SUSTAINABLE URBAN DEVELOPMENT – APPLICABLE RESEARCH DIRECTIONS VGU, 2015 Dr Hieu, NGUYEN NGOC SUD, VGU INTRODUCTION LPR concept LPR in Vietnam Tra Vinh case study Discussion 10/13/2015 Dr Hieu Nguyen Ngoc 2015 LR CONCEPT Basic concept Land pooling: pool into a mass before readjustment Land Re-adjustment: re-parceling without pooling into a mass Land sharing: haves share with the havenots 10/13/2015 Land consolidation: rural area, merge plots & reorganise Dr Hieu Nguyen Ngoc 2015 LR CONCEPT Case of Bhuj, Gujarat, India Before After Source: Mukherji, Anuradha 2001 Negotiating Housing Recovery: Why Some Communities Recovered While Others Struggled To Rebuild In Post-earthquake Urban Kutch, India Master Thesis, Texas A&M University, College Station, Texas 10/13/2015 Dr Hieu Nguyen Ngoc 2015 LR CONCEPT Applications Sweden Finland Columbia The Germany Netherlands France Japan Turkey Spain South Korea Iraq Israel Iran N China e Bhutan Taiwan India pa Thailand Philippines Ethiopia l Indonesia Angola Australia Chile 10/13/2015 Dr Hieu Nguyen Ngoc 2015 Source: Hong Yu-Hung, 2015 LR CONCEPT 10/13/2015 Applications Dr Hieu Nguyen Ngoc 2015 Source: Hong Yu-Hung, 2015 LR CONCEPT 10/13/2015 Applications Dr Hieu Nguyen Ngoc 2015 LPR IN VIETNAM Application in small scale of community housing development Premature situation Unestablished legal support Rural land consolidation experience 10/13/2015 Donation tradition, not professional readjustment Concept introduced and being piloted in development project (Tra Vinh) Dr Hieu Nguyen Ngoc 2015 LPR IN VIETNAM Community housing development Hai Duong city Tan An city ACVN COMMUNITY DEVELOPMENT PROGRAM 2010-2013 Viet Tri city 10/13/2015 OTHER LAND CONTRIBUTION & DONATION FOR DEVELOPMENT PROJECT Dr Hieu Nguyen Ngoc 2015 Vinh city LPR IN VIETNAM Community housing development in Hai Duong Before After • Small scale – 12 households in the same lane • Full support of local authority as a pilot project • Rely on technical support and funding from ACVN Cities Alliance 10/13/2015 Dr Hieu Nguyen Ngoc 2015 10 TRA VINH CASE STUDY Project phasing Preparation – 2015-09 Preliminary study Establish working groups and organization support Feasibility 2016-03 Design & introduce plan Implementation 2016-12 Data collection Second meetingrevision Plan disclosed & 4th meeting on implementation Training negotiation Third – wrap up Monitoring training Plan approval Monitoring process of implementation 10/13/2015 First meeting feedback Dr Hieu Nguyen Ngoc 2015 22 TRA VINH CASE STUDY Guiding rules Small land exception – alternative move out 2/3 consent Minority subjects to majority and private to public interest Avoid and minimize destruction & resettlement Area-based contribution (+cash) with exceptions of conversion options 10/13/2015 Guiding rules Dr Hieu Nguyen Ngoc 2015 Transparency & monitored by community 23 TRA VINH CASE STUDY Economic viability analysis (proposal) - discussion Site analysis, insertion area Calculation of value before each POOLING plot & total Grid design & variant Calculation of space requirement for infrastructure Calculation of space for recovering cost of development Calculation of estimated revenue Calculation of development cost Calculation of property & land compensation Calculation of receivable land to each contributor & cash transfer REDESIGN GROUPS AND BOUNDARY TO MAXIMIZE THE GAIN AFTER NEGOTIATION Calculation of total contribution 10/13/2015 Calculation of value increase (RATE OF GAIN) Dr Hieu Nguyen Ngoc 2015 24 TRA VINH CASE STUDY Higher price to road accessibility Lower price to small faỗade plot Land value analysis by plot feature & accesssibility Lower price to agricultural land Lower price to large plot Source: Hieu, Nguyen, 2015 10/13/2015 Dr Hieu Nguyen