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Examining Opportunities and Challenges for Implementing Land-based Financing Instruments for Funding Climate Action

Ho Chi Minh City Case Study

Cynthia Goytia

Novembro 2024, inglês

Lincoln Institute of Land Policy


Ho Chi Minh City, a dynamic megacity in Vietnam, stands at a critical juncture as it grapples with the escalating threats of climate change-induced flooding. With its low-elevation coastal location, rapid urbanization, and thriving economic sectors, the city faces a unique set of challenges and opportunities in adapting to the new climate reality. The shift from state-driven to market-driven land and real estate development underlines a significant transformation in urban management and market orientation amidst pressing climate challenges. The research uncovers compelling evidence of flood risk capitalization in Ho Chi Minh City’s property values, with affected areas experiencing significant price discounts. Interestingly, the market also exhibits a degree of resilience, with prices partially recovering in the aftermath of flood events. As the city navigates the transition from state-driven to market-driven land development, it is exploring a range of land-based financing tools, such as property taxation, betterment levies, and land value capture mechanisms, to fund much-needed adaptation investments. A key insight from this study is the crucial role of the private sector, particularly micro-businesses and small and medium-sized enterprises, in contributing to shared-cost adaptation initiatives. These enterprises, deeply embedded in the local economy, are not only highly vulnerable to flood disruptions but also demonstrate a willingness to engage in collaborative resilience-building efforts. By leveraging the power of land markets and fostering multi-stakeholder partnerships, Ho Chi Minh City can unlock new sources of adaptation finance and pave the way for a more sustainable and equitable urban future.

This paper is part of a series of working papers on land-based financing instruments for funding climate action.


Keywords

Adaptação, Mitigação Climática, Várzeas, Valor da Terra, Urbanismo, Recuperação de Mais-Valias