Does rising landlessness signal success or failure for Vietnam's agrarian transition?

Abstract

In the wake of reforms to establish a free market in land-use rights, Vietnam experienced a pronounced rise in rural landlessness. To some observers this is a harmless by-product of a more efficient economy, while to others it signals the return of the pre-socialist class structure, with the rural landless at the bottom of the economic ladder. We study the issue empirically using four household surveys spanning 1993–2004. Although we find rising landlessness amongst the poor, the post-reform landlessness rate tends to be higher for the non-poor. We find no support for the claim that the process of rising landlessness has been poverty-increasing in the aggregate.