11 TOD pilot areas along metro lines and Ring Road 3
According to Resolution 98, Ho Chi Minh City is allowed to pilot the TOD model and use public budget for compensation and resettlement in areas near metro stations and Ring Road 3 intersections. The TOD model is expected to optimize land value around stations, creating additional capital for reinvestment in transport infrastructure. At the same time, TOD increases population density near key traffic points, promoting the attractiveness of the public transport system.
In the period of 2024-2025, Ho Chi Minh City plans to develop TOD at 9 locations along Metro Lines 1 (Ben Thanh - Suoi Tien), Metro Lines 2 (Ben Thanh - Tham Luong) and Ring Road 3. The largest area for TOD development is located in Xuan Thoi Thuong Commune, Hoc Mon District with 389 hectares, connecting to Ring Road 3. The smallest area is the Tan Binh District Exhibition and Sports Center area with an area of about 5.1 hectares, connecting to Metro Lines 2 and 5 (Bay Hien Intersection - Saigon Bridge).
The city will determine the boundaries and legal status of each area, adjust the planning and select investors. It is expected that by 2025, the detailed plan will be approved and implemented. Following that, in the 2026-2028 period, two other areas in Tan Hiep commune (Hoc Mon) and Tan Kien station (Binh Chanh) will continue to be developed according to the TOD model.
The HCMC People’s Committee divides TOD areas into two groups based on land status and development conditions. The first group is new areas, often vacant or sparsely populated, such as factories and enterprises that are planning to relocate, to facilitate land clearance and development. The second group is existing, degraded urban areas that need to be renovated to improve quality of life and social infrastructure.
Key transport projects such as Metro Lines 1, 2 and Ring Road 3 are expected to be a solid foundation for the development of the TOD model. In particular, Metro Line 1 is expected to be put into operation at the end of this year, while Ring Road 3 and Metro Line 2 are scheduled to be completed in 2026 and 2030, respectively.
Opportunities and challenges with the TOD model
Associate Professor, Dr. Vu Anh Tuan - Director of the Center for Transport Research (under the Vietnam-Germany University), commented that the TOD model will restructure the urban area and improve the public transport system, helping to reduce personal vehicles, pollution and congestion. "Developing TOD along metro lines and Ring Road 3 is a breakthrough strategy for Ho Chi Minh City" - Mr. Tuan shared.
With metro lines connecting the city center to the suburbs and surrounding areas, Ho Chi Minh City has great potential to develop compact urban areas. It is estimated that the city will need 37.45 billion USD by 2035 for 183km of urban railway, of which 22.3 billion USD will be needed in the 2026-2030 period. Mr. Tuan proposed that revenue from TOD should be reserved for the urban railway network development fund.
Architect Ngo Viet Nam Son, an expert in urban planning, said that the TOD model is a suitable strategy for urban development in Ho Chi Minh City and Vietnam, helping to shape urban space and effectively exploit resources. However, there is currently no truly successful TOD project in Vietnam and the construction process takes a long time.
According to Mr. Son, the ideal TOD is an urban area along metro lines, where residents can travel daily by public transport instead of using personal vehicles. However, the construction of TOD infrastructure must go through many stages from project establishment, land acquisition, to fundraising auctions, which can take years. For example, Metro Line 1, which will be put into operation at the end of this year, has only completed 1/3 of the TOD model. Next, Ho Chi Minh City must also develop a connecting traffic system, develop technical infrastructure and social infrastructure for the area, to attract people and businesses to live there.
Mr. Son emphasized that Ho Chi Minh City is taking the lead in the TOD direction thanks to Resolution 98, but implementation requires specific legal documents. For example, there needs to be clear regulations on urban distance around the metro line (400, 800 or 1,200m) and a compensation mechanism based on market prices to ensure benefits for the people. There is still a lack of a legal framework to determine compensation prices and how to auction land after the metro is in operation. According to Mr. Son, this requires transparent policies to attract investment and consensus from the community.
