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Página 1609
Exploring factors affecting Vietnam’s land law in
connection with global governance
DOI: https://doi.org/10.5281/zenodo.17282332
Bao, Le Tran
1
Correo: tbaole24@gmail.com
Orcid: https://orcid.org/0009-0009-2481-8759
Phuong, Nguyen Ngoc Duy
2
Correo: nnd-phuong@outlook.com
Orcid: https://orcid.org/0009-0004-0580-0151
Vietnam National University, Ho Chi Minh, Vietnam
Abstract
The study's purpose is to assess how historical, social, political, and global
governance factors influenced the development and evolution of Vietnam’s land
policies. The methodology includes comparative legal research, case study
analysis, and document review. According to the study, Vietnam’s land legislation
has undergone significant modifications in order to globalisation and market-
driven policies. However, difficulties still exist in balancing the protection of land
users’ rights with governmental authority. The study highlights the flaws of the
current legal system, particularly those pertaining to land use rights, transparency,
and land user compensation. According to the findings, although land law reforms
have promoted economic growth, they have also resulted in socioeconomic
inequality, especially in rural regions, because farmers’ interests have not been
adequately protected. To increase land management systems' effectiveness and
give priority to the rights of land users, the research recommends changing the
legislation.
Keywords: globalisation, legislation, reform, market economy
1
Full Doctor. Vietnam National University, Ho Chi Minh, Vietnam.
2
Researcher. Vietnam National University, Ho Chi Minh, Vietnam.
Sección: Artículo científico 2026, enero-junio, año 6, No. 11, 1609-1648
Clío. Revista de Historia, Ciencias Humanas y Pensamiento Crítico
ISSN: 2660-9037 / Provincia de Pontevedra - España
Año 6, No. 11, enero-junio, 2026
Bao, Le Tran
Phuong, Nguyen Ngoc Duy
Exploring factors affecting Vietnam’s land
law in connection with global governance
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Análisis de los factores que afectan la legislación territorial de
Vietnam en relación con la gobernanza global
Resumen
El propósito del estudio es evaluar cómo los factores históricos, sociales, políticos
y de gobernanza global influyeron en el desarrollo y la evolución de las políticas
agrarias de Vietnam. La metodología incluye investigación jurídica comparativa,
análisis de casos prácticos y revisión documental. Según el estudio, la legislación
agraria de Vietnam ha experimentado modificaciones significativas para adaptarse
a la globalización y las políticas impulsadas por el mercado. Sin embargo, aún
existen dificultades para equilibrar la protección de los derechos de los usuarios
de la tierra con la autoridad gubernamental. El estudio destaca las deficiencias del
sistema jurídico actual, en particular las relativas a los derechos de uso de la tierra,
la transparencia y la compensación a los usuarios. Según los hallazgos, si bien las
reformas agrarias han promovido el crecimiento económico, también han
generado desigualdad socioeconómica, especialmente en las regiones rurales,
debido a la falta de protección adecuada de los intereses de los agricultores. Para
aumentar la eficacia de los sistemas de gestión agraria y priorizar los derechos de
los usuarios, la investigación recomienda modificar la legislación.
Palabras clave: globalización, legislación, reforma, economía de mercado
Introduction
Social change is now proceeding so rapidly due to an effect of several
factors. One of those prominent phenomena is globalisation. It is a societal process
where the boundaries of economy, politics, and culture are removed, in which
people’s awareness is steadily increasing and in which people’s behaviour is
dependent (Waters, 2001). In order to more profoundly understand the
globalisation's impact on societal development as well as the interdependence
between countries, regions and global levels, studying globalisation is essential
(Caporaso & Madeira, 2013).
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Phuong, Nguyen Ngoc Duy
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The world globalisation has many specific uses in contemporary discussion
(Jakubik et al., 2017; Shtal et al., 2023). One of the main issues, particularly in
less developed nations, is the increasing interference in politics, human rights and
security from a new imperialism. The competition for the influence and control
among the major nations, global firms, NGOs, and international institutions is
more and more intensively (Woods, 2002). In order to gain an understanding of
how globalised processes affect how world affairs are governed, it is vital to
specify interaction between global and local issues and through it global processes
are evolving (McGrew & Held, 2002).
Land use is one of the many national policies that have changed significantly
as a result of globalisation, with substantial ramifications for both domestic
governance and international relations (Ketners et al., 2024; Issayeva et al., 2024).
As Vietnam progresses through the world, its land policies (which are influenced
by international economic and governance processes) must adapt to meet
international standards while preserving stability and advancement. With a focus
on Market changes and foreign investment incentives, this article discusses how
Vietnam’s land law, which has been impacted by political, socioeconomic,
historical, and external global governance elements, can be reorganised to satisfy
demands from both the inside and the outside.
For a better understanding of the larger dynamics of land policy and
agricultural growth, Huyen and Giang (2024) provided useful details regarding the
impacts of urbanisation on Vietnam's agricultural land usage. The authors looked
at the benefits and drawbacks of urbanisation, concentrating on how agricultural
land is being converted to non-agricultural uses and how this affects food security
and sustainable development. This is extremely pertinent to the ongoing research
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ISSN: 2660-9037 / Provincia de Pontevedra - España
Año 6, No. 11, enero-junio, 2026
Bao, Le Tran
Phuong, Nguyen Ngoc Duy
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law in connection with global governance
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since it highlights how crucial it is to have efficient land management laws and
agricultural planning in order to ensure that land is used appropriately in the face
of rapidly expanding metropolitan areas.
