Impact of land rent type 2 on the construction progress of major road transportation projects in Vietnam

Abstract

Under the significant influence of public investment and infrastructure development planning, land rent type II—the portion of land value increase not stemming from user investment—is having a detrimental impact on the construction progress of road transportation projects in Vietnam. This paper focuses on three representative projects: the North–South Expressway (Eastern section) during the 2020–2023 period, Ring Road No. 3 in Ho Chi Minh City, and Ring Road No. 4 in the Hanoi Capital Region. The aim is toclarify the relationship between land price escalation driven by objective factors and delays in site clearance. The research methodology combines both qualitative methods (legal document analysis, expert interviews, and public surveys) and quantitative methods (data on land price differentials, land handover timelines, and complaint rates). Findings reveal that compensation price discrepancies across different periods can reach 30–50%, leading to disputes, social discontent, and disruptions to construction schedules. The paper highlights that although current legislation acknowledges the state's authority to regulate land rent type II, there remain no specific provisions applicable to projects not subject to land auctions or those experiencing prolonged land acquisition processes. Based on these insights, the authors recommend establishing a mechanism for flexible compensation pricing in line with market fluctuations, enacting specific legal and regulatory provisions to govern land rent type II, and implementing a benefit-sharing mechanism among the state, enterprises, and affected residents. These measures aim to ensure fairness, social stability, and accelerated progress of essential infrastructure projects.