Vietnam Finance Ministry Proposes New Framework to Resolve Stalled BT Infrastructure Projects

Vietnam's Ministry of Finance has unveiled a draft government resolution aimed at addressing long-standing obstacles surrounding transitional Build-Transfer (BT) projects across the country. The proposal, currently open for public consultation, seeks to establish a clear mechanism for resolving complications that have left numerous infrastructure projects in legal and financial limbo.

At the heart of the draft resolution is a critical proposal to clarify the method of calculating land prices associated with BT project compensation. This issue has been a persistent source of confusion and dispute, as developers and local authorities have long grappled with inconsistent valuations that have delayed project completions and stalled investment flows.

BT projects, in which private investors finance and build public infrastructure in exchange for land use rights, became a popular development model in Vietnam before regulatory tightening created uncertainty. Many transitional projects signed under previous legal frameworks have struggled to move forward due to gaps and contradictions between old agreements and newer regulations.

The Ministry of Finance's initiative reflects the government's growing urgency to clear the backlog of stalled infrastructure deals, which represent billions of dollars in unfinished public works. Resolving these disputes is seen as essential not only for completing critical road, bridge, and urban development projects but also for restoring investor confidence in public-private partnership models.

Stakeholders, including investors, local governments, and legal experts, are encouraged to submit feedback on the draft resolution during the public consultation period. Officials say the final resolution, once approved by the government, will provide a definitive legal pathway to settle outstanding BT disputes and prevent similar complications from arising in future projects.

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