Ho Chi Minh City’s 1.6km Road Expansion Project Faces Over $43 Million Cost Overrun

The upgrade and expansion project of Nguyen Duy Trinh Road, previously funded at over 832 billion VND, has now been increased to more than 1,859 billion VND, classified as a Group A project, and is set to be completed before 2028.

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During the 4th session of the 10th Ho Chi Minh City People’s Council, which opened on September 29th, delegates approved the municipal government’s proposal to adjust the upgrade and expansion project of Nguyen Duy Trinh Road—specifically, the section from Ring Road 2 to the entrance of Phu Huu Industrial Park.

The total investment for this project has been increased from VND 832.249 billion to VND 1,859.183 billion. The investment timeline has also been extended from the original 2017-2021 period to 2017-2028.

The upgrade and expansion of Nguyen Duy Trinh Road sees a cost increase of over VND 1,000 billion. (Illustrative image: Luong Y)

Initially, the project to upgrade and expand Nguyen Duy Trinh Road (formerly in District 2, now part of Long Truong Ward) had a total investment of VND 832.249 billion, classified as a Group B project, with completion expected between 2017 and 2021. However, the project remains unimplemented due to unresolved compensation and clearance issues.

According to the Ho Chi Minh City People’s Committee’s proposal, the increased investment is attributed to updated costs for compensation, support, resettlement (as per current land laws), infrastructure relocation, construction, and project management, in line with current regulations.

Specifically, the costs for compensation, support, resettlement, and infrastructure relocation amount to over VND 1,506.5 billion, an increase of VND 998.597 billion compared to the previous estimate, surpassing the total investment approved by the competent authority.

Following the capital increase, the project has been reclassified from Group B to Group A, with the Management Board of Traffic Construction Investment Projects as the investor. The project is expected to commence in Q4/2026 and be completed by Q4/2027.

Nguyen Duy Trinh Road has long been considered a traffic bottleneck in the former Thu Duc City area, with heavy traffic volumes leading to frequent congestion and accidents due to the high daily vehicle flow.

At the 4th session, the Ho Chi Minh City People’s Council will review and decide on several critical matters related to the city’s socio-economic development.

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