LAND ACQUISITION IN HANOI,VIETNAM: MAJOR PROBLEMS AND THEIR CAUSES

Abstract

Vietnam in the transitional economy has undergone rapid urban growth. The influx of the people into Hanoi and the expansion of the city have increased the demand for new developments. These new development projects helped modernise and enhance the standard of living in Hanoi. Yet, a lot of the developments faced delays due to land acquisition problems. This paper demonstrates the problems and analyzes the causes of the problems in land acquisition by using three case studies. It is found that low compensation prices, land investment speculation, the residents' low level of education, and local customs are common problems faced by the developers. The study also provides a bigger picture of the whole land acquisition process in Hanoi, Vietnam. It analyzes the role of the various parties in the process and shows how the tenants, the developers and the government have interplayed in land acquisition in the changing laws and decrees. Ultimately all the land acquisition problems can be attributed to one root cause: the economic transition.