HCMC seeks to retain surplus revenues to fund metro rail network

Ho Chi Minh City (HCMC) is proposing to retain all revenue surpluses beyond its annual budget targets from 2026-2030 to finance its metro rail network, according to a report submitted to the Ministry of Finance. The city needs an estimated $37.45 billion by 2035 to complete six metro routes covering 183 kilometers, but it faces insufficient budget allocations under the current system.

Public funding in Vietnam is distributed based on factors like population and infrastructure needs, with the Ministry of Finance ensuring balanced growth by prioritizing less developed regions. HCMC, which often surpasses its revenue targets, currently shares its surpluses with the central government. For example, in 2022, the city collected 121.99% of its target, contributing significantly to the national budget. Now, HCMC wants to retain these surpluses to support its metro development, particularly from revenues it currently shares with the government, such as corporate income tax.

Additionally, HCMC is exploring other funding channels, including issuing "metro bonds." City chairman Phan Van Mai has encouraged the public to invest in these bonds, with assurances that careful planning of land use and economic returns along metro routes will offer lucrative investment opportunities.

Currently, only two metro lines (Ben Thanh – Suoi Tien and Ben Thanh – Tham Luong) are under construction, funded by official development assistance loans. The rest remain in the planning stages, with Line No.1 expected to start operations later this year. The city’s metro master plan envisions eight routes and three monorail lines covering around 220 kilometers in total.