Nghiên cứu các yếu tố ảnh hưởng đến tăng giá trị đất đô thị ở Việt Nam: Tóm tắt luận án Tiến sĩ Quản trị kinh doanh

2. Research objectives INTRODUCTION

1. Rationale

Land is both a resource and an asset, playing an crucial role for each nation as well as for each land user namely firm, individual, household and stakeholder.

The thesis has the main goal of studying the impact mechanism of some factors on LUV in urban areas of Vietnam. Specially, the research purpose is: (i) To systematize the theoretical framework of factors affecting on LVU; To determine features of LVU and analysis mechanism of impact on LVU from the state-implemented interventions; (iii) To propose solutions and recommendations to improve mechanisms and policies in regulating LVU.

To achieve goals of this study, there are 03 research questions as seen below:

 Firstly, what are features of LVU when being affected by these factors?

 Secondly, how are factors influencing on LVU in Vietnam urban areas?

 Thirdly, what policy implications should be proposed to regulate LVU in In Vietnam, land is collectively owned by people and administered by the government on their behalf (National Assembly, 2013). In recent years, land policies in this country have amended to land mobilization for socio-economic development. Notably, these policies related to land finance are continuously adjusted to manage and regulate benefits of land in land use activities. However, it can be seen that these regulations and policies related to distribute land value increments thanks to planning, investing infrastructures and developing projects in urban areas are still inadequate, ineffective and unfair. urban Vietnam?

3. Research subjects, scope and approach

An key issue is that how we can determine attributes of land value uplift (LVU) and define impacted mechanisms of factors increasing land values. These are important bases on making and implementing policies to regulate land value increments.

 Research subjects: The research focuses on the impacts of some factors (land use planning, infrastructure developing, land use changing) on LVU and assessment of land policies to distribute LVU in Vietnam urban areas, the provide some implications to revise land policies.

 Research scope of the subject:

In term of research content: The thesis focus on studying factors that affect LVU and policies to regulate LVU in urban areas. Although there are many factors influencing on LVU, in this study, the author concentrates mainly on these factors intervened by the state.

In theory, the research topic on land value and increased land value has been received researchers’ attention in recent years, and there is a large number of works mentioning about land value theory and land rent. However, there are still contemporary issues in using and analyzing land rent theory. Therefore, the analysis and measurement of factors impacting on LVU is still debated (Ibeas and etal. (2012); Zhong and Li (2016)]. Especially, there are very few studies that have looked at land value and LVU, under perspectives and assessments of individuals and stakeholders while choosing location for investment and using land (C. Higgins, 2015).

In term of research duration: The thesis was implemented and used secondary data from 2003 to 2019. However, survey data was collected and summarized from November 2018 to February 2019.

In term of research space: The research was conducted among urban areas in Vietnam. In particular, the space of urban land areas is considered to be in the planned areas to become urban areas and the existing urban land areas. In Vietnam, there have been a number of studies evaluating, analyzing policies and status of implementing land policy, which related to land value and distributed LVU (Do Thi Thanh Van, 2013; Phan Van Tho, 2012). Nevertheless, up to now, there has not been any studies that analyzed mechanism and measured impact of factors on LVU in urban areas.

This thesis will focus on studying some factors that affect the LVU in urban areas of Vietnam (including land use planning, infrastructure developing, land use changing), as well as the impact assessment of land policies distributed LVU.  Research scope: The thesis combinates of qualitative and quantitative research method. The author based on original theories of land rents and theory of land rent in urban economics - developed by Aloson (1964), Muth (1969), and Mills (1972).

4. Research contributions CHAPTER 1: LITERATURE REVIEW ON FACTORS INFLUENCING ON LAND VALUE UPLIFT

1.1. Land value and land value uplift This study will be an additional source of both theory and practice for land economics branch and real estate business research in Vietnam and the world. These results of the thesis have some following contributions: 1.1.1. Land value  To identify features of LVU in Vietnam;

The concept of land value has ben interpreted in two different ways, namely: (i) traditional view; and (ii) market view (modern view). According to

 To analysis the impacts of factors that increase urban land value in Vietnam. Specially, it is showed that these factors being constructed by the state have a stronger impact on LVU than other factors; and among factors be intervened by the state, changing land use purpose has the strongest impact on LVU compared to other factors related to infrastructure investment and land use planning; the traditional view, land values can be interpreted by Marx’s theory of value. Land value is determined abstract labor added in land, thus land value is the ‘embodied labour’ view. In the term of modern view, land value means the full market value of the land. Land value is defined the income from land or real estate, which is an estimate of land price.