Tuan et al. (2025) were using modelling instruments to make predictions of
land transitions by 2050, offering crucial information on the future of changes in
land usage in Ho Chi Minh City. With major ramifications for sustainable land
management and urban planning, the researchers emphasised the ongoing shift
from farming to urban and residential land. The results draw attention to the
challenges in preserving agricultural land due to urbanisation and the necessity of
adaptable policies. This study complements the current research on how
urbanisation and globalisation impact Vietnam's land laws and policy reforms,
especially in the context of striking a balance between sustainable land
management techniques and economic growth, by looking at the spatial
distribution and anticipated changes in land use.
Huong et al. (2024) investigated the traditional knowledge, beliefs, and
practices of indigenous people in Vietnam's Kon Plong District about the
preservation of threatened species. The authors emphasised the importance of
local communities in wildlife conservation, stressing how attitudes and behaviours
towards exotic animals are influenced by indigenous knowledge and cultural
practices. This provides a deeper understanding of the sociocultural elements
affecting resource management and land use in Vietnam. It supports the larger
theme of land law reforms and policy implications covered in the current study by
looking at how community involvement and local views have an impact on
conservation efforts, especially when it comes to balancing between ecological
sustainability, development, and conservation priorities.
Clío. Revista de Historia, Ciencias Humanas y Pensamiento Crítico
ISSN: 2660-9037 / Provincia de Pontevedra - España
Año 6, No. 11, enero-junio, 2026
Bao, Le Tran
Phuong, Nguyen Ngoc Duy
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Resolving the pressing issue of plastic waste in the ocean in Vietnam, Yen
and Dung (2023) investigated the difficulties and ramifications for treating plastic
waste in poor countries in compliance with national and international regulatory
frameworks. The researchers criticised the efficiency of the current legislative
tools in tackling the issue and highlighted the grave consequences that marine
plastic pollution has on the ecosystem and human health, especially in Vietnam.
It highlights how important legal reforms and efficient environmental
management are, which are crucial components of Vietnam's larger development
issues. In line with the current study’s focus on land law reform, globalisation, and
governance, this analysis looks at how Vietnam uses legislative and policy
frameworks to address environmental challenges, highlighting the necessity of
comprehensive policies that strike a balance between sustainability, development,
and international environmental standards.
Thanh (2023) investigated Vietnamese farmers’ opposition to the
conversion of agricultural land, emphasising how insufficient the nations present
land laws are to protect farmers’ rights. According to the researcher, there is an
unequal distribution of power in land acquisition talks, with farmers having little
negotiating opportunities and the government controlling a large portion of
agricultural land decisions. It adds to the larger conversation about land law
reforms in Vietnam by tackling themes of power, justice, and land users’ rights.
The consequences of land acquisition on the ecology and socioeconomics of
Vietnam's tourism industry were studied by Duong et al. (2023), with a special
emphasis on the modifications brought about by the 2013 Land Law. The scholars
emphasised how the law increased the impacted parties' bargaining leverage and
compensation, but they also showed that there haven’t been many real-world
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ISSN: 2660-9037 / Provincia de Pontevedra - España
Año 6, No. 11, enero-junio, 2026
Bao, Le Tran
Phuong, Nguyen Ngoc Duy
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improvements to local living circumstances. It discusses the intricacies of
reforming land laws in light of urbanisation and development. It helps to
comprehend the wider ramifications of land law changes on sustainable
development by examining the relationship between land acquisition, tourism
development, and local communities. This provides important information on the
socioeconomic effects of land reforms in Vietnam.
Pham (2023) examined the connection between Hanoi's urban real estate
growth and settlement historical protection, especially with regard to
sustainability. The authors looked at how conflicts between protecting settlement
legacy and expanding urban real estate developments have arisen as a result of
Vietnam’s economic changes and land legislation, beginning with the 1993 Land
Law. In keeping with the current study's emphasis on how land management
affects the environment and society, it provides insightful information about the
wider ramifications of land law and urban planning changes in Vietnam by
tackling the tension between development and conservation in Hanoi.
Therefore, the purpose of this article is to thoroughly examine how
Vietnam's land law and globalisation interact. The primary goals of this research
are:
a) To examine the evolution of land law in Vietnam in response to globalisation,
with an emphasis on land use rights and other property rights associated with land.
b) To investigate the evolution and modifications of Vietnam’s land legislation in
relation to historical events, socioeconomic variables, political institutions, and
international governance frameworks.
c) To suggest changes to Vietnam’s land legal framework that will better reflect
communist ideals, prioritise land users’ rights, and provide remedies for the
shortcomings of the current framework.
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ISSN: 2660-9037 / Provincia de Pontevedra - España
Año 6, No. 11, enero-junio, 2026
Bao, Le Tran
Phuong, Nguyen Ngoc Duy
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law in connection with global governance
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1. Theoretical overview
Since Vietnam has been completely independent in 1975, the government
has implemented a number of innovations in land policy (Hang et al., 2024).
Vietnam’s land law has been formed, reformed and developed according to four
main factors: political institution, socio-economic mechanism, historical context
and role of international organisations.
Article 4 of the Constitution of the Socialist Republic of Vietnam (1980)
emphasised the Communist Party's leadership over the State and society, asserting
its central role in shaping the nation’s direction. It also echoed Marx’s view that
land should not be privately owned, as land is a shared resource meant for use by
society, passed down to future generations rather than held as private property (Tu
& Lan, 2024). The Communist Party of Vietnam, the sole organisation
acknowledged by the populace to assume the leading role of the State and society,
is in charge of the country's political system. Under the Party’s leadership, the
State governs society and looks out for the interests of the populace; the people
are in charge thanks to democratic and representational structures based on
Leninist and Marxist ideas (Trung et al., 2022).
