Vietnam proposes clearing land before compensation to speed up development

Vietnam is considering a significant policy shift that would permit land clearance to commence before compensation and resettlement plans are fully finalized. This proposed change aims to accelerate development projects by removing institutional bottlenecks and unlocking land resources, according to a government statement.

The initiative is intended to boost socio-economic development and support the goal of achieving double-digit growth. Under the new plan, authorities would no longer need to wait for payment and relocation arrangements to be completed, potentially shortening lengthy clearance processes. Affected residents would be prioritized for compensation in the form of land or housing at the project site.

This issue is becoming increasingly critical as Vietnam embarks on extensive urban and infrastructure projects. For instance, a US$28 billion overhaul of Hanoi's Red River corridor is expected to necessitate the relocation of approximately 200,000 people. City officials have stressed the importance of having replacement housing, services, and livelihood opportunities ready before initiating moves.

Despite the push for development, the proposal raises concerns about safeguards for residents. Land-clearance disputes have historically fueled social tensions in Vietnam, with farmers often complaining that official payouts fall below market prices and the process can be vulnerable to corruption. Past grievances have led to protests, including a deadly clash in Dong Tam commune in 2020. The National Assembly is expected to review these revisions in August, with a potential approval in October.

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remove institutional bottlenecks and unlock land resources to serve socio-economic development and the goal of double-digit growth in the new period