Long-delayed HCMC metro lines face even more delays

By Tuong Nguyen
Wed, October 12, 2022 | 8:22 am GMT+7

The prolonged delays to HCMC’s first and second metro lines are likely to extend even further, mired as they are in site clearance and funding problems, the transport ministry says.

In a new report to the government, the ministry (MoT) said the southern economic hub wants to complete Line 1 (Ben Thanh-Suoi Tien) in the fourth quarter of 2023 and Line 2 (Ben Thanh-Tham Luong) in 2030. The previous timeline for Line 1 was Q4/2021.

Line 1, estimated to cost over VND43.7 trillion ($1.89 billion), will run around 20 kilometers from the Ben Thanh area in District 1 to Long Binh Depot in Thu Duc city on HCMC’s outskirts.

Some railway wagons already in place for the unfinished Metro Line 1 project in HCMC. Photo courtesy of Legal newspaper.

Some railway wagons already in place for the unfinished Metro Line 1 project in HCMC. Photo courtesy of Legal newspaper.

According to the report, 92.2% of the construction of Line 1 has been completed and the ratio is expected to reach 93% by the end of this year, but site clearance is still not completed.

In terms of construction packages, the Ben Thanh-City Theater underground section is almost 97.2% complete; the City Theater-Bason Station underground section is almost 99.64% complete; the section of elevated railroads and depots is nearly 96.2% complete; and the package of locomotives, wagons, electric equipment, tracks and maintenance is about 83% complete.

There are three packages yet to start, namely the IT system for operations, the construction of operation and management offices, and the consulting package for the whole system’s safety.

The main reasons for further delays, according to the report, include more time needed for the HCMC administration to adjust the design, resolve contractor complaints, add additional costs and speed up site clearance work that has been very slow. Besides, the technologies used for Line 1 are completely new to Vietnam, and it is taking more time to learn.

"In addition, the work of making, appraising and approving the project's applications for more funding has taken a long time and but not been completed so far,” the ministry wrote in the report, citing another reason from the city administration.

The Line 2 project has seen even longer delays, according to the ministry. The project was originally approved for completion between 2010 and 2018, then adjusted to 2021-2026, and now to 2030.

The ministry report listed different reasons for the long delay, including site clearance problems. As of now, 85.15% of the site has been cleared, with the biggest remain obstacles lying in District 3, part of the central business district.

The consulting contract for the second metro line, signed in 2012 by the Management Authority for Urban Railways (MAUR) of HCMC and Implementation Consultant (IC), was terminated by an IC announcement this March.

The two-phase consulting contract expired in 2018 as stated in the agreement; and the consulting firm stopped supplying services for the first phase of the project. Then the MAUR had to end the second phase of the contract. In 2019, MAUR and IC held negotiations on Appendix 13 of the contract to complete the rest of the first phase. The negotiations lasted two years, but no consensus was reached.

In May 2021, the city decided to end Appendix No. 13 negotiations with IC. However, IC later proposed resuming negotiations to complete some main bidding packages. The city government assigned MAUR to get back to the negotiation table with IC. However, IC announced this March that it had ended the consulting contract.

The process of selecting a new consulting firm is ongoing, but the selection might last 12 to 18 months, according to city officials.

The Line 2 project, about 11 km long with 10 stations, is estimated to cost a total of VND47.89 trillion ($2.08 billion).

In all, HCMC has eight metro line projects planned with a combined length of 220 kilometers and estimated costs totaling almost $25 billion.

Comments (0)
  • Read More
Rixos debuts in Southeast Asia on Vietnam’s 'Pearl Island'

Rixos debuts in Southeast Asia on Vietnam’s 'Pearl Island'

A new chapter in travel is unfolding in Southeast Asia as Rixos Hotels, the world’s leading all-inclusive brand, prepares to unveil its first-ever resort in the region.

Travel - Sat, July 12, 2025 | 6:48 pm GMT+7

Vietnam’s biggest airport project ‘races to the finish line’

Vietnam’s biggest airport project ‘races to the finish line’

The Ministry of Construction has requested investors of the Long Thanh International Airport to complete the main route by August 2025 to facilitate trial operations of the passenger terminal and other components.

Infrastructure - Sat, July 12, 2025 | 6:19 pm GMT+7

Singapore's YCH Group eyes developing logistics center in southern Vietnam economic zone

Singapore's YCH Group eyes developing logistics center in southern Vietnam economic zone

Tay Ninh province has pledged full support to Singapore’s YCH Group in developing a logistics center within its Moc Bai Border Gate Economic Zone.

Industries - Sat, July 12, 2025 | 1:48 pm GMT+7

Vietnam PM asks US firms to sustain support for 'reasonable, detailed tariff pact'

Vietnam PM asks US firms to sustain support for 'reasonable, detailed tariff pact'

Prime Minister Pham Minh Chinh has called on U.S. businesses to continue supporting the Vietnamese government in dialogues with U.S. agencies to soon reach "a reasonable, detailed tariff agreement for individual products and product groups".

