Land increment value distribution through land development strategies for tourism in Vietnam

The paper focuses on the land development strategies for tourism and the mechanism through which the distribution of increment value of land occurs among the public and private sectors in Vietnam. Although Vietnam lacks a formal Land Value Capture (LVC) policy, the principles of LVC are implemented indirectly through various mechanisms, such as voluntary land conversion, auctioning land-use rights, a Build-Transfer model, an acquisition-of-shares model and project adjustment. The author argues that land value would increase as a result of these land-development strategies, and the public should capture this added land value. Analysing case studies near cities in Vietnam, the paper shows three types of distribution of land value increments: (1) compensation payments to the original land users; (2) auction prices that developers eventually pay to the local government; (3) the developer’s in-kind contribution that the public receives. However, the implementation of some land-acquisition strategies and their distribution remains limited in social terms because they have little de facto benefit for local communities. This paper concludes that a cohesive LVC framework could enhance transparency, ensure fair compensation, and balance the distribution of land value increments more effectively among public, private, and community stakeholders, supporting sustainable development, particularly in Vietnam’s rapidly growing tourism sector.