The Vietnamese government has submitted a proposal to the National Assembly seeking approval for the construction of Ring Road 5, a major expressway designed to connect Hanoi with surrounding provinces and reshape transport across the Capital Region.
Presenting the proposal on behalf of the government on the morning of August 6, Minister of Construction Tran Hong Minh said the project aims to establish a high-speed transport corridor linking Hanoi with neighboring localities, supporting sustainable transportation while opening new opportunities for economic development and regional integration.
Minister of Construction Tran Hong Minh presents the investment proposal to the National Assembly. Photo: National Assembly.
The project is also expected to ease traffic congestion, reduce environmental pollution and complete Hanoi's ring road network.
According to the government's proposal, Ring Road 5 would extend approximately 349 kilometers, passing through seven provinces and centrally governed cities: Hanoi, Ninh Binh, Hung Yen, Hai Phong, Bac Ninh, Thai Nguyen and Phu Tho.
The project would include a six-lane expressway with a design speed of 100-120 km/h, alongside parallel service roads with at least two lanes and design speeds of 60-80 km/h.
According to the proposal, the route has been selected to align with existing planning, minimize total length where possible and reduce land acquisition requirements. All seven affected localities have provided written support for the proposed alignment.
Preliminary estimates indicate that approximately 4,011 hectares of land would need to be acquired. Compensation, support and resettlement costs are estimated at VND78.143 trillion (US$2.98 billion).
The government proposes implementing the project through a combination of public-private partnership (PPP) and public investment.
Total preliminary investment is estimated at VND288.268 trillion (US$11 billion).
Of that amount, VND215.192 trillion (US$8.21 billion) would fund the main expressway using the central government budget, while VND73.076 trillion (US$2.79 billion) for the parallel roads would come from local government budgets.
The government plans to allocate approximately VND59.7 trillion (US$2.28 billion) during the 2026-2030 period.
Investment preparation would begin in 2026, with construction scheduled to commence in 2027 and the main sections substantially completed by 2030.
Remaining sections would continue to be developed during the 2026-2030 period, while additional funding sources would be mobilized with the goal of completing the entire route before 2035.
To facilitate implementation, the government is seeking approval for 10 groups of special mechanisms and policies.
Eight of these have already been authorized by the National Assembly for previous infrastructure projects, covering issues such as adjustments to investment policy decisions, capital allocation assessments, land acquisition, compensation and resettlement, contractor appointment, planning adjustments and mechanisms for capturing land value increases along transport corridors.
Two newly proposed policies relate to compensation for businesses whose production land is acquired and authority to change the project's investment model if necessary.
Lawmakers seek further clarification on land acquisition and funding
Phan Van Mai, Chairman of the National Assembly's Economic and Financial Committee, presents the committee's review. Photo: National Assembly.
Presenting the National Assembly's review of the proposal, Phan Van Mai, Chairman of the Assembly's Economic and Financial Committee, called for further clarification regarding land acquisition, the number of affected households, resettlement arrangements and impacts on vulnerable groups to ensure the proposal is complete and accurate.
Regarding project financing, the committee recommended that the government update investment cost estimates, unit prices, contingency allocations and inflation assumptions to better reflect actual implementation costs and reduce the likelihood of future adjustments.
The committee also requested additional information on funding sources, financing structure, disbursement schedules and the ability of both central and local governments - particularly Hanoi and Hai Phong, which are expected to contribute significant funding - to meet their financial commitments during each phase of the project.
Some committee members noted that only VND59.7 trillion has so far been identified for the 2026-2030 period.
They suggested the government consider implementing the project in phases that align with available funding in order to improve financial feasibility and investment efficiency.
Regarding compensation, resettlement and construction materials, the committee urged the government to conduct a comprehensive review of affected land and households, prepare sufficient resettlement sites and introduce measures supporting career transitions and livelihood restoration for displaced residents.
Lawmakers also called on the government to clarify how increases in land value along the route would be captured, how related revenues would be calculated and shared between central and local governments, and how those revenues would be reinvested into the project. Measures to prevent land speculation should also be included.
Regarding the proposed special mechanisms, the committee recommended limiting their application to measures that are demonstrably necessary and supported by clear legal and practical justifications.
Any special policies, it said, should remain consistent with Vietnam's legal framework while ensuring transparency, accountability and effective oversight through inspection, auditing and anti-corruption mechanisms.
For each proposed policy group - including financing, land acquisition, forest land conversion, contractor appointment, planning adjustments and compensation for affected businesses - the committee requested further review, impact assessments and revisions before the proposal is submitted to the National Assembly for consideration and approval.
Vietnamnet.vn
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