The rapid development of HCMC infrastructure is not be taken lightheartedly.
As Vietnam propelled itself into economic growth, urbanisation has been on the up. In 2015 the rate of urbanisation was recorded at a staggering 34 percent which brought will it pressure on the existing infrastructure network in Ho Chi Minh City. The stream of traffic built up, which is not helped by the narrow roads and the little public transportation on offer. Leaving people with little choice other than to use their own form of transport to get around, which only worsens the situation.
Realised to be a stumbling block in the country’s development, the government looked at ways to address the issue and in 2012 the building of Metro Line 1 commenced. This was followed by Metro Line 2 in 2015, and next the Bus Rapid Transit route which is due to start construction next year.
Any sort of investment on this level is not going to come cheap. The Metro Line 1 is expected to rack up a bill of USD 1.1 billion for the 19.7 kilometres it stretches. Starting in District 1 and finishing in District 9, the need to make getting around the city easier could not be more apparent as 160,000 commuters daily are expected to use this route alone. Scheduled to be complete in 2020 this creates a real opportunity for investors to purchase property now along the route. Improving infrastructure will bring more people who will need to be housed. It is a fairly simple formula and it is no wonder that HCMC has been earmarked as one of the best places to invest.
Similarly Metro Line 2 is expected to ramp up similar figures in terms of investment costs and passenger numbers. This route will link District 12 to District 2 over a length of 19 kilometres. The building of this route has been identified as the Government’s plan to create a new financial hub at Thu Thiem creating opportunities for investors and developers keen to get onboard.
Aside from the Metro, the Bus Rapid Transit Route is the next infrastructure investment. 28 stations are planned to carry 28,300 passengers from District 9 to District 2. A similar pattern of development is expected to emerge along the route as these figures are not to be sniffed at. Any astute investor will always look ahead to future infrastructure plans that are on the table to identify pockets of growth. Ho Chi Minh City is no exception and developers are hot on the tails of this expansion, which will also help to ease the congestion caused by urbanisation.