1.1.2. Land value uplift

 To identify 03 mechanisms impact to increase urban land values when the state implements the interventions, namely: Improving utilities & accessibility to land; Create development opportunities; Implementation From a lexicology perspective, land value uplift (LVU) is understood as the difference between present land value and its original value due to changes in the level of interventions;

location of the land or by human influences during the period of land use and management.

 To confirm two mechanisms that affect an increase of land value in Hanoi city due to development of transport infrastructure (a case study of To Huu - Yen Lo Street);

The notion of LVU was found concurrently with implementation of land tax reform, along with the birth of land value capture tools in public finance or urban development (Walters, 2013). Strikingly, Mill (1884) had mentioned an increase in land rent to reflect income flows that tend to LVU for landowners while they were no need to make any effort to invest in their land.  To assess a status of the policies regulated LVU in Vietnam. Thereafter, the thesis gives some recommendations to improve regulations related to distribute LVU and to enhance these factors impacting LVU; and provides some implications for real estate firms.

5. Structure of this study

In addition to the introduction, acknowledgement, list of tables, schedules, figures, references and appendices, the contents of this thesis is presented in 5 chapters: UN-Habitat (1976, p.30) use the term “unearned increment of land value” to refer to LVU, they had stated that “The unearned increment resulting from the rise in land values resulting from change in use of land, from public investment or decision or due to the general growth of the community”. This was considered as the concept of LVU and used in later studies. Chapter 1: Literature review on factors influencing on land value uplift; 1.2. Factors affecting LVU Chapter 2: Theoretical framework of factors influencing on urban LVU; 1.2.1. Infrastructure investment Chapter 3: Research methodology; There was a bulky study to impacts of infrastructure investment on land Chapter 4: Research results;

Chapter 5: Recommendations and implications. values up to date. In recent years, after over the year 2000, there were a number of quantitative studies aimed to identify and measure added value of land or

Mills, 1993); however, a change in value of land is different, which depends on function of planning type and each land use purpose. In another word, LVU will depend on externalities (positive or negative) brought about by planning regulations. properties, which had accessibility to different destinations around new investment infrastructures (Henneberry, 1998). In addition, there are some papers using meta-analysis methodology to study relationship between infrastructure investment and land values.

The land use regulations, like mixed land-use plans can have an strong impact on land value thanks to improvement about economic benefits or social welfare (Cheshire & Sheppard, 2002). In the view of transaction cost theory in land and property markets, Buitelaar (2004) suggested that planning could contribute to value of land because they have confirmed the land ownership, thereby reducing the transaction costs in development of real estate and promoting effective real estate market (Wadley, 2004). Generally, new transport infrastructure may increase land values due to improved accessibility and possible agglomeration benefits; however, the findings range significantly from place to place. It is noticeable that the findings may vary depending on not only types of transport infrastructure but land use purposes, types of real estate as well. Besides, the context and using methods used in some studies can make variety of results. Specifically, there are some points which can be summarized:

Firstly, in regards of the results, recent empirical studies have had mixed results. Secondly, with respect to types of land or properties, some types were considered for value uplift as a result of the impact of infrastructure investment in the previous studies, likely residential, commercial or industrial properties.

In conclusion, planning and land use planning in particular are defined in some in levels with a lot of content. However, planning is only effective when these objectives of planning are implemented in practice. Therefore, planning often includes direct policy tools related to the implementation process, like zoning, subdivision regulations or official maps (Hopkins, 2001). Specifically, some tools involved to the use of mixed land, investment controls, land allocation regulations, etc., which have an impact on land value in different ways, with three trends markedly an increase, decrease or no effect.

1.2.3. Land use regulations

Thirdly, regarding to methodological approach, the majority of investment impact studies have been conducted using conventional econometric approaches, such as hedonic price models and time series analyses. Even though some authors used an integrated model showing land use and transportation, the land use and transportation components in their model were not fully integrated, because land use is not endogenously determined by transportation factors such as accessibility.

