Urban Development and Auction Strategy: Thu Duc City's Transit-Oriented Development (TOD) Model for High-Density Urban Growth

Thu Duc City is undertaking a strategic initiative by auctioning three land parcels totaling over 342 hectares to promote the implementation of the Transit-Oriented Development (TOD) model. This systematic planning approach maximizes the benefits of public transportation networks, enhances land use efficiency, improves urban connectivity, and fosters sustainable economic and social development.

Definition of the TOD Model and Its Role in Urban Development Strategy

The core principle of the TOD model is the integration of public transportation and urban development by increasing building density around metro stations, rapid transit hubs, or key transportation nodes. This model not only optimizes land use efficiency but also improves accessibility to urban services, reduces dependence on private vehicles, and mitigates traffic congestion and greenhouse gas emissions.

In rapidly growing metropolitan environments such as Ho Chi Minh City, TOD is regarded as an essential solution to balance economic growth with environmental sustainability. Countries like Japan, South Korea, and Singapore have successfully implemented TOD to develop vibrant urban areas that are self-sufficient and seamlessly connected to public transportation networks.

Designated TOD Development Areas

Thu Duc City has planned three key TOD zones along the Ben Thanh–Suoi Tien metro line and Ring Road 3:

1. Phuoc Long Station Area (160 hectares), located in Truong Tho and Phuoc Long A wards. Benefiting from its proximity to Metro Line 1, this area will be transformed into a comprehensive urban center integrating commercial offices, public spaces, and high-density residential developments to maximize land value.

2. Coconut Farm Area (152 hectares), situated in Long Truong ward, with direct connectivity to Ring Road 3. This area is planned as a multifunctional urban space, incorporating commercial, service, and entertainment facilities while integrating green spaces to ensure sustainable development.

3. Nhatico Factory Area (29 hectares), located in Long Binh ward, planned for modern residential development with comprehensive infrastructure. This area will prioritize the construction of schools, hospitals, and urban parks to enhance the quality of life for residents.

These three areas are part of Ho Chi Minh City's broader plan to develop nine TOD zones between 2025 and 2026, establishing an advanced urban ecosystem that supports the transition toward a smart city.

Implementation Roadmap and Steps

The project follows a systematic approach to ensure feasibility and efficiency:

• Q1 2025: Define administrative boundaries, finalize legal documentation, and develop a comprehensive zoning plan.

• Mid-2025: Adjust detailed planning, conduct environmental impact assessments, establish urban development indicators, and announce bidding plans.

• Q4 2025: Organize land-use rights auctions, select strategic investors, approve projects, and sign implementation agreements.

The funds generated from these land auctions will be reinvested into public transportation infrastructure, including metro network expansion, bus system upgrades, and the construction of supporting TOD facilities such as transit parking lots, pedestrian pathways, and zero-emission transport zones.

Long-Term Impact and the Future of TOD in Ho Chi Minh City

According to the Ho Chi Minh City Department of Construction, approximately 64,000 hectares of land are suitable for TOD development, including:

• 32,000 hectares of agricultural land and vacant areas that can be repurposed,

• 9,000 hectares of industrial and production land requiring restructuring,

• 23,000 hectares of existing urban areas that need redevelopment to meet high-density urbanization standards.

Ho Chi Minh City aims to complete a 355-kilometer urban rail network by 2035 and implement the TOD model in at least 11 key locations, including the Ben Thanh–Suoi Tien metro line, the Ben Thanh–Tham Luong metro line, and major transit hubs along Ring Road 3.

The adoption of TOD will not only enhance land and real estate values but will also have positive effects on the overall urban system by optimizing land use structures, reducing infrastructure costs, improving public investment efficiency, and enhancing residents' quality of life. For Thu Duc City, the TOD strategy will help establish its position as an economic and technological hub in southern Vietnam, attracting substantial capital investment and creating new opportunities for sustainable development.

The TOD land auctions are not merely a means of revenue generation but a pivotal strategy for modernizing, digitizing, and integrating the urban landscape. This initiative presents both domestic and international investors with an opportunity to participate in city planning and development, collectively shaping the future urban skyline of Thu Duc City.