29/09/2026
Vietnam is considering a wonderfully efficient new approach to compulsory acquisition: begin taking the land and building on it before compensation and resettlement arrangements are finalised. This is rather like removing the dining table halfway through dinner and promising to discuss chairs in October.
The proposal, which may be voted on in October 2026, is not yet law. It also contains sensible ideas, including clearer acquisition criteria, more data-driven valuations and priority access to nearby replacement land. These are welcome improvements, assuming the data knows where the people actually live.
The commercial attraction is obvious. Infrastructure, housing, tourism, industrial and renewable-energy projects can spend years waiting for land clearance. Accelerated acquisition could release projects presently trapped between approval and reality.
The difficulty is that unresolved compensation and resettlement do not disappear when construction begins. They simply move onto the construction site. A valuation dispute becomes a protest. An incomplete relocation becomes a site-access problem. A displaced community becomes a lender’s social-risk committee, usually shortly before lunch.
Developers and financiers should therefore insist upon compensation finality, completed resettlement, lawful site access and social-risk controls as conditions precedent. Otherwise, the project may have land, cranes, contractors and every approval except permission from reality.
Vietnam’s proposal may accelerate development. It may also accelerate compensation disputes, reputational damage and project disruption.
When the State pulls the ground from beneath the house, everyone eventually discovers that the ground was part of the structure.
[Read the Reuters report of you like](https://www.reuters.com/world/asia-pacific/vietnam-reform-land-acquisition-rules-boost-economic-growth-2026-08-19/)