The Mega-Project: A $64 Billion Venture Spanning 20 Provinces – Only One Region Makes the Cut

In the afternoon of June 16th, Deputy Prime Minister Tran Hong Ha chaired a hybrid meeting with ministries, sectors, and localities regarding land clearance for the North-South high-speed rail project.

The Deputy Prime Minister emphasized that the implementation of the North-South high-speed rail project is a strategic task of great significance to socio-economic development and regional connectivity. Therefore, preparations, especially land clearance, need to be carried out urgently, systematically, and in compliance with regulations.

According to directives, land clearance, including resettlement issues, must commence by August 2025 as a kick-start for the North-South high-speed rail project.

As of June 12, 2025, People’s Committees of the provinces and cities have assigned specific tasks to units in charge of land clearance. However, Ninh Binh is the only province out of 20 localities to have established a Steering Committee for land clearance; 5/20 localities (Vinh Phuc, Phu Yen, Ha Tinh, Thanh Hoa, and Ninh Binh) have completed the preliminary review of resettlement needs.

Hue City is the only locality among the 20 to have developed an implementation plan.

The Ministry of Construction proposed that localities focus on reviewing and adjusting urban-rural planning, land use planning, identifying locations, and establishing resettlement area projects…

As per the plan, the localities are required to complete the compensation, support, and basic resettlement by December 2026 to hand over the site to the construction contractor. The Vietnam Electricity Group (EVN) also needs to lead the implementation of the sub-project to relocate power plants of 110 kV and above by December 2026.

The Deputy Prime Minister requested that the Ministry of Construction, the Ministry of Agriculture and Environment, and other relevant ministries guide and clarify procedures related to compensation, resettlement, and arrangement of new residential areas to ensure a smooth and consensual relocation process for the affected population.

Using Central Budget for Land Clearance

Regarding financial resources, the Deputy Prime Minister affirmed that the project for land clearance and resettlement serving the North-South high-speed rail project is an independent project funded by the central budget. The Ministry of Finance must provide specific guidance and send it to 15 related provinces and cities for implementation.

In the context of incomplete detailed dossiers, localities are allowed to temporarily submit resettlement proposals first to receive capital allocation while proactively allocating local funds for implementation. The Ministry of Finance and the Ministry of Construction should coordinate closely, receive proposals from localities, and avoid a situation of “passing the buck” between ministries.

For localities, the Deputy Prime Minister clarified that the entire responsibility for organization and implementation must be assigned to the provincial level, with the direct involvement of departments and sectors.

Each province must establish a provincial-level Steering Committee and a task force to directly manage the implementation of the project. During the process, the province can decentralize tasks to the communal level, but it must be accountable to the Central Government.

The Deputy Prime Minister requested that ministries, sectors, and localities urgently perform their assigned functions and tasks, especially in completing the dossiers and preparing the necessary conditions to initiate, commence, and ceremonially launch certain items and works of the North-South high-speed rail project.

Reporting at the meeting, Deputy Minister of Construction Bui Xuan Dung said that according to Resolution No. 172/2024, the North-South high-speed rail project is 1,541 km long, starting at the Ngoc Hoi Station in Hanoi and ending at the Thu Thiem Station in Ho Chi Minh City, passing through 20 provinces and cities. After rearranging administrative units, the number of localities through which the project passes has been reduced to 15.

The project’s scale includes 23 stations, including 5 cargo stations. The preliminary land requirement is approximately 10,827 hectares. It is estimated that about 120,836 households will need to be resettled.

Up to now, the Ministry has handed over the preliminary design dossiers and land clearance boundaries to the localities to develop plans, implement resettlement, and carry out compensation for 20 localities.

Therefore, the localities where the project passes must urgently develop detailed plans, proactively allocate local budgets to implement land clearance, and establish a Steering Committee for land clearance before July 1, 2025.