Urban land grab or fair urbanization? Compulsory land acquisition and sustainable livelihoods in Hue, Vietnam

Urbanization often goes hand in hand with a growing demand for housing, urban infrastructure and other facilities that are necessary for sustainable urban development. This has created numerous pressures on land, especially in peri-urban areas where land, traditionally used for agriculture, is still available and is cheaper than urban land. In order to procure land, when and where needed, the government of Vietnam uses the mechanism of compulsory land acquisition as a policy tool.
The land conversion and acquisition have become a hot topic, attracting attention not only from land administrators, but also from the media, politicians, and local communities. Many have raised questions on whether land conversion, occurring through the mechanism of land acquisition by the government, is a fair process as well as whether or not this process creates opportunities for local development.
This study aims to provide a better understanding of the processes of land acquisition for urban development and the implications for equitable and sustainable development in Vietnam. In particular, special attention is given to an in-depth study in Hue City in Central Vietnam to understand the impacts of land acquisition on the livelihoods of those whose land is acquired, the role of compensation policies in livelihood reconstruction, and the social tensions and reactions that result from land loss.
There are five important conclusions drawn from this study:
•The level of participation among main actors involved in land acquisition processes (i.e., the local government, the developers, and the affected people) is unequal, leading to unfair outcomes.
•Almost all households after land loss pursue a diversified livelihood in which farm and non-farm activities are combined. This indicates that farming is still considered important.
•The majority of households actually are able to reconstruct their livelihoods and realize better living conditions after land loss. Nevertherless, some issues emerged to challenge local equitable and sustainable development. This includes the increased vulnerability experienced by the elderly, the widowed, and the infirm. In addition, day labourersmay face difficulties in the long term.
•The financial compensation and support packages do not appear to be strong determinants of increased household income after land loss. This implies a failure of the current compensation programs in the process of compulsory land acquisition for urban development.
•The unfair compensation combined with the unsustainable impacts of land conversion has led to social tensions and reactions against compulsory land acquisition. However, the actions of farmers are not strong enough to alter the decisions made by the local government organizations.
In order to limit the challenges of land acquisition for urban development, the notion of fair urbanization should be taken into account by governments. It is a process which necessitates the improvement of communication and consensus building in decision-making processes between all stakeholders including local government, investors, local people, civil society organizations, and the media. It also requires governments and investors to be responsive to the needs and expectations of people as well as to claim responsibility for their decisions and actions. In addition, this study reminds policymakers that defining the form of urban development is the best comprehensive solution for Vietnam’s urban future. After all, urban form and the process of this development holds implications for ecological, economic, and social sustainability.