Major project: light rail line from HCMC to Can Gio approved!

Major project: light rail line from HCMC to Can Gio approved!

On May 18, 2025, the Ho Chi Minh City People's Committee appointed Vingroup Corporation to examine a light rail project to provide a connection from the city center to Can Gio. This decision is part of a larger plan for the development of urban rail transport, within the framework of the plan adopted by the National Assembly Resolution No. 188/2025/QH15 is organized.

The Justice and Finance Ministries have sent appropriate official dispatches to the Government Office and the Construction Ministry in support of the proposal. The main objective is to include the railway line in the list of projects that can benefit from the specific mechanisms of the said resolution. This resolution allows the government to flexibly adjust the list of planned projects based on recommendations from individual cities.

Financing and investment mechanisms

The Resolution No. 188 calls for comprehensive financing, coming from both the central budget and international development aid and preferential loans. Ho Chi Minh City will receive up to VND 209,500 billion to develop urban railway projects between 2026 and 2035. The need for detailed clarification of the source of capital and the efficiency of investments is emphasized to avoid possible losses or corruption.

A particular challenge remains ensuring the legality and feasibility of the project. The city must decide what mechanism is best to implement the project. In addition, the Ministry of Construction should submit a proposal to test specific investment mechanisms for the railway system.

Goals and strategies for urban development

A central component of the development is the implementation of the concept of transit-oriented development (TOD), which promotes urban planning approaches that focus on train stations as mobility centers. This should not only make the use of space more efficient, but also reduce the environmental impact. Planning in TOD zones is particularly focused on the mobility of local public transport.

State institutions, political organizations and relevant domestic and foreign actors are included in the scope of the resolution. In addition, the city committees can provide local budget funds for city railway projects and thus directly support investment decisions.

Implementation and responsibilities

The implementation of urban railway projects will progress more quickly as they can move directly to preparation and investment decisions. The responsibility for managing investments lies with the government, which must also ensure transparency and efficiency. In addition, the city parliament is required to precisely define specific provisions of the resolution.

With these measures, Ho Chi Minh City aims to decentralize investment implementation and give greater scope to responsibilities within the city. The inclusion of the light rail line in the project list is also intended to activate specific political mechanisms that will accelerate the investment processes.

Through these comprehensive measures, the city aims to improve the quality of life of citizens by creating an effective and environmentally friendly transport infrastructure, which also contributes to facilitating tourist access to the coastal area of ​​Can Gio.