ewc presentation 2_2014[2]

VIETNAM IN MOTIONThe Transformation Process for Fair and Equal Urban Land Rights

Thanh NguyenRadboud University NijmegenSchool of ManagementDepartment of Human Geography and Spatial PlanningThe Netherlandstel.: +1(808)280-3073e-mail: thanhgems@gmail.com

The 13th Annual East-West Center International Graduate Student ConferenceFebruary 14-15, Honolulu

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Conclusion Chapter From Dissertation:

RECOGNIZING OWNERSHIP FACTOR

2013 Land Law

2003 Land Law

1993 Land Law

1988 Land Law

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PROPERTY RIGHTS IN VIETNAM

Timeline of the Vietnamese Ownership Certificate

1929 1965 20132003 FEBRUARY 13, 2014

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RECOGNIZING OWNERSHIP FACTOR

State Housing8%Pink paper

4%

Legal Paper22%

Without Legal paper58%

Unclear original paper3%

Other type ownership4%

Certificate of Property in Ho Chi Minh CitySource: Thanh Nien Newspaper 10/24/2006

2013: 98% legalized

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OUR STUDIES QUESTION #1. A level playing field for foreign and

domestic investors?

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PHYSICAL RESULT 160 observations: 59 foreign investment

projects ( foreign companies; and joint ventures)

101 domestic investment projects (state companies and private domestic companies)

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3D ELLIPSOID.

+: Foreigner o: Local

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CONCLUSION 1

International investors have entered the market alongside domestic ones

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A TRAGEDY OF THE ANTICOMMONS

QUESTION #2. How land use rights change hands in HCMC under the process of the privatization of property rights

Case study 1

Case study 2

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History Development of the 240 Le Thanh Ton st. House

Possible outcomes for Kumho in negotions over Kumho Plaza FEBRUARY 13, 2014

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CONCLUSION 2

Anticommon creates opportunities for investors to capture the plus values that automatically appear in situations of the underutilization of resources

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VALUE CAPTURING

QUESTION #3. How some developers in Ho Chi Minh City, Vietnam, were able to take advantage of ambiguous land-using rights for their own financial gain?

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Time Square: Korean 39 floor --- 45 floors The Lancaster: Vietnamese 12 floor ---24 floors

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Times Square is much higher than other buildings in area

40 years - Long term lease

In both cases the developers were allowed profitable adjustments to the original plans without being charged any exaction fee at all

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CONCLUSION 3

The core issue of how well standardized procedures and regulations capture value into the development and planning process

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FINAL THOUGHTS Privatization unlocking property value

“Land use rights and building ownership” of Vietnam is quite similar to real estate ownership in other capitalist countries

“The issue is not one of ownership over property rights per se but the manner in which the relations between market and state are resolved over time” (Kirby, 2013)

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