Land Deals and Broken Promises: Vietnam’s Rush to Develop

Vietnam’s ambitious plans for growth have long been accompanied by a questionable trade-off: development at any cost. The latest proposal to allow land clearance before compensation is finalised is a case in point, raising red flags about the treatment of affected residents and the potential for corruption.

At the heart of this issue lies a fundamental problem: Vietnam’s rapid modernisation has created an insatiable demand for land, but its ability to manage this process has been woefully inadequate. The government’s assertion that the overhaul plan will “remove institutional bottlenecks” is undermined by the reality on the ground – countless communities have been displaced without adequate compensation or resettlement plans in place.

The proposed changes to the law are designed to speed up development projects, but they also risk exacerbating social tensions and perpetuating a culture of corruption. By allowing land clearance to begin before payment and relocation arrangements are finalised, the authorities may be creating a perfect storm for abuses of power. Affected residents would receive priority for compensation in the form of land or housing at the site, but what happens when these promises are broken?

The case of Hanoi’s Red River corridor redevelopment is a stark reminder of the human cost of Vietnam’s growth plans. The $28 billion overhaul aims to displace 200,000 people and has been touted as a model for sustainable development – but at what price? Replacement housing, services, and livelihood opportunities are supposed to be ready before residents are moved, but this guarantee is hard to make when the process is already notorious for delays and corruption.

Land-clearance disputes in Vietnam are not new. Farmers have long complained that official payouts fall short of market prices, while the process itself is vulnerable to manipulation by those in power. The 2020 clash over land rights in Dong Tam commune resulted in four deaths, illustrating the dangers of unchecked development.

The proposed amendments also promise clearer criteria for eligible projects and data-based land values to prevent price manipulation. However, these measures are little more than window dressing if the underlying issues – namely, the lack of transparency and accountability in Vietnam’s development process – are not addressed.

As the National Assembly prepares to consider the revisions in August, it is essential that lawmakers do not rush into approving a law that will only serve to perpetuate the problems at hand. The stakes are high: Vietnam’s economic growth plans depend on getting this right, but so too does its reputation as a fair and just society.

The Trump Organization-branded golf resort in northern Hung Yen province is a telling example of how these issues can play out in practice – months of wrangling over payments culminated in police clearing the site in June. This kind of heavy-handed approach will only fuel further resentment among affected communities.

Ultimately, Vietnam’s growth plans must be tempered with caution and a commitment to transparency and accountability. The country has a long history of prioritising development over people – it is time for this to change. By prioritising the needs of residents over those of investors and developers, Vietnam can create a more sustainable and equitable model for growth that truly benefits all its citizens.

The road ahead will be fraught with challenges, but there are lessons to be learned from past mistakes. The National Assembly must take a step back and assess whether this overhaul plan is truly in the best interests of Vietnamese people – or just another example of development at any cost.