On January 14, Vice Chairman of Ho Chi Minh City People’s Committee Nguyen Loc Ha signed a decision on selecting a strategic investor to implement the Binh Quoi – Thanh Da new urban area, a development with planned investment of more than VND50 trillion ($1.9 billion) that has been stalled for over three decades, affecting the rights and livelihoods of residents.

The proposed site of the Binh Quoi – Thanh Da new residential area. Photo: Le Toan

Accordingly, the committee approved Ho Chi Minh City Department of Finance’s proposal to publish information on the organisation of the investor selection process for this project, in line with Resolution No.260/2025 of the National Assembly, which amends and supplements a number of provisions of Resolution No.98/2023 on piloting specific policies for Ho Chi Minh City’s development.

Covering an area of more than 405 hectares and located about 7km from the city centre, the Binh Quoi – Thanh Da new urban area is surrounded by the Saigon River and Thanh Da Canal. Although approved as early as 1992, repeated changes of investors failed to deliver results, leaving the development 'on hold' for more than three decades.

Ho Chi Minh City People’s Council has issued a resolution to include the project in the list of land plots subject to bidding for investor selection for land-use projects in the city in 2025 (Phase 2). Under the plan, the bidding process will be conducted in 2026, with the investor selection procedures expected to take around 180 days.

According to Ho Chi Minh City People’s Committee, bidding for investor selection, rather than auctioning land-use rights, has been chosen because the Binh Quoi – Thanh Da site has not yet completed site clearance and compensation, and therefore does not meet the conditions for land auctions under the Land Law.

The winning investor will be allocated or leased land to implement the project based on the technical and financial proposals and capacity commitments submitted.

Previously, Ho Chi Minh City People’s Committee also issued a decision approving adjustments to the 1:2000-scale zoning plan for the Binh Quoi – Thanh Da new urban area.

Under the revised plan, the area is set to become an urban centre combined with a wetland park, developing into a modern tourism-oriented urban area with integrated technical and social infrastructure, closely linked to parks, wetlands, and ecological landscape spaces.

The planning orientation also envisages the development of a high-rise urban core, reduced construction density, and a smaller proportion of mixed-use land to increase public and ecological spaces. The urban area will feature a diverse range of functions, including residential housing, offices, hotels, commercial and service facilities, administrative and cultural spaces, and riverside tourism.

Under Resolution 260, a strategic investor must demonstrate the ability to mobilise capital for the undertaking and meet the following requirements: equity capital contributed to the project must account for at least 20 per cent of total investment for projects with total investment of up to under $1.15 billion and at least 15 per cent of total investment for projects with total investment of $1.15 billion or more.

In cases where multiple investors jointly participate in a single project, the combined equity capital contributed must meet the above requirements, with at least one investor contributing a minimum of 30 per cent, while the remaining investors must each contribute at least 15 per cent.

The Binh Quoi – Thanh Da new urban area was first studied in the early 1990s, with the aim of transforming the area into a modern urban district. However, over the past 30 years, the scheme has remained stalled due to changes in planning, difficulties in selecting investors, and regulatory delays, significantly affecting the lives of local residents.