What Can We Learn from Hanoi’s Public Disclosure of 17 Developers Violating Land Laws?

Recently, Hanoi’s Department of Agriculture and Environment publicly disclosed 17 cases of land law violations. These involve investment projects that failed to utilize land within 12 consecutive months or fell behind schedule by 24 months, as outlined in their investment plans, in accordance with the Land Law.

Prominent companies are among the violators, including Thang Long GTC JSC in Xuan Dinh Ward, Viet Hien LLC in Dai Mo Ward, Danh Nam JSC in Cau Giay New Urban Area, Viglacera Corporation in Tay Mo Ward, Alaska Real Estate Investment JSC in Dai Mo Ward, Phu Minh Investment LLC in Yen Hoa Ward, and ICT JSC in Tay Ho Ward.

Additional offenders are Binh Tien Consumer Goods Production LLC in Yen Nghia Ward, Northern Construction and Investment JSC in Tu Liem Ward, Cuu Long Production and Import-Export JSC in Xuan Phuong Ward, Thanh Hung Construction LLC in Hoa Lac Ward, Infrastructure and Transportation Construction Investment JSC in Dai Mo Ward, Radio and Television Development JSC in Thanh Xuan Ward, and Bao Viet Insurance Group in Thanh Tri District.

Experts attribute the widespread abandonment of land resources to lax land management, insufficient market regulation tools, superficial post-allocation inspections, weak penalties, and fragmented land data systems.

While the 2024 Land Law tightens deadlines for land utilization, enforcement remains lackluster, with unclear penalty delegation. The government’s directive for the Ministry of Finance to explore taxes on idle land, second property ownership, and property transfers aims to curb speculation, end land wastage, and enhance real estate market transparency.

Robust, Coordinated Solutions Needed

Given the prolonged abandonment of prime land in numerous projects, real estate experts advocate empowering commune-level authorities to oversee land use. This shift would enable local governments to promptly address violations, bridging the gap between central policies and local implementation.

Establishing accountability for local leaders is also crucial. Officials must be held responsible for persistent land wastage, which undermines public asset management.

Prof. Dang Hung Vo, former Deputy Minister of Natural Resources and Environment, highlights the irony of thousands of hectares lying idle in Hanoi amidst severe shortages of land for social housing, public infrastructure, schools, and parking. This inefficiency contradicts sustainable development goals and reflects systemic ethical and political failures.

“Without stringent measures—including land reclamation, re-auctioning, and replacing underperforming developers—we’ll continue to see ‘concrete graveyards’ in the capital, while millions remain deprived of stable housing,” Prof. Vo warns.

Dr. Dao Ngoc Nghiem, former Director of Hanoi’s Planning and Architecture Department and Vice Chairman of the Vietnam Urban Development Planners Association, notes that while land allocation is tightly managed, post-allocation usage and project progress oversight are lacking. This gap has hindered economic growth and social welfare.

“Numerous prime plots intended for modern urban centers remain undeveloped, exposing critical supervision failures,” Dr. Nghiem stresses. He emphasizes that efficient land utilization is essential for Hanoi to achieve industrialization, modernization, and higher income levels.

“The extensive misuse of land reported recently represents a vast, untapped resource for Hanoi’s advancement, provided it is managed and leveraged effectively,” Dr. Nghiem concludes.