Prime Land Parcels Allocated for Payment in Ho Chi Minh City’s $430 Million Flood Control Project

The project team for the “Tidal Flood Control in Ho Chi Minh City Considering Climate Change (Phase 1)” initiative—established under Decision 1970 by the Ho Chi Minh City People’s Committee (also known as the 1970 Task Force)—has submitted a proposal to the city’s authorities. This proposal outlines a land fund payment scheme for the project’s Build-Transfer (BT) contract.

According to the BT contract signed in 2016, the land fund designated for compensating the investor in the 10-trillion-VND flood control project included seven land plots. However, after prolonged delays, the city’s authorities reassigned four of these plots to other investors for different projects.

This reduction leaves only three of the original seven plots available for payment under the initial contract. The 1970 Task Force argues that settling the contract with just these three plots, supplemented by cash, lacks legal grounding and fails to align with current land value assessment regulations. Such an approach could undermine economic and social efficiency, potentially delaying progress and wasting resources.

Based on these analyses, the 1970 Task Force recommends that the project be compensated with land at equivalent value. Any discrepancies between the BT project’s value and the land’s value at the time of settlement should be addressed through cash payments.

In addition to the three remaining plots from the 2016 BT contract, the Task Force proposes adding two new plots (420 Nơ Trang Long and 257 Trần Hưng Đạo). This brings the total land fund for investor compensation to five plots, as follows:

C8A – Zone A, South Saigon New Urban Area (Tân Mỹ Ward), approximately 5,500 m², zoned for mixed-use including commercial services and apartments;

232 Đỗ Xuân Hợp (Phước Long Ward), 14,058.8 m², zoned for mixed-use including residential, public services, and green spaces;

762 Bình Quới (Bình Quới Ward), 3,100.9 m², zoned for existing residential use with new construction;

257 Trần Hưng Đạo (Cầu Ông Lãnh Ward), 2,374 m²;

420 Nơ Trang Long (now Vũ Ngọc Phan, Bình Lợi Trung Ward), nearly 34,919 m².

According to preliminary estimates by the Ho Chi Minh City Land Fund Development Center, the combined value of these five plots represents approximately 81.1% of the BT project’s value before adjustments. These plots have not yet undergone planning metric revisions. Additionally, the estimated value excludes a 4.2-hectare plot in Phước Long Ward.

The 1970 Task Force confirms that replacing ineligible land plots—as outlined in Official Dispatch No. 439/TB-VP dated August 25, 2025, from the Ho Chi Minh City People’s Committee—with the two new plots at 420 Nơ Trang Long and 257 Trần Hưng Đạo aligns with government resolutions, ministerial guidance, and directives from Deputy Prime Minister Nguyễn Hòa Bình.

These two plots also comply with land value assessment regulations for BT projects, as stipulated in Decree 257/2025/NĐ-CP dated October 8, 2025, issued by the Government.

“Should additional issues arise, the Task Force will continue negotiations with the investor to update the contract appendix,” the document states.

To resolve bottlenecks and accelerate project progress, the 1970 Task Force urges the city’s authorities to approve the inclusion of the two new plots in the BT contract appendix. They also request authorization for a fourth negotiation session with the investor to finalize documents and secure preliminary approval before submission to the Ho Chi Minh City People’s Committee and the Party Committee for review and approval.

The “Tidal Flood Control in Ho Chi Minh City Considering Climate Change (Phase 1)” project, with a total investment of nearly 10 trillion VND, is a key initiative for the city.

Upon completion, the project will manage tidal flooding in the city center and along the Saigon River, protecting an area of approximately 570 km² and benefiting over 6.5 million residents. It is also expected to enhance environmental conditions, improve urban infrastructure, and drive socioeconomic development.