A 120-meter section on the right bank of Thanh Da Canal, part of the Saigon River system, eroded away more than a week ago.
The area belongs to Binh Thanh District, and local authorities have had to relocate several families there.
Nguyen Vong Cac stands at the back of his house, which was partially damaged by the erosion, on Wednesday.
He said and his wife earned a living as vendors and used the front of the house, which lies on an alley off Xo Viet Nghe Tinh Street, as their premises and therefore could not just move to an apartment as suggested by the authorities.
A crack in the foundations of Cac's house.
According to Binh Thanh’s authorities, heavy rains and high tides created "large pressure" on the embankment.
"I woke up one morning and was freaked out at seeing the back of my house collapse. These days I do not dare to sleep tight as I fear that the house could be washed away anytime," said Nguyen Van Tu, 68.
Tu said on Wednesday that his family was preparing to move to a temporary shelter and would wait until the embankment was finished before fixing their home.
Another house on the alley has its foundation cracked and subsided due to the erosion.
The owner has used bags of sand for reinforcement.
Ho Chi Minh City launched a project to build an anti-erosion embankment along Thanh Da Canal in 2006.
The project was divided into four sections, costing VND110 billion (US$4.65 million), VND280 billion, VND281 billion, and VND420 billion of the state budget each.
Until now, only one section has been completed, one is left half-finished and work has yet started on the remaining two. Difficulties in clearing site for the project have been cited as the main reason.
