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 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
9 phases
Phase 1
Phase 2

Development phase
500ha
54ha
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 favorability – Pie share - Speculation


DISCUSSION

Increasing price over time

-

-

20’000k/m2

20’000k/m2

10k/m2

70k/m2

135k/m2

-

2004 grant
project

2008
compensation

2011 disputes

2012
enforcement


DISCUSSION

Government acquisition – scaling up projects

50ha, new
urban area &
housing
purpose

Negotiation

with occupants

20ha, special
case
(Decree 02-2006, Decree 181-2004, Decree 69-2009)

Government
price on frame


DISCUSSION

Land price increase – pie share

Risk investment
Luck

??? – capital gain


DISCUSSION

Land price increase – speculation
Speculation

Luck

Natural
increase due
to social

development
Infrastructur
e Investment

Original

Risk investment


Findings & Discussions


DISCUSSIONS

 Price

Prolong large-scale project

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