Land use regulations have been a long history and grown more extensive, sophisticated and numerous with being used in various forms (McLaughlin, 2012). Quigley and Rosenthal (2005) and Saiz (2010) supposed that the diversity and multidimensional aspects of land use regulations make the difficulty in analyzing relationship between land use regulations and land value. Therefore, in order to analyze the relationship, it is necessary to divide some land use regulations and the impacts of these regulations on land value. Finally, in terms of collected data, it had shown that the cross-sectional data is used commonly in some recent empirical studies. However, for applying Before and After analysis method, the time series data is more favorable than the cross- data. Another point is concerned that some kinds of property’s price can be gathered to analysis, including: transaction prices, repeat prices, offering prices or asking prices.

1.2.2. Land use planning

Land use planning, which exist in every nation, may have a profound effect on

Carruthers (2002) stated that land use regulations affect value of land/ real estate in two main ways: (i) Firstly, as the rationale guiding their use suggests, regulations represent amenities that become capitalized into land values; (ii) Secondly, land use regulations affect property values as supply constraints. Similarly, Nelso and et al. (2002) supposed that land use regulation regime can land values in a variety of ways (Jones, 2008). In previous studies, researchers emphasized impacts on LVU due to planning regulations, which can make to change in accessibility, land development and controlling land supply, etc. (Hannah, Kim, & raise land value by increasing the demand for land, decreasing the supply of land, or increasing the rate of land rent capitalization.

1.4. Research gaps

More recent work examines the effects of land use regulations on land or property values. Jaeger (2006) finds that land-use regulations can have positive or negative effect on property values. The author defined three economic effects on land/ property values, including “restriction effects”, “scarcity effects”, and

Firstly, these features of LVU and mechanisms of impact on LVU are unclear in the previous studies;

Secondly, the analysis and presentation of these factors affecting LVU and “amenity effects”. regulations of LVU are different and inconsistent; 1.2.3. Other factors Thirdly, the unique characteristics of Vietnam affecting LVU have not been

mentioned in these published studies (for example: regime of land ownership; a rare of quantitative study about land value and LVU).

The results of literature review show that LVU can be affected other factors including: Initial elements of land; Land investment and development activities of landowners; Economic growth and population concentration; Urbanization; Real estate market v.v.

1.3. Land value capture tools

In another perspective, when studying the factors affecting LVU, besides the goal of reviewing and evaluating changes in land value, it is necessary to pay attention to some land value capture tools.

The idea that the value of land is created by society and should therefore be reaped for the public is by no means new, which was applied for a long time and

proposed by David Ricardo (1821) and by Henry George (1879). According to Smolka (2013): “land value capture refers to the recovery by the public of the land value increment (unearned income) generated by actions other than the

landowner’s direct investments. Thus all such increments are essentially unearned income, value capture tools focus primarily on the increment generated by public investments and administrative actions”.

In spite of considerable scholarly literature, “land value capture” remains an open- ended term, variously defined and used (Alterman. R, 2012). There are

three (03) tools of policy instruments that relate to land value capture namely (i) Macro, (ii) Direct and (iii) Indirect instruments. In particular, macro value captures instruments are reflected in each country’s the legal frameworks and embedded in broader land regimes. While direct tools for value capture instruments that seek to capture all or some of the value increase in land or real

property, they are these forms of tax tools in real estate. Unlike the direct instruments, these indirect tools are applied case by case, which are forms of fees or charges for real estate investment and land development.

CHAPTER 2: THEORETICAL FRAMEWORK OF FACTORS INFLUENCING ON URBAN LAND VALUE UPLIFT

Regulation of changing land use purpose means that the State decides to convert land use purposes to achieve goals in land management, which is related to interventions and implementations due to the States’ agencies.

2.1. Research concepts

2.1.1. Urban land

In urban areas, regulations of land use purpose are key factors impacting on urban form and development, housing development costs, real estate market as well as some issues of urban welfare. Moreover, these regulations on land use affect volatility of urban land prices. Therefore, land use regulation is considered as a basic indicator for an attractiveness and utility of a urban land location.

