By The Straits Times | Created at 2026-08-19 08:01:42 | Updated at 2026-08-19 08:10:42
15 minutes ago
HANOI - Vietnam has proposed allowing land clearance to begin before compensation and resettlement plans are finalised, a major change that could speed up development projects but raise concerns about safeguards for residents.
The proposal is intended to “remove institutional bottlenecks and unlock land resources to serve socio-economic development and the goal of double-digit growth in the new period”, according to a statement on the government website.
Under the plan, the authorities would not have to wait for payment and relocation arrangements to be completed, potentially shortening lengthy clearance processes. Affected residents would receive priority for compensation in the form of land or housing at the site.
The issue is becoming more pressing as Vietnam embarks on vast urban and infrastructure projects.
A US$28 billion (S$35 billion) overhaul of Hanoi’s Red River corridor alone is expected to require about 200,000 people to move from their homes. The city’s chairman has said replacement housing, services and livelihood opportunities should be ready before trying to move people.
The South-east Asian nation is targeting economic growth of at least 10 per cent in 2025 and investing heavily in infrastructure as it seeks to achieve high-income status by 2045.
Land-clearance disputes, however, have held up some major developments and have long fuelled social tensions in Vietnam.
Farmers often complain that official payouts fall below market prices, while the process can be vulnerable to corruption. Some grievances have erupted into protests, including a 2020 clash over land rights in Dong Tam commune that killed four people.
One high-profile case involves a Trump Organization-branded golf resort in northern Hung Yen province. Police began clearing the site in June after months of wrangling over payments.
The amendments would also set clearer criteria for eligible projects and prevent price manipulation by setting data-based land values to give greater transparency, the statement said.
The National Assembly is expected to consider the revisions in August and approve the new law in October. Bloomberg
