HCM City will revise its redevelopment plan for deteriorating apartment buildings to reflect new realities following its recent administrative merger with the provinces of Bình Dương and Bà Rịa-Vũng Tàu.
An old apartment block slated for relocation and renovation in Khánh Hội Ward in downtown HCM City. — VNA/VNS Photo
The municipal People’s Committee has instructed the Department of Construction to work with other agencies to review regulations and submit an updated plan by September 20.
Bùi Xuân Cường, vice chairman of the municipal People’s Committee, has acknowledged delays in implementation and said new obstacles have emerged after the consolidation of administrative units.
Challenges emerge
The merger has complicated the city’s renovation programme in several ways.
Expanded boundaries have added hundreds of apartment blocks to the plan, increasing demands for funding, land-use planning, and coordination.
Local governments and newly formed administrative units are still reorganising their planning and budget responsibilities, slowing approvals and capital allocation.
Differences in land management and property records between the former HCM City and its merged neighbours have also introduced inconsistencies, complicating investor participation and legal clearance.
At the same time, financing pressures are mounting as the city must stretch its budgetary support across a larger number of projects.
The Department of Construction has been tasked with compiling a list of blocks requiring safety inspections, guiding local governments in preparing cost estimates, and working with the Department of Finance to secure funds.
Buildings deemed unsafe will be prioritised for immediate repair to protect residents.
Under the existing scheme, the former HCM City had earmarked five years to prepare for the redevelopment of 467 apartment buildings constructed before 1975 and others built between 1975 and 1994.
Of these, 16 blocks classified as Level D, or dangerous, were slated for reconstruction. Seven have already been vacated and demolished, while nine are awaiting or undergoing relocation and rebuilding.
The city aims to complete the renovation or reconstruction of all pre-1975 and severely damaged blocks by 2035.
To attract investors, the government has pledged to subsidise up to 50 per cent of infrastructure costs, capped at VNĐ10 billion (US$400,000) per project, and cover half of relocation expenses.
According to the Department of Construction, the old HCM City area still has 474 apartment buildings with 573 blocks built before 1975 in deteriorating condition.
Sixteen are rated Level D (unsafe), 116 are Level C (potentially unsafe), 332 are Level B (substandard), while 12 have already been demolished or repurposed.
So far, five Level D blocks have been fully dismantled and six others partially torn down.
City officials have urged local wards to proactively handle transitional planning tasks, ensuring compliance with regulations while improving investment appeal.
As the new administrative apparatus is consolidated, the Department of Construction will continue to guide localities and resolve bottlenecks in the redevelopment process.