Rach Xuyen Tam has a length of nearly 9 km, connecting from Nhieu Loc - Thi Nghe canal to Vam Thuat river, passing through An Nhon, Gia Dinh, Binh Thanh and Binh Loi Trung wards. Of which, the main route is 6.7 km long, and the rest are three auxiliary branches with a total length of about 2.2 km.
This canal renovation project has a total investment of more than 17,000 billion VND, of which compensation, support and resettlement costs account for about 14,000 billion VND.
Currently, the project is being implemented with 3 main construction packages. In which, package XL-03 (section from Luong Ngoc Quyen street to Vam Thuat river) was started in May 2025 and is being accelerated by contractors. Units have mobilized sufficient machinery, equipment, and manpower, deploying 6 construction teams simultaneously.
The remaining two bidding packages are XL-01 (from Nhieu Loc - Thi Nghe canal to Bui Dinh Tuy bridge, including Cau Son canal) and XL-02 (from Bui Dinh Tuy bridge to Luong Ngoc Quyen street, including Binh Loi and Binh Trieu canals) which were started in December 2025, but are facing many difficulties due to site clearance issues.
On May 5, the Ho Chi Minh City Urban Infrastructure Construction Investment Project Management Board (the investor) said that so far Binh Thanh and Gia Dinh wards have only handed over 861/2,046 affected cases, reaching about 42.08%.
In which, package XL-02 has received handover of 261/572 cases (reaching 45.6%) and is organizing construction at 8 fronts.
Package XL-01 is the most difficult area when most of the site has not been handed over or is only small-scale handover, not continuous. To date, only 600/1,474 cases have been handed over, reaching 40.7%.
However, the investor still proactively deploys construction in areas with site clearance. The first test pile of package XL-01 has been carried out in the area 181 - 197 Dien Bien Phu. At the same time, in the My Phuoc apartment complex area, units have coordinated with local authorities to build service roads across canals to add more construction fronts, taking advantage of the waiting time for site clearance.
Faced with existing problems, the investor proposed that localities accelerate the progress of compensation and site handover in May 2026 so that contractors can deploy simultaneously.
In case it is not possible to hand over the entire project, it is proposed to allow the receipt of each part to organize rolling construction, avoiding wasting time and resources.
According to the plan, if the full site is handed over, package XL-03 can be completed in November 2026. The remaining two packages are expected to be completed in 2028.
Previously, in March 2026, Mr. Nguyen Van Duoc - Member of the Party Central Committee, Deputy Secretary of the City Party Committee, Chairman of the Ho Chi Minh City People's Committee directly inspected the project and requested localities to complete the handover of land no later than the end of June 2026. During this time, local authorities must strengthen the mobilization of people to receive compensation, arrange resettlement or temporary residence.
For cases where money has been received but land has not been handed over, the city requests resolute enforcement according to regulations. Ward leaders will be responsible to the Ho Chi Minh City People's Committee if the handover work is not completed on time.
