Ho Chi Minh City to finance Metro Line 4 with public-private partnership

Ho Chi Minh City Department of Finance on March 18 issued a document seeking opinions from relevant departments, agencies, and units regarding Sovico Group's proposal to invest in Metro Line 4 from Dong Thanh to Hiep Phuoc.

According to land-use planning, Metro Line 4 is set to be 45 kilometres long, starting at Dong Thanh, going through Tan Son Nhat Airport, Ben Thanh, Nguyen Huu Tho, and finally terminating at Hiep Phuoc Urban Area.

This line is expected to play a key role as a central axis connecting the North and South side of Ho Chi Minh City.

A proposal of Sovico Group dated January 15, stated that the company recommends implementing Metro Line 4 using the public-private partnership (PPP) method, specifically a BT contract, with payment mechanism utilising land funds combined with urban development according to the TOD model along the route.

This mechanism is proposed to be applied in accordance with the new regulations in Decree No.257/2025/ND-CP and National Assembly Resolution No.260/2025/QH15.

Sovico also requested Ho Chi Minh City People's Committee approve policies allowing the company to prepare a feasibility study (FS) report for the project, along with its capability profile and draft contract in accordance with current regulations.

The company is committed to completing the FS in the second quarter of this year and is aiming to commence construction in Q1 of 2027.

To provide a comprehensive legal basis for reporting to Ho Chi Minh City People's Committee, in accordance with regulations on PPP investment, Law on Railway, and other related regulations, the Department of Finance has requested relevant agencies to study and provide feedback on Sovico Group's proposal.

The Department of Finance also requested Sovico Group to cooperate, provide documents, and explain issues during the consultation.

Beyond Metro Line 4, Sovico Group has submitted a proposal to Ho Chi Minh City People's Committee requesting permission to conduct an FS for investments in five different infrastructure projects with a total estimated investment value of around $3.6 billion.

These include expansion of Ho Chi Minh City Ring Road 3, completion of Ring Road 2, a road along Saigon River, a connecting road from Go Dua intersection to the Ho Chi Minh City - Chon Thanh expressway, and the road connecting Cat Lai - Phu Huu inter-port to Ho Chi Minh City Ring Road 3.

Sovico Group is a diversified conglomerate operation spanning finance and banking, aviation, real estate, technology, and digital transformation. The group is also a founding shareholder of Vietjet Air and a major shareholder of HDBank.

Ho Chi Minh City is accelerating the construction of new metro lines to connect with Ho Chi Minh City Metro Line 1. Photo: Le Toan

Ho Chi Minh City Metro Line 1 officially inaugurated Ho Chi Minh City Metro Line 1 built by Japanese ODA was officially inaugurated on March 9 with the participation of high-ranking officials from Vietnam and Japan.

Start date set for Binh Duong-Ho Chi Minh City metro construction Binh Duong province's first metro line, connecting Binh Duong New City to Ho Chi Minh City's Suoi Tien, is expected to start construction in 2027 and be completed in 2031.