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LAND TENURE SECURITY AND LAND RENT OUT INCOME: CASE OF VIETNAM

Ninh Le

Abstract

In developing countries or transition countries, there emerges popular trend as local governments executed land use reform to achieve higher efficiency in land use planning and to allow better resource allocation in rural society. Land tenure reform is the first and foremost step to pave the way for later institutional improvement in the land use planning process. In Vietnam, the transformation took place as result of a new Land law in 1993, which endorse rural household as a production unit; they are allocated land for agriculture production, although the land is owned by ?entire people? and managed by state [1]. The research gap, thus, emerges due to the common fact in Vietnam as well as other developing countries that actual land rights grants to a household are uncertain even in the case that an area of land is titled, leading to bias land use planning work. This argument has been originally built in past researches [2], [3]. These foundation researches give way for further works to explain and capturing precise effect of secured land right. In developing countries such as Thailand [4], Vietnam [5], and other transitional countries such as China, tenure in rural and suburban area arise several issues around the land tenure risk. Rising demand and need to conduct further study to find a more accurate way to measure tenure security come from the fact that there are divergent findings in recent literatures about causal effect of land tenure security within one case of study of a country as well as cross-country researches. Controversy of recent studies on analyzing impact of land use tenure further question current approach to measure security of land right. To assess land tenure impact, previous efforts offer approach to measure proxy of land tenure. Using expected value of land right [6], using a proxy to measure land right strength. We observe inconsistency in classifying type of land use in previous researches because of different regulation system in developing countries. Yet capture land tenure impact in developing world through production function is arguably not simple work [7] and remain challenging for later researches. This paper proposes a different approach by using quantitative variable relative to household land rent out income to capture the effect of actual land tenure security. In theory, renting out income, given price unchanged, the larger the area that a household to rent out, the higher income the household will get. The rent out land is in most case owner?s land. Household who rent out of their land feel less secured for their land tenure [8]. By making use of the data Vietnam Household Living Standard Survey (VHLSS) in period 2008-2012 the research would test renting income variables whether it would represent landowner/user?s tenure originate decision.

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DOI resolver: doi.org/10.5593/sgem2018/5.4/s23.058

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