Ho Chi Minh City trades prime land for urgent infrastructure upgrades

Ho Chi Minh City is taking a bold step to accelerate its critical infrastructure development by leveraging its land assets. The recent approval by the City People's Council to utilize 33 land plots for Build-Transfer (BT) contracts marks a significant shift in how the city plans to fund its ambitious projects.

“

This is seen as a step to concretize the policy of mobilizing non-budgetary resources in the context of the city's very large infrastructure investment needs.

With an estimated need of over 3 million billion VND for the 2026-2030 period, and only about 1 million billion VND secured, the funding gap is immense. This new policy, which allows for the exchange of land for infrastructure, is a crucial mechanism to attract private investment and bridge this deficit. The city is prioritizing projects that address pressing issues such as environmental pollution, wastewater treatment, flooding, and traffic congestion.

“

This is the first time Ho Chi Minh City has established a land fund of this scale to prepare counterpart funding for BT projects.

This strategic use of prime real estate, including plots in the coveted Thủ Thiêm New Urban Area, signals the city's commitment to overcoming its infrastructure challenges. Projects like the Cần Giờ Bridge, Phú Mỹ Bridge 2, and the Rạch Chiếc National Sports Complex, along with vital wastewater treatment facilities, are set to benefit. The principle of equal value exchange is being emphasized to ensure financial feasibility and minimize the burden on the state budget.

“

This is also a signal affirming that Ho Chi Minh City is ready to invite investors to solve urgent infrastructure projects.

As Mr. Lê Hoàng Châu, Chairman of the Ho Chi Minh City Real Estate Association, notes, this is the first time the city has designated such a large land fund for BT đối ứng (counterpart funding). This coordinated effort from the City Party Committee's direction to the People's Council's institutionalization demonstrates a unified approach to attracting investors. For Ho Chi Minh City, this is not just about building roads and bridges; it's about enhancing urban quality, improving living conditions, and expanding development space, all while creating landmark public spaces like the Bến Nhà Rồng-Khánh Hội Park.

“

These are all projects with large total investment, requiring commensurate counterpart resources to ensure the feasibility of the financial plan.