The Ho Chi Minh City Flood Control Project has been delayed for nearly a decade.
The Ho Chi Minh City Flood Control Project, kicked off in 2016 and scheduled to be implemented in 2018, has been abandoned for a long time after reaching over 90 percent of completion.
After nearly a decade of delays due to funding and legal challenges, many parts of the project have badly deteriorated and are covered by wild grass.
Many parts of the project have badly deteriorated and are covered by wild grass.
The project aims to manage tidal flooding across 570 square kilometres, serving around 6.5 million residents in HCM City's central and riverside areas.
Over the years, the project has faced three significant pauses, primarily due to regulatory and financing issues. The government issued Resolution 40 in April 2021 to support its continuation, while HCM City authorities have convened numerous meetings to resolve these challenges. Yet, despite these efforts, the project remains stalled.
According to the project's investor, Trung Nam Construction and Investment Corporation, the delays have led to daily loan interest costs of approximately VND1.73 billion.
Trung Nam has urged HCM City officials to adjust investment to an estimated nearly VND14.40 trillion to expedite the process, aiming for completion by the end of 2025. This would help prevent further delays and mitigate additional interest costs.
In recent discussions, HCM City authorities have requested approval from the prime minister to amend the contract's payment terms and extend the project timeline. If approved, the city could explore land allocation as a payment method, allowing the investor to complete the project while reducing accrued interest.