The Beltway 4 Project: Ho Chi Minh City Chairman’s ‘Urgent’ Proposal

On August 12, Ho Chi Minh City People’s Committee Chairman Phan Van Mai signed an urgent document to the Prime Minister proposing special mechanisms and policies to be applied to the entire Ring Road 4 in Ho Chi Minh City.

Accordingly, the People’s Committees of Ho Chi Minh City, Ba Ria-Vung Tau, Dong Nai, Binh Duong, and Long An provinces unanimously proposed 10 special mechanisms and policies for the development of Ring Road 4 in Ho Chi Minh City.

Specifically, they proposed that the Prime Minister assign the provincial People’s Committees as managing authorities and allow them to use local budgets and other legal capital sources to invest in Ring Road 4 projects. They also requested permission to use local budgets to support other localities in implementing public investment activities for inter-provincial projects, such as the Thu Bien Bridge between Dong Nai and Binh Duong provinces.

They suggested that the central budget support Binh Duong, Dong Nai, and Ba Ria-Vung Tau provinces with 50% of the total budgeted capital for the project. Long An province, on the other hand, proposed a higher level of support from the central budget, requesting 75% of the total budgeted capital for their portion of the project.

The local authorities also proposed that the Prime Minister allow the People’s Committees of Ba Ria-Vung Tau, Dong Nai, Binh Duong, and Long An provinces to approve adjustments to the master plans for functional areas, urban master plans, and specialized infrastructure planning for construction projects that have already been approved by the Prime Minister.

The localities also proposed that the total investment value of the Ring Road 4 projects in each locality be allowed to be carried over to the medium-term public investment plan for 2026-2030, without being counted towards the total investment of the programs and projects to be implemented in the subsequent medium-term public investment plans of each locality.

For the section of Ring Road 4 under the National Assembly’s competence to decide on investment policies (the section under the management of the People’s Committee of Long An province), it was proposed that the National Assembly authorize the Prime Minister to decide on the investment policies for the project.

The procedures, competence, and processes for appraisal and investment decision for the component projects shall be similar to those for Group A projects, in accordance with the regulations on public investment for the section located in Long An province.

Within two years from the issuance of the National Assembly’s resolution on Ring Road 4 in Ho Chi Minh City, the heads of competent authorities are allowed to consider and decide on direct contracting during the implementation of the project for consulting packages, packages for technical infrastructure relocation, and packages for compensation, support, and resettlement. The procedures for direct contracting shall comply with the provisions of the law on bidding.

Ho Chi Minh City and the provinces also proposed a mechanism for exploiting common construction minerals and a mechanism for managing the works after investment and capital settlement.

In the document, the People’s Committee of Ho Chi Minh City also proposed that the Prime Minister approve in principle the development of a resolution to be submitted to the National Assembly on the issuance of special mechanisms and policies for the construction projects of Ring Road 4, in order to overcome difficulties and obstacles and accelerate the progress of the project.

At the same time, the People’s Committee of Ho Chi Minh City was assigned to coordinate with the provinces and the overall project consulting unit to study and develop special mechanisms and policies applicable to all construction projects of Ring Road 4, to be submitted to the competent authorities for decision in August 2024.

The People’s Committee of Ho Chi Minh City also proposed that the Prime Minister assign the Ministry of Planning and Investment to coordinate with the Ministry of Transport and relevant ministries and sectors to appraise and report to the Prime Minister in September, for submission to the National Assembly for approval at the end of 2024.

At the 4th Southeast Region Coordination Conference held on August 10, Prime Minister Pham Minh Chinh requested the ministries, sectors, and localities assigned to take the lead in urgently completing the assigned tasks related to regional and inter-regional projects, including the proposal for an International Financial Center in Ho Chi Minh City, a Free Trade Center in Ba Ria-Vung Tau, and connecting road systems.

The Prime Minister also assigned Ho Chi Minh City to take the lead in submitting outstanding mechanisms and policies under the competence of the National Assembly for the Ring Road 4 project in Ho Chi Minh City at the National Assembly’s session in November 2024.