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Land Compensation and Policy Enforcement in Vietnam: A Case Study in Danang

Author

Listed:
  • Tuan Nguyen Tran

    (Faculty of Real Estate and Resources Economics, National Economics University in Hanoi, Vietnam)

  • Hegedűs Gábor

    (Department of Economic and Social Geography, University of Szeged, Hungary)

Abstract

The land is a natural resource which is rich in diversity, and its value tends to increase over time. Therefore, compensation in cases when the State acquires land, is an issue of concern. Using data from 100 surveyed households and ten interviews (including 5 houesholds indirectly affected by land acquisition, 3 relevant experts, and 2 village headmen) in Da Nang, the article aims to answer two research questions: (1) assessment of landless households on land compensation policy, and (2) an assessment of outstanding issues in this policy in Vietnam. The results show that the local government has strictly followed the regulations and procedures of the State on land acquisition and compensation for economic development purposes under the 2013 Land Law. However, affected people feel dissatisfied with what they had received when they lost land. The first reason is the significant difference between the compensation prices households received and the market price, as determined by a real estate broker. Second, concerns about the future arise when a family’s means of production are acquired by the state. In addition, the policy also lacks support measures for households located in affected areas. These shortcomings lead to dissatisfaction among families.

Suggested Citation

  • Tuan Nguyen Tran & Hegedűs Gábor, 2022. "Land Compensation and Policy Enforcement in Vietnam: A Case Study in Danang," Real Estate Management and Valuation, Sciendo, vol. 30(2), pages 34-46, June.
    • Handle: RePEc:vrs:remava:v:30:y:2022:i:2:p:34-46:n:1
    DOI: 10.2478/remav-2022-0012
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    References listed on IDEAS

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    1. German, Laura & Schoneveld, George & Mwangi, Esther, 2013. "Contemporary Processes of Large-Scale Land Acquisition in Sub-Saharan Africa: Legal Deficiency or Elite Capture of the Rule of Law?," World Development, Elsevier, vol. 48(C), pages 1-18.
    2. Asian Development Bank (ADB) & Asian Development Bank (ADB) & Asian Development Bank (ADB) & Asian Development Bank (ADB), 2015. "Investing in Natural Capital for a Sustainable Future in the Greater Mekong Subregion," ADB Reports RPT157686-2, Asian Development Bank (ADB).
    3. Lawrence Blume & Daniel L. Rubinfeld & Perry Shapiro, 1984. "The Taking of Land: When Should Compensation Be Paid?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 99(1), pages 71-92.
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    More about this item

    Keywords

    land acquisition; Vietnamese land law; land-use change; land price; Danang;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • R28 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Government Policy

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