According to the draft plan, about 125,000 households would be relocated by 2015 and given support such as access to basic services like electricity, and stable housing.
According to Pham Khanh Ly, deputy director of the Ministry's Department of Co-operative and Rural Development, the sector would draw funding both from the state and local governments, with priorities given to those living at high risk of disasters and flooding, border areas and islands, and in extremely remote areas.
The Ministry estimated the project would cost VND30 trillion (US$1.4 billion), with state funding accounting for 60 percent.
Among other support policies, funding would also be used to train labourers, especially those who have to relocate to areas without sufficient agricultural land, Ly said.
Between 2006-2010, Vietnam resettled more than 146,000 households under a similar plan.