Ho Chi Minh city is actively encouraging private enterprises to participate in the development of city’s metro system. Following VinGroup’s initiative, several major crporations, including Gamuda and Vietjet, have expressed interest in various metro lines. The city aims to diversify funding sources, transitioning from public to private investments, to alleviate budgetary pressures and expedite infreastructure development.
Chairman Được emphasized the city’s strategy to diversify funding by shifting from public to private investments, thereby reducing the strain on the municipal budget. This approach includes restructuring the Urban Railway Management Board into a corporate model to enhance efficiency. He remarked, “The idea is to establish major Vietnamese conglomerates in Ho Chi Minh City, akin to chaebols.”
Furthermore, the city plans to retain 100% of land revenue for the next five years to fund urban railway projects, subject to central government approval. This move is part of a broader initiative to accelerate infrastructure development and modernize the city’s transportation network.
Chairman Được also addressed administrative challenges, pointing out that overly stringent procedures have hindered investment. He called for the elimination of unnecessary regulations that create unfavorable conditions for businesses.
In addition to transportation projects, the city is undergoing administrative restructuring, including the consolidation of districts and the reallocation of public assets for educational and healthcare infrastructure. These efforts aim to streamline governance and better serve the city’s development goals.