It can be seen from the context that the political system of a single party has
a strong influence on the formation of the land ownership regime. The Communist
Party of Vietnam aims to establish a State of the people, by the people, for the
people and according to Marxism-Leninism, all land and territory of Vietnam
belongs to everyone. The people and government are representatives of
ownership, which is stipulated in Article 19 and Article 20 of the Constitution of
the Socialist Republic of Vietnam (1980). Furthermore, the informal institution is
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ISSN: 2660-9037 / Provincia de Pontevedra - España
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Phuong, Nguyen Ngoc Duy
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described as an implicit rule that although the Communist Party has taken control
of the State, other foreign powers are plotting to dominate Vietnam. For political
security reasons, the Government does not recognise land ownership for any
individuals or organisations.
Article 18 of the Constitution of the Socialist Republic of Vietnam (1992),
Articles 53 and 54 of the Constitution of the Socialist Republic of Vietnam (2013)
attest to the State's consistent management of land in accordance with the
legislative framework and master plan, guaranteeing its prudent and effective use.
The state grants land to organisations and people for steady, long-term use.
In the classical institutionalist view, government structures established land
administration. The government has divided into four administrative levels,
including central, provincial, district and commune. Each level of governance has
its own functions based on administrative scopes (Corley, 1961). Accordingly,
land management is structured across four administrative levels. The government
is responsible for land use planning both nationwide and locally, as well as for
planning related to security and defence of the country. The Provincial People’s
Committee decides to allocate land, rent land and permit foreign groups and
people to utilise it for different purposes. The District People’s Committee decides
to allocate land, lease land, and allow change of land use purpose for households
and individuals. People's Committees at the local level rent land from the
agricultural land fund for towns, wards, and communes' public usage (Land Law,
2013).
The 1980s was the period of the subsidised economy when the agricultural
production was based on the co-operative economy model. Land was not allocated
to households and individuals. It had expressed reveal a comprehensive negative
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ISSN: 2660-9037 / Provincia de Pontevedra - España
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Phuong, Nguyen Ngoc Duy
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aspect of its result in socio-economic crisis in depth. In front of this dire situation,
the Vietnamese Government promulgated Directive No. 100-CT/TW “Improving
Contracting Work, expanding “Product Contracting to Labor Groups and
Workers” in Agricultural Cooperatives” (1981). Following this policy, farmers
were allowed to take the extra products after they submitted the fixed quantity of
products produced on their distributed land (Trang, 2012). The agricultural
production in 1986 was raised to 18.4 million tons from 14.4 million tons in 1980.
However, it did not supplant the role of the cooperative, or move toward market-
based prices (Akram-Lodhi, 2007).
The first Land Law of the National Assembly No. 3-LCT/HDNN8 (1987)
was only focused on allocating agricultural land for stable, long-term use by
homes and people. The land was still held by all people. The State was the
representative of the owner. Land value had not been admitted and exchanged in
the market. Any transfer of land use right had to be decided by the administrative
agencies (World Bank, 2011).
Land policy continued to be revised to suit the Party’s 1986 innovation
policy, Vietnam first transitioned to a market-based economy from a centrally
planned one. At the same time, the economy and population are expanding
quickly, in addition to the need for land, expanding agricultural production. A shift
in land policy is necessary to accommodate this increase. The Land Law (1993)
was issued to clarify that the State has only acknowledged the rights to utilise the
land, not private ownership. The State has determined all forms of use, allocation,
and lease of land and all land users. The rights and responsibilities of companies
and individuals using land have been established by the State (Tran, 2011). During
this period, land policy was innovated to overcome domestic agricultural
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Phuong, Nguyen Ngoc Duy
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economic difficulties, ensure the autonomy of people and households engaged in
agricultural production and stabilise farms, without paying much attention to
international economic integration (Hoang et al., 2017).
The United States eased its embargo on Vietnam in 1994, leading to more
foreign investment in industry. More importantly, citizens possess the power to
alter land use rights (Land Law, 1993). The need to transact land use rights has
become normal and many problems have arisen that are difficult in the Land Law
(1993). Realising this situation, the Government had to amend its land policy. In
2003, the Land Law underwent yet another revision to accommodate the market
economy. The 2003 Land Law recognised the land use rights of the real estate
market (Trang, 2012). Therefore, market real estate was established as a result of
prior land policies and in historical context.
2. Materials and methods
The approach of this study includes a detailed analysis of Vietnam's land
legislation in light of global governance systems and globalisation. The approach
makes use of comparative research methods, evaluating case studies and
document analysis to gauge the effects and structural evolution of land law
reforms in Vietnam. The study looks at how political institutions, socioeconomic
variables, and global influences have influenced land management policy over
time by analysing official reports, scholarly literature, and historical and modern
legal documents.
The study utilises a range of sources, such as primary legal documents,
official reports, and scholarly literature. Important sources include the
Constitution of the Socialist Republic of Vietnam (1980; 1992; 2013), which
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ISSN: 2660-9037 / Provincia de Pontevedra - España
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Phuong, Nguyen Ngoc Duy
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describes the legal foundation for the nation's land ownership and government.
The study also references Land Law of the National Assembly No. 3-
LCT/HDNN8 (1987), Land Law (1993), Law on Land (2003), and Land Law
(2013), which have shaped land use and ownership policies over time. Reports
from international organisations like the World Bank (WB) (2004; 2011) and the
World Trade Organization (WTO) (2006) are additional sources that provide
details on the mechanisms of global governance and how they affect Vietnam's
legal and economic systems. In order to contextualise Vietnam’s approach, the
research also includes comparative legal studies, looking at land laws and
governance methods in other nations.