2.1.5. Infrastructure development

Urban land is the entitle land use within cities and the amount of land is planned to urban activities, thereby forming the pattern of urban structure (O'sullivan, 2012). Urban land can be defined as land used or intended to be used for urban activities (Qadeer, 1981). In this thesis, urban land is defined as a land area that planned to become urban areas and existed land area within urban will continue to be developed. In particular, the study focuses on residential land or other types of land being converted to urban residential land. In this study, infrastructure development is understood as investments aimed at increasing quantity or improving quality of technical infrastructure in cities, particularly urban transport system to serve economic activities and people living in urban areas. 2.1.2. Urban land value uplift 2.2. Some theories in research on urban land value uplift

The thesis has focused and reviewed on three theories namely: Theory of property right; Theory of land rent; and Residential location Theory.

Urban LVU is the percentage of the increase in land value compared to the initial land value due to urban development (Oppio, Torrieri, & Bianconi, 2018). Some criteria for evaluating LVU are shown through changes of land attributes when there have intervention factors. These attributes of land are determined including: location features, land features and neighborhood features.

2.1.3. Urban land use planning

Urban land use planning is to ensure that urban activities are organized in

urban spaces, aiming to protect environmental quality, social equity and public interests (Ajibola et al., 2012). In urban planning, land use planning means a Theory of property right (more specifically theory of land property right) has shown that determination of land ownership is fundamental importance to do research of land economic topics, including regime of land ownership, scope and content of landowners (Ryan-Collins et al., 2017). According to this theory, if a piece land or real estate is guaranteed about legal landownership, its value will be increased. In addition, regime of land ownership has played an important role in distribution and regulation of LVU (D Liu & Ge, 2018).

technical approach for developing and managing the land into various purposes to endorse sustainable socio-economic development and seeks to order and regulate urban land use in an efficient. Thus, urban land use planning are designed

to create modern cities by promoting efficient land use and ensuring these requirements of urban development (Ratcliffe et al., 2009). Theory of land rent has focused on explaining change in land values due to these factors affected by land owners and land users. On that basis, land rent theory provides some economic principles, which uses to make policy and regulate LVU in the terms of participation of stakeholders affected an increase of land values (D Liu & Ge, 2018). 2.1.4. Urban land use regulations

Regulation of land use is s a series of policies, laws, standard, tasks and administrative procedures adopted and implemented by local and central governments to influence people's behavior in land use. Residential location theory will provide some bases for explaining decision- making process in selecting locations of land/ real estate when individuals, households or firms have to buy or invest in real estate (housing). Thus, when investing and using land and real estate, decision-maker tend to choose these locations with having an potential increase of land value.

2.3. Factors affect urban land values and their relationships impact on urban LVU CHAPTER 3: RESEARCH METHODOLOGY

3.1. Status of urban land and land policies regulated to LVU in Vietnam 2.3.1. Factors affect urban land values

3.1.1. Urbanization and changes in urban land areas The land value is contributed by various factors and the ascertainment of these factors plays a significant role in land valuation. In general view, these Urbanization involves various functional and spatial transformations in factors affecting land values are normally classified into two broad categories which are the external and internal factors (Dziauddin & Idris, 2018). Besides, urban areas, which presented several indicators namely: number of cities; urban population; urban land area i.e. classification of these factors is different, which will depend on these purposes of research and ability to collected data (Abidoye & Chan, 2016).

In the recent years, it is the fact that the number of cities and urban land areas in Vietnam have increased significantly, while the proportion of urban population in has continuously increased over the years. When determining value of urban land, therefore, it is necessary to consider relationships of internal and external factors of a parcel. In which, the factors inside the parcel are considered as intrinsic elements that make up land value, while external factors have effects to change internal components and are conditions for determining the market value of land.

Year

Number of cities

Urban population (mil.pp)

Urbaniza tion rate (%)

Total urban land area (ha)

The ratio of urban land (%)

Urban population density (pp/ha)

Specially, in the period of 30 years (from 1998 to 2019), the figures of urban population density increased from 20.1% to 34.4% (corresponding to an increase at 14.3 percentage points). The annual average population growth rate in urban areas in the 2009-2019 period reached 2.64% per year, which was lower than that of the previous decade (from 1999 to 2009). 2.3.2. The relationship of these factors that increase the value of urban land Table 3.4. Change in Urban of Vietnam from 1995 to 2020 For explore urban LVU, the thesis focuses on some factors namely land use planning, infrastructure development and regulation on changing land use purpose that are intervened by the state. This study is put in interaction of these relationships with other groups of factors to explore mechanism of impact and change in urban land value. Specially, the thesis is based on theoretical framework 1995 420 836117 2.53 14.9 20.75 17.9 of relationships between land value and accessibility, which is developed by Alonso (1964), Muth (1969) and Mills (1972). 2000 629 990276 2.99 18.7 24.12 18.9

