Land acquisition for urbanisation in Vietnam has become a hot topic, attracting attention not only from land administrators, but also from the media and politicians. This paper draws on the case of Hue to investigate how farmers reconstruct their livelihoods after land loss. The findings indicate that the majority of people are able to reconstruct their livelihoods with better living conditions. Besides the employment opportunities derived from an expanding local economy, such as in Hue, remaining in the same physical environment and the retention of social networks are important factors for successful livelihood reconstruction. However, there are emerging issues that challenge equitable development and sustainable livelihoods, such as increased vulnerability for the elderly and infirm after land loss, in addition to the difficulties casual workers may face in the long term. The capacity of households to adapt to new situations, training, consultations and social security systems for the affected farmers should, therefore, be taken into account.