Homes along a canal in Bình Thạnh District in HCM City. HCM City aims by 2030 to relocate all residents living along its canals. — VNS Photo Bồ Xuân Hiệp

HCM CITY — HCM City expects to auction VNĐ164 trillion (US$6.4 billion) of land near canals after relocating residents currently occupying the areas by 2030.

This initiative involves clearing nearly 40,000 houses that currently line the rivers, canals, and ditches across 16 city districts and Thủ Đức City.

The proposal by the city Department of Construction highlights the need for the relocation as part of a broader vision to revitalise the urban landscape.

To facilitate this process, the city estimates that it will require over VNĐ221 trillion in total investment.

Out of this, around VNĐ130.68 trillion will be allocated for compensating and supporting affected families.

For those households that do not qualify for relocation, the city plans to construct social housing, with funding of nearly VNĐ10.7 trillion earmarked for this purpose.

In addition, around VNĐ80 trillion is projected for infrastructure improvements, including dredging and enhancing the canal routes.

Once the relocation is completed, the newly available land along the waterways will be open for bidding or auction, paving the way for various housing, commercial, and socio-economic development projects.

In addition to the financial benefits, the initiative is expected to significantly uplift the quality of life for residents and beautify the urban environment.

HCM City has set a target of relocating all houses (over 46,000) along the canals by 2030.

To meet the goal, the city is exploring multiple strategies, including comprehensive planning, mobilising funds, and instituting policies for land clearance.

The resettlement and social housing will be prioritised to support the relocation efforts.

Since 1993, the city has relocated over 44,300 homes, contributing to the beautification of various canals, including Nhiêu Lộc-Thị Nghè, Tàu Hủ-Bến Nghé, and Tân Hóa-Lò Gốm.

However, recent years have posed challenges, particularly regarding investment shortages and land clearance obstacles. — VNS