HCMC – The Government has issued a special resolution allowing for the use of reclaimed land to compensate investors involved in projects to develop infrastructure in the Phu Quoc Special Zone to serve the APEC 2027 Economic Leaders’ Week.
The resolution, effective from June 18 through February 28, 2027, authorizes An Giang Province to use planned reclamation areas on Phu Quoc Island to create land for compensating investors undertaking build-transfer (BT) projects for APEC 2027.
Under the pilot mechanism, the selected reclamation areas must not affect national defense and security or local defense plans and must minimize environmental and geological impacts on coastal waters.
Compensation through reclaimed land will be carried out on a rolling basis, in line with the construction progress of BT projects and the pace of actual reclamation activities.
For valuation purposes, the provisional value of reclaimed land will be based on land prices for plots with similar intended use at the nearest comparable mainland location in Phu Quoc, adjusted by coefficients set by local authorities. If no comparable location exists or adjustment coefficients have yet to be issued, authorities will apply the highest land price listed in Phu Quoc’s current land price schedule.
The combined value of reclaimed land and any additional land allocated for compensation must be equivalent to the investment value of the BT project, in accordance with Decree No. 257/2025/ND-CP.
The resolution also allows investors to pursue approval procedures for reciprocal projects simultaneously with the process of adjusting investment policies for BT projects, helping shorten administrative procedures and accelerate private capital mobilization for APEC-related infrastructure.
To safeguard public assets, the mechanism includes strict land valuation rules and real-time adjustment measures. If comparable market data are unavailable, authorities will use the highest land price in Phu Quoc’s land price schedule to reduce the risk of losses from surging land values after infrastructure projects are completed.
State agencies will supervise completed construction volumes and revalue land at the time of transfer. Investors must finance reclamation activities with their own resources and will receive land-use rights only in proportion to completed BT works.
The phased compensation mechanism, tied to auditing and final settlement procedures, is intended to ensure that reciprocal resources are used for their intended purpose and encourage contractors to complete project components before the special resolution expires in early 2027.
