Ho Chi Minh City authorities have proposed a USD370 million project to dredge and upgrade the 7.4 km Ba Lon Canal to address worsening floods in the southern urban districts. The plan, submitted by the city People’s Committee to the municipal People’s Council, includes full dredging of the canal, construction of nearly 10 km of embankments, a new one-kilometre road (12–18 metres wide), and the Ba Lon 2 Bridge across National Highway 50.

The total estimated cost is VND9.23 trillion, with more than VND6.6 trillion allocated for land clearance and resettlement, approximately VND2 trillion for construction, and the remainder for consulting, management, and contingency. The canal serves as a key drainage route channeling stormwater from downtown HCM City to southern areas via Doi Canal under flood-control plan 1547. Years of encroachment, illegal construction, and waste dumping have caused bottlenecks, particularly between Ba Tang Bridge and Binh Dong Temple. Work could begin soon if approved, with completion expected by 2030.

The project forms part of a broader flood-resilience and urban-renewal strategy, integrating with the nearly VND 10 trillion tide-control system and ongoing investments such as the Tham Luong-Ben Cat-Nuoc Len Canal (VND9 trillion), Xuyen Tam Canal (VND17 trillion), and Doi Canal’s northern bank (VND7.3 trillion). HCM City has also revitalised other waterways over the past decade—including Nhieu Loc-Thi Nghe, Tan Hoa-Lo Gom, and Hang Bang canals—enhancing water quality and flood management.