New Highway Between Ho Chi Minh City and Binh Duong: A Boon for the Real Estate Market?
Business Today – 04/15/2022
Vietnam’s Ho Chi Minh City (HCMC) is set to invest around 2 trillion VND to construct a 1.65 km long, 60-meter wide road connecting the Gò Dưa intersection to the Độc Lập junction in Binh Duong. This road will serve as a link to the Ho Chi Minh City – Thu Dau Mot – Chon Thanh expressway.
The Ho Chi Minh City – Thu Dau Mot – Chon Thanh expressway spans nearly 55 km, passing through Ho Chi Minh City, Binh Duong, and Binh Phuoc. Each of these localities is responsible for implementing the segment that falls within its jurisdiction.
Binh Duong Province will invest in the construction of a 45.7 km stretch of the expressway, from the Ho Chi Minh City Ring Road 3 to the border between Binh Duong and Binh Phuoc provinces. The project has been approved by the Binh Duong Provincial People’s Council for investment, totaling over 17.4 trillion VND under the build-operate-transfer (BOT) model. The preparation and construction phase is expected to take place from 2023 to 2027.
The 7 km section of the expressway passing through Binh Phuoc Province will be funded by public investment, amounting to approximately 1.785 trillion VND.
The road segment connecting the Gò Dưa intersection to the Vành Đai 2 TPHCM (Ho Chi Minh City Ring Road 2) and the Độc Lập junction, bordering Binh Duong Province, will be transformed into a high-speed route. This stretch will span approximately 1.65 km and have a width of 60 meters. The road will start from the Gò Dưa intersection – Vành Đai 2 TPHCM (Thủ Đức District) and run along Provincial Road 43. The total investment for this project is estimated at around 2 trillion VND, with land clearance costs accounting for approximately 1.66 trillion VND.
According to the Ho Chi Minh City Department of Transport, the scale of this road segment has been included in the Master Plan of Thủ Đức District, which falls under the jurisdiction of Ho Chi Minh City, until 2040. The plan is currently being reviewed by the Ministry of Construction for submission to the Prime Minister in the near future.
Moreover, the expressway segment passing through Binh Duong Province is being urgently processed for project approval and implementation.
Therefore, the Ho Chi Minh City Department of Transport believes that it is necessary to commence the construction of the connecting road and complete the Gò Dưa intersection as soon as possible in order to align with the progress of the Ho Chi Minh City – Thu Dau Mot – Chon Thanh expressway investment within Binh Duong Province.
The Ho Chi Minh City Department of Transport has recommended that the Ho Chi Minh City People’s Committee assign the Department of Planning and Investment as an advisor and submit a decision regarding investment tasks and fund allocation for the project this year. Additionally, the Department of Planning and Investment, in coordination with the Department of Finance, will advise the Ho Chi Minh City People’s Committee on funding sources and prioritize budget allocation to implement the project during the 2024-2028 period.
The entire Ho Chi Minh City – Thu Dau Mot – Chon Thanh expressway is expected to be completed before 2030, enhancing connectivity between Ho Chi Minh City and the provinces in the key economic zone in the South and Central Highlands region.
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