The study employs a robust analytical approach that serves as the foundation
for the entire research process in order to evaluate the operational aspects of
regulatory fines related to environmental infractions in Vietnam. This approach
entails methodically analysing the regulatory framework’s efficacy, evaluating the
practical performance of the institutional and legal frameworks, and locating any
holes or flaws that prevent efficient environmental protection. Examining case
studies, legal documents, and secondary sources is part of the analytical process
to determine how laws are applied and how well they handle the realistic
challenges of environmental governance in Vietnam.
The study compares Vietnam’s legal reforms and regulatory frameworks for
land law and environmental policies to those in other nations, in addition to using
an analytical technique. This comparative method enables the authors to evaluate
the development of legal frameworks and their impact on economic development
in diverse country contexts. The study highlights Vietnam’s advantages,
disadvantages, and areas where it can benefit from other nations' experiences by
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Phuong, Nguyen Ngoc Duy
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contrasting its strategy with global best practices. This is especially true when it
comes to land usage, environmental preservation, and the impact of international
law on domestic policies.
To assess land reform in Vietnam, it is important to consider the criteria used
to select cases and to clearly define the chronological coverage of the main legal
stages. The selection of cases is based on a number of factors, the main ones being
the nature of changes in land legislation, their impact on the rights of landowners
and land users, and the implementation of key reforms in the context of Vietnam's
globalization and integration into the international economic system. The main
criteria are also the representativeness of cases for different types of land use, in
particular agricultural use, as well as the identification of specific legal acts that
formed the basis for changes in land policy.
In terms of chronological coverage, the analysis covers the main stages of
land reform, from the first laws defining land ownership after World War II to the
latest changes in land legislation, particularly in 2003 and 2013. The first legal
acts defining the foundations of land relations date back to the 1980s, when
Vietnam took the first steps towards reforming the land system after the war.
However, the most significant changes took place after the introduction of the
1993 Land Law, which established a more structured system of land rights in the
country. The reforms of 2003 and 2013 were the culminating stages in the
adaptation of land legislation to the requirements of the global economy and
integration into international organizations, in particular the WTO.
By using this comparative approach, the authors intend to present a balanced
and objective evaluation of the difficulties, guaranteeing that the conclusions are
founded on an extensive comprehension of international legal developments and
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Phuong, Nguyen Ngoc Duy
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their particular relevance to Vietnam's political and socioeconomic circumstances.
The authors make suggestions for reforms that could increase the efficiency of
environmental preservation, administration of land, and the defence of land user
rights in view of these results. These suggestions are meant to help legislators and
state representatives in passing more effective and sustainable land use laws.
3. Results and discussion
3.1. Role of international organisations: domestic responses to the global
governance
Global administration is the collection of organisations, laws, rules, and
conventions that govern relationships between countries and promote global
collaboration on a variety of topics. These rules and guidelines must be followed
by nations taking part in multilateral cooperation groups. Additionally, national
laws must be modified to conform to the rules of international law (Hang, 2016).
Therefore, Vietnam’s land policy is also influenced by this factor. The
establishment of international institutions for multilateral collaboration marked
the beginning of global government. The most crucial of these is the appearance
of the United Nations and multilateral economic cooperation organisations,
typically the General Agreement on Tariffs and Trade (GATT) the predecessor
of the WTO, International Monetary Fund (IMF) or WB.
States worldwide are under pressure to reduce trade barriers, open up to
foreign competition, and adopt other neoliberal economic policies supported by
the WTO and other international economic organisations as a result of the
globalisation of money and commerce. The WTO’s purpose is to constitute
international commercial rules in order to gradually get rid of trade barriers to
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form the secure free trade (Kjær, 2004). States vary greatly, however, in the
benefits they will reap from globalisation since regional governance institutions
can help disseminate information to national actors, reduce transaction costs, and
create stronger incentives for states to cooperate economically and politically in
the future (Caporaso & Madeira, 2013; Nam et al., 2021). The Vietnam land policy
can be considered as a notable example of this process.
How deeply integrated are the member states of regional organisations? The
depth of integration these organisations can achieve depends upon their members’
willingness to accept some limits on their autonomy in certain policy areas
(Caporaso & Madeira, 2013).
As per Article XII:1 of the Marrakesh Agreement Establishing the World
Trade Organisation (1994), any state or distinct customs territory that has
complete autonomy in handling its external commercial relations and other topics
covered by the Agreement and the Multilateral Trade Agreements is qualified to
join the Agreement under conditions negotiated with the WTO. The WTO acts as
the platform for discussions among its members about their multilateral trade
relations on issues covered by the accords, according to Article III:2 of the
Marrakesh Agreement Establishing the World Trade Organisation (1994). The
WTO’s Agreements includes three basic Agreements: The General Agreement on
Tariffs and Trade (1994), General Agreement on Trade in Services (1995), and
Agreement on Trade-related Aspects of Intellectual Property Rights (1994).
Domestic laws are closely related to these contracts. Vietnam must improve its
legal system and provide support in this area in order to meet its new
responsibilities as a full member of the WTO (Schmidt, 2003; Le & Tomasi,
2023).
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According to Article III of the General Agreement on Trade in Services
(1995), concerning “Transparency,” each Member is required to publish all
pertinent measures of general application that have an impact on the operation of
the Agreement as soon as possible, unless there is an emergency, and no later than
when they enter into force. In terms of land policy, Viet Nam was suggested to
streamline and de-regulate complex processes, particularly by enhancing the laws
and expanding land use rights and land rules, guaranteeing that intensive benefits
would be granted to international corporations without exception, and by
improving the address on disparity in the workplace. Other WTO’s Members
criticised that land use rights' requirements were still unfinished, which was
concerning foreign investors, and restricting the capacity to raise funds by dealing
land. Moreover, it is believed that the land use registration system is insufficient,
and the procedures used to calculate land prices were opaque and unclear (World
Trade Organization, 2006).
