Abstract: | The article assesses the institutional capacity of a devolution policy, namely forest land allocation (FLA) in Vietnam. We applied the governance capacity framework, which is based on the policy arrangement approach, to examine the extent to which the policy enables actors to work together in order to solve collective problems. The findings reveal that, overall, the institutional capacity of FLA in Vietnam is rather low, although it varies from region to region. This result is determined by the restricted and ambiguous codification of property rights, the limited resource availability, the symbolic venues for deliberation and the lack of openness of actors towards others’ views in the policy process. External factors, particularly agricultural development, also had a major impact on institutional capacity. |