USAID COUNTRY PROFILE: PROPERTY RIGHTS AND RESOURCE GOVERNANCE IN VIETNAM

The country has one of the world's lowest per capita land endowments, with most suitable lands being utilized. Approximately one-third of Vietnam's land area is used for agriculture, with the majority of agricultural land allocated to farmers through the state's land-use rights system. Vietnam's land-use rights system is based on the principle of usufruct rights, where right holders may use land but cannot own it. The state issues land-use right certificates (LURCs), which entitle holders to sell, rent, exchange, mortgage, and bequeath their use rights, as well as exclude others from the land. LURCs are necessary for formal state recognition of a user's rights and for secured tenure, formal land transactions, access to formal credit, and legal protection of land-use rights. Despite the emphasis on gender equality in Vietnam's laws, women hold fewer rights to land in practice. Women are allocated smaller plots and receive less land overall, and their names are often not included on LURCs, even though the law requires that both spouses' names be listed for jointly held property. This disparity in land rights affects women's economic empowerment and access to resources. Vietnam's land policies are administered by a hierarchy of authorities at the central, provincial, district, and communal levels. The Ministry of Natural Resources and Environment is the primary central-level administrative body for land, water, and mineral resources. People's Committees at all levels are responsible for implementing land policies and issuing LURCs. The country faces several challenges related to land governance, including the risk of conflict and insecurity for communities following communal tenure practices. Despite the law permitting communities to hold formal land-use rights, institutional recognition of communal tenure has not occurred in practice. Donors can support efforts to issue LURCs and increase tenure security for these communities. Vietnam also faces challenges related to water management, with uneven access to water across regions and seasons. The country has a relative abundance of freshwater resources, but a lack of adequate sanitation facilities, increased urbanization, industrialization, and mining activities have led to increased water pollution. Donors can help reduce water pollution by facilitating investment in sanitation facilities and offering technical assistance to improve water management. In addition, Vietnam's forests have suffered continued degradation, and many residents, especially ethnic minorities, lack access to forestland use-rights. Donors can support the expansion of community-based allocation and management programs for forestland that the government has already begun on a small scale. Such programs would secure use rights for forest dwellers while promoting sustainable forestry practices. Vietnam's economy is growing, with a GDP growth rate of 5.9% in 2011. The country's agricultural sector contributes approximately 19.7% to the GDP, while industry and services sectors contribute 40.6% and 39.7%, respectively. The country's trade balance is also significant, with a net ODA of 2.9% of GNI in 2010. Overall, Vietnam's land governance system is complex, with a hierarchy of authorities administering land policies at different levels. The country faces several challenges related to land governance, including the risk of conflict and insecurity for communities following communal tenure practices, uneven access to water, and continued degradation of forests. Donors can support efforts to address these challenges and promote more sustainable land governance practices in Vietnam.