Becamex Group Proposes Expanding TOD Model to National Railways, Ports in Vietnam

Becamex Group has put forward a significant proposal to expand the application of Transit-Oriented Development (TOD) models in Vietnam, suggesting their use not only for urban rail but also for national railways, ports, logistics centers, and other major transportation hubs. The proposal was presented by Mr. Nguyễn Thế Duy, Deputy General Director of Becamex Industrial and Development Investment Corporation, during a consultation workshop on draft special urban development laws organized by the Ho Chi Minh City People's Committee.

Central to Becamex's proposal is the idea of reclaiming land from underperforming or problematic sites to create TOD zones. This includes converting outdated industrial facilities, businesses causing pollution, areas not aligning with urban planning, dilapidated traditional markets, and surplus land into integrated urban developments. The aim is to optimize land use along key transportation corridors, transforming traditional production areas into high-end urban and service complexes.

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The TOD model is a tool for reorganizing development space to rebuild cities and create financial resources for infrastructure development.

Becamex argues that this approach can minimize legal and social risks, as well as reduce the initial financial burden on the state and investors for land clearance. By allowing for asset and land swaps, the process of compensation can be accelerated, fostering greater consensus among displaced residents and businesses. This also aims to attract private capital for urban redevelopment through transparent future financial obligation offsets.

Furthermore, Becamex suggests strengthening the state's economic role within special urban development laws, recognizing state-owned enterprises as crucial instruments for developing public sectors like infrastructure, logistics, industrial zones, healthcare, and education. Mr. Nguyễn Ngọc Hòa, Chairman of the Ho Chi Minh City Business Association, supported expanding public-private partnerships but urged for broader application beyond the current limitations in the draft law, particularly in infrastructure development, citing the potential for private sector management of state-funded metro lines.

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We can invest entirely in public metro lines but hand over their management to the private sector, freeing up state resources and creating opportunities for private participation.