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Under Vietnam’s State land ownership regime, the Government holds supreme authority over compulsory land acquisition. The results show that many improvements in land acquisition policies have been made, but poor implementation measures largely cannot prevent or even mitigate the adverse impacts on displaced persons. In particular, ineffective compensation measures and a lack of production land and livelihood alternatives accelerate the resistance of communities displaced as a result of hydropower development. The close alliance between the local government and the investor, which is considered as an “interest group”, is the main factor that leads to the ignorance of benefits of displaced people within the compulsory land acquisition process.