Land reform and the development of commercial agriculture in Vietnam: policy and issues

Over the last decade, following the doi moi reforms, the Vietnamese government has formally recognised the household as the basic unit of production and allocated land use rights to households. Under the 1993 Land Law these rights can be transferred, exchanged, leased, inherited, and mortgaged. A ‘land market’ is emerging in Vietnam but is still constrained for various reasons. Additionally, lack of flexibility of land use is an issue. As Vietnam moves into the world market and reduces trade barriers in line with ASEAN requirements, farmers are becoming increasingly vulnerable to falling incomes because of lower prices for their produce. This paper gives an overview of land reform policies, issues related to these, and discusses challenges facing Vietnamese agriculture as it strives to move its household farms from subsistence to a more commercial base.