The project includes dredging and environmental improvements along the canal, with VND 6.35 trillion earmarked for compensation, support and resettlement and about VND 2.29 trillion for construction.
The 7.3-kilometre canal runs through Binh Dong Ward and Binh Hung Commune, stretching from Doi Canal to Ba Lao Canal.
The project will also build a 725-metre, two-lane road linking Pham The Hien and Ta Quang Buu streets. The road will be 14-18 metres wide.
Ba Lon 2 Bridge will also be built across National Highway 50. The 79-metre-long, 40-metre-wide bridge will have six lanes, along with service roads, drainage, lighting and other infrastructure.
The project aims to improve drainage across a 920-hectare catchment, upgrade the surrounding area, prevent bank erosion and relocate canal-side homes under the city's plans through 2030.
Relevant agencies and local authorities have been asked to complete land, environmental and site-clearance procedures on schedule.
