Vietnam Route 46 Upgrade Delayed by Land Acquisition & Infrastructure Issues

A major infrastructure project in Nghe An province, Vietnam, is facing significant delays due to land acquisition issues and stalled relocation of essential utilities. The upgrade and expansion of National Highway 46, a key transportation artery connecting the former Vinh City center with the former Nam Dan district, is critical for socio-economic development and national security, but its progress is now jeopardized.

Project Overview and Investment

Managed by Project Management Board 85 under the Ministry of Construction, the project spans 10.69km through Kim Lien, Dai Hoa, and Van An communes. The total investment is 500 billion VND (approximately 1.5 trillion VND), funded from the central government budget as part of the 2021-2025 medium-term public investment plan. The project was slated to begin construction on March 15, 2025, as a single construction package.

Did You Know? The National Highway 46 project is designed to connect the former Vinh City center with the former Nam Dan district, aiming to boost socio-economic development and strengthen national defence.

While substantial progress has been made, the project is hampered by delays in land handover and compensation. Currently, only 9.11km – roughly 85.22% of the total length – has been handed over to construction teams by local authorities.

Challenges on the Ground

Observations along the highway reveal a patchwork of completed and incomplete sections. Asphalt paving is visible in many areas, but gaps remain, creating uneven surfaces and potential safety hazards. Narrow road sections contribute to dust and difficulties for travelers.

Asphalt-paved road sections with height differences pose safety risks to road users. Photo: Tien Dong

In Kim Lien commune, the relocation of homes, utility poles, and substations is causing significant bottlenecks. 706 households (including residential and agricultural land) are affected along a 7.65km stretch. While compensation plans have been approved for all households, payments have only been disbursed to 682. Twenty-four households remain uncompensated, with 18 facing issues due to the exhaustion of the 2025 budget and six disagreeing with the compensation plans, primarily near the Bac Thi intersection.

Disagreements center on compensation for land beyond registered boundaries and adjustments to land demarcation. Local authorities have attempted to persuade residents, but have also begun preparing for forced eviction procedures in accordance with legal regulations, according to Tran Thanh Hai, Deputy Chairman of Kim Lien Commune People’s Committee.

Expert Insight: The delays stemming from land acquisition and utility relocation highlight the complex challenges inherent in large-scale infrastructure projects, particularly when navigating established communities and existing infrastructure networks. Successfully addressing these issues is crucial for maintaining project timelines and controlling costs.

Utility Relocation and Official Response

Beyond land issues, the relocation of infrastructure is also behind schedule. Approximately 6km of low and medium-voltage power systems and substations have not been moved despite contractor selection in April 2025, halting construction in affected areas. Similarly, only 4.8km of water pipeline systems have been relocated, with frequent discoveries of undiscovered pipelines during excavation due to slow coordination and material transport by infrastructure management departments.

The Nghe An Provincial People’s Committee issued Urgent Document No. 776/UBND-CN on January 22, 2026, directing relevant departments and agencies, as well as the People’s Committees of Kim Lien, Dai Hoa, and Van An communes, to review and learn from their experiences in directing and managing assigned tasks. The committee has tasked local authorities with mobilizing the entire political system to resolve outstanding land issues.

The provincial government has warned that it will consider holding commune chairpersons accountable if they fail to meet requirements. The Ministry of Construction, the Ministry of Agriculture and Rural Development, and the Ministry of Industry and Trade have been instructed to closely monitor the situation and provide guidance to local authorities, preventing delays caused by slow approvals and evaluations.

Looking Ahead

Project Management Board 85 has instructed contractors to expedite work in areas where land has been cleared. Nguyen Anh Trung, Deputy Head of PMB 85, expressed hope that relevant ministries, agencies, and local governments will faithfully implement the directives of the Nghe An Provincial People’s Committee to ensure the project’s timely completion. If the current obstacles are not overcome, further delays are likely, potentially impacting the project’s budget and completion date. The provincial government will implement stricter measures to enforce compliance with the relocation directives. A successful resolution will likely require increased coordination between all stakeholders and a commitment to addressing the concerns of affected residents.

Frequently Asked Questions

What is the primary cause of the delays in the National Highway 46 project?

The primary cause of the delays is issues related to land acquisition and compensation, as well as the slow relocation of utility infrastructure.

How much of the highway has been handed over for construction?

Currently, 9.11km, or approximately 85.22% of the total 10.69km length, has been handed over to construction teams.

What action has the Nghe An Provincial People’s Committee taken to address the delays?

The committee issued Urgent Document No. 776/UBND-CN, directing relevant departments and local authorities to review their management practices and mobilize resources to resolve outstanding land issues, with a warning of potential accountability for commune chairpersons.

How might the challenges facing this project impact similar infrastructure developments in the region?