Land allocation for project payment is too slow
Working with the Standing Committee of the Ho Chi Minh City Party Committee on June 13, Politburo Member, Prime Minister Le Minh Hung requested to urgently remove obstacles and bring the nearly 10,000 billion VND tide prevention project to completion in 2026.
Currently, credit capital from the Bank for Investment and Development of Vietnam (BIDV) has not been able to be disbursed for the project because the related legal procedures have not been completed.
The early completion of procedures for determining and paying land funds will create conditions for BIDV to disburse credit capital, limit loan interest and arising costs, thereby reducing payment pressure on the city budget.
According to Audit Report No. 48/KTNN-TH dated April 6, 2026 of the State Audit Office on construction activities and management, use of investment capital of the Project "Solving tidal flooding in Ho Chi Minh City area taking into account climate change factors phase 1", the process of removing difficulties at the project still has many shortcomings and limitations.
According to the BT (build - transfer) contract signed in 2016, the investor is paid by a land fund equivalent to about 16% of the project's final settlement value, equivalent to 1,588 billion VND for 7 land plots. The remaining part, about 8,380 billion VND, is expected to be paid in cash.
However, this plan was determined to be not in accordance with current regulations and must be adjusted according to Resolution 40/NQ-CP dated April 1, 2021 of the Government. However, the Ho Chi Minh City People's Committee did not organize negotiations or adjust the payment plan in the BT contract but continued to develop a cash payment plan for the project.
By July 2025, the Government will issue Resolution 212/NQ-CP, allowing Ho Chi Minh City to pay investors with land funds. In case the value of the land fund is less than the value of the BT project (after reviewing and removing unreasonable costs), the difference will be paid with public investment capital of the city.
According to new regulations, the value of the land fund to be paid must be equivalent to the total investment of the project, the difference must not exceed 10%.
However, the State Audit Office believes that after Resolution 212/NQ-CP, Ho Chi Minh City's continued selection of 7 land plots under the 2016 BT contract as a land fund for payment is not in accordance with current regulations.
The reason is that the total estimated value of the 7 land plots is only about 4,983 billion VND, while the total adjusted investment of the project is currently up to 14,446 billion VND. This too large gap does not guarantee the principle of equal price as prescribed.
Another shortcoming pointed out by the State Audit Office is that the progress of allocating land funds for payment is too slow.
According to the BT contract, within 9 months from May 27, 2016, the Ho Chi Minh City People's Committee must identify land areas to be used for payment to investors. However, as of November 21, 2025, i.e., more than 9 years and 6 months later, the city has not officially determined the land fund for payment, the value of the land fund, and has not yet made payments for the project.
Inconsistency in determining land funds
The State Audit's report shows that the Ho Chi Minh City People's Committee and investors once considered 12 land plots to pay for the project. However, many land plots encountered prolonged problems.
In which, land plot C8A in the Southern Urban Area of Ho Chi Minh City (old District 7) has been identified as a land fund for payment and signed with investors, but by the time of audit, the 1/500 detailed plan has not been approved, the value of land use rights has not been determined, and it has not been handed over to investors.
Two land plots at 762 Binh Quoi and 232 Do Xuan Hop are also in a similar situation. After being identified as a land fund for payment, these land plots continue to have their area adjusted or planning changed, making payment procedures unable to be completed.
Notably, two land plots at Phuoc Long B and 299 Dao Tri were once included in the list of land funds for payment even though there are other organizations and individuals implementing the project. Specialized agencies have repeatedly proposed not to use these two land plots due to the potential risk of lawsuits and not fully meeting legal conditions, but they were still included in the list for consideration.
The State Audit Office also pointed out inconsistency in the process of selecting land funds for payment.
Some land plots such as 118B Tran Dinh Xu (old District 1) and 1005 Thoai Ngoc Hau (old Tan Phu District) were once concluded to be not eligible for payment, but only a few weeks later were returned to the list of land funds for payment.
Conversely, two large land plots in Nhon Duc and Hiep Phuoc communes (old Nha Be district), once agreed to be used to replace other problematic land plots, were then removed from the payment plan.
Two land plots at 420 No Trang Long and 257 Tran Hung Dao were unanimously proposed by departments, branches and investors to be included in the land fund for payment, but were ultimately not approved.