Vietnam joined the WTO as its 150th member on November 7, 2006,
opening up great opportunities and challenges for Vietnam to compete with
countries around the world. To get this opportunity, since applying to join the
WTO in January 1995, Vietnam has gone through many rounds of tough
negotiations and was forced to implement commitments stipulated by this
organisation on procedural reform. administrative procedures, including land
reform.
Land reforms in Vietnam aimed at economic development and integration
into global markets are causing significant social tensions, especially in rural
areas. The main problem is land loss associated with urbanization and
industrialization. The transfer of land to commercial use or for industrial projects
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often results in the expropriation of land from rural residents, depriving them of
their main source of income and stability. Many farmers do not receive adequate
compensation for lost land, which worsens their economic situation (Khamzina et
al., 2020; Tleubayev et al., 2024). This causes deep social tension, as land losses
without adequate compensation leave local residents without a means of
subsistence (Salo et al., 2023).
Another serious problem is the growth of social inequality. The
concentration of land in the hands of large corporations and foreign investors
widens the gap between rich and poor (Khamzina et al., 2015; Aliyev et al., 2022).
Local residents who have lost their land do not have access to new opportunities
in the labor market and often face low-paid jobs in industrial areas, which does
not allow them to improve their standard of living. Moreover, due to ineffective
land registration and the lack of adequate legal mechanisms, many citizens
become victims of abuse and corruption. Changes in land use also have serious
environmental consequences. The deterioration of the environment due to water
and air pollution and soil degradation negatively affects the living conditions of
rural communities (Işık et al., 2025; Zymaroieva et al., 2021). The lack of adequate
measures to conserve natural resources can lead to the loss of agricultural land,
which threatens the country's food security.
The exacerbation of social problems due to land reforms is leading to
increased political activity among rural communities, which are demanding
greater justice and the protection of their land rights from the government (Zhylin,
2020; Cherven & Pavliuk, 2019). This could lead to civil protests and social
conflicts, further increasing tensions in society. At the same time, the positive
aspects of the reforms cannot be ignored, in particular the development of
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infrastructure and the attraction of foreign investment, which contribute to
economic growth. In order to ensure sustainable development and social stability,
additional steps must be taken to protect the rights of local communities, provide
adequate compensation, and prevent negative environmental impacts. Land
reforms in Vietnam are causing significant social problems, including a decline in
the living standards of the rural population, growing social inequality, and
environmental risks. For the reforms to be successful, a more balanced policy
needs to be developed that takes into account the interests of rural communities
and reduces social and environmental risks.
Certain WTO members urge Vietnam to keep eliminating rules and
streamlining intricate processes, particularly by establishing a single window for
investment activity and enhancing legislation. The laws pertaining to real estate
and the extension of land use rights, guaranteeing that incentives are provided to
international businesses without exception. According to other WTO members,
the land use rights criteria are still lacking, which hinders foreign investors' ability
to raise money through land transactions. Furthermore, the procedures used to
determine land prices are unclear and opaque, and the system for registering land
use rights is regarded as lacking (World Trade Organization, 2006).
In accordance with these agreements, the Law on Land (2003) stipulates
those foreign businesses may mortgage land-related assets and the value of land
use rights to guarantee loans at any bank that is permitted to operate in Vietnam.
According to the law, it is also the duty of the Vietnamese government and the
province People's Committee to set up explicit procedures for land use and, if
required, to provide compensation. Businesses with foreign investments are
permitted to lease land in order to conduct investment projects (Rakhimberdinova
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et al., 2022; Akhmet et al., 2025). According to Article 67.3 of the Land Law
(Revised), the lease duration normally shouldn't be longer than 50 years. Although
after the initial lease, it may be extended. For projects with large investment and
long payback or conducted in places with financial and social difficulties, the
government has the authority to lease for up to 70 years. The representative from
Vietnam stated that these provisions of the lease have been applied in non-
discrimination against foreign and domestic investors, non-obstructive business
practices, and these regulations has been unplanned to revise (World Trade
Organization, 2006).
From the above basis, it can be seen that in 2003, to the Land Law were
made additional changes to accommodate socioeconomic progress and the pattern
of global integration and market-oriented land reform. Land use rights traded
within the real estate industry has made it possible for overseas investors to
mobilise capital, giving them confidence to invest through strict, transparent and
fair regulations. The 2003 Land Law sets out the legal framework for more
effective and flexible land management. At the same time, the Law has resolved
problems with land buying and selling that have been “undercover” taking place
among the people but the 1993 Land Law has not yet adjusted (Mellac et al., 2010).
3.2. The comprehensive development framework of the global political
economy to improve the effectiveness of the land governance system
National governments must work together and coordinate their efforts as a
result of globalisation, but their readiness to collaborate on certain issues and their
choices for the nature of that collaboration will differ. The institutional framework
of the global political economy was designed at the Bretton Woods conference in
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1944 that would ensure multilateral economic cooperation, international financial
stability, and the liberalisation of trade and capital (Caporaso & Madeira, 2013).
This section will briefly review the role of “the mother of all governments” the
World Bank in assistance for GoV to improve physical infrastructure and to
reform institutions to strengthen government capacity in terms of land
administration project. The World Bank has approached “Comprehensive
Development Framework” (CDF) since 1999 with the purpose to set up key policy
issues in connection with four parties: governments, the commercial sector, civil
society, and the international development community (Cammack, 2002).
In addition, in order to improve the effectiveness of the land management
system, the World Bank has implemented the “Comprehensive Global Economic-
Political Development Program” (CDF) in many countries, including There is
Vietnam. The content of the CDF includes the World Bank’s Poverty Reduction
Strategy (PRSP) (World Bank, 2004).
