Metro wants to effectively plan TOD from the beginning

HCMC expects to open new momentum from the TOD model

Ho Chi Minh City aims to develop TOD urban areas (Transit-Oriented Development - urban areas oriented towards public transport) along metro lines but is currently facing great difficulties in legality and planning, causing projects around the metro to be behind schedule. In that context, Metro Line 2 (Ben Thanh - Tham Luong) with a length of more than 11 km, expected to officially start construction on January 15, 2026, is considered an opportunity for the city to test the most methodical TOD model ever.

Metro No. 2 was approved in 2010 but has not been implemented due to many adjustments in capital sources, scale and technology. The total new investment is proposed to increase from VND47,890 billion to VND52,047 billion. A notable new point is that the project will add TOD development items at depots and stations to optimize land funds, create financial resources and form new urban areas.

Mr. Phan Cong Bang - Head of the Ho Chi Minh City Urban Railway Management Board - said that the unit is coordinating with the Department of Agriculture and Environment, the Department of Finance and the People's Committees of the wards where the route passes through to review the zoning plan, and at the same time determine the boundaries of TOD areas along metro Line 2. The city prioritizes 3 areas with large land funds: C30 land plot of 41ha around Le Thi Rieng station; more than 5ha of Tan Binh Exhibition - Sports Center land around Bay Hien station; and land plot I/82a Tay Thanh of 26ha near Pham Van Bach station - Tan Binh station.

TOD is understood as an urban planning model based on public transport, focusing on development around major traffic hubs. Although popular in many countries, this model is still quite new in Vietnam.

In August 2025, based on Resolution 98 of the National Assembly, the Ho Chi Minh City People's Council issued Resolution 38 to establish, appraise, approve and adjust the planning of the TOD development area. This is considered the first legal corridor that helps the city have a basis to implement this model. According to the resolution, the TOD scope is determined within a radius of 1 km around metro stations or depots, including adjacent plots of land. For plots of land with only a part within the above scope, the Ho Chi Minh City People's Committee will consider reclaiming all or part to establish the TOD boundary.

Ho Chi Minh City has selected 46 land plots with a total area of 7,397 hectares to develop the TOD model, distributed along metro lines, beltways and expressways. Of which, 29 land plots are located along metro lines with an area of 795.8 hectares, while the remaining 17 land plots are 6,601 hectares along Ring Road 3, Ring Road 4 and Ho Chi Minh City - Moc Bai Expressway. TOD projects along Ring Road 2 and metro Line 2 are expected to complete procedures and start construction by the end of 2025.

legality - planning: the biggest bottleneck of TOD

Dr. - Architect Ngo Viet Nam Son commented that the TOD development plan is a big challenge for Ho Chi Minh City because the city has little experience in implementing this model. He said that the biggest problem at present is legality and planning: The TOD model only promotes effectiveness when implemented on a clear legal foundation, integrated planning from the beginning. Land funds on both sides of the metro line need a transparent mechanism as a basis for compensation, site clearance and urban development".

Mr. Son assessed that the current metro planning system is outdated compared to the city's development speed: "If we continue to build metro according to the old mindset, the TOD model will hardly create an advantage. It is necessary to innovate thinking, select the right investor and implement synchronously from legality, planning to implementation".

According to him, the affected area of TOD could be up to 800-1,200m around the metro station. Without a compensation - value sharing mechanism, handing over the site will be very difficult. From international experience, Mr. Son proposed that the next metro lines of Ho Chi Minh City must be planned according to the TOD thinking from the beginning, combined with the PPP model to effectively exploit land funds.

According to Dr. Son, Ho Chi Minh City operates according to a multi-center model, so it is necessary to prioritize routes connecting directly to Binh Duong, Ba Ria - Vung Tau and Can Gio to form an inter-regional TOD network. Expansion routes such as Ben Thanh - Can Gio can create a "coastal TOD urban strip", or the Ring Road 4 connecting Ho Chi Minh City with the Cai Mep - Thi Vai deep-water port cluster will form a complete TOD - logistics axis.

From a market perspective, Mr. Vo Huynh Tuan Kiet - Director of CBRE Vietnam Housing Project Marketing Department - commented that TOD is only successful when meeting three key conditions: legality - advance planning, clear land use and strong enough public transport. He emphasized: Regarding capital sources, public-private partnership (PPP) is the decisive factor. TOD needs large capital to build key infrastructure, and PPP helps spread benefits between the State and businesses.

Hanoi speeds up urban railway network - towards 620km

While Ho Chi Minh City is promoting the TOD model, Hanoi is also entering the stage of promoting investment in urban railways with a series of important projects.

The Hanoi Urban Railway Management Board (MRB) said that the Van Cao - Hoa Lac route (No. 5) will start construction in 2025. This is a 38.43km long route with 21 stations, including 6.5km underground, 2km elevated and nearly 30km on the ground. Site clearance is being carried out at Son Dong depot (Son Dong commune) and Duong Hoa commune; the remaining wards and communes will be handed over on schedule.

Up to now, Hanoi has only completed 21.5km of urban railway (Cat Linh - Ha Dong and the elevated section Nhon - Hanoi Railway Station), equivalent to only 3.5% of the planned nearly 620km in 14 routes.

According to the metro network development strategy, in the 2025 - 2030 period, Hanoi aims to complete 96.8km of routes 2, 3.1 and 5. and at the same time prepare to invest in 301km of routes 1, 2A extended, 4, 6, 7, 8 and the Son Tay - Hoa Lac - Xuan Mai satellite route. In the 2030-2035 period, it is expected to complete another 301km, and by 2045, an additional 200.000km will be added.

On October 9, 2025, Hanoi started construction of the Nam Thang Long - Tran Hung Dao route with a total capital of more than VND35,600 billion, nearly 11km long with 9km underground. This is also the first project to apply the TOD model, turning Xuan Dinh depot into a transportation - trade - service - housing center.

According to the Hanoi Department of Finance, the city plans to spend nearly 1.4 million billion VND (about 53 billion USD) in the 2025-2030 period to handle traffic congestion, of which urban railways are the focus. Deputy Director of the Hanoi Department of Finance Le Trung Hieu commented: Focusing on urban railways is not only a technical choice but a strategic decision. The long-term effectiveness of railways is "irreplaceable": Reducing billions of USD in economic damage due to congestion, increasing labor productivity, and enhancing Hanoi's competitiveness".

The Department of Finance also recommends that the city soon choose international consultants to plan routes, design terminals, major intersections and develop TOD areas to create resources for reinvestment. Hanoi also needs to prepare in advance for the resettlement area, ensuring that people have stable housing when reclaiming land for metro.