Investment capital of VND75.378 trillion will come from the central and local budgets.

This is a strategic project, creating a corridor for urban development and industry for four cities and provinces and the key southern economic region. The authorities of related provinces and the National Assembly support the project.

According to the plan, at least 70 percent of site clearance will be completed by December 2023. The project will start in June 2023 and be completed in June 2026. 

At least 3,863 households  have to leave to make room for the project. HCM City plans to set compensation at VND18.7-40.1 million per sq m for residential land, and VND3.8-8.2 million per sq m for perennial land to support the switch to other jobs, and VND3.2-6 million per sq m for annual crop land.

The publishing of compensation rates will allow people to know about the financial situation and prevent doubts and complaints. Other localities should also publicize compensation prices. 

The compensation prices which are close to market prices or even higher than market prices can bring big benefits to projects because they don’t cause losses as opportunities are not missed and project costs don’t increase.                                                                                                     

When reasonable compensation prices are offered from the beginning and people’s benefits are highlighted, a higher level of consensus among the people is created.

Once investors choose capable contractors, the projects, and quality and efficiency of investment will be guaranteed. 

Therefore, when bids are organized, this will create a foundation for healthy competition. Meanwhile, direct appointment of contractors can ensure the quality and progress of work and save money.

However, reality is different from theory. When only one contractor is appointed, it will be difficult to ensure that the project can be implemented with a market price. 

Meanwhile, reality shows that the time that can be cut between bidding and direct appointment of contractors is insignificant.

Appropriate agencies, when implementing 3 highway projects, have had to spend 3.5 months from the date to invite bids to the date of approving bids, while it took 2.5 months for direct appointment of contractors. The direct appointment of contractors could help save only one month.

Tran Van Tuong