Ho Chi Minh City’s Ring Road 2: Overcoming Challenges for a Strategic Transportation Network
Ho Chi Minh City’s Ring Road 2, a pivotal transportation project, has faced setbacks with 14 km remaining unfinished as of 2025, nearly two decades since its inception in 2007. With a total planned length of 64 km, the project aims to enhance the city’s connectivity and alleviate traffic congestion.
Ring Road 2, Section 3, a 2.7 km stretch connecting Pham Van Dong Street to Go Dua intersection on National Highway 1, has been stalled for over five years.
In a recent report to the Ho Chi Minh City Departments of Finance and Construction, the city’s Transport Project Management Unit highlighted the stagnant progress of Section 3. With a total investment of over VND 2,700 billion, the project has been undertaken by Van Phu Bac Ai Joint Stock Company through a build-transfer contract, including a significant land compensation cost of VND 1,800 billion.
Since its commencement in 2017, only about 44% of the work has been completed before construction halted in March 2020. The site is now abandoned, with many structures deteriorating and overgrown with vegetation. Some areas have been utilized by locals as shortcuts or grazing grounds for livestock.
The primary cause of the prolonged delay is the challenges in land compensation and clearance in Thu Duc City, leaving several sections yet to be handed over. Additionally, the investor is awaiting the signing of a contract supplement related to the adjustment of construction value and land valuation before proceeding with the remaining work.
To address this situation, the Transport Project Management Unit has urged relevant agencies to resolve these issues promptly, especially by finalizing project adjustments, signing the contract supplement, and allocating land for investor payment. Thu Duc City authorities have also been instructed to expedite land compensation and hand over the remaining site areas, while the investor needs to transfer the remaining VND 142 billion for land clearance to restart the project.
During a meeting on April 17, 2025, Ho Chi Minh City Vice Chairman Bui Xuan Cuong emphasized the need to tackle these challenges to resume construction soon. This proactive approach aims to prevent further budget waste and reduce negative impacts, including increased investment costs and interest rates associated with the build-transfer contract.
Beyond Section 3, Ho Chi Minh City is also actively investing in the remaining sections of Ring Road 2 to gradually complete the entire route. Specifically, Sections 1 and 2, spanning 3.5 km and 2.75 km, respectively, have entered the preparation phase. On April 19, 2025, the city commenced infrastructure relocation and mine clearance work for these sections, with construction expected to begin in September 2025.
The total investment for the first phase of construction in Sections 1 and 2 is VND 5,239 billion, while land compensation and clearance are estimated at VND 8,627 billion, affecting 1,154 cases and requiring the acquisition of approximately 62 hectares of land. The city plans to commence construction in Q3 2025 and complete it by Q2 2027.
According to Mr. Luong Minh Phuc, Director of the Transport Project Management Unit, the completion of Sections 1 and 2 will connect seamlessly with Section 3, fully enclosing Ring Road 2 within Thu Duc City. This continuous route will enhance eastern region connectivity, reduce congestion at gateways, and foster urban development in peripheral areas.
The Transport Project Management Unit is working diligently with consultants to finalize designs, establish cost estimates, and select contractors, aiming for an early commencement of construction. The unit is committed to making Ring Road 2 operational by April 30, 2027.
As per the master plan, the Ring Road 2 project is divided into two investment phases. Phase 1 involves constructing two parallel roads within a 67-meter width, featuring 6-meter sidewalks and three lanes on each side. Phase 2 will focus on building a six-lane main route in the reserved central area, completing the entire road as per the approved design.
Section 4, the final stretch of Ring Road 2, spanning 5.3 km and connecting National Highway 1 with Nguyen Van Linh Street, has a total investment of VND 16,400 billion. This section is yet to commence, marking the last piece of the puzzle in realizing the approved Ring Road 2 project.
Unraveling the Challenges: A Nearly Two-Decade Journey
Land compensation and clearance challenges in Thu Duc City have been a significant hurdle, leaving several sections of Ring Road 2 unfinished.
Ho Chi Minh City is actively investing in the remaining sections of Ring Road 2 to gradually complete the entire route.
The total investment for the first phase of construction in Sections 1 and 2 is substantial, with a significant portion dedicated to land compensation and clearance.
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