Stuck with 11 households, project at the gateway to Ho Chi Minh City is at risk of being behind schedule

The company has not yet completed compensation for 11 households, leaving the site untouched, causing the National Highway 50 upgrade project with a total investment of 1,500 billion VND to be at risk of being behind schedule.

The Ho Chi Minh City Traffic Construction Investment Project Management Board (investor) proposed the City People's Committee to resolve the problem, in order to open the parallel route of National Highway 50 this year and complete the entire project in 2025.

This is a section of the Highway 50 expansion project being implemented by Ho Chi Minh City with a total investment of nearly 1,500 billion VND. The project starts from the intersection with Nguyen Van Linh Street to the border with Long An Province, nearly 7 km long. Of which, more than 4 km is a new route parallel to Highway 50, the remaining section is to widen the existing road from 7 m to 34 m, 6 lanes.

Row of houses with incomplete compensation and clearance on the parallel route of National Highway 50, February 2024. Photo: Thanh Tung — Row of houses with incomplete compensation and clearance on the parallel route of National Highway 50, February 2024. Photo: *Thanh Tung*

Construction started at the end of 2022, the parallel route was deployed first with 4 construction packages, and many sections have now taken shape. However, the section through Gia Hoa residential area has 3 houses blocking half of the road, managed by Gia Hoa private construction and housing business that has not yet completed compensation for the people.

Another location through Phong Phu 4 residential area, the section adjacent to Trinh Quang Nghi street, also has 8 houses blocking the entire street, managed by Khang Phuc Housing Investment and Trading Company Limited, which has not yet completed compensation.

The investor believes that these two sections with land acquisition problems have many difficulties in legal procedures, and the handover is expected to be prolonged, potentially affecting the progress of the National Highway 50 upgrade project.

By the time the project starts at the end of 2022, more than 80% of the area has been handed over. However, according to the People's Committee of Binh Chanh District, the remaining cases are facing difficulties in the compensation process due to legal problems and land acquisition procedures.

Route of Highway 50 expansion project. Graphics: Khanh Hoang — Route of Highway 50 expansion project. Graphics: *Khanh Hoang*

Site clearance is currently considered the key factor determining the progress of most projects in Ho Chi Minh City. However, recently, a series of projects have encountered difficulties, and many projects have even had to stop construction when the site was not cleared, increasing capital costs.

Previously, many projects implemented in the 2016-2020 period but not completed had their capital increased due to increased site clearance costs. Typically, the My Thuy intersection project, Thu Duc City (increased from VND 1,998 billion to VND 3,622 billion); the renovation of Hang Bang canal, from Mai Xuan Thuong street to Van Tuong canal, District 5 (from VND 188 billion to VND 779 billion)...

National Highway 50 is about 88 km long, a vital route connecting Ho Chi Minh City and the West. However, the section through the city is narrow, while this is also the route leading to the Da Phuoc waste treatment complex, so it is often congested and has accidents.

Ha Giang

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