Vietnam's urban evolution: how should TOD reshape HCMC?

For two and a half decades (1990-2015), HCMC’s real estate market confined itself within a tight radius. Development rarely ventured beyond Ring Road 2, clustering within 10-kilometres of the city centre. This growth pattern followed organic expansion along the existing infrastructure, primarily the road network, while transit-oriented projects remained absent.

The construction of the city's first operational metro line from 2015-2024 marked a turning point. All stakeholders started to recognise the transformative potential of Transit-Oriented Development (TOD),catalysing unprecedented expansion eastward beyond the traditional urban core into underdeveloped territories. Meanwhile, the western corridor between Ring Road 2 and 3 remained largely undeveloped.

Figure 1: Current residential and commercial supply map in HCMC

Source: JLL Research, MapIT

TOD's application extends far beyond rail systems. The model works equally well with road-based public transport like Bus Rapid Transit (BRT) lines. At its core, TOD aims to create compact, walkable, mixed-use communities centred around high-quality public transport hubs, regardless of the underlying technology.

From 2025 onwards, the Vietnamese government embraced TOD as a solution to reduce concentration in inner urban areas. This policy shift, combined with the emergence of integrated townships along ring roads, has created new dynamics that promise to improve the ring road system with balanced development in all directions. This shift aligns with a broader trend that has emerged over the past decade: large-scale integrated townships. Developers have adopted holistic approaches to mixed-use development, seeking to overcome locational disadvantages by creating their own commercial and entertainment facilities. This approach proves particularly valuable for projects in the city's western areas, where residential growth has yet to extend organically beyond the Ring Road 2 boundary.

Figure 2: Number and scale of future mega townships along Ring Road 3 and 4 in Greater HCMC

Source: JLL Research, MapIT

Vietnamese developers have shown remarkable initiative in adopting the TOD principles. Nam Long Group stands out as a leader in western HCMC by establishing a bus station integrated with a commercial hub at their main project entrances and operating their own bus systems to improve connectivity. Their master planning also emphasises walking and cycling-friendly environments complemented by extensive park systems.

Figure 3: Example of good master planning following the TOD model in the Nam Long Water Point project, Greater HCMC, South Vietnam

Source: JLL Research, Nam Long

According to JLL's TOD evaluation criteria, developments like Nam Long's Water Point project showcase excellent master planning. However, they face a critical challengeof breathing life into these communities. Unlike traditional real estate development, TOD requires developers to function more like shopping mall operators, actively cultivating foot traffic and community engagement through events and activities.

This evolution demands new skillsand experience from Vietnam's real estate sector. After just 30 years of modern development, the industry must now master the complex art of placemaking. This means creating not just buildings and infrastructure, but vibrant, sustainable communities.

Vietnam's embrace of TOD represents more than an urban planning trend. It rather signals the country's real estate market reaching a new level of sophistication. As developers learn to balance physical infrastructure with community activation, the city’s expansion pattern is set to become more sustainable, equitable, and livable.

The success of these TOD-integrated townships will ultimately depend on their ability to create genuine communities rather than merely housing developments with transit access. This challenge will define the next chapter of Vietnam's urban transformation.