2005 675 1153549 3.48 22.3 27.10 19.4

2010 752 1372038 25.5 25.5 29.60 18.6

2015 775 1642420 31.0 31.0 34.30 18.9

2017 813 3400000 - 32.8 34.14 -

2018 819 42.46 - - 38.0 -

2019 833 - - 33.1 38.4 -

- - - 39.3 - Oct.2020 841

Source: Author’s synthesized from data published by MOC and GSO.

3.1.2. Status of land policies regulated to LVU in Vietnam

3.2.2. Research method

This research combinates both qualitative and quantitative research. The

main focus of the thesis is to use qualitative methods to explore impact mechanism of factors that increases urban land value. Specifically, several methods have been

The author has reviewed and evaluated land policies related to distribution and regulation LVU in Vietnam from The Land Law 1993 to up to now. There are 03 groups of policies which has been examined, particularly land finance

policies, land price policies, and these policies of compensation, assistance, and resettlement when the state recovers land.

used in this study, namely desk research, semi-structured interview, group discussion, a case-study. Moreover, some techniques of quantitative research have been applied.

3.2. Research design

3.2.3. Collected data

3.2.1. Research process

Objectives of the study (To examine some factors affected LVU in urban areas)

The thesis collected some several sources of data including secondary and primary data.

- Land price and real estate price: These data were collected from land valuation/ real estate valuation reports by consulting and appraisal companies; and asking price / listing price by real estate brokers or real estate agents;

Analyzing impact of some factors on LVU

Identifying some features of LVU

Evaluation of land policy on regulating LVU

- Questionnaire: 125 experts, lecturers, researchers and land managers, land & real estate appraisers to evaluate some factors affecting urban LVU and land policies regulating on LVU;

- A case - study: Using the road of To Huu - Yen Lo project in Hanoi City



Expression of the impact mechanisms;

 Evaluating

examined and measured to impact on an increase of urban land value. Two data sources were collected to analysis that these are both 338 observations being land values and 216 observations being land users.

 Determining ability of some factors to increase urban land value ;

 Contents of LVU;  Determination of LVU;  Some criteria reflecting

 Measurement

important being

LVU.

implementation of land policies;  Identifying policies prioritized.

an increase of residential land value due to road investment in urban area (a cases study)

3.3. Data analysis

Implications and recommendations

For data of depth interview and group discussion: The author import data, convert to text form, synthesize into conversations, content classified by topics. Besides, the author combines principles and methods of statistics for words/ phrases that related to research topics;

For data of survey: Data are processed through Excel and SPSS software, using quantitative techniques to analyze (comparing mean and median values, testing hypotheses by ANOVA analysis, descriptive statistical analysis, EFA analysis, multivariate regression).

Figure 3.1. Research process

The summary table of data collection, processing and analysis method is

Source: Designed by author.

described in Table 3.2.

Table 3.2. Synthesis of collected data and analysis methods CHAPTER 4: RESEARCH RESULTS

Reviewing

Method Implementation Data analysis Goals 4.1. Features of LVU

analyze

Desk research

Materials (figures, land prices, data, laws i.e.)

- Literature review; - Secondary data and land policies related to research topics;

- and analyzing land policies; - Collected data on land and prices, compare changes (relative and absolute numbers) at different times.

The results of in-depth interviews and expert group discussions show that land value and LVU are demonstrated on economic and non-economic perspectives. Furthermore, economic values are favored than non-economic values. There are some non-economic values that still receive little attention, namely environmental, landscape or social aspects, however, the opposite is true from the point of real estate developers’ views.

some

impact

9 meetings (30 -45 minutes/ a meeting)

The in- depth interview (experts)

explore - To features of LVU; - Finding out mechanism of LVU;

- Importing text data; and Coding - classifying; - Analyzing and writing reviews.

and

The author conducts subgrouping, lexical statistics, conceptualization and gives some statements related to features of LVU. The results show that some main atttributes of LVU are generalized including: i) An increase of land price after dismissing inflation; ii) Increment land value associated with the sources’ impact; iii) Increasing in economic and productivity of land.

