Proposal to merge Ho Chi Minh City Ring Road 4 into one large project

The 200 km long Belt Road 4 passing through 5 provinces and cities is proposed to be combined into 1-2 large projects under BOT contracts, in order to synchronize and easily call for investment instead of dividing into many small projects.

The above plan has just been proposed by the Ho Chi Minh City People's Committee to the Ministry of Transport and related localities at a recent working session on key projects in the South.

Belt 4 is planned since 2011, with a total investment of more than 105,000 billion VND. Currently, the Government has assigned localities as competent authorities to implement the section passing through the area in the form of public-private partnership (PPP). Of which, the section passing through Long An is more than 78 km long, Binh Duong 47.5 km, Dong Nai 45.6 km, Ba Ria - Vung Tau 18.1 km, Ho Chi Minh City about 17.3 km.

According to Vice Chairman of Ho Chi Minh City People's Committee Bui Xuan Cuong, the main Ring Road 4 is expected to be invested under a BOT (build-operate-transfer) contract. If it is divided into many projects, it will be difficult to implement synchronously. Therefore, it is possible to combine them into 1-2 projects and assign one locality to coordinate them.

This is also said to help attract investment, facilitate operation, and collect tolls to recover capital when the project is completed. Accordingly, the estimated cost of building the main line is more than 47,000 billion VND, when implementing the budget participation is about 50% (or maybe higher), the investment call is about 25,000 billion VND. The compensation and site clearance part can be divided according to the provinces and cities to implement.

Route of Ring Road 4. Graphics: Khanh Hoang — Route of Ring Road 4. Graphics: *Khanh Hoang*

According to the leaders of Ho Chi Minh City, the above method is similar to the Ring Road 4 project of the Capital Region. This is a route of more than 112 km long, passing through Hanoi, Hung Yen and Bac Ninh. In which, the main route is a joint project implemented in the form of BOT. The land clearance and parallel road construction are divided into component projects implemented by the locality.

Dr. Duong Nhu Hung, Head of the Faculty of Industrial Management, Ho Chi Minh City University of Technology, said that combining Ho Chi Minh City Ring Road 4 into a large project will ensure synchronization, progress, attract large investors to participate and eliminate weak units. However, compared to Hanoi Ring Road 4, the project in the South is almost twice as long, so the investment cost is very large. This will be a challenge in finding high-capacity investors with strong finances. Therefore, he said, it is possible to study dividing it into two BOT projects for easier implementation.

According to the plan, in the first quarter of this year, the pre-feasibility study report of the Ho Chi Minh City Ring Road 4 project will be completed as a basis for submission to the Government and the National Assembly for consideration and approval of the policy. After selecting an investor, the project is expected to start construction in 2025 and be completed after 3 years. When put into operation, the project will help create a seamless transportation network connecting highways, national highways, airports, etc., contributing to the economic and social development of the region.

The Ho Chi Minh City area is planned to be surrounded by three belt routes, helping to reduce inner-city congestion and connect the Southern Key Economic Zone. In addition to Belt Route 4, Belt Route 3 passes through the city and the provinces of Binh Duong, Dong Nai, and Long An, with a length of more than 76 km, and is being implemented with a plan to complete in 2026. Belt Route 2 is located entirely within Ho Chi Minh City, with a length of about 64 km, and some sections are preparing to be invested in a closed system.

Gia Minh

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