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Site clearance issues delay Vietnam’s first LNG power plant, adding to electricity woes

Site clearance delays are hampering an LNG power project in southern Vientam, reportedly at a cost of VND 13 billion or US$510,645 per day, Tuoi Tre has reported.

Of note, site clearance is a common problem on most projects in Vietnam. This in large part stems from land pricing regulations that see a price set every five years based on which, using their own coefficients, local governments determine the price of land. The problem is that land values increase faster than the centrally set price and, believing their land to be worth more, landowners refuse to sell. That said, this should change next year when the new Law on Land comes into force. This will see the five-year intervals reduced to just one.

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