The CDF comprises a set of principles to instruct the underdeveloped
countries to implement poverty reduction and development. It is covering the
regulation of external support. Long-term, comprehensive vision; country
ownership; country-led collaboration; and results-orientedness are the four main
components of the CDF. These four principles display valuable functions of the
World Bank Group. They do not map out a design by which countries follow or
they do not outline a detail plan by which the Bank supplies development support.
These principles have been seen as a foundation and principal instruction for the
Bank (World Bank, 2004).
According to the Country Ownership Principle, to build country ownership
a country has to more explicate and disseminate about strategies and policies of
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the country. The World Bank consults governments to reveal public information
and provide assistance for setting up competence in this area. Additionally, the
transparency in the revealing policy of the Bank expresses that the principle of
country ownership is fully applied by the Bank (World Bank, 2004).
An essential component of this Poverty Reduction Strategy is land policy
challenges. The Bank has conducted several and consulting activities such as
comprehensive land assessment, assessment of the correlation between poverty
and the environment, the growth of the private sector, the real estate market, and
ethnic minorities (Rahul, 2021). According to the World Bank, Vietnam’s current
land management system has several shortcomings, such as:
a) lack of policy framework and legal tools;
b) lack of infrastructure to have a system effective land management system (from
cadastral mapping, land plot formation, land use rights certification, land
transaction registration, record management to providing land management
services);
c) low capacity and lack of understanding of the land management officers
(Vietnam Industrial Pollution…, 2012).
The government acknowledges that modernising the current land
management system is imperative. This includes computerising the land
management information system, completing the system of cadastral maps and
records, and completely planning land use in all districts and
communes.Therefore, the Prime Minister issued Directive No. 05/2004/CT-TTg
“On Organizing the Implementation of the 2003 Land Law” (2004) on
implementing the 2003 Land Law and assigned the Ministry of Planning and
Investment (MPI) and the Ministry of Natural Resources and Environment seeks
ODA capital to quickly upgrade and modernise the land management tool system
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(Tu and Lan, 2024). Based on this Directive No. 05/2004/CT-TTg, the World
Bank received a request to sponsor the Vietnam Land Administration Project
(2015).
The goal of the Vietnam Land Administration Project (2015) is to improve
land information and data for all land users through improving the land
management system in Vietnam. This goal will be accomplished by making sure
that land users, such as homes, enterprises, and individuals possess the ability to
obtain more dependable and effective land management services. In addition to
promoting excellent management, a transparent land management system will
increase locals' confidence in land-related development initiatives across the
nation.
In 2009, WB together with Food and Agriculture Organisation of the United
Nations (FAO), the United Nations Conference on Trade and Development
(UNCTAD) and the International Fund for Agricultural Development (IFAD)
created the RAI Principles, or Responsible Agricultural Investment, which uphold
rights, livelihoods, and resources. The principle 1 requires that existing land and
related natural resource rights be acknowledged and upheld. It is interpreted that
all forms of land use and land rights should be respected, irrespective of laws or
social norms, formality or informality, group or individual. This stipulates the
identification of all property rights; the legal acknowledgment all uses and rights
pertaining to land registration, delineation, and electronic land information
archives; discussion with land users to determine the kinds of transfer rights, based
on free option methods to do this; providing fast and equitable compensation for
all land acquisition; and independently resolving disputes and complaints
(Principles for Responsible…, 2010).
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According to Principle 3 of the RAI Principles, procedures pertaining to the
acquisition of land and other resources, as well as the investment that goes along
with them, must be open, transparent, and accountable to all parties involved
within a suitable legal, business, and regulatory framework. It is described that the
absence of transparency will cause suspicion and loses relevant factors to resolve
small disputes before they escalate into larger issues. On the other side, more
transparency will also help to reduce the transaction costs for each and every
participant. This benefits both the host countries and foreign investors by a more
effective competitive environment. The clarification of the provisions on
investment incentives and the applicable way will make the business climate more
alluring to international investors to invest long-term development (Principles for
Responsible…, 2010).
The CDF principles are also a premise of the PRSP which is among the
primary objectives of the Bank (World Bank, 2004). Concerns about land policy
are a major component of the World Bank's Poverty Reduction Strategy Credits
a new strategy to assist policy and institutional reforms in developing countries.
The Bank has conducted several Analytic and Advisory Activities (AAA)
examination of land-land consolidation; poverty evaluations; the relationship
between the environment and poverty; the growth of ethnic minorities; the
expansion of the private sector and land markets; and the integration of land policy
(Rahul, 2021; Pasko & Samoilenko, 2023).
Actually, there are a number of problems with the current land
administration system of Vietnam, such as:
a) the inadequacy of issuing Land Use Right Certificates to land users (LURCs);
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b) lack of facilities to support the efficient operation of the land administration
system, including cadastral mapping, land titling, land transaction registration,
record management, and land administration services;
c) the general public's ignorance and the land administration employees' weak
capabilities.
Therefore, recently, to rectify these shortcomings, GoV has been conducting
the Program for the Development and Modernisation of the Land Administration
for the next 15 years based on the WB’s principles (Project Appraisal
Document…, 2009).
The project’s objective is to increase data and information of land accessed
by all land holders through the improvement of Vietnamese land administration
system. This goal will be accomplished by guaranteeing that land users, such as
households and companies, have access to more dependable and effective land
administration services. A transparent land-management system will support good
governance and increase locals' confidence in the nation's land-related
development initiatives. Such a Program is compatible with the Country
Assistance Strategy (CAS) goals, namely promoting market-oriented reforms,
governance, and inclusive and sustainable growth (Rahul, 2021; Pavlenchyk et al.,
2025).
