Ho Chi Minh City People's Committee has just issued a plan to develop the TOD model to implement the specific mechanism of Resolution 98/2023/QH15.

The areas selected for TOD model development are located along urban railway lines (metro) including metro line 1, metro line 2, Ring Road 3 in Tan Binh, Tan Phu districts, Thu Duc city, Hoc Mon district, Binh Chanh.

The implementation process is divided into two groups based on the current land use status.

The first group, new investments have the status of vacant land or sparsely populated areas, with a large area of ​​land directly managed by the State, making it convenient for land recovery and clearance.

The second group is areas where residential areas have been formed but are degraded and need to be renovated and developed for urban development; areas with a part of the land area directly managed by the state (headquarters of agencies and enterprises leased for a limited period of time and can be relocated).

Some locations along metro line 1 (Ben Thanh - Suoi Tien) were selected to develop the TOD model. Photo: Le Toan

Ho Chi Minh City also proposed an implementation roadmap divided into 2 phases, in which the city will select 9 locations in the 2024-2025 phase; in the 2026-2028 phase, it will select 2 locations to develop the TOD model.

It is expected that the money collected from the auction of land plots around metro stations and along Ring Road 3 will be reinvested in metro lines in Ho Chi Minh City.

According to the Project for developing the urban railway system in Ho Chi Minh City, the capital demand for investing in urban railway lines in Ho Chi Minh City in the period of 2026-2030 is 21.31 billion USD. Of which, the city budget and revenue from auctioning land funds along the stations (TOD) is 7.81 billion USD (accounting for 36.65%).

In the period 2031-2035, the City needs 17.26 billion USD for investment, of which, the City budget and revenue from TOD is 9.48 billion USD (accounting for 54.95%).