Accelerating Progress: Nha Trang – Da Lat Expressway Set to Break Ground on May 19, 2026

Concerns Over Housing Surplus in Khanh Hoa

On the morning of January 12th, Minister of Construction Tran Hong Minh and his delegation met with the People’s Committee of Khanh Hoa Province to discuss planning, transportation infrastructure development, and construction.

During the meeting, Secretary of the Khanh Hoa Provincial Party Committee Nghiem Xuan Thanh stated that the development of social housing in the province has already exceeded the target set for 2030. However, he expressed concerns about the potential surplus of both social and commercial housing if licensing scales are not tightly controlled.

According to Mr. Thanh, if numerous social housing projects are approved but the number of eligible buyers is limited, investors may seek to convert these projects into commercial housing. This could lead to legal complications, as commercial housing requires bidding and auction processes, which were not part of the initial project framework. “If we continue to issue licenses for commercial housing, the risk of creating ‘ghost towns’ and oversupply crises is very real,” he warned.

Regarding stalled projects, Khanh Hoa currently has 246 projects out of approximately 3,000 nationwide, covering an area of about 7,740 hectares with a total registered capital of nearly VND 43.7 trillion. Resolving these projects is expected to boost growth and supplement the real estate market supply. However, provincial leaders emphasized the need for cautious handling to avoid rampant development, resource wastage, and supply-demand imbalances.

In terms of transportation infrastructure, the province requested the Vietnam Road Administration to assign specialists to ensure the progress of the Nha Trang – Da Lat Expressway. According to the Party Secretary, this route is strategically important for regional connectivity, reducing travel time between mountainous and coastal areas to just over an hour. Once completed, the project will drive tourism, logistics, and socio-economic development, and is expected to become one of Vietnam’s most scenic expressways within the national 5,000 km network.

For the Van Phong Airport project, with a total investment of approximately VND 9.2 trillion (23% from the local budget and the remainder from investors), the airport is expected to serve 5–7 million passengers annually and become Vietnam’s first sea-based airport. The province has completed all necessary procedures and urged the Ministry of Construction to report to the Government for inclusion in the national airport network plan.

Provincial leaders also noted that after 2027, when special mechanisms and policies expire and may not be extended, Khanh Hoa could face challenges in meeting certain development criteria, particularly population requirements. This could impact its goal of becoming a centrally governed city. The province proposed accelerating planning and infrastructure investment to lay the foundation for long-term growth.

Striving to Commence Nha Trang – Da Lat Expressway on May 19, 2026

Concluding the meeting, Minister Tran Hong Minh praised Khanh Hoa’s achievements in socio-economic development, particularly in planning, construction, and urban infrastructure. He urged the province to continue reviewing and refining its planning system for synchronization between provincial, urban, and sectoral plans, ensuring long-term vision and minimizing piecemeal adjustments. Priority should be given to coastal urban spaces, airport cities, and economic corridors linked to strategic transportation axes.

Regarding local proposals, the Ministry of Construction directed specialized units to closely coordinate with the province in appraisal, support, and issue resolution, while compiling reports for Government consideration of mechanism, policy, and resource proposals.

Specifically for the Nha Trang – Da Lat Expressway, the Minister urged Khanh Hoa and Lam Dong Provinces to promptly agree on a managing agency for submission to the Prime Minister, and requested the Vietnam Road Administration to provide support, aiming for a groundbreaking ceremony on May 19, 2026.

For the Van Phong Airport, the Minister directed completion of all dossiers by January 2026 for Government approval and inclusion in the national airport network, along with studying seaport upgrades to support tourism, cargo transport, and investor attraction.

The Ministry of Construction pledged continued support for Khanh Hoa’s urban planning efforts, laying the groundwork for the province to achieve its goal of becoming a centrally governed city as outlined in Resolution 09 of the Politburo.