Hanoi Proposes $860 Million Hoan Kiem Lake Redevelopment Project

Hanoi, The Gulf Observer: Vietnam’s capital, Hanoi, has proposed a major redevelopment of the area surrounding Hoan Kiem Lake, with preliminary investment estimated at more than VND22.2 trillion (approximately $860 million), including plans for a four-level underground shopping complex.

According to a proposal submitted by the Hanoi People’s Committee on Tuesday, all components of the redevelopment project are scheduled for completion by 2029.

The project aims to establish a large public square connecting Hoan Kiem Lake with August Revolution Square, the Hanoi Opera House and the Vietnam National Museum of History. It also seeks to expand public spaces in the city centre, reorganise traffic flows and develop underground infrastructure.

The redevelopment will be implemented in three phases. The first phase will involve land clearance covering approximately 30.82 hectares, with an estimated cost exceeding VND9.9 trillion (around $383 million). The entire cost of this phase will be financed through the municipal budget.

The second phase will focus on constructing a four-level underground shopping complex beneath parkland and public square areas to the north and east of Hoan Kiem Lake. Valued at more than VND4.6 trillion, this component will be undertaken by Capital Sun Real Estate Joint Stock Company as the designated investor.

The third phase will include the construction of a new headquarters for the Hanoi People’s Committee, renovation of the People’s Council headquarters and improvements to the landscape on the southeastern side of the lake. This phase is estimated to cost more than VND7.69 trillion and will also be implemented by Capital Sun Real Estate.

As part of the proposed compensation arrangements for investors, the city plans to allocate six prime land plots covering a combined area of 7.31 hectares, with a preliminary estimated value exceeding VND4.87 trillion.

The proposed sites are located on Trang Tien Street, on both sides of the central post office, along Tang Bat Ho, Le Thanh Tong and Hai Ba Trung streets, as well as in Dong Anh.

The proposed redevelopment is intended to enhance the capital’s public spaces, improve urban connectivity and modernise infrastructure around one of Hanoi’s most prominent landmarks, while integrating commercial facilities into the city centre.