Under President Nguyễn Văn Thiệu, South Vietnam confronted significant social and economic challenges, particularly in rural areas where land tenancy was a prominent issue. Many farmers were tenant farmers, bound by contracts that limited their ownership rights and left them vulnerable to exploitative practices by wealthier land barons. In response, Thiệu’s government introduced a land reform initiative focusing on redistributing land to these tenants, enhancing their rights and encouraging agricultural development. The program sought to empower the rural population, encouraging them to invest in their land, which was seen as key to improving food production and strengthening the economy during the protracted conflict with North Vietnam.

The reform included provisions for land redistribution, stipulating that landowners could only hold a limited amount of land, with the excess to be distributed among tenant farmers. This strategy aimed to diminish poverty and promote socio-economic equity. The policy was not without resistance, as landowners and some political factions opposed the program, fearing loss of income and power. Despite these challenges, the land reform had a dual purpose of garnering support from the peasantry while attempting to stabilize rural communities in a time of war.

While the land reform program reflected Thiệu's ambitions to modernize South Vietnam's agricultural sector, its implementation faced numerous obstacles, including bureaucratic inefficiencies and corruption. The mixed results of the reform brought about questions concerning its effectiveness in creating lasting change. Nonetheless, it represented a significant effort to address rural issues and improve stability in South Vietnam amid the broader socio-political turmoil of the Vietnam War.