CAS is prepared by the WB based on the connection between the
International Development Association (IDA) and the International Bank for
Reconstruction and Development (IBRD). The CAS’s target is to assist the low-
income developing countries in obtaining sustainable development and reducing
poverty by a selective program which is connected to the Bank Group's
comparative advantage and the nation’s growth strategy. CAS determines the
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primary areas in which Bank Group
assistance can best support a country (Country
Assistance Strategies, 2009).
Through many investment projects, the Bank is already playing a significant
role in supporting GoV with land-related difficulties. The Bank has extensive
experiences internal knowledge of regional land management concerns. The Bank
is also able to offer substantial investments as well as help leverage co-financing
which will be required to implement the Government’s program (Project
Appraisal Document…, 2009). After implementing the VLAP Project and on the
basis of inheriting the 2003 Land Law, the Land Law (2013) was born, continuing
to strengthen the legal framework, transparency, and simplification of land
procedures in the interest of land users. The 2013 Land Law provides more
focused regulations on protecting the rights of land users, simpler land
administrative procedures, and strict regulations on the responsibilities of
managers. At the same time, it also strengthens the responsibility of land users
through regulations on financial obligations to improve efficiency in land
management and use, avoiding loss and waste.
3.3. Results achieved from land law reform
Because land law has changed in the direction of land participating in the
market, administrative procedures are transparent and clear, protecting the rights
of land users. Therefore, many industrial parks have sprung up across the country.
By the end of September 2021, Vietnam's Industrial Park Development Plan
includes 563 industrial parks across the country, including those in bordering gate
and coastal economic zones. These parks have a total natural land area of
approximately 210.9 thousand hectares, which makes up 4.1% of all non-
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agricultural land area and 0.6% of the country’s overall natural land area during
the 2016-2020 national land use planning phase (Nht, 2021; Shahini, 2025).
Along with land policy, foreign investment policy has been changed
significantly as part of WTO requirements. The Investment Law 2014 intends to
further enhance the investment climate for each and every investor. The law
regulates investment transactions, investor rights and responsibilities, and the
distribution of incentives, including support, encouragement, and assistance, to
international investors throughout the constructing and execution of projects. The
Investment Law clearly stipulates ensuring the nationalisation or expropriation of
investors’ property. Asset seizures or nationalisation must only be done for the
sake of the public and must be accompanied by fair and just compensation in line
with the legislation (World Trade Organization, 2006).
According to calculations, industrial parks and economic zones nationwide
have drawn roughly 453 new investment projects and 590 projects to raise
investment capital in the first nine months of 2021, with new and additional
registered capital totalling roughly USD 10.2 billion (an increase of 8.7% in newly
recorded capital and raised capital in comparison to the same period in 2020). As
of the end of September 2021, there were over 10,975 legitimate production and
business projects from foreign investors in industrial parks and economic zones
throughout the nation, with a total registered capital of roughly USD 230.1 billion.
Of which, around 8,257 projects have been put into operation, totalling
approximately USD 160.2 billion in realised investment capital, or 69.6% of
registered investment capital (Industrial Real Estate, 2022).
From changing land policy along with investment policy, Vietnam has
become a “fertile” land for foreign investors because attracting foreign capital is
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a prerequisite for economic development (Bao & Phuong, 2024; Jamilah et al.,
2025). Foreign businessmen are more pampered, they can quite easily become
users of houses, land, forests, and especially land exchanges in the real estate
sector (Zoomers, 2010). In reality, however, besides the great benefits of economic
development and transparency of land policy that Vietnam has achieved, some
“reverse effects” should be considered. In 2004, the country’s rice harvest area
decreased from 7.66 million hectares in 2000 to 7.32 million hectares in 2005.
Total rice production in 2005 was about 35.79 million tons or 3.27 million
hectares. million tons is higher than the total rice production in 2000. However,
this increase (3.27 million tons) is only about 50% of the increase (7.56 million
tons) of total rice production between 1995 and 2000. In 2004, the amount of
foreign currency earned through rice export was about USD 1 billion (Nguu,
2010).
Research results of the Red River Delta demonstrate that in 2018, the entire
region had 588,357 hectares, representing 15.04% of the nation’s rice-growing
territory. Since 2010, the area of region’s rice land area reduced by 31,589
hectares, at a pace of 3,948.6 hectares each year on average. The majority of
provinces (10/11) have decreased the area of rice land (except Quang Ninh
province), an average decrease of 143-800 hectares/year, of which Hanoi city has
the largest decrease (Huong et al., 2021). Since the process of urbanisation and
industrialisation has developed the economy, it is estimated that each year about
20 thousand hectares of rice land are reduced for use in industrial zones. That leads
Vietnam to face food security challenges and sustainable development
risks (Trang, 2012).
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The implementation of land reforms in Vietnam, intended to modernize the
agricultural and industrial sectors, has inadvertently exacerbated social inequality
in rural areas, leading to severe socio-economic tensions. The loss of land by rural
residents, which is their main source of livelihood, leads to a serious deterioration
in their economic situation. Most rural residents are small farmers whose
livelihoods depend on access to land. The lack of compensation for lost land, or
its inadequacy, means that local residents are often unable to find other sources of
income. As a result, peasants find themselves in a situation of economic instability,
which increases poverty, social marginalization, and unemployment in rural areas.
