The Department of Construction’s Urban Infrastructure Construction Investment Projects Management Unit is expected to submit a proposal for this at the next meeting of the city People's Council, the legislature.

Xuyen Tam, which runs eight kilometers through Binh Thanh and Go Vap districts, has for long been infamous for its dark, stinky waters and thousands of people living in wretched conditions along its banks.

The upgrade will include cleaning the canal, improving the drainage system and building roads along its two sides.

The cost of the work is estimated at VND4.5 trillion while the rest of the money will go toward compensating the households who will have to relocate.

It was previously planned as a public-private partnership (PPP) project at a cost of VND5.1 trillion, but later given up as unfeasible, leading to delays.

The city has some 170 canals that stretch nearly 700 kilometers. It spends VND1.1 trillion ($47.4 million) a year to maintain its drainage system and VND2.8 trillion (about $120 million) to collect garbage.