4.2. Analyzing factors affected LVU in urban areas of Vietnam

01 meeting (06 experts)

The focus group interview (experts)

- Importing text data; - Coding và classifying; - Analyzing and writing reviews.

4.2.1. Comparison among impacts of factors on urban LVU

- Generalizing standardizing of LVU; - and Evaluating proposing land policies to regulate LVU

based

Survey

The results of ranking factors impacted on LUV by data collected from in- depth interviews and focus group discussions are as follows: factors implemented by the state, factors invested by land users, and external factors of land (urbanization, economic and real estate development), respectively.

125 experts in real estate and land valuation

Descriptive statistical analysis on of principles quantitative techniques

- Exploring more ideas, and collecting confirming these findings on LVU and land policies regulated about LVU;

and

land land Using

Moreover, in the group of factors belonging to land users, investment activities of real estate enterprises have the most significant impact on LVU when developing projects using land and investmenting real estate. Meanwhile, investment activities of other land users (households and individuals) that affect LVU are not recognized.

A case study

01 project (Road investment in Hanoi City)

- Measurement and quantifying an impact of investment in urban transport infrastructure on LVU.

(1) Transaction price valuation: Hedonic analysis. land (2) Survey of Descriptive users: statistics; EFA; Multivariate regression.

The results of expert survey are presented that the group of factors caused by the state's intervention is contributed to the most increase of urban land values compared to the other groups. Additionally, in the group of state’s factors, regulations of changing land use purposes are assessed that having a stronger impact than that of the rest factors (such as: infrastructure investment and Source: Designed by author. planning of land use).

Table 4.9. Summary of assessment about mechanisms of factors impacted on LVU when government made interventions

An assessment

Figure 4.2. The chart shows the level level impact of some factors on LVU

Factor

Content of interventions

Level

Improving utilities and accessibility of land

Implementation levels

Mechanisms Creating development opportunities

Planning

+++

Infrastructure investment

+++ +++ ++ ++ + ++ +++ +

+++

Regulations on changing land use purposes

+++

Planning

Changing land use purposes

Infrastructure investment

Intrinsic value of land

Investment of land users

+++

Urban planning Planning of administrative units Socio-economic master planning Functional subdivision planning Land use planning Social infrastructure investment (schools, hospitals, etc.) Investment or upgrading roads Investing in open spaces (parks, green spaces, etc.) Changing purposes of land use in residential and agricultural land for non-commercial purposes Changing purposes of using non-agricultural production and business to make residential land and develop housing projects Changing purposes of agricultural land use to industrial zones Changing purposes of agricultural land use to non- agricultural production and business Changing purposes of using agricultural land to make residential land, to develop housing projects and new urban areas

5% < From 5 % - Under 20% From 20 % - Under 50% From 50% - 100% ≥ 100%

Source: Designed by author.

Note: An assessment of LVU: High (+++); Average (++); Low (+).

Source: Field survey data, 2019.

4.2.2. Analyzing impacts of factors caused by government on urban LVU

The qualitative results show that 3 main impact mechanisms of factors caused by government on urban LVU are summarize including: i) Improving utilities and accessibility of land; ii) Creating development opportunities; iii) Implementation level of these interventions. Some aspects of these impact mechanisms have shown in the following table.

Table 4.3. A brief summary of these impact mechanisms’ aspects

Mechanisms

Some aspects

Improving utilities and accessibility of land

Creating development opportunities

level

Implementation of these interventions

- Create new center (CBD); - Shorten travel distance and time - Expect about benefits in the future; - Make opportunities in land use & real estate business; - Attract investment for economic development; - Fluctuate land prices according to information related to the interventions; - Land price changes in different periods;

Source: Designed by author.

The dissertation has synthesized the extent of 03 impact mechanisms that increase urban land values in Vietnam when the state implements some interventions shown in the table below.

Table 4.10. Results of regression analysis

4.3. Analyzing impacts of road investment on urban LVU: The case study of To Huu - Yen Lo road, in Hanoi City

Unstandardized Coefficients

Coefficientsa Standardized Coefficients

Collinearity Statistics

Model

Sig.

