Large scale land acquisition lessons learnt from the ecopark project, vietnam

Forum for Urban Future in Southeast Asia South-East Asian Expert Seminar Urban natural and social risk management in South East Asia Cologne, September 4, 2012... Abstract  April 24th

Forum for Urban Future in Southeast Asia

South-East Asian Expert Seminar Urban natural and social risk management in South East Asia

Cologne, September 4, 2012

Abstract

 April 24th a thousand policemen enforced a 72 hectare-land acquisition

 State’s land acquisition favoured developers

Understandings of a fair compensation

Market price and ‘State’s price’ and ‘scaling up’ project such as Ecopark

‘Net present value’, hedging the ‘third party’ speculation, and internalising development benefit to local people

More positive changes to lessen social risk in future than the concern of the social problem in large-scale acquisition

INTRODUCTION Background

 Compulsory acquisition for commercial housing projects applicable

to only large-scale development – new urban and new town trigger a race for large-scale land acquisition for new urban development

projects, as compulsory acquisition price well below the commercial developed land price caused

 Ecopark, a new town adjacent to Hanoi, approved as exchange land for infrastructure project (500ha for 14km highway links to Hung Yen – neighbouring city)

 Ecopark classes in enforcement triggers discourses on the issue

LOCATION - PROJECT DEVELOPMENT - LAND ACQUISITION - CONFLICTS & DISPUTES

ECOPARK Location

ECOPARK Project nature

 500ha new urban development project

 Exchange for NEW14km road linking Hung Yen to Hanoi

ECOPARK Development phase

 9 phases 500ha

 Phase 1 54ha

 Phase 2 72ha

Multiple phases development (9 phase, 1st phase completed)

LAND DISPUTES Enforcement

Disputes remained after rounds of negotiation on compensation

rates

Enforce hundreds of households by a thousands of policemen and

staff

LAND DISPUTES Aftermath

Blame of the power

abuse outburst April 24

Media fighting April and May

2012

Hung Yen Province press meeting May

2012

MP & MONRE nquiry of the National Assembly Members June 2012

Public Hearing of Vice Minister of Ministry

of Environment & Natural Resources

August 2012

LAND DISPUTES Benefit vs loss

Evicted fights for their

interests – 5.8ha whose land -

whose price

Government backed the plan – State land - fair price – public interest

Where are the developers?

Land price – Planning f avorabilit y – Pie share - Speculat io n

DISCUSSION Increasing price over time

2004 grant

project compensation 2008 2011 disputes enforcement 2012

10k/m2 70k/m2 135k/m2 -

DISCUSSION Government acquisition – scaling up projects

50ha, new urban area &

housing purpose

20ha, special case

Negotiation with occupants

Government price on frame (Decree 02-2006, Decree 181-2004, Decree 69-2009)

DISCUSSION Land price increase – pie share

Luck

Risk investment

??? – capital gain

DISCUSSION Land price increase – speculation

Speculation

Natural increase due

to social development

Infrastructur

e Investment

Original

Risk investment Luck

Findings & Discussions

DISCUSSIONS Prolong large-scale project

 Price increase and cost

increase – which one faster?

 Share of value increase and

share of pie - who decides?

DISCUSSIONS How to?

Who distributes better? How to distribute better?

DISCUSSION The plan, the price, the share, and the risk

•INTERNALISATION?

•CO-INVESTMENT?

•SHARING INCREASING VALUE

4 th Sept, 2012

Cologne

Hieu.nqt@gmail.com