Vietnam proposes land expropriation law reform to unlock build-before-pay projects
RegulationMacro
The Vietnamese government today proposed a major reform of its land expropriation law, opening the way for authorities to take over land and begin construction of infrastructure and housing projects immediately, before affected residents receive compensation. The move aims to unlock mega-projects mired in disputes and accelerate economic growth toward a double-digit target. The push to amend the law comes after several large projects faced severe delays from disputes over compensation and resettlement, including a golf course project in the north backed by the Trump family and a plan to revitalize the Red River area in Hanoi that could affect as many as 200,000 people. Under the new draft amendment, which lawmakers are debating this week and which could be approved as early as October, authorities would no longer be bound by the existing condition that land can be taken over and used only after a compensation payment plan is approved and the resettlement process is completed. The Vietnamese government website said the overhaul aims to remove regulatory bottlenecks and unlock land resources to support socioeconomic development and double-digit growth targets in the new era. Vietnam, which is ruled by the Communist Party, aims to push economic growth to at least 10 percent per year through 2030, as it seeks to accelerate national development before an aging society begins to weigh on future growth potential. At the same time, the government has proposed shifting the approach of compensation policy to focus on restoring people's livelihoods after land expropriation, with those whose homes are expropriated given first priority for new land plots in the original location. Land disputes have long been a highly sensitive issue in Vietnam, with compensation negotiations often dragging on for years and in some cases triggering public protests, which are extremely rare in the tightly controlled country. The amendment would also set clearer criteria for land expropriation and reform land valuation methods to be more transparent, based on a more concrete and verifiable market price database.
