Vietnam announces overhaul to speed up housing, infra projects: What changes

Vietnam's government plans to overhaul housing and infrastructure development processes by allowing land acquisition and construction to commence before affected residents receive compensation. The proposed reforms, currently under parliamentary debate, aim to eliminate delays caused by disputes over compensation and resettlement. If approved by October, these amendments could unlock land resources to support socio-economic growth and the goal of double-digit economic growth through 2030.

Under the draft amendments, authorities will no longer need to wait for compensation plans to be approved or resettlement arrangements to be finalized before taking control of land. This move seeks to remove institutional bottlenecks and expedite the use of land for development purposes, as stated by agriculture and environment minister Trinh Viet Hung, according to a government website.

The reforms also shift the focus of compensation towards rebuilding people's lives after land is acquired. Those whose residential properties are seized will be placed at the top of the list for receiving new land in the same area. These changes come as Vietnam grapples with delays in major projects, such as a Trump family-backed golf club in northern Vietnam and a plan to revitalize Hanoi's Red River corridor, which could impact up to 200,000 people.

The amendments will introduce clearer land acquisition criteria and more transparent, data-driven land valuation methods. As Vietnam seeks to accelerate development and achieve annual economic growth of at least 10% through 2030, these reforms could significantly streamline the process of acquiring land for residential, commercial, and infrastructure projects.