Trump-branded golf resort in Vietnam hits snag over land dispute

HANOI – Five months after a glitzy groundbreaking ceremony just outside Vietnam’s capital Hanoi, the area where The Trump Organisation-branded US$1.5 billion (S$1.95 billion) luxury golf resort was unveiled remains just fields of banana and orange trees as angry farmers challenge the site’s clearance plans.

The project in Hung Yen province is facing land recovery delays as residents contest the amount of compensation being offered by the local authorities.

It has been set at about 320,000 dong (S$15.80) per sq m – equivalent to around one year’s income from the agricultural land for many of the farmers, plus rates that differ for varying plants and trees already there.

“It’s unreasonable that freshly planted crops can get a higher payment than trees that have been growing for 20 years,” said Ms Do Thi Vung, who has spent more than 30 years cultivating land in the area.

She is among hundreds of farmers who have petitioned the authorities to at least double the compensation rate.

The resort, when finished, is set to feature five-star hotels, golf courses and residential estates spanning around 900ha along the Red River.

The first phase is slated to be completed by late 2027, with the whole complex ready by 2029.

The Trump Organisation executive vice-president Eric Trump said in May the project will “blow everybody away”.

But before that can happen, Hung Yen officials need to hand over the land to the developer, Kinh Bac City Development Holding Corp.

It is a process that has been held up not only because farmers are holding out, but also due to a huge government overhaul earlier in 2025 that saw three tiers of local bureaucracy reduced to two. 

“There are definitely delays,” said Mr Le Trung Kien, an official in Chau Ninh, a commune in Hung Yen province.

The work to clear the land was assigned in late June but stalled and restarted only in August, he said.

Land disputes are a longstanding source of social friction in Vietnam. Farmers frequently complain that official compensation prices are set below market value, while the reclamation process can be open to corruption.

Such grievances have occasionally erupted into protests – in one 2020 clash over land rights in Dong Tam commune, four people were killed.

The government in 2024 passed an amended land law aimed at narrowing the gap and improving transparency.

In Hung Yen’s case, the province’s top administrators have ordered that compensation plans be finalised by the end of October and 95 per cent of the land clearance be completed by end-2025.

But notices detailing payment amounts have only just been posted in some areas, triggering a 30-day period for public feedback. 

A representative of Hung Yen Provincial People’s Committee was not immediately available to comment.

Tough target

If disputes remain unresolved, the process could drag on, with a discussion period of up to 60 days required to take place before compulsory land seizure can happen, said Mr Hoang Thi Oanh, a lawyer and director of Lion Law Firm.

Some four trillion dong has been earmarked for compensation and resettlement, according to a Hung Yen provincial news website. 

“If people don’t agree, it will be very hard, even impossible, to achieve the target,” said Mr Le Van Luong, the head of the project management board in Chau Ninh commune.

The 320,000 dong per sq m payment was calculated based on government regulations, he said.

In Vietnam, land is collectively owned by the people and managed by the state, which grants land use rights in accordance with the law.

Mr Dang Thanh Tam, chairman of Kinh Bac City Development, said the developer has “received 100ha of land and expects the remaining 300ha for the first phase no later than January”.

“The inauguration of two VIP golf courses to welcome the Apec leaders summit in November 2027 is completely feasible. The project is still on good schedule,” Mr Tam said.

Representatives from The Trump Organisation did not respond to requests for comment.

Complicating matters, farmers are also now arguing about specific plants.

Lilies appeared overnight in some places, residents said when Bloomberg News visited in late October, brought in from elsewhere and apparently planted to add value for the official assessment. 

The approval process for the resort, which is a collaboration between Hung Yen Hospitality, a subsidiary of Kinh Bac City Development, and The Trump Organisation, took place as the government in Hanoi sought to stave off President Trump’s threatened 46 per cent tariff on Vietnam’s exports to the US – levies that were later reduced to 20 per cent.

The timeline for the project was swift.

After first being signed in September 2024, the project received investment approval in May, with the launch ceremony taking place just a few days later. 

Standing on a stage alongside Mr Eric Trump at the event, Prime Minister Pham Minh Chinh pledged the government’s full backing and urged officials to actively support the project to have it ready in time for the Apec summit in late 2027. 

The Trump Organisation is set to receive US$5 million in licence fees for the project, according to a financial disclosure report released by the US Office of Government Ethics.

It is not understood to be involved in the construction phase or compensation discussions.

Farmers unwilling to accept the offer can lodge a legal complaint.

But as the rates are usually calculated and approved by the authorities through an appraisal process in line with the law, their chances of securing a higher payment are slim, according to Mr Oanh, the lawyer. 

Lives here have been “closely connected to the land for many years”, said Ms Van Thi Thuan, head of Nam Mau village in the affected area.

“Crops help raise the whole family,” she said. “Farmers are willing to hand over the land for development, though many will be jobless, many will struggle, but the compensation is too low for them.” BLOOMBERG