Ho Chi Minh City to pour $270M into road expansion to ease western gateway congestion

The Ho Chi Minh City People's Council last week approved adjustments to the investment policy for the project to upgrade and expand Vinh Loc Road, covering the stretch from Tran Van Giau Road to Road No. 2A in Vinh Loc Industrial Park.

The project was first approved in 2015-2016 with a planned width of 18 meters and a total budget of VND807 billion, with construction slated for 2016-2020. It stalled for years as costs ballooned and authorities struggled with design scale, funding sources, and compensation and site clearance.

Under the newly approved plan, the road will be widened from 18 meters to 30 meters, equivalent to four motor vehicle lanes. The route length has also been revised to reflect current conditions, increasing from about 6 kilometers to more than 7 kilometers.

The expanded road will run through Binh Loi Commune, Vinh Loc Commune, Tan Vinh Loc Commune and Binh Tan Ward, requiring the acquisition of nearly 24 hectares of land. About 8 hectares are state-managed, while the rest will require compensation. The project is expected to affect 1,424 cases, including 93 households that will need to be resettled.

City authorities said the sharp rise in total investment is largely driven by the wider road design, updated land and asset compensation rates under current regulations, and the decision to integrate site clearance into the main construction package for synchronized implementation. Compensation, support, and resettlement costs alone are estimated at about VND5.807 trillion.

Vinh Loc Road is currently just 7-8 meters wide despite heavy traffic volumes, leading to frequent and prolonged congestion, particularly at hotspots such as the Vinh Loc five-way intersection and the Vinh Loc-Tran Van Giau junction. Several sections have been forced into one-way operation, disrupting daily life for residents and complicating business and industrial transport.

According to the Ho Chi Minh City People's Committee, expanding the road to 30 meters is a mandatory technical solution to restore two-way traffic, boost capacity, improve safety and relieve pressure on National Highway 1 and nearby routes.

Once completed, Vinh Loc Road is expected to become a key connector linking western industrial zones such as Vinh Loc and Le Minh Xuan, while sharing traffic with National Highway 1 and Provincial Road 10. City officials say the upgrade could help reduce logistics costs and support economic growth at Ho Chi Minh City's western gateway.

The project is scheduled for implementation between 2026 and 2028, following the completion of investment adjustment procedures and site clearance.