Ho Chi Minh City proposed for a VND10 - trillion support fund to demolish houses on canals

The Ho Chi Minh City People's Committee on December 3 proposed the Ministry of Agriculture and Environment raising a support fund of VND10 trillion ($379 million) for the city's efforts to demolish houses on canal banks.

According to the proposal, the fund will be sourced from the central government's budget for climate change and environmental protection for the urban renovation project in areas with houses on and along rivers, canals, and streams for the period 2025 – 2030.

The Ho Chi Minh City People's Committee stated that the city's river, canal, and stream system has played a crucial role in drainage, flood regulation, and creating public spaces over the years. However, tens of thousands of houses still exist on and along these canals, concentrated in areas with high drainage pressure, thus posing risks of fire hazards, landslides, obstructing water flow, flooding, and environmental pollution, severely affecting urban aesthetics and the quality of life for residents.

Additionally, according to Notice 235-TB/VPTW, dated June 24, 2025, from the Office of the Party Central Commitee,  Party General Secretary To Lam requested Ho Chi Minh City to invest strongly in and accelerate the progress of eliminating temporary houses on and along canals. The goal set by the Ho Chi Minh City Party Congress for the 2025 – 2030 term is to resettle 20,000 houses, equivalent to 50 per  of the houses along the city's canals, by the end of 2030.

The Ho Chi Minh City People's Committee noted that currently, the city must focus significant resources on important socio-economic tasks in order to achieve double-digit growth, and complete the strategic transportation infrastructure network, especially the metro system and inter-regional connectivity projects. It therefore could not allocate sufficient funds for compensation, support, and resettlement, when implementing a project to eliminate these temporary houses

Moreover, the Ho Chi Minh City People's Committee believes that if the central government provides an additional capital, it will help the city be more proactive in implementing renovation projects, shorten relocation time, and thoroughly address pollution, landslides, and flooding in many key areas.