCMC, is expected to be completed by the end of 2024, with a total length of 14.274 kilometers and a circular intersection at Hau Nghia, Duc Hoa.
In addition to the efforts to improve infrastructure for easier travel to and from HCMC and other regions, Long An has been actively attracting investments to its industrial parks, which has been a driving force for the local socio-economic landscape, including the real estate sector.
Specifically, Long An has planned and is implementing investment promotion for a list of 27 technical infrastructure projects for industrial clusters in the province. By 2030, Long An aims to increase the number of industrial parks from 20 to 51, with a total area of 12,490 hectares. At the same time, the province plans to add approximately 37 industrial parks covering nearly 20,000 hectares and to develop 28 new industrial clusters with a total area of more than 1,800 hectares.
With this expansion, Long An becomes the second locality in Vietnam (after Binh Duong) in terms of industrial park area, offering significant opportunities for investment attraction.
Real estate market expected to rebound from the end of this year
Long An’s real estate market, which was once quiet due to general fluctuations, has now been revitalized thanks to infrastructure development, large-scale projects, and the province’s investment promotion policies. These factors have boosted investor confidence. Real estate transactions in the first half of 2024 showed signs of a rebound compared to the same period last year, and this trend is expected to continue in the last quarter of 2024 and beyond, as Long An currently enjoys multiple advantages.
According to the Long An Real Estate Market Report for June 2024, Ben Luc, Duc Hoa, and Can Giuoc are the three localities with the highest increases in rental property demand, with respective growth rates of 10%, 15%, and 21% compared to the previous month.
Local brokers noted that while the Long An real estate market was slow last year, transactions have improved this year. Property prices in Long An remain stable, and most investors are in it for the long term, with fewer speculators. Price increases are based on growing demand and improvements in local infrastructure and the economy.
Apartment prices range from VND 20-24 million per square meter. Land prices vary from VND 16-55 million per square meter. Townhouses in Long An are priced from VND 4.5 to 8 billion per unit. Villas have an average price range of VND 8-15 billion per unit, while riverside villas range from VND 18 to 40 billion per unit.
Interest in Long An real estate has shown signs of increasing in the first half of 2024. Source: batdongsan.com.vn data
In terms of supply, although Long An has abundant land resources, there are relatively few well-planned residential area/urban area projects. In recent years, Long An has become a playground for businesses with a long-term development orientation. Some new projects are creating highlights in the local real estate market.
For example, the An Huy My Viet project in Duc Hoa, Long An, developed by An Huy Real Estate Joint Stock Company, has recently attracted attention. This 60-hectare project includes 2,500 land, villa, townhouse, and shophouse products. Thanks to its strategic location near major transport routes such as National Highway 22, National Highway N2, Ring Road 3, Ring Road 4, Provincial Road 10, National Highway 1A, Provincial Road 823, and Provincial Road 824, the project offers easy connectivity to HCMC’s center. Moreover, the residential area is located within a planned 7,000-hectare industrial park zone, featuring a well-planned layout, abundant green spaces, and a diverse range of lifestyle experiences, contributing to the appeal of real estate in HCMC’s western region. Here, residents can enjoy a green living environment with numerous job opportunities, business prospects, and long-term investment potential.
Indeed, over the past decade, Long An has quietly proven its potential through the development of well-established residential areas and townships. In Duc Hoa, Can Giuoc, and Ben Luc, there are now large-scale projects with high occupancy rates and significant price appreciation over the years. These projects have transformed the landscape of the Long An market, backed by the relentless efforts of local real estate businesses.
Recently, the expected surge in land prices in HCMC has also encouraged buyers to look towards satellite areas with high development potential, such as Long An. With its existing strengths, Long An’s real estate market is expected to gain momentum from the end of this year, continuing to attract buyers with its legal completeness and well-developed infrastructure.
Mr. Vo Huynh Tuan Kiet, Director of Residential CBRE Vietnam, shared that urban areas adjacent to rivers and industrial parks in the outskirts of HCMC have created a new trend in the real estate market. Townhouses, in particular, have been favored by individual investors who tend to be early adopters and trendsetters in the market.
“Improved transport connections have brought HCMC and its neighboring regions closer together,” he said. “As a result, the trend of choosing a second home, such as a townhouse or villa in a large-scale urban area, has become the new preference for Saigonese.”
Nevertheless, the market will undergo a process of self-regulation. Investors should be cautious about projects that lack legal completeness and refrain from excessive financial leverage.
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