Hai Phong public investment projects stall due to intermittent funding

Public investment projects in Hai Phong—ranging from student dormitories and workers’ housing to major road works funded by the city budget—have been plagued by intermittent funding. The delays increase the risk of wasting land and investment resources, while also reducing the efficiency of state budget spending and undermining the province’s sustainable socio-economic development goals.

Dormitories and workers’ housing stalled by funding gaps

The Hai Phong University dormitory project was approved by the city’s People’s Committee in 2007 with total investment of over 320 billion VND. The plan included two eight-storey dormitories and a two-storey dining hall. Funding sources comprised more than 286 billion VND from government bonds, over 21 billion VND from the city budget, and over 12 billion VND from Hai Phong University. Implementation was scheduled for 2008–2016.

By the time of the latest assessment, the project had allocated and disbursed over 192 billion VND, leaving more than 128 billion VND unfunded. Nearly 20 years after approval, the dormitory project remains incomplete: the eight-storey block is more than halfway built, other blocks are over 60% finished, and the dining hall is unfinished and deteriorating over time.

A separate dormitory project in Chu Văn An ward (Chi Linh city, now part of Hai Phong) was approved in 2009 with total investment of over 214 billion VND. It was designed to provide accommodation for more than 2,200 students from nearby universities, including two blocks and other basic works. However, due to sporadic and unstable funding, construction progressed only intermittently. By 2014, work was halted after reaching only the skeletal portion, and the project has since been placed in a “mothballed” state, unable to be used.

Workers’ housing for the Đình Vũ fiber plant has also been left idle. In 2010, Hai Phong allocated more than 7.91 hectares of land in Dong Hai for the Vietnam Oil and Fiber Company to build workers’ housing for the polyester fiber plant. To date, the developer has built two apartment blocks and some infrastructure on about 4 hectares. The remaining 3.91 hectares has been leveled but not developed.

After prolonged delays, in October 2017 the city revoked 3.91 hectares of undeveloped land. The city has repeatedly demanded completion of the existing blocks, but the project remains idle, with unresolved land status issues leaving the site at risk of land resource waste.

Road and urban renovation projects suspended

Traffic and urban renovation projects have also stalled. In 2007, Hai Phong awarded a project to build the main trunk road Lạch Tray – Hồ Đông, about 5.7 km long with a 100-meter cross-section. Total investment was over 4,384 billion VND, planned for 2008–2018. After years, total invested reached about 325.6 billion VND, including 292.4 billion VND from the state budget and 159.2 billion VND advanced. The project completed only about 1 km of road, and the remaining funding shortfall was about 4,092 billion VND.

The project halted due to insufficient funds, and the investor also faced difficulties during privatization. By 2023, the project was permanently halted.

In 2013, Hai Phong approved investment in a trunk road connecting the urban area and the Bến Rừng industrial complex, with total investment of over 992 billion VND. By 2018, only about 159 billion VND had been allocated, leaving a shortfall of more than 832 billion VND. Only 14.8 hectares of land had been cleared, and construction progress stood at about 105 billion VND. Since 2018, the project has been suspended because central budget funds were not allocated as planned and local budgets faced difficulties.

Since 2009, Hai Phong has also approved investment to improve a tourism road from the intersection at Khu 1 to Đồi Độc (Đồ Sơn). The project has total investment of 93 billion VND, funded by the central budget, with implementation planned for 2010–2021. Initially, the Culture, Sports and Tourism Department was the investor; by 2020, the project was transferred to the Project Management Board for civil works and infrastructure. By 2015, more than 34 billion VND had been allocated, while nearly 60 billion VND remained unfunded. Due to the lack of further central funding, the project was halted, extending the stalled state for years.

Impact and need for project review

The pattern across multiple public investment projects in Hai Phong shows delays or suspensions that leave land idle and create potential waste of investment resources. In this context, reviewing and finalizing these projects is expected to improve public investment efficiency and address dormant projects that consume land resources without delivering usable outcomes.