Project Compensation for Land on Ring Road No. 2 in Ho Chi Minh City: Maximum Exceeds 111 Million VND per Square Meter

The land compensation price related to the construction project of Ring Road No. 2 in Ho Chi Minh City is expected to reach a maximum of over 111 million VND per square meter at the street-facing locations on Pham Van Dong Road, while the minimum price is only 26 million VND per square meter. On the afternoon of October 28, the People's Committee of Thu Duc City held a meeting to announce a draft of the compensation, support, and resettlement plans for two related sub-projects involving the construction investment of Ring Road No. 2 through Thu Duc City.

The project includes two main sections: Section 1 stretches from Phu Huu Bridge to Vo Nguyen Giap Road, and Section 2 from Vo Nguyen Giap Road to Pham Van Dong Road. These two sections play a crucial role in completing the entire Ring Road No. 2, seamlessly connecting various areas of Ho Chi Minh City, thereby reducing the traffic pressure on existing roads while promoting economic and social development in the eastern area of the city. The project impacts a total of 1,166 households, individuals, and organizations, with an area of about 61 hectares to be reclaimed and an estimated total budget of 7.6 trillion VND for compensation and support. This project is a significant step towards improving urban transportation infrastructure and enhancing the quality of life for residents.

According to the People's Committee of Thu Duc City, land prices within the project scope will be higher compared to the land price list announced by Ho Chi Minh City, adjusted from 30% to 97%, with an average increase of 50%. This reflects the city's commitment to ensuring the rights of affected citizens, helping them receive compensation that aligns with the actual value of the current real estate market. For the street-facing locations on Pham Van Dong Road, the proposed compensation price exceeds 111 million VND per square meter, while prices for locations in the alleys vary from 46.9 million to 78.5 million VND per square meter. This differentiation aims to ensure fairness and reflect the true market value for each specific location.

The compensation prices for major roads such as Kha Van Can, Do Xuan Hop, Nguyen Van Ba, and Dang Van Bi also exceed 100 million VND per square meter. These areas have a high population density and strategic location with convenient traffic connections; hence, the compensation price reflects the economic value of these lands. Conversely, the lowest compensation price is 26 million VND per square meter, applicable to some alleys with poorer infrastructure, such as Street 22 (Phuoc Long B Ward) and Alley 147 (Phuoc Long B Ward and Tang Nhon Phu Ward). The compensation prices for these areas have been adjusted based on their actual economic value.

Furthermore, agricultural land prices have also been clearly and specifically determined, with the highest compensation for perennial crop land being over 9.4 million VND per square meter, primarily located along major roads such as Pham Van Dong Road, Kha Van Can Road, and the Hanoi Highway parallel road. For annual crops or aquaculture land, compensation ranges from 6.4 million to 7.78 million VND per square meter, depending on specific locations and their proximity to main traffic routes. Determining the compensation value for agricultural land is an important part of the project to ensure the rights of affected farmers, helping them reinvest and maintain their livelihoods.

Compensation payments are expected to begin disbursement in early December 2024 to ensure sufficient time for site clearance and the commencement of construction in June 2025. The People's Committee of Thu Duc City has developed a detailed plan to ensure that the progress of site clearance is not delayed, thereby avoiding negative impacts on the overall progress of the project. According to Thu Duc City People's Committee Chairman Hoang Tung, the primary standard during the compensation process is to prioritize the legitimate interests of the citizens, while also assisting them in completing necessary procedures such as issuing land use right certificates and construction completion documents. The city government commits to providing maximum support to citizens during this process, ensuring transparency and efficiency, helping residents stabilize their lives after relocation.

Chairman Hoang Tung also emphasized that the implementation of Ring Road No. 2 not only brings direct benefits to affected citizens but also significantly improves the transportation infrastructure in the area. Once completed, this road will establish smoother connections between key areas of Ho Chi Minh City, reducing traffic pressure on major arteries such as Hanoi Highway, Pham Van Dong Road, and Vo Van Kiet Avenue. This will not only facilitate travel and the circulation of goods for residents but also play an important role in promoting economic development, attracting investment to Thu Duc City and surrounding areas, thereby contributing to sustainable urban development.

The draft compensation plan will be publicly displayed at the People's Committees of the wards and at the management boards of neighborhoods within the affected areas from October 28 to November 27. During this period, citizens have the right to contribute opinions and express their demands to adjust the compensation plan in line with their actual needs. The local government pledges to listen and promptly address the citizens' petitions, ensuring transparency and fairness during the implementation of the project.

The Ring Road No. 2 project is one of the strategic projects of Ho Chi Minh City, aiming to improve urban transportation infrastructure, enhance connectivity, and reduce the load on existing traffic arteries. The implementation of this project is expected to significantly contribute to the development of a smart, modern city in Thu Duc, while ensuring that the interests of citizens affected by land acquisition are maximally safeguarded. The integration of infrastructure development with citizen rights protection is the core element for the success of the project, contributing to the comprehensive and sustainable development of Ho Chi Minh City.