Compensation Process for HCMC’s Ring Road 2: Assessment and Impacts at Over 111 Million VND per Square Meter

Thu Duc City authorities have recently published a draft compensation, support, and resettlement plan for households and organizations affected by two sections of Ring Road 2 passing through the area. The highest proposed compensation rate reaches over 111 million VND per square meter, applicable to residential land along the Pham Van Dong road frontage. This relatively high rate aims to reflect the actual value of this rapidly developing area, where infrastructure and economic potential are thriving. The objective of this plan is to ensure lawful rights and fair compensation for residents, supporting a fair and efficient urban infrastructure development process.

Characteristics of the Two Sections to Be Constructed and the Compensation Plan

The two segments of Ring Road 2 to be developed include the 3.5 km section from Phu Huu Bridge to Vo Nguyen Giap Road (formerly Hanoi Highway) and the nearly 3 km segment from Vo Nguyen Giap Road to Pham Van Dong Road. Land clearance and compensation for these two sections are separated into two component projects, covering a total acquisition area of over 61 hectares, impacting approximately 1,166 households. This is a crucial part of efforts to complete the regional traffic system, reduce traffic pressure, and enhance connectivity, especially in Thu Duc City, which is positioned to become Ho Chi Minh City’s new economic and innovation hub.

Ring Road 2 has a strategic role in enhancing connectivity between the eastern areas of Ho Chi Minh City and the city center, contributing to improved traffic efficiency and optimized travel time. Local authorities have clearly stated that land clearance and compensation must proceed swiftly while ensuring transparency and fairness. With a total compensation budget of 7.6 trillion VND, this demonstrates the authorities’ strong commitment to protecting the legitimate rights of affected residents and businesses.

According to the draft, the highest compensation for residential land along Pham Van Dong Road’s frontage is 111.5 million VND per square meter. For frontage along Do Xuan Hop and Dang Van Bi Roads, the compensation rate is close to 102 million VND per square meter, while Nguyen Van Ba Street has a proposed rate of 100.5 million VND per square meter. These rates accurately reflect the area’s value and development potential, where solid infrastructure and significant economic opportunities exist. For smaller roads, although the compensation rate is lower, authorities have pledged to ensure fairness and uphold residents' rights.

Decisions to Maximize Benefits for Residents

According to Mr. Hoang Tung, Chairman of Thu Duc City People's Committee, these two Ring Road 2 sections will be executed following the latest regulations of the Land Law to maximize the benefits for affected residents and businesses. Applying the updated Land Law provisions allows the city to accurately assess land values, thus offering compensation rates close to market value, helping to reduce prolonged disputes and disagreements related to compensation prices.

Additionally, the city has prepared a resettlement housing fund and invested in infrastructure to stabilize the lives of residents after relocation. Resettlement housing is situated in convenient locations with complete infrastructure, including accessible transportation, schools, hospitals, and other social facilities. This effort not only provides new housing but also ensures residents have improved living conditions, supporting long-term stability and social welfare. This process reflects the city’s people-centered approach to urban development.

The compensation plan will be publicly posted at ward offices until November 27 to allow affected residents to provide feedback. This transparency gives residents an opportunity to voice their opinions and suggest adjustments tailored to the actual conditions of each household. Community input not only increases transparency and fairness but also strengthens public trust in the project implementation process, minimizing potential conflicts during compensation and land clearance.

The local government is expected to start compensation payments in December of this year, with project construction commencing in mid-2025. Timely compensation will provide residents with time to prepare for resettlement, minimizing adverse impacts on their lives. Additionally, the early implementation of these Ring Road 2 sections will drive the completion of Ho Chi Minh City’s urban traffic system, playing a key role in promoting socio-economic development in the entire region.

These two sections of Ring Road 2 are expected to begin construction in 2025 and be completed by 2027. Completing these sections will not only help alleviate traffic pressure in congested areas but also strengthen regional connectivity, improving trade and laying the foundation for local economic development. The implementation of large-scale infrastructure projects such as Ring Road 2 demonstrates the city’s strategic vision for synchronized transportation and economic development.

Moreover, completing Ring Road 2 plays an essential role in connecting Thu Duc City with neighboring provinces like Dong Nai and Binh Duong, thereby expanding development space and fostering regional economic cooperation. Large-scale infrastructure projects like Ring Road 2 are the foundation for transforming Thu Duc City into a dynamic economic area, contributing to building Ho Chi Minh City as a leading development center in southern Vietnam.

Transportation experts believe that, upon completion, Ring Road 2 will significantly reduce pressure on major routes like Hanoi Highway and Pham Van Dong Road. This improvement will not only enhance traffic conditions and elevate living standards for Thu Duc City residents but also make the entire city more modern, civilized, and competitive as it pursues sustainable development and international integration.