The investor of a shopping mall project in the corner of Hang Bai – Hai Ba Trung streets has offered the highest ever compensation in Vietnam: VND500 million ($25,000) per a square meter of land.

However, three families didn’t agree and they claimed up to VND1 billion ($50,000) for a square meter.

In November 2004, Hanoi authorities decided to revoke 4,072.9 sq.m of land at No. 22-24 Hang Bai and 25-27 Hai Ba Trung to build a shopping mall and apartments for resettlement.

Of the total area, the Hanoi Plastic Enterprise handed over 3,600 sq.m of land. Seventeen families have also turned over 300 sq.m of land to the project.

Tran Hong Son, vice chair of T&T JS Company, the investor, said his firm paid high compensation, VND500 million ($25,000) for a square meter of land and VND200 million dong ($10,000) for a square meter of the second floor.

The firm has paid nearly 100 billion dong ($5 million) of compensation for 14 families.

Son said the market price for a square meter of land in Hang Bai street is 450 million dong ($22,500) and the highest compensation price, according to Hanoi authorities’ policy, is 60 million dong ($3000).

He said his firm is willing to pay the highest compensation price ever recorded in Vietnam because the project has gone very slow and the investor doesn’t want to force local people to move.

However, three families didn’t agree and the claimed up to VND1 billion for one square meter.

A person who lived at 22 Hang Bai said that VND1 billion/sq.m of land in Hang Bai street is not expensive. He said a 28sq.m plot of land in Hang Khay street was paid VND30 billion.

Lam Quoc Hung, vice chair of Hoan Kiem district, said any family who doesn’t move will be forced to move after January 15 2011.

PV