This thesis will focus on studying some factors that affect the LVU in urban areas of Vietnam (including land use planning

udies, likely residential, commercial or industrial properties. 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. 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 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, & 6 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. 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). 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 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. 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 raise land value by increasing the demand for land, decreasing the supply of land, or increasing the rate of land rent capitalization. 7 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 “amenity effects”. 1.2.3. Other factors 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. 8 1.4. Research gaps 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 regulations of LVU are different and inconsistent; 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). 9 CHAPTER 2: THEORETICAL FRAMEWORK OF FACTORS INFLUENCING ON URBAN LAND VALUE UPLIFT 2.1. Research concepts 2.1.1. Urban land 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. 2.1.2. Urban land value uplift 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 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). 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. 10 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. 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 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. 2.2. 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. 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). 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). 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. 11 2.3. Factors affect urban land values and their relationships impact on urban LVU 2.3.1. Factors affect urban land values 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 factors affecting land values are normally classified into two broad categories which are the external and internal factors (Dziauddin & Idris, 2018). Besides, classification of these factors is different, which will depend on these purposes of research and ability to collected data (Abidoye & Chan, 2016). 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. 2.3.2. The relationship of these factors that increase the value of urban land 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 of relationships between land value and accessibility, which is developed by Alonso (1964), Muth (1969) and Mills (1972). 12 CHAPTER 3: RESEARCH METHODOLOGY 3.1. Status of urban land and land policies regulated to LVU in Vietnam 3.1.1. Urbanization and changes in urban land areas Urbanization involves various functional and spatial transformations in urban areas, which presented several indicators namely: number of cities; urban population; urban land area i.e. 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. 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). Table 3.4. Change in Urban of Vietnam from 1995 to 2020 Year Number of cities Total urban land area (ha) The ratio of urban land (%) Urban population (mil.pp) Urbaniza tion rate (%) Urban population density (pp/ha) 1995 420 836117 2.53 14.9 20.75 17.9 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 - Oct.2020 841 - - - 39.3 - Source: Author’s synthesized from data published by MOC and GSO. 13 3.1.2. Status of land policies regulated to LVU in Vietnam 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. 3.2. Research design 3.2.1. Research process Figure 3.1. Research process Source: Designed by author. Objectives of the study (To examine some factors affected LVU in urban areas) Identifying some features of LVU Analyzing impact of some factors on LVU Evaluation of land policy on regulating LVU  Contents of LVU;  Determination of LVU;  Some criteria reflecting LVU.  Expression of the impact mechanisms;  Determining ability of some factors to increase urban land value ;  Measurement of an increase of residential land value due to road investment in urban area (a cases study)  Evaluating implementation of land policies;  Identifying important policies being prioritized. Implications and recommendations 14 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 used in this study, namely desk research, semi-structured interview, group discussion, a case-study. Moreover, some techniques of quantitative research have been applied. 3.2.3. Collected data 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; - 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 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. 3.3. Data analysis 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). The summary table of data collection, processing and analysis method is described in Table 3.2. 15 Table 3.2. Synthesis of collected data and analysis methods Method Implementation Data analysis Goals Desk research Materials (figures, land prices, data, laws i.e.) - Reviewing and analyzing land policies; - Collected data on land prices, analyze and compare changes (relative and absolute numbers) at different times. - Literature review; - Secondary data and land policies related to research topics; The in- depth interview (experts) 9 meetings (30 -45 minutes/ a meeting) - Importing text data; - Coding and classifying; - Analyzing and writing reviews. - To explore some features of LVU; - Finding out impact mechanism of LVU; The focus group interview (experts) 01 meeting (06 experts) - Importing text data; - Coding và classifying; - Analyzing and writing reviews. - Generalizing and standardizing of LVU; - Evaluating and proposing land policies to regulate LVU Survey 125 experts in real estate and land valuation Descriptive statistical analysis based on principles of quantitative techniques - Exploring more ideas, collecting and confirming these findings on LVU and land policies regulated about LVU; A case study 01 project (Road investment in Hanoi City) (1) Transaction land price and land valuation: Using Hedonic analysis. (2) Survey of land users: Descriptive statistics; EFA; Multivariate regression. - Measurement and quantifying an impact of investment in urban transport infrastructure on LVU. Source: Designed by author. 16 CHAPTER 4: RESEARCH RESULTS 4.1. Features of LVU 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. 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 4.2.1. Comparison among impacts of factors on urban LVU 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. 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. 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 planning of land use). 17 Figure 4.2. The chart shows the level level impact of some factors on LVU 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 - Create new center (CBD); - Shorten travel distance and time Creating development opportunities - Expect about benefits in the future; - Make opportunities in land use & real estate business; - Attract investment for economic development; Implementation level of these interventions - 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. 0 0 0 24 1819 6 6 45 40 29 27 18 38 44 47 38 46 9 20 30 54 55 9 3 0 10 20 30 40 50 60 Planning Changing land use purposes Infrastructure investment Intrinsic value of land Investment of land users 5% < From 5 % - Under 20% From 20 % - Under 50% From 50% - 100% ≥ 100% 18 Table 4.9. Summary of assessment about mechanisms of factors impacted on LVU when government made interventions Factor An assessment Mechanisms Content of interventions Level Improving utilities and accessibility of land Creating development opportunities Implementation levels Planning Urban planning +++ + ++ +++ Planning of administrative units +++ Socio-economic master planning ++ Functional subdivision planning ++ Land use planning + Infrastructure investment Social infrastructure investment (schools, hospitals, etc.) ++ ++ +++ + Investment or upgrading roads +++ Investing in open spaces (parks, green spaces, etc.) + Regulations on changing land use purposes 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 +++ Source: Designed by author. Note: An assessment of LVU: High (+++); Average (++); Low (+). 19 4.3. Analyzing impacts of road investment on urban LVU: The case study of To Huu - Yen Lo road, in Hanoi City 4.3.1. Results of hedonic regression based on land prices 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: 𝑌௜ = 𝑐𝑜𝑛𝑠𝑡𝑎𝑛𝑡 + ∑௝ 𝛼௝𝑅𝐸௜௝ + ∑௝ 𝛽௝𝐿𝐶௜௝ + ∑௝ 𝛾௝𝐴𝐶௜௝ + ∑௝ 𝛿௝𝑁𝐸௜௝ + ∑௧ 𝜃௧𝑦𝑒𝑎𝑟௜௧ + ∑௧ 𝜗௝𝐶 𝑦𝑒𝑎𝑟௜௝ + 𝜀௜ (2) The 03 hypotheses with alterative hypotheses need to be tested in Hedonic regression by before – after analysis including: H11: There is a difference in average land prices for each area; H21: There is a diff