Land reforms aimed at developing industrial zones and attracting foreign
investment contribute to the concentration of land in the hands of large
corporations and foreign investors (Makhazhanova et al., 2024; Rakhymzhan et
al., 2024). This concentration reduces local residents' access to land, creating a
situation where land resources are only available to large players with sufficient
capital and political support. This process further exacerbates social inequality, as
peasants who have lost their land cannot compete with large enterprises. They
often lack sufficient education, skills, or opportunities to integrate into other
economic sectors, which only increases their gap with urban residents. The growth
of social inequality in rural areas has serious consequences not only for the
economy but also for social stability. Often, local residents who have lost their
land find themselves unemployed or employed in low-paying jobs, which prevents
them from improving their standard of living (Gerasymchuk et al., 2023;
Frączkiewicz-Wronka et al., 2019). Many of them find themselves in a situation
of disenfranchisement and social marginalization, as new employment
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opportunities are often inaccessible to those who lack the resources to adapt to
new conditions (Zhovtonog et al., 2022).
Socio-economic conflicts in rural communities are exacerbated by the lack
of effective compensation mechanisms. Land expropriation without adequate
compensation or with compensation payments that do not reflect the real value of
the land exacerbates relations between farmers and the government
(Mukhamediyarova et al., 2021; Kavaldzhieva, 2022). Farmers often feel that their
rights have been violated and that the government is not taking sufficient measures
to protect their interests. This can lead to public protests, street riots, and other
forms of social tension, which further increase the risk of political instability. Land
reforms cause numerous conflicts between local residents and state authorities due
to inefficient land management, unclear land registration procedures, and
corruption (Mukhamediyarova et al., 2025; Orlova et al., 2019). There are often
situations where local authorities use their power to facilitate the transfer of land
to foreign investors or large enterprises, leading to the loss of land for low-income
farmers and exacerbating social tensions.
Reforms aimed at attracting foreign investment can have other negative
consequences, such as a reduction in agricultural land, which affects the country's
food security. The reduction in arable land gives rise to new socio-economic
conflicts related to the lack of sufficient resources to meet the food needs of the
population. The rural population is threatened with the loss of its social stability,
as new economic opportunities in rural areas are often non-existent.
Furthermore, land acquisition to implement projects often comes with
negative impacts. Poor farmers are often the ones who lose their land. The means
of production no longer exist. They do not have the financial ability to buy new
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land for their livelihood because the market price of land is excessively costly
(Zoomers, 2010), and they lack the qualifications and health to find suitable new
jobs.
4. Conclusions
Agricultural land acquisition affects high social change in industrialised
rural areas. First is the division between the wealthy and the impoverished. This
gap has become very large. Wealthy families can purchase property to start farms,
construct worker boarding homes, and operate stores selling basics, they can buy
cars, and build villas. The poor are farmers who lost their land, laborers, and do
not have stable jobs. Overall, the recovery of agricultural land for urbanisation,
industrialisation and the market economy’s evolution has divided the farming
class into three main classes: rich farmers, self-employed farmers. subsistence and
poor farmers. Not all households without agricultural land for cultivation are poor
households.
The paper emphasises how a nations policies are influenced by both
external global governance issues and internal variables including political,
socioeconomic, and historical institutions. Globalisation establishes a setting
where domestic and international regulations have a strong impact on social goals.
Although Vietnam’s land policy is not really a global issue, international
regulations significantly impact the development of Vietnam’s land regulations.
The land reform policies in Vietnam, designed to attract foreign investment
and foster industrial development, have created a stark contrast between economic
advancement and the erosion of social rights for local populations. On the one
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hand, these reforms contribute to a significant increase in investment,
infrastructure development, economic growth, and job creation, which are
necessary for a country seeking to integrate into global economic processes.
However, on the other hand, these same reforms lead to serious social
consequences, manifested in the loss of land by the rural population, the
deterioration of their economic situation, and the violation of social rights.
One of the greatest paradoxes is that, despite economic growth, a significant
part of the population, especially in rural areas, is becoming victims of this
transformation. The loss of land, which is the main source of livelihood for many
farmers, is often not accompanied by adequate compensation, leaving villagers
without a means of subsistence. This not only creates economic difficulties, but
also violates the basic social rights of citizens to property and a decent life.
The growth of social inequality caused by the concentration of land
resources in the hands of large corporations and foreign investors only exacerbates
this paradox. Local residents who have lost their land often find themselves in a
situation where they have no access to new economic opportunities, remaining in
low-paid jobs and lacking social guarantees. This leads to further marginalisation,
increased poverty and alienation from economic and social development.
Vietnam's land policy changed from a centrally planned, subsidised
economy to a market economy as a result of the World Bank's and WTO’s
influence. Individuals, families, and organisations are allotted land for long-term
usage, and the market is used to exchange land use rights. Foreign investors are
offered the same benefits as domestic investors and are encouraged to participate
in housing business initiatives. The legal system of land management has become
clearer and more transparent. Therefore, the Government should take advantage
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of this phenomenon, minimising the negative effects of globalisation while
maximising its beneficial effects on national policy.
A limitation of the study is its emphasis on legal and theoretical analysis,
which may divert attention from local stakeholders’ experiences and land users
who are directly touched by these regulations. Future research should use
empirical studies, such as surveys or interviews, in order to better understand the
real-world difficulties associated with land reform. Increasing comparative
research with other countries in the region could also provide useful data on how
various legal systems handle related problems, assisting Vietnam in formulating
more focused policy recommendations.
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Conflict of interest and originality declaration
As stipulated in the Code of Ethics and Best Practices published in Clío Journal,
the authors, Bao, Le Tran and Phuong, Nguyen Ngoc Duy declare that they have
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intellectual or intellectual property nature, related to the content of the article:
Exploring factors affecting Vietnam’s land law in connection with global
governance, in relation to its publication. Likewise, they declare that the work is
original, has not been published partially or totally in another medium of
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