Rạch Xuyên Tâm Improvement Project Faces Delays Due to Compensation and Relocation Challenges
The Ho Chi Minh City Urban Infrastructure Investment Project Management Unit (Urban Infrastructure Unit), the investor and manager of the Rạch Xuyên Tâm improvement project, has announced delays in compensation and relocation progress. The project, which involves dredging and upgrading the Rạch Xuyên Tâm canal, was expected to commence with the XL03 package on June 30, 2025, and the XL01 and XL02 packages by September 2, 2025. However, these timelines are now at risk due to challenges in acquiring the necessary land.
According to the Urban Infrastructure Unit, the project officially started a month ago with the XL03 package in Go Vap district, but as of now, there are still 51 cases pending land handover. These cases mainly involve legal complications related to private land sales, transfers, and donations, as well as the provision of social housing for those who are not eligible for compensation or land support. To address this issue, the People’s Committee of Go Vap district aims to complete the compensation process by the end of June 2025.
Rạch Xuyên Tâm improvement project faces land acquisition challenges
The situation is more challenging for the XL01 and XL02 packages in Binh Thanh district, affecting approximately 2,077 households. Of these, 1,230 households require complete relocation, and the total compensation and support cost is estimated at VND 13,221 billion. So far, the Binh Thanh district authorities have met with 1,660 out of 2,077 households, with 417 cases pending due to awaiting conclusions from the City People’s Committee regarding the handling of private land sales, subdivisions, and other issues.
Among the households met, only 510 have agreed to the compensation, support, and relocation plans, resulting in a low disbursement rate of around 10% of the funds transferred by the investor to the Binh Thanh district compensation unit in 2024. The district is actively engaging and encouraging the remaining households to come to an agreement.
Additionally, there are ongoing challenges with 20 cases in the Binh Hoa residential area, under the management of Tan Thuan Investment and Construction One-Member Company Limited, which have not yet handed over land for the XL03 package. Furthermore, 382 cases are entangled in private transfers from July 1, 2014, and complications in establishing compensation profiles for subdivisions on the 2002 regular land map. Consequently, the People’s Committee of Binh Thanh district has been unable to hand over the land to the investor for the XL01 and XL02 packages as scheduled for June and September 2025.
To ensure the project’s progress, the Urban Infrastructure Unit has requested the City People’s Committee to direct relevant units and departments to promptly address these challenges. Specifically, they have urged the Binh Thanh district to guarantee the handover of land for the XL03 package by the end of June 2025 and for the XL01 and XL02 packages before September 2, 2025.
The Rạch Xuyên Tâm improvement project, which includes the section from Nhiêu Lộc – Thị Nghè canal to the Vàm Thuật river, commenced on May 10, 2025, with the XL03 package in Go Vap district. The project has a total investment of VND 17,230 billion in state budget funds and is planned for implementation from 2023 to 2028.
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