Hanoi Overhauls Urban Renovation Policy to Fast-Track Projects

The Hanoi People's Council has passed a resolution establishing a new policy framework for urban renovation, beautification, and Transit-Oriented Development (TOD) across the capital. The new regulations introduce specific mechanisms for developer selection, compensation, support, and resettlement, aiming to resolve persistent bottlenecks and accelerate the implementation of key urban renewal projects.

Under the new framework, project boundaries are initially defined by the City People's Committee upon public announcement. However, the resolution empowers developers to propose boundary adjustments during the detailed planning research phase. The officially recognized project boundaries will be those finalized in the detailed plan approved by the City People's Committee. The policy also outlines a clear process for selecting developers. Homeowners and land users within a project area have the option to implement the project themselves, provided they secure 100% consensus. Alternatively, they can nominate a preferred developer for the City People's Committee to consider and approve.

The resolution specifies the consensus thresholds required to move projects forward. A compensation, support, and resettlement plan will be officially approved once it gains the agreement of at least 75% of the homeowners and land users involved. For projects focused on the renovation and reconstruction of apartment buildings or entire complexes, a similar 75% consensus rate is required from the building's apartment owners and legal land users.

Regarding support policies, the resolution stipulates that homeowners and land users whose residential property is recovered will be considered for on-site resettlement. An exception is provided for cases where a developer proposes an alternative resettlement plan, which must be justified by the need to balance and ensure the project's financial efficiency and receive approval from the competent authorities.

To enforce project discipline and timelines, the resolution includes clear conditions for revoking approvals. The city will revoke the selection of a developer if, after 12 months from the selection date and following three formal consultation rounds, the project fails to secure a 75% consensus rate from homeowners, representing at least 75% of the total land area. Additionally, the city will cancel the investment policy and seek a new developer if the selected firm fails to break ground within six months of completing all administrative procedures or does not implement the project according to the approved schedule.