Hanoi Proposes 22.2 Trillion Dong Hoan Kiem Lake Redevelopment Plan

Hanoi has submitted a preliminary 22.229 trillion Vietnamese dong redevelopment proposal for the Hoan Kiem Lake district, setting out a large public-space and infrastructure programme in the historic centre of Vietnam's capital. The municipal People's Committee sent the proposal to the city People's Council on October 27, 2026. The council was expected to consider it at a special session on October 28; the submission is not evidence that construction funding or the final project has already been approved.

The proposal would link the lake with August Revolution Square, the Hanoi Opera House and the National Museum of History through expanded public areas. It also envisages changes to traffic circulation, underground commercial facilities and renovation of government offices. The preliminary total is equivalent to roughly US$860 million, but the dong estimate is the governing figure and costs remain subject to project appraisal.

The programme has three components. The first allocates approximately 9.924 trillion dong to land clearance covering a proposed 30.82 hectares, to be financed from the city budget. The broader planning study covers around 66.82 hectares across Hoan Kiem and Cua Nam wards, which should not be confused with the smaller land-clearance footprint.

The second component would develop a four-level underground shopping centre beneath planned park and square areas north and east of the lake. Its estimated cost is 4.611 trillion dong. The third, estimated at 7.694 trillion dong, includes a new municipal People's Committee headquarters, refurbishment of the People's Council premises and landscaping near the lake.

The city proposes a public-private partnership using a build-transfer arrangement for part of the work. It has outlined potential payments to investors through a combination of land, public funds and proceeds associated with underground land use. Six possible land plots with a combined area of about 7.31 hectares are mentioned as part of the preliminary financing plan; the exact arrangements have not been finalized.

The proposal names Capital Sun Real Estate as investor for the underground complex and third component. The city aims to finish the programme in 2029, subject to approvals, detailed design, land clearance and financing. Given the district's cultural significance, the eventual impact on residents, heritage sites and local businesses will depend on decisions still to be taken.