Ngoc 2015 25 TRA VINH CASE STUDY Pilot redistribution economic viability calculation total new resident property value 100,341,427,435.20 Rate of V2 property value increase Value increase = estimated sale - original - investment 10/13/2015 94% space for new infrastructure 19,782 redistribution area (substracted infrastructure needed) 47,418 17% contribution area sold to recover infrastructure cost 17,012 remaining redistribution area for local residents 30,406 total cotribution rate contribution area sold to recover infrastructure cost (WB support) new contribution rate (WB support 1/2) Dr Hieu Nguyen Ngoc 2015 30% 53% 46.84% 8101 14% 31% 26 Source: Hieu, Nguyen, 2015 10/13/2015 Dr Hieu Nguyen Ngoc 2015 27 TRA VINH CASE STUDY Before Land readjustment for Axis B group - demonstration After Source: Hieu, Nguyen, 2015 10/13/2015 Dr Hieu Nguyen Ngoc 2015 28 TRA VINH CASE STUDY Land readjustment for Axis B group - demonstration New B axis and feeding roads Subdivide land into shop house to create urbanity and relocate into the new street Preserve land for sale off for construction/public land Reparcel when necessary Minimise destruction of buildings 10/13/2015 Dr Hieu Nguyen Ngoc 2015 Source: Hieu, Nguyen, 2015 29 TRA VINH CASE STUDY Redistribution alternatives • Land type adjustment • Value before and after issues Area based adjusted to land use type Value based - common rate of gain Area based simple Value based upon actual design • No consideration of mixed used 10/13/2015 • Chance of luck for property owners Dr Hieu Nguyen Ngoc 2015 30 TRA VINH CASE STUDY Redistribution ratio for B axis group (trial) All contribution receives increase ( %) base on original land value & negotiate for new land 10/13/2015 Owner receives smaller serviced land & cash transfer balance later Upgrade area contribute $ for infrastructure or land if owner has elsewhere Rate of gain ( %) Dr Hieu Nguyen Ngoc 2015 31 TRA VINH CASE STUDY Group design trial TWO PROJECTS BINDING PROBLEM LAND VALUE CHANGE ANALYSIS SCENARIO PLANNING HIGHER RATE OF GAIN - VALUE CHANGE 10/13/2015 REDEVELOPMENT EFFICIENCY & EQUALITY Design & options Dr Hieu Nguyen Ngoc 2015 BACKBONE STRATEGY & GROUP RESOLUTION 32 TRA VINH CASE STUDY Redistribution ratio for B axis group (trial) All contribution receives increase same % base on original land value & negotiate for new land 10/13/2015 Owner receives smaller serviced land & cash transfer balance later Upgrade area contribute $ for infrastructure or land if owner has elsewhere Rate of gain 30%90% Dr Hieu Nguyen Ngoc 2015 33 DISCUSSION Issues and options Building consensus hardship Redistribution method – value after and value before 10/13/2015 Financing infrastructure development & cost distribution Planning issues Dr Hieu Nguyen Ngoc 2015 Legal issues – barrier free and legal support Commitment and bureaucracy motivation to sustain? 34 DISCUSSION Implementation Enforcing land & cash collection Commitment and bureaucracy motivation Legal barrier – investment procedure Risk management and others Implementation 10/13/2015 Dr Hieu Nguyen Ngoc 2015 35 Hieu.nn@vgu.edu.vn Dr Hieu, NGUYEN NGOC MSc Tri, HUA TRAN MINH SUD, VGU ... 2015 27 TRA VINH CASE STUDY Before Land readjustment for Axis B group - demonstration After Source: Hieu, Nguyen, 2015 10/13/2015 Dr Hieu Nguyen Ngoc 2015 28 TRA VINH CASE STUDY Land readjustment. .. 12 TRA VINH CASE STUDY Tra Vinh city City class III (2010), wards 109000 people (2015) Area: 68km2, density 1607/km2 Growth 10/13/2015 rate: 1.05% Dr Hieu Nguyen Ngoc 2015 13 TRA VINH CASE STUDY. .. development - poor neighborhood Dr Hieu Nguyen Ngoc 2015 14 10/13/2015 Dr Hieu Nguyen Ngoc 2015 15 TRA VINH CASE STUDY Project rationale WB willingness to support & Tra Vinh buy in Lack of budget