The Capital City Scraps Long-Stalled Urban Development Plans

22 December, 2024

The Hanoi People’s Committee announced that the Hong Thai Urban Area project in Dan Phuong district, along with numerous other projects in the former Ha Tay province, had been selected by the Ha Tay People’s Committee for investment approval.

According to the Hanoi authorities, after the adjustment of the administrative boundaries of the capital, a review and adjustment of planning were necessary to align with the Master Plan for the Capital Construction and the Master Plan for Dan Phuong district construction.

In September 2024, the Hanoi People’s Committee issued a decision to terminate the implementation of documents related to the appointment of investors by the former Ha Tay People’s Committee and other documents pertaining to the project.

The decision tasked the Dan Phuong district authorities with studying and proposing a management and exploitation plan for the land area in accordance with the approved planning and current legal regulations.

Hanoi cancels a 14-year-old “hanging” urban project in Dan Phuong district. Illustrative image.

In response to voters’ inquiries, the Hanoi People’s Committee clarified that the Hong Thai Urban Area project comprised three sections: one allocated to Song Da Investment and Development Joint Stock Company, covering approximately 40 hectares; another to Vinalines Real Estate Joint Stock Company, spanning about 48 hectares; and the third to Song Da 9.06 Investment and Development Joint Stock Company, measuring 77 hectares.

While these projects had received investment approvals from the former Ha Tay People’s Committee, the investors had not completed the necessary procedures for detailed planning and project development. The projects lacked the requisite investment approval from the competent authority, and investors had not initiated land-related procedures (land retrieval, allocation, leasing, or site clearance) as mandated by regulations.

In Me Linh district, voters also requested the Hanoi authorities to revoke urban projects that were slow to materialize.

In their response, the Hanoi People’s Committee acknowledged that in recent years, the city’s departments had focused on urging, resolving difficulties, and intensifying inspections and handling to expedite the progress of 65 non-state budget projects in Me Linh district.

Hanoi attributed the delays in project implementation, which ranged from 8 to 13 years, to various factors. These included the need to review and adjust plans according to the master plan and urban subdivision planning, discrepancies in compensation rates for site clearance between Hanoi and Vinh Phuc province, and limited resources and capabilities among certain investors, who also lacked proactive coordination with the city’s departments and the district authorities.

Following inspections and reports in September 2022, Hanoi agreed to terminate or halt several projects. Specifically, three projects had their investment decisions revoked: Prime Group New Urban Area, BMC New Urban Area, and Viet A New Urban Area. Additionally, four projects were halted, including Me Linh Dai Thinh New Urban Area, Thanh Lam – Dai Thinh New Urban Area, Quang Minh low-cost housing and garden houses for low-income earners, and Phuong Vien high-end residential area.

In October 2022, the Hanoi People’s Committee issued Decision No. 4058 on the termination of land retrieval at the Phuong Vien high-end residential area project in Me Linh district, as per Decision No. 2402 dated July 14, 2008, of the People’s Committee of Vinh Phuc province.

In 2023, the Hanoi authorities issued decisions to halt the implementation of the Viet A Urban Area project, terminate the Decision No. 2879 dated September 15, 2005, of the People’s Committee of Vinh Phuc province, and related directives regarding the Me Linh – Dai Thinh New Urban Area and Thanh Lam – Dai Thinh New Urban Area 1 projects in Me Linh district. They also terminated the Decision No. 2459 dated July 15, 2008, of the People’s Committee of Vinh Phuc province, on the approval of the Dai Thinh Eco-Urban Area project in Me Linh, Van Khe, and Dai Thinh communes, Me Linh district.

“The Department of Natural Resources and Environment is finalizing conclusions on the delayed projects in Me Linh district, in accordance with the directions of the Hanoi People’s Committee,” the authorities informed. “These conclusions will serve as a basis for continuing, terminating, or revoking projects and selecting capable investors to implement the projects in line with the approved planning and current legal regulations.”

Dinh Phong