4.3.1. Results of hedonic regression based on land prices

Beta

Tolerance VIF

This study focuses on assessing impact of investment in transport infrastructure on land value through land price as proxy variable at some different periods. This research is apdoted on the original Hedonic model, developed by Rosen 1965 in the context of Hanoi city, Vietnam. Especially, the analytical model of this study is rewritten as as function:

𝛾(cid:3037)𝐴𝐶(cid:3036)(cid:3037) + 𝑌(cid:3036) = 𝑐𝑜𝑛𝑠𝑡𝑎𝑛𝑡 + ∑(cid:3037) 𝛼(cid:3037)𝑅𝐸(cid:3036)(cid:3037) + ∑(cid:3037) 𝛽(cid:3037)𝐿𝐶(cid:3036)(cid:3037) + ∑(cid:3037)

𝜗(cid:3037)𝐶 𝑦𝑒𝑎𝑟(cid:3036)(cid:3037) + 𝜀(cid:3036) (2) 𝛿(cid:3037)𝑁𝐸(cid:3036)(cid:3037) + ∑(cid:3047) 𝜃(cid:3047)𝑦𝑒𝑎𝑟(cid:3036)(cid:3047) + ∑(cid:3047) ∑(cid:3037)

The 03 hypotheses with alterative hypotheses need to be tested in Hedonic regression by before – after analysis including:

(Constant) Plotarea Widthfacade Shape Housing Strtype Disdistrictcenter Security Disbazaar Environment cyear1 cyear2 cyear3

2.792 -6.947E-5 -.002 .005 .012 .518 -.192 .110 -.151 .049 -.119 .177 .767

Std. Error .098 .000 .004 .026 .020 .026 .016 .022 .019 .024 .029 .026 .031

-.006 -.008 .003 .010 .363 -.245 .110 -.126 .039 -.061 .108 .469

28.370 -.341 -.431 .205 .622 20.170 -12.068 4.995 -8.121 2.047 -4.033 6.901 25.019

.000 .734 .666 .838 .534 .000 .000 .000 .000 .041 .000 .000 .000

.594 .603 .843 .746 .566 .446 .377 .765 .516 .800 .753 .523

1.684 1.658 1.186 1.341 1.768 2.243 2.654 1.307 1.936 1.249 1.328 1.914

H11: There is a difference in average land prices for each area;

a. Dependent Variable: LnLandprice1

H21: There is a difference in average land prices over time;

H31: There is a difference in average land prices over time in each area.

Source: The author’s calculation from SPSS.

The thesis conducts T-test and Anova analysis techniques for testing and

4.3.3.2. Results from land users’ assessment

the results show that these alternative hypotheses are proved and supported. In another words, the average land prices (land values) have been different among these areas and periods.

Based on the literature review, the dissertation produces 04 hypotheses along with a model to analysis of road investment activities affected urban land values as follows:

Distance to centers

Mobility timing

The results of Hedonic regression analysis show that the model is statistically significant with adjusted R square = 0.938, which means that the variables in the model have been explained by 93.8%. change of land price. At the same time, there is an interaction of time and parcel area affecting land price change during project announcement, project completion and post-

LVU

Development oppoturnities

Changing land use

Impacts of infrastructure investment

Source: Designed by author.

investment operation. Specifically, the average land value increasement between the impacted area and the control area during the announcement period, the completion period and the project’s operation period is 6.1%, 10.8%, and 46.9%, respectively.

CHAPTER 5: RECOMMENDATIONS AND IMPLICATIONS

The thesis collected and used 216 questionnaires to analyze. After descriptive statistics analysis, exploratory factor analysis (EFA), correlation and regression analysis, these results of infrastructure investment affected urban LVU in the case- study are illustrated and summarized in the table below.

5.1. For real estate developers

Hypothesis

Statment

Expaction

Result

Standardized Beta coefficients

(i) When choosing of location and investment in land use or real estate Table 4.20. Tóm tắt kết quả kiểm định các giả thuyết development, real estate developers need to pay attention to the trend of these factors on LVU, which take advantages of interventions impacted by the state on improving to land accessibility in project areas;

.095**

Supported

.225***

Supported

(ii) Real estate developers have an important role in contrubuting to LVU when they invest in land development and real estate;

.400***

Supported

(iii) Real estate developers need to focus on both economic values and non- economic values of land values in their real estate developments.

