HCMC – Selling land along metro lines and Beltway 3 may generate VND120 trillion for HCMC, according to a plan submitted to the city government by the Department of Natural Resources and Environment.
The department said the city has thousands of hectares of underutilized agricultural land and state-managed plots along planned urban railway lines and Beltway 3. This inefficiency comes at a time when the city urgently needs funds for urban railway projects.
The Land Law of 2003 requires commercial housing developers to negotiate and fully compensate landowners. This process complicates forced land acquisition for project developers and limits the availability of social housing and resettlement land.
To address these issues, the city proposes creating land funds for auction to real estate developers. These funds would also support resettlement and social housing construction. The transit-oriented development (TOD) model will guide urban development around public transport.
The plan involves expanding compensation boundaries at stations and traffic intersections during infrastructure projects. The surplus land will be auctioned, generating funds for social housing and resettlement.
According to the plan, an initial investment of VND8.64 trillion in infrastructure is expected to yield over VND116.1 trillion from land auctions. Selling land along metro lines 1 and 2 could bring in nearly VND25.3 trillion, while land along Beltway 3 is projected to generate around VND90.85 trillion.
Significant revenue is expected from auctioning specific land parcels. The 152-hectare land of the Coconut Plantation could bring in VND42.73 trillion. The 29-hectare plot of Nhatico Company is projected to fetch over VND8.1 trillion, and the 200-hectare land of HCMC Crop Company is expected to yield VND40 trillion.
The plan also suggests compensating agricultural land with other lands managed by organizations, households, and individuals, totaling over VND100 trillion in value. If half of these entities accept monetary compensation, the payout is estimated at VND50.6 trillion. This approach could add 105 hectares of land valued at a minimum of VND52.9 trillion for resettlement and social housing.
Upon completing these land fund projects, HCMC will have 90.3 hectares of exploitable land, valued at least VND453.68 trillion.
Properly utilizing land along metro lines 1 and 2 and Beltway 3 could generate substantial revenue for the city budget, facilitating investments in key projects and attracting commercial housing developers, the ministry emphasized.
