A great opportunity for urban and transportation development
According to Resolution 188 of the National Assembly, Ho Chi Minh City is granted many specific mechanisms to implement TOD associated with the development of urban railways. The city can use budget capital in medium-term and annual public investment plans to implement TOD projects even if there is no investment decision. At the same time, TOD and metro projects will be established, appraised and invested without having to ask for approval as before, helping to significantly shorten the implementation time.
Another important point is that Ho Chi Minh City is allowed to adjust the function of land use in the TOD area to maximize exploitation value. The city also has the right to collect and use all the money from the increased construction floor area, exploitation of increased land value and collection of infrastructure improvement fees in developed areas according to this model.
In the project to develop the Ho Chi Minh City metro system, from now until 2035, the city plans to invest in 7 metro lines with a total length of 355km, with a total capital of about 40.21 billion USD. In particular, exploiting land funds according to the TOD model can help bring in 7.8 billion USD, significantly supporting the implementation of new metro lines.
TOD is not a strange model in the world. Urban areas such as London (UK), Hong Kong (China), and Guangzhou (China) have successfully applied it by increasing the density of construction, developing high-rise buildings, shopping malls, offices, schools, hospitals, etc. around public transport stations. Thanks to that, real estate value has increased, land revenue has been reinvested in transport infrastructure, creating a circle of sustainable development.
Challenges in implementing TOD
Although the pilot mechanism has paved the way, the realization of the TOD model in Ho Chi Minh City still faces many challenges. Dr. Nguyen Anh Tuan - Head of the Department of Technical Infrastructure Management (Department of Construction) - said that one of the core issues is land fund and land acquisition mechanism.
Through a preliminary review, Ho Chi Minh City has about 64,000 hectares of potential land for TOD, of which about 32,000 hectares are agricultural land, vacant land, easy to implement due to little impact on existing residents. 9,000 hectares of industrial and production land can be converted, while about 23,000 hectares of other land can be renovated to develop according to this model.
According to Dr. Nguyen Hoang Tung - Deputy TOD Group under the Green Infrastructure and City (GCIP) program, TOD is not only a story of land use planning but also related to the legal, financial and operational systems. Experience from London (UK) or Hong Kong (China) shows that TOD implementation requires close integration between public transport and urban development right from the planning stage. Without a synchronous strategy, TOD could only stop at building urban areas without promoting public transport as expected.
Another problem is that the TOD model requires close public-private cooperation. Cities such as Hong Kong (China) or Shenzhen (China) have succeeded by taking advantage of capital and expertise from the private sector. Therefore, to raise 7.8 billion USD from land fund, Ho Chi Minh City needs to build a transparent policy, create trust for investors and ensure a clear understanding of the role of the State and businesses.
Vice Chairman of Ho Chi Minh City People's Committee Bui Xuan Cuong said that in the project to adjust the general planning of Ho Chi Minh City to 2040, with a vision to 2040, many areas for TOD development have been identified. Previously, based on specific mechanisms in Resolution 98, Ho Chi Minh City planned to develop TOD at 11 locations along the stations of Metro Lines 1, 2 and Ring Road 3.
Because this is a new model, the city is studying international experience to implement it appropriately, ensuring harmony between planning, land use, space exploitation and financial resources, said Mr. Cuong.
