Infrastructure projects to aid southern realty market

Infrastructure projects planned for 2021 – 2025 in southern Vietnam, especially in Ho Chi Minh City and satellite areas, are expected to propel the regional property market.

The five-year plans include developing a system of national roads in the south to boost regional connectivity, La Hong Hanh, deputy director of the Ministry of Transport's planning and investment department, told the workshop “Creating momentum for recovery of the southern real estate market” organized by The Investor on Friday.

Hanh said the planned national roads have a total length of 137 km linking the city with other southern provinces and cities. In addition are three ring roads with 351 km in total length, namely beltways 2, 3 and 4.

Six new expressways are under construction or in the pipeline to boost connectivity between HCMC and the surrounding provinces of Dong Nai, Ba Ria-Vung Tau, Binh Phuoc, and Tien Giang.

As for railroads, in addition to the operational Hanoi-Ho Chi Minh City railway, the government has plans to develop railways linking the southern economic hub with Can Tho, Bien Hoa, Vung Tau and Tay Ninh.

Construction is going on as planned on Long Thanh International Airport, about one hour’s drive from HCMC. Its annual capacity is 25 million passengers in phase 1, which will double by 2030 in phase 2.

Development and upgrades for seaports and inland waterways are also in process. HCMC is home to a system of ports and logistics facilities of convenience, therefore further development of the system would fuel the national and regional economic growth, thus propelling the southern property market, Hanh added.

Addressing the workshop, Dr. Nguyen Anh Tuan, Editor-in-chief of The Investor, said many experts predicted that the southern market will see many new opportunities and driving forces in the post-pandemic period in 2022 and the following years.

Vietnam’s post-pandemic recovery is believed to help the market rapidly regain momentum and continue to grow, he noted. "The total area for industrial parks in the south is expected to increase by more than 3,500 hectares this year to meet the growing demand in the region, mainly in Dong Nai, Binh Duong, and Long An provinces."