‘Land for infrastructure’ in Ho Chi Minh City: land-based financing of transportation improvement

Abstract

This paper explores how land-based financing mechanisms are currently used in Ho Chi Minh City as a public-private funding strategy. The Land-for-Infrastructure (LFI) mechanism appears as a solution to produce infrastructures. We found that the implementation of the LFI mechanism remains difficult, but eventually can lead to success. By ‘trial-error-transcend,’ the City managed to build two essential roads while the developers received attractive investment opportunities in urban development. This mechanism cannot, however, be seen as a panacea for the local authorities due to constraints to replicate it and potential undesired ‘side effects.’

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