Vietnam Tackles Over 4,600 Stalled Projects, Addressing Land, Investment, and BT Contract Complexities

The Vietnamese government has ordered an urgent review, classification, and resolution of over 4,600 stalled projects with a total investment exceeding VND 3.9 quadrillion (approximately USD 160 billion). These projects have been delayed for extended periods, and the government aims to resolve complex issues related to land, investment, and Build-Transfer (BT) contracts through the introduction of new mechanisms. Specifically, the utilization of newly reclaimed land from sea reclamation is being considered as a payment method for investors in BT projects. This measure acknowledges the current reality where land use rights represent a significant constraint on project implementation. For instance, representatives from Khanh Hoa province have requested support for the continued execution of specific projects. The government is demanding strict control over payment mechanisms within BT projects, intending to ensure transparency and efficiency. The redevelopment of the Nha Rong-Khanh Hoi Port area is also being considered for implementation under the BT contract framework. The resolution of these stalled projects holds significant importance for revitalizing the Vietnamese economy, particularly in promoting infrastructure development and urban regeneration. Under its one-party system, Vietnam prioritizes economic growth as a key objective, and improving the investment environment is essential for attracting foreign direct investment (FDI). However, complexities in land use rights and permitting processes have been long-standing challenges. The government's current directive indicates a commitment to directly address these structural issues.