Vietnam's Coastal Development Threatens Vital Mangrove Forests

Ho Chi Minh City, one of the world's most climate-vulnerable cities, faces a growing threat to its natural coastal defenses as rapid development encroaches on the vital mangrove forests of Can Gio.

These mangrove ecosystems have long served as a crucial buffer, shielding the densely populated metropolis from increasingly volatile seas exacerbated by climate change. Their intricate root systems stabilize the coastline, support marine life, and absorb significant amounts of carbon emissions. However, scientists are warning that the construction of a new seaside city, a major port, associated infrastructure, and a significant sea-crossing route could disrupt the delicate water flows essential for the mangroves' survival, thereby weakening a critical natural defense for the city of 10 million.

Ho Chi Minh City, formerly known as Saigon, is particularly susceptible to flooding, with an estimated 80% of its area vulnerable, according to a 2026 study by Vietnamese scientists. The government already estimates that rising sea levels cost the city approximately $57 million annually, with record downpours and high tides in 2025 causing widespread flooding.

The Can Gio mangroves themselves have a history of resilience, having nearly disappeared during the Vietnam War due to chemical spraying by U.S. forces. They were painstakingly replanted in the late 1970s and were recognized as Vietnam's first UNESCO biosphere reserve in 2000.

Economic Ambitions and Environmental Concerns

As Vietnam strives to become a leading economy in Asia, its 3,260-kilometer coastline is undergoing significant transformation. In April, Vingroup, the country's largest company, began construction on a new coastal town on reclaimed land. Authorities envision Can Gio as a strategic gateway and logistics hub, with a new $4.7 billion port designed to handle millions of shipping containers annually and a destination for tourism. A key component of this development is Vingroup's Green Paradise project, a large coastal development featuring housing, shopping, and entertainment.

Planned infrastructure includes a metro line connecting Can Gio to Ho Chi Minh City and roads linking to the city's expressway network, alongside the sea-crossing route to the port city of Vung Tau. These developments aim to modernize the region and drive economic growth.

Divided Local Communities

The impact on local residents is a subject of division. Many who rely on fishing are finding their livelihoods threatened as construction pushes fish populations into deeper waters inaccessible to their small boats. They observe concrete seawalls and embankments replacing natural coastlines, accompanied by heavy machinery along the beaches.

Conversely, many younger residents have found employment with Vingroup, hoping the projects will create more jobs. However, some have expressed dissatisfaction with the compensation received for land that is now being developed for lucrative real estate ventures. One resident, who requested anonymity for fear of reprisal, noted that blocked drainage systems have worsened flooding and polluted waters, damaging oyster farms and other local agriculture. He described the once vibrant Can Gio as a place that "doesn't exist anymore."

Ecological Risks and Global Context

Researchers highlight the ecological significance of the Can Gio mangrove forest, noting that its mature trees and carbon-rich soils store substantial amounts of greenhouse gases. Marie Arnaud, a researcher at the French Sustainable Development Institute, expressed concern over the project's scale and its potential to disrupt water flows, citing examples in Colombia where similar hydrological barriers led to significant mangrove die-offs.

Globally, mangrove forests are under pressure. The UN Food and Agriculture Organization reported a net loss of 284,000 hectares of mangrove forest between 2000 and 2020. While Vietnam has engaged in mangrove reforestation efforts, these gains have been offset by losses due to aquaculture, land conversion, and coastal erosion.

Vietnamese officials maintain that the current development is situated outside the core, strictly protected area of the Can Gio Mangrove Biosphere Reserve. In September, authorities sought approval to clear a small section of mangrove forest within the reserve's buffer zone for the metro link project. Officials also stated that sand for construction would be sourced from an artificial lake to mitigate further erosion in the Mekong River.

Financial Considerations and Future Outlook

Beyond environmental concerns, some analysts view the Can Gio project as a potential financial risk. Le Hong Hiep of the ISEAS–Yusof Ishak Institute in Singapore pointed out that Vinhomes typically develops projects near existing urban centers that can be sold quickly. The Can Gio project, requiring extensive land reclamation and new infrastructure before occupancy, presents a different challenge.

With a slowdown in demand for high-end property in Vietnam, Vinhomes may be compelled to continue large-scale construction to maintain revenue streams and support the financial operations of its parent company, Vingroup, particularly its electric vehicle manufacturing arm, VinFast. This business strategy, Hiep suggests, creates a cycle where companies "cannot stop" building. Vingroup did not respond to requests for comment.

The Vietnamese government stated in 2020 that the project adhered to Vietnamese law and UNESCO regulations. UNESCO confirmed it is monitoring the situation in collaboration with the Vietnamese government and other stakeholders.