Ho Chi Minh City’s journey towards a modern, civilised city

In its journey towards building a modern, civilised, and sustainable urban area, Ho Chi Minh City is vigorously implementing a programme to relocate and redevelop housing along and near canals.

The landscape along both banks of the Nhieu Loc-Thi Nghe Canal has been transformed to be cleaner and greener.

This initiative not only aims to improve the environment and living conditions for residents but also represents a key priority in the city’s socio-economic development. The programme has received strong public support.

According to the housing redevelopment plan along canals, which is being led by the Ho Chi Minh City Department of Construction, the city aims to relocate around 6,500 households in Districts 4, 6, 7, 8, 12, Binh Thanh, Go Vap and Tan Binh Districts during the 2021-2025 period. Two major projects currently being expedited are the redevelopment of the northern bank of the Doi Canal (District 8) and the renovation of the Xuyen Tam Canal (Binh Thanh and Go Vap Districts).

In District 8, the redevelopment of the northern bank of the Doi Canal involves reclaiming over 5,800 hectares, affecting more than 1,600 households living on or near the canal. The estimated compensation cost reaches 7.4 trillion VND (284.8 million USD). As of May 2025, District 8 has disbursed nearly 20% of the compensation and continues to negotiate with the remaining households, aiming to break ground on the project within the month.

Likewise, in the districts of Binh Thanh and Go Vap, the Xuyen Tam Canal renovation project has been restarted after nearly 15 years of delay due to funding shortages. The project will impact over 2,200 households, with the total compensation and resettlement budget estimated at 13.2 trillion VND (508.1 million USD).

To expedite land clearance, Ho Chi Minh City is applying flexible policies to secure maximum public consensus. Notably, displaced households will receive up to 70% of the state-assessed land price, can choose their resettlement package (rental, purchase, or instalments), may participate in a lottery for available apartments, and are provided with temporary housing and relocation support.

One such case is Phan Thi Be Hieu, living in Ward 15, Binh Thanh District, who received nearly 1.3 billion VND (50,000 USD) in compensation for her 30-square-metre house a month ago. Her family opted for a resettlement unit and registered for an apartment at the Phan Chu Trinh housing complex in Ward 12, Binh Thanh District.

“The apartment is ready; we’re just waiting for the lottery results to move in. It’s a 60m² unit priced at 2.2 billion VND, which is reasonable, and we won’t have to wait for construction. The new flat is near our old home, still within the inner city, which makes people more willing to support the city’s canal redevelopment policy,” said Hieu.

Vo Trung Truc, Deputy Director of the Ho Chi Minh City Department of Agriculture and Environment, said: “Despite limited funding, the city has introduced many supportive policies for affected residents, especially the 70% land price support. This is a highly humane policy, helping to speed up relocation while ensuring stable and improved living conditions for citizens.”

According to the Department of Construction, Ho Chi Minh City still has nearly 40,000 households living on or near canals across 16 districts and Thu Duc City that require relocation. Between 2021 and 2025, the city targets the relocation of 6,500 homes, mainly in Districts 4, 6, 7, 8, 12, Binh Thanh, Go Vap, and Tan Binh. The municipal government reports that 398 canal routes across the city have yet to undergo redevelopment. District 8 alone has nearly 15,000 homes prioritised for relocation.

The Department of Construction estimates that the city will need around 221.37 trillion VND (8.5 billion USD) in initial funding to implement the project, primarily for compensation, relocation, land clearance, resettlement housing, and infrastructure improvement.

Following recent field inspections of canal areas, Ho Chi Minh City Chairman Nguyen Van Duoc emphasised that the redevelopment of canal-side housing must be a top priority on the city’s urban development agenda, particularly to meet the housing needs of disadvantaged households.

The city plans to issue a roadmap and prioritise state budget allocations to implement the comprehensive relocation project in a focused and effective manner. District 8 has been selected as a key area to concentrate resources, address challenges, and serve as a model for other localities to develop their own canal-side housing relocation strategies.

NDO