Ho Chi Minh City struggles with land clearance for key projects

Ho Chi Minh City is facing significant bottlenecks in its key infrastructure projects due to delays in land clearance, resettlement, and legal procedures regarding land pricing. While the city was allocated 147,599 billion VND in public investment for 2026—a 22.6% increase from 2025—disbursement rates remain a challenge.

As of July 31, the city had disbursed 63,775 billion VND, reaching 43.2% of its planned budget. Difficulties include compensation issues, technical infrastructure relocation, and legal hurdles related to land and mud reception sites. These delays impact the continuity of construction, increasing costs and pressuring disbursement targets.

A notable example is the An Phu Intersection project, valued at 3,408 billion VND. The project has already undergone two schedule adjustments and is currently expected to be completed in the second quarter of 2027, hindered by over 22,000 square meters of unrecovered land along Luong Dinh Cua Street.