Over the last decade, following the doi moi reforms, the Vietnamese government has formally recognised the household as the basic unit of production and allocated land use rights to households. Under the 1993 Land Law these rights can be transferred, exchanged, leased, inherited, and mortgaged. A land market is emerging in Vietnam but is still constrained for various reasons. Additionally, lack of flexibility of land use is an issue. As Vietnam moves into the world market and reduces trade barriers in line with ASEAN Free Trade Area (AFTA) requirements, farmers are becoming increasingly vulnerable to falling incomes because of lower prices for their produce. An overview of the land reform policies and issues related to these are outlined in the paper. Challenges facing Vietnamese agriculture are discussed within the context of an effort by Vietnam to more its household farms from subsistence farming to a more commercial base.
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