Economy - Sat, July 12, 2025 | 11:32 am GMT+7

Mergers of Vietnamese provinces unlock new property development opportunities

Mergers of Vietnamese provinces unlock new property development opportunities

The merging of Vietnamese localities is expected to create a strong "boost" for the real estate market as expanded planning space, synchronized infrastructure, and new land reserves are key factors driving the market's transformation.

Real Estate - Sat, July 12, 2025 | 11:00 am GMT+7

Measures proposed for Thailand to minimize US tariff impacts

Measures proposed for Thailand to minimize US tariff impacts

Financial and banking experts in Thailand have warned that the U.S.'s proposed 36% tariff on Thai goods is likely to severely undermine Thailand's export competitiveness.

Southeast Asia - Sat, July 12, 2025 | 9:06 am GMT+7

Chinese construction major PCG eyes $383 mln underwater tunnel project in northern Vietnam

Chinese construction major PCG eyes $383 mln underwater tunnel project in northern Vietnam

Pacific Construction Group (PCG), one of China’s leading construction firms, has expressed interest in developing a VND10 trillion ($383 million) underwater road tunnel in Quang Ninh, a coastal province in northern Vietnam.

Infrastructure - Sat, July 12, 2025 | 8:04 am GMT+7

Vingroup stocks pull VN-Index up for sixth consecutive session

Vingroup stocks pull VN-Index up for sixth consecutive session

VN-Index, which represents the Ho Chi Minh Stock Exchange, on Friday increased for the sixth consecutive session thanks to large-cap stocks, with foreign investors continuing to strongly net buy.

Finance - Fri, July 11, 2025 | 7:20 pm GMT+7

Coca-Cola inaugurates largest-scale Vietnam factory in Tay Ninh province

Coca-Cola inaugurates largest-scale Vietnam factory in Tay Ninh province

Coca-Cola Beverages Vietnam on Friday inaugurated a $136 million factory in Tay Ninh province, the largest-scale among its four facilities in Vietnam.

Industries - Fri, July 11, 2025 | 5:27 pm GMT+7

Vietnam halts use of German ODA loans for HCMC metro line

Vietnam halts use of German ODA loans for HCMC metro line

The Government has approved a proposal by Ho Chi Minh City to stop borrowing official development assistance (ODA) loans from Germany’s KfW development bank for Metro Line No. 2 and instead use domestic funds to avoid further delays.

Economy - Fri, July 11, 2025 | 3:25 pm GMT+7

Seventeen housing projects foreigners allowed to buy in HCMC

Seventeen housing projects foreigners allowed to buy in HCMC

Ho Chi Minh City has announced a list of 17 residential projects located in areas where foreign organizations and individuals are allowed to own houses.

Real Estate - Fri, July 11, 2025 | 3:17 pm GMT+7

Auto enterprises to enjoy preferential import tariff policies

Auto enterprises to enjoy preferential import tariff policies

The Government has issued a decree amending and supplementing Decree No. 26/2023/ND-CP on the export and preferential import tariff schedules, as well as the lists of goods subject to absolute tax, mixed tax, and out-of-quota import duties.

Companies - Fri, July 11, 2025 | 2:13 pm GMT+7

Korean chaebol Samsung’s revenue makes up 13% of Vietnam’s GDP in 2024

Korean chaebol Samsung’s revenue makes up 13% of Vietnam’s GDP in 2024

Samsung’s revenue and export in Vietnam accounted for approximately 13.12% of the country’s GDP and 13.4% of its total export turnover in 2024, respectively, according to the National Statistics Office.

Companies - Fri, July 11, 2025 | 2:09 pm GMT+7

JPMorgan upgrades Vietnam stocks to overweight following US tariff deal

JPMorgan upgrades Vietnam stocks to overweight following US tariff deal

JPMorgan Chase has upgraded Vietnam stocks to overweight after the country became the first Southeast Asian nation to reach a preliminary tariff deal with the U.S.

Economy - Fri, July 11, 2025 | 11:38 am GMT+7

Vietnam government bond issuance surges nearly 70% in June

Vietnam government bond issuance surges nearly 70% in June

The Hanoi Stock Exchange (HNX) held 16 government bond auctions in June, raising nearly VND30.5 trillion ($1.2 billion), up 68.8% from May.

Finance - Fri, July 11, 2025 | 9:30 am GMT+7

Xuan Truong Company asked to make feasibility study for airport proposal in northern Vietnam

Xuan Truong Company asked to make feasibility study for airport proposal in northern Vietnam

The Ministry of Construction has asked Ninh Binh authorities to prepare a feasibility study on the potential development of an international airport in the province, the ministry said in a report submitted to the Government regarding a proposal from private construction company Xuan Truong.

Companies - Fri, July 11, 2025 | 9:18 am GMT+7