People at a station of metro line No. 1 in Ho Chi Minh City. Photo: Chau Tuan / Tuoi Tre
Following a meeting with relevant departments, the provincial administration agreed with the Department of Finance’s recommendation to allow the investor to execute the project.
The consortium of DonaCoop Infrastructure Investment JSC and VinaCapital Group has been approved to be the investor of the project, which will be developed under the public-private partnership (PPP) model.
The proposed metro extension will consist of three segments with a total length of approximately 38.5 kilometers.
A 6.5-kilometer segment from Station S0 to Dong Nai Province’s new administrative center will be constructed on the site of the relocated Bien Hoa 1 Industrial Park in Tran Bien Ward.
The next segment from the new administrative center to Long Thanh International Airport is designed to be 27km long.
The last segment, five kilometers long, connects the new administrative center to the main road in Tran Bien Ward.
According to the Dong Nai People’s Committee, the investor will bear all costs and risks during the project preparation phase if the proposal is not approved.
If approved, all expenses will be reimbursed in accordance with PPP regulations.
The provincial administration has requested that Donacoop and VinaCapital collaborate with local departments and authorities to finalize and submit the investment proposal.
The proposal must comply with laws on construction, PPP projects, and other relevant regulations.
Key elements to be addressed include land use demand, compensation and site clearance costs, resettlement needs, and the allocation of land for project implementation.
People wait for a train of metro line No. 1 in Ho Chi Minh City. Photo: Chau Tuan / Tuoi Tre
Previously, Donacoop and VinaCapital submitted a written proposal to Dong Nai authorities, seeking approval for the extension of Ho Chi Minh City’s metro line 1 to Long Thanh International Airport, incorporating the TOD (transit-oriented development) smart urban development.
The total investment for the project is estimated at VND65 trillion (US$2.5 billion), excluding land clearance costs.
The consortium proposed entirely funding the project using its capital and its partners’ funds.
Construction is expected to take four to six years from the date of land handover.
Ho Chi Minh City’s first metro line spans 19.7 kilometers, including 2.6 kilometers of underground rail and 17.1 kilometers of elevated track, with a total cost of $1.7 billion.
Construction on the metro line project commenced in 2012, and the line began commercial operations on December 22, 2024.
The Long Thanh International Airport project had its first sod turned in January 2021.
It is being implemented in three phases at an estimated cost of over VND336.63 trillion ($12.93 billion).
When all three phases are finished, likely after 2035, the airport will be the largest in Vietnam with an annual capacity of 100 million passengers and five million metric tons of cargo.
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