HANOI (Bloomberg): Vietnam’s capital has recommended doubling payments for residents forced from their homes for the controversial US$28 billion Red River boulevard project, as Hanoi officials seek to reduce resistance and expedite land clearance for the redevelopment plan.
Residential, agricultural and non-agricultural land would receive compensation at twice the rate currently set out in the Land Law, according to the latest draft put forward by the city’s government.
Around 280,000 people live in the affected area, which spans more than 11,400-hectares along the river. Previous estimates had put the number of people facing relocation at about 200,000.
The revised plan, which is part of a US$2.5 trillion overhaul to remake the densely populated capital, comes as residents continue to raise concerns on social media, while red banners remain strung along narrow lanes behind the river dike calling for the area’s preservation.
Land clearance has been a longstanding source of delays and tensions in Vietnam’s large-scale infrastructure projects, amid frequent complaints that compensation falls below market prices.
The 80-kilometer (50-mile) boulevard, due to be complete by 2038, will include a vast urban corridor of parks, cultural venues and modern housing, aimed at replicating the gleaming riverbanks of cities like Singapore, Shanghai and Seoul.
The Hanoi city chairman has vowed that new homes, alongside infrastructure, services and livelihood opportunities, will be built before trying to move people.
Villages that fail to meet flood prevention and safety requirements will be relocated while areas with historical and architectural value, including the Thuy Linh and Bat Trang pottery villages, will be renovated, officials said.
Hanoi’s government is looking to build six urban cities along the river by 2030 for displaced residents with a pledge to maintain livelihoods and community ties, according to the draft adjustment plan.
Vietnam is targeting economic growth of at least 10% this year and investing heavily in infrastructure as it seeks to achieve high-income status by 2045.
Land-clearance disputes, however, have held up some major developments, including the Trump Organization-branded golf resort in northern Hung Yen province, where police began clearing the site in June after months of wrangling over payments.
The city is also accelerating the building of centralized cemeteries as it needs to relocate roughly 109,000 graves for the project, Tuoi Tre news website reported.
The draft adjustment is open to public feedback for 20 days, with virtual conferences set to be held for officials to respond to residents. -- ©2026 Bloomberg L.P.
