Vietnam to reform land acquisition rules to boost economic growth

Vietnam's government has introduced proposed reforms to its land acquisition rules with the aim of accelerating economic growth, particularly housing and infrastructure development. This move comes in response to delays experienced by several significant projects, including a Trump family-backed golf club and initiatives to revitalize Hanoi's Red River corridor, which could potentially impact up to 200,000 individuals.

The proposed amendments, currently under consideration by lawmakers and potentially to be approved by October, would eliminate the requirement that land can only be acquired and utilized after compensation plans have been approved and resettlement arrangements finalized. According to a government statement, the reform aims to eliminate institutional obstacles and unlock land resources to support socio-economic development and the goal of achieving double-digit growth in Vietnam through 2030.

Communist-controlled Vietnam has set an annual economic growth target of at least 10% until 2030 to accelerate development before demographic trends could negatively impact its growth potential. In addition to streamlining the land acquisition process, the government has suggested shifting the emphasis of its compensation policy towards rebuilding people's lives after their land has been taken.

Under the draft proposals, individuals whose residential property is acquired would be placed on the priority list for new land in the same area. The reforms would also introduce more transparent, data-driven methods for valuing land, coupled with clearer criteria for land acquisitions. Land disputes in Vietnam have frequently been a sensitive issue, often causing long negotiations and, in rare cases, protests in the tightly controlled country.