The ongoing landslide prevention projects are behind schedule due to delays in acquiring land and compensation negotiation. The project began in 2007.
Residents in Binh Thanh District's Ward 27 were unhappy with the compensation rate that local authorities had offered them.
Citizens complained that they did not understand the compensation policy offered by the local government.
Luu Mai Tram, whose house subject to relocation, said she was offered only 30 per cent of the compensation value.
She bought the house from another person in a private agreement before 2001.
The owner of a neighbouring house received 100 percent compensation, Tram told Sai Gon Giai Phong (Liberated Sai Gon) Newspaper.
Nguyen Van Quang, deputy head of land clearance and compensation board in Binh Thanh District, told the paper that the land receiving 20 to 30 per cent of the official compensation rate was land encroaching on the canal and river.
Lawyer Nguyen Van Tran said the country's Land Law requires that residents with land and houses withdrawn for public projects should be compensated 100 percent if the land is used before October 15, 1993.
Additionally, they will receive compensation if the properties are not in dispute and the land-owners had paid their annual taxes.
Phan Van Dinh, office chief of Binh Thanh District's People's Committee, told the paper that the district had requested the district's land clearance and compensation board and relevant agencies to report the issues related to compensation in the district.
With the report, the Binh Thanh District administration will report to the city's Party Committee and then results will be given to citizens in the district.
Dinh said the district had finished construction on the sections No 1.1 and 1.3 and the sections No. 1.2 and 1.4 had not been built due to dissatisfaction with compensation. Nearly 164 households will be affected when the sections are built.
Four months ago, the city government urged local government agencies to complete the project soon and give priority to prevent riverbank erosion.
Land clearance has not been completed for the remaining two embankment sections.
The city has 50 riverbank areas facing a high risk of landslides, with a total length of more than 30km in Districts 2, 9, Binh Thanh, Thu Duc, Nha Be and Binh Chanh.