On the afternoon of 19/6, the Ho Chi Minh City People's Council approved the investment policy for the urban redevelopment project in the Ma Lang and Cho Ga - Gao areas. This project will be implemented under a public-private partnership (PPP) model, specifically a build-transfer (BT) contract, with an estimated total investment capital of over 16,369 billion VND.

The project investor is Khang Dien Investment and Business House Joint Stock Company. The company will synchronously develop technical and social infrastructure, and on-site resettlement housing.

The Ma Lang area is nestled among high-rise buildings in the old District 1 downtown. *Photo: Thanh Tung*

In the Ma Lang area, the city plans to construct 38-story social housing apartment buildings with 1,400 units, 93 low-rise houses, and an inter-level school. Similarly, in the Cho Ga - Gao market area, 35-story social housing apartment buildings with 760 units will be built.

Under the approved plan, the investor will self-mobilize all project capital: approximately 15% equity and 85% from loans or other legal sources. Upon project completion and handover to the State, the investor will receive compensation through a reciprocal land fund combined with city budget allocations.

The proposed payment land fund, spanning about 133 hectares, is located in the Tan Tao Residential Center (Area B), Tan Tao Ward. Preliminary estimates value this land at approximately 24,135 billion VND. After deducting an estimated 13,400 billion VND for compensation, support, and resettlement costs, the remaining value available for BT contract payment is about 10,735 billion VND.

Ms. Phuong Thao, 49, also lives in a small 6 m2, two-story house in the Cho Ga - Gao market area. *Photo: Dinh Van*

As the total investment exceeds the reciprocal land fund's value, Ho Chi Minh City plans to allocate an additional 5,635 billion VND from its budget. This will cover the difference for the investor after the project's completion, acceptance, and commissioning, anticipated in 2029.

The project is scheduled for implementation from 2026 to 2029. Compensation and site clearance activities are expected to occur from August 2026 to August 2027.

In the Ma Lang area, the project impacts approximately 1,070 land and housing cases, affecting 1,459 households and nearly 4,700 residents. The estimated cost for compensation, support, and resettlement here is over 9,451 billion VND.

In the Cho Ga - Gao area, about 252 houses, impacting 192 households and 744 residents, are affected. Compensation, support, and resettlement costs are approximately 1,476 billion VND.

Overall, the project affects about 1,651 households in these two long-standing residential areas, situated in the city's central core.

Location of the Ma Lang and Cho Ga - Gao areas. *Graphic: Tam Thao*

The Ma Lang area, also known as the Nguyen Cu Trinh quadrilateral, covers 6,8 hectares. It lies between Nguyen Trai, Cong Quynh, Tran Dinh Xu, and Nguyen Cu Trinh streets. This location was a cemetery before 1975, later developing into a densely populated residential zone. Currently, over 530 houses, mostly dilapidated, measure under 20 m2.

Ho Chi Minh City initiated plans to redevelop this area in 2000, but the project faced multiple investor changes and remained unimplemented. Three years ago, the city decided to revoke the project to pursue a new plan.

Meanwhile, the Cho Ga - Gao area, situated between Nguyen Thai Hoc, Vo Van Kiet, and Yersin streets, is a traditional market existing since before 1975 but has fallen into disrepair. This project had failed to attract investors for many years.

According to the Ho Chi Minh City People's Committee, redeveloping these two areas is an urgent necessity. This is due to high population density, dilapidated housing, overloaded infrastructure, and a failure to meet urban development requirements. Furthermore, narrow alleyways pose significant challenges for firefighting and rescue operations.

By Le Tuyet