Separating Compensation and Land Clearance into Independent Projects: A Sustainable Approach to Avoiding Land Waste

The government has proposed separating compensation, support, resettlement, and land clearance into independent projects for all project groups, including groups A, B, and C. This proposal, presented by Minister of Planning and Investment Nguyen Chi Dung on behalf of the government to the National Assembly on October 29, forms a significant part of the draft to amend the Public Investment Law. The purpose of this separation is to enhance flexibility and optimize the investment implementation process, ensuring the efficient use of public resources while facilitating a swift progression tailored to the unique requirements of each aspect of project development.

Positive Impacts and Increased Flexibility from Separating Compensation Projects

The policy of separating compensation, support, resettlement, and land clearance into independent projects has been piloted in several localities, including Khanh Hoa, Da Nang, and Nghe An, and has been included in the 2024 Capital Law. According to Minister Nguyen Chi Dung, this policy has positively impacted project management and implementation, increasing decision-making flexibility for competent authorities in investment decisions. This approach enables land clearance to be tailored to each project’s specific needs, either as a standalone project or integrated with the overall project.

Separating compensation and land clearance as independent projects simplifies implementation, optimizes resource allocation, and avoids unnecessary overlaps in the process. This is particularly crucial for large-scale projects that often face administrative barriers and lengthy approval processes. For complex projects with high technical requirements, dividing the work into component projects not only accelerates progress but also allows authorities to focus on specific stages, improving management and supervision quality.

This policy also mitigates issues arising from coordination between different agencies and departments. Previously, simultaneously executing compensation and overall project implementation often led to inconsistencies and control difficulties. By separating these processes, compensation and resettlement can be conducted in advance, paving the way for construction activities to proceed smoothly without interruption.

However, to avoid inefficient land use, this separation must occur within approved planning frameworks to prevent widespread land clearance and resource wastage. Localities also need to ensure transparency throughout the process, from planning, appraisal, and implementation to resolving potential disputes.

Strict Management to Prevent Land Waste

In a review report presented by National Assembly’s Finance and Budget Committee Chair Le Quang Manh, most committee members agreed with the proposal to separate compensation and resettlement into independent component projects. However, there should be clear and strict regulations to ensure that compensation and resettlement efforts align with project investment schedules and completion to avoid wasting land resources.

Under the current Public Investment Law, the total time allocated for executing two independent component projects cannot exceed the specified limit. Specifically, group A projects must not exceed six years, group B projects four years, and group C projects three years. These requirements aim to ensure that investments progress according to schedule, preventing delays that waste resources and development opportunities.

In addition to ensuring progress, authorities must ensure that cleared land is used as initially approved. This is particularly important given increasingly scarce land resources and rising socio-economic development demands. Any cleared land must be used according to the original approved investment plan, with no changes in direction or usage after clearance completion to prevent waste and minimize conflicts from planning alterations.

Moreover, there should be close coordination between agencies to ensure that development goals are consistently achieved. For example, planning and infrastructure agencies must work closely with those responsible for compensation and resettlement to ensure alignment between overall planning and post-clearance land use. This not only prevents waste but also optimizes land use for the community’s benefit.

Optimizing Public Investment Efficiency through Project Separation

The proposal to separate compensation and land clearance into independent projects for all project groups is vital for improving flexibility and efficiency in public investment management. It enables more effective coordination of capital and resources, minimizes administrative hurdles, and resolves legal issues related to land clearance, thus facilitating faster and more efficient project implementation.

Furthermore, separating compensation and land clearance helps optimize resource use, allowing focus on specific stages and ensuring close supervision. This increases accountability among stakeholders, reducing delays and enhancing project execution quality. The independent project implementation regulations require agencies to ensure timely progress and clear responsibility for each task, minimizing the risk of responsibility avoidance.

In addition, applying strict regulations on the execution timeline and intended land use after clearance is essential to ensure that public resources, especially land, are used optimally and sustainably. This lays a foundation for improving public investment project quality, reducing waste, and ensuring long-term socio-economic efficiency. The combination of strict management and flexibility in implementation creates sustainable value for the economy and society, while protecting the legitimate interests of all stakeholders in public infrastructure development.

Optimizing the land clearance process through project separation also has the potential to boost private sector participation in public investment projects. When compensation and resettlement processes are clear and transparent, investors will have greater confidence in participating in large projects. This not only mobilizes additional financial resources but also facilitates the application of more advanced and sustainable development models.

Finally, effective management of compensation and land clearance is crucial to the success of public investment projects. If implemented correctly, it will address social issues related to resettlement and contribute positively to economic development, improving quality of life for citizens. Consequently, this policy implementation requires coordinated efforts among state agencies, investors, and, importantly, the consensus of affected residents.