The project, covering about 2.14 hectares, will transform land bordering the eastern side of the lake into a public park and square developed under a transit-oriented development model.

The site is bounded by Hoan Kiem Lake and Dinh Tien Hoang Street to the west, existing residential areas to the north, Ly Thai To Street to the east, and Tran Nguyen Han Street to the south.

A total of 59 land users are affected, including 17 organizations and 42 households. 

Authorities have approved compensation, support, and resettlement plans for all affected parties, according to officials in Hoan Kiem Ward.

As of this week, eight organizations have handed over their premises, including properties on Ly Thai To and Dinh Tien Hoang Streets, with fencing installed to prepare for demolition of existing structures. 

Several households in alleyways off Dinh Tien Hoang Street have also completed their move-out in recent days.

City authorities said they expect to complete site clearance by March, allowing construction work to proceed.

The project has a total investment of more than VND2.84 trillion (US$108.1 million). 

Hanoi officials have held multiple meetings to address obstacles related to compensation and relocation.

Once completed, the new square and park are expected to serve as a venue for community activities, cultural events, exhibitions, and public gatherings, contributing to the redevelopment of the area around Hoan Kiem Lake.