.380***

Supported

Distance to centers have a significant impact on LVU Mobility timing has a significant impact on LVU Development oppoturnities have a significant impact on LVU Changing land use has a significant impact on LVU

5.2. For policy makers

5.2.1. Some orientations to complete land policies regulated on LVU Note: ***: P-value < 0.001; **: P-value < 0.05. There asre several principles for orientaitons when completing land polices Source: Field survey data, 2019. about regulation and redistrubution on LVU including:

(i) To balance between revenue for the state budget and financial The results of testing assumptions about the regression model show that the model and collected data are quite good. As the results, the author constructs a standardized regression equation as follows: incentives for land users/ real esate developers in the processs of regulating and mobilizing of LVU; MLVU = 0,095 * MDIS + 0,225*MLUC +0,4*MTIME + 0,38*MOPT.

(ii) To be based on changing land market price field, associated with factors fluctuating on land values;

(iii) To modify, reform and implement policies of land taxation in parallel with polices of land price;

(iv) To diversify instruments and land value capture tools to mobilize land In conclusion, based on two collected data sources in this case study of To Huu – Yen Lo Road in Hanoi City, the thesis has shown that an investment in infrastructure of urban has an impacts on urban LVU during the announcement, completion and operation phase being 6.1%; 10.8% and 46.9%, respectively. The results also confirm that there exist two impact mechanisms of LVU including “Improving utilities and accessibility of land” and “Creating development opportunities”. finance. 4.4. Evaluation of land policies regulated urban LVU 5.2.2. Some proposals of land policies regulated on LVU

 Land price policy:

- To amend some principles of land value determination;

- To abolish regulations on land price brackets and land tables and to use Based on data from the in-depth interviews and group discussions, there are two main issues existing in land policies regulated on LVU: (i) The State currently has not properly regulated of LVU; (ii) The causes of this situation come from the inadequacies of land regulations and the process of implementing policies. The results have suggested on prioritizations to complete some policies in terms of land price and land taxation. only one mechanism of land price with land prices based on land market value;

- To make additional regulations on the implementation of land price

CONCLUSION registration and manage of specific land prices; With the findings in this study, the thesis has contributed to both theoretical - To improve methods of land valuation methods, with focusing on and practical perspectives. development of land value maps and land value zone techniques; Theoretically, the author has explored some attributes related to urban land - To improve efficiency of enforcement of land price policies. values uplift in transition economy of Vietnam as follows:  Land taxation policy: (i) Economic values are favor more than non-economic values of land and LVU; - To supplement some land tax principles in the Land Law to ensure the (ii) Some factors caused by state’s interventions have influenced on urban legal consistency when using land economic tools to regulate LVU; LVU more than other factors; - To study and supplement land added values taxion;

- To amend the tax based on land value and LVU due to changes in land conditions; (iii) In the group of factors caused by state, changing land use purpose makes the strongest impact on urban LVU in comparison with other factors related to infrastructure investment and land use planning;  Other land finance policies: (iv) Three mechanisms affected urban LVU in Vietnam are found namely:

Improving utilities & accessibility to land; Create development opportunities; - Land use levy policy: To identify land use levy (land use fees) based on these profitability of land and subdivide non-agricultural production and business Implementation level of interventions. land according to these purposes in detail when collecting land use levy; (v) The thesis has been affirmed that 02 mechanism being “Improving - Land-banking: To make and auction land fund to mobilize finance for utilities and accessibility of land” and “Creating development opportunities” affect on urban infrastructure projects; LVU when the State invested in urban infrastructure. - Compensation for land when the State conducts land recovery: To amend In practical terms, the dissertation provides some helpful information for principles when determinizing land price for compensation according to the real estate developers and firms in choosing locations, investing real estate and specific land price. developing land. For public agencies and policy makers, this study sets out some 5.2.3. Some recommendations to promote an impact of factors on urban LVU directions to improve land policies to regulate LVU and some recommendations (i) Improving planning process to ensure parallel, linkage and feasibility to enhance the impact of these factors on land value in urban areas. Moreover, the among kinds of planning in urban areas; thesis shows some limitations and recommendations for further researches in the (ii) Fostering investment in urban infrastructure, including developing and land economic and real estate field. upgrading the technical & social infrastructure systems;

(iii) Implementing effective orientations and solutions to changing land use purposes in suburban areas.