Determinants of households in come in planned areas A case of My Phuoc down toawn - Ben Cat - Binh Duong Luận văn thạc sĩ

Abstract This study aims to investigate the impacts of land recovery for industrial and urban development on displaced people's livelihoods those who are living in industrial and urban p

VIETNAM THE NETHERLANDS

VIETNAM- NETHERLANDS PROGRAMME FOR M.A IN DEVELOPMENT ECONOMICS

DETERMINANTS OF HOUSEHOLDS' INCOME IN PLANNED AREAS: A CASE OF MY PHUOC

DOWNTOWN- BEN CAT DISTRICT- BINH DUONG

A thesis submitted in partial fulfilment of the requirements for the degree of

MASTER OF ARTS IN DEVELOPMENT ECONOMICS

By THAI THANH PHONG

, so G1i0ovc ·- 1 TRIJONG HQC KINH TE TP.HCM I

HO CHI MINH CITY, OCTOBER 2009

VIETNAM THE NETHERLANDS

VIETNAM- NETHERLANDS PROGRAMME FOR M.A IN DEVELOPMENT ECONOMICS

DETERMINANTS OF HOUSEHOLDS' INCOME IN PLANNED AREAS: A CASE OF MY PHUOC

DOWNTOWN- BEN CAT DISTRICT- BINH DUONG

A thesis submitted in partial fulfilment of the requirements for the degree of

MASTER OF ARTS IN DEVELOPMENT ECONOMICS

Academic Supervisor: DR HA THUC VIEN Student: THAI THANH PHONG

HO CHI MINH CITY, OCTOBER 2009

In the first of all, my heartfelt thank goes to my supervisor, Dr Ha Thuc Vien His comments and suggestions on my term paper for Rural Development course helped me to form my research topic During the course of my thesis research and writing, I have received numerously his kind supervision, guidance, useful comments and encouragements My deepest thanks also go to Associate Professor Dr Nguyen Trong Hoai, Co- Director of Vietnam - The Netherlands Programme for M.A in Development Economics, who has always given me his encouragements and kindly during the course of my study and thesis research My thanks also go to my kindly and enthusiastic classmate, Mr Nguyen Ngoc Danh, who is always ready to instruct

me while I am processing and analyzing to my data with STAT A 9 1

My thesis was made possible with co-operation and supports of local people in

of My Phuoc downtown who kindly provided me useful information and ideas related

to my research I am grateful to My Phuoc downtown and Ben Cat district People's Committee, especially to Mrs Thuy who gave me many information which included important data; Mr Tuan in ward 2, Mr Chau in Ward 3, Ms Hoa in ward 4 who took and introduced me with local people during time conducting my fieldwork I would also like to present many thanks to my cousin and my friends, who helped me to approach project documents of My Phuoc IPs

I am grateful to my manager in Binh Duong Telecommunication, Mrs Huong, who created advantage condition in job let I had time to survey during two month

My heartfelt gratitude also goes to my wife, Ha and two girls, Nha and Thanh, who are my love and motivation during the studying time

DECLARATION

I declare that "Determinants of Households' Income in Planned Areas: A Case of My Phuoc Downtown - Ben Cat District - Binh Duong Province" is my own work, that it has not been submitted to any degree or examination at any other universities, and that all the sources used or quoted are indicated and acknowledged

by complete references

HCMC, October 2009

THAI THANH PHONG

Abstract

This study aims to investigate the impacts of land recovery for industrial and urban development on displaced people's livelihoods those who are living in industrial and urban planed areas in Binh Duong Province through a case study of My Phuoc Downtown A main approach of this study is based Sustainable Livelihood Framework developed by DFID (2001) A combination of qualitative and quantitative methods was employed throughout the research process, from the early stage to the data analysis stage to describe livelihood patterns of surveyed households before and after displacement and to analyze statistically factors affecting their income More specifically, econometrics models were applied to estimate the role of livelihood assets on livelihood outcome of displaced households

Quantitatively, linear regression model was applied to estimate the impacts of household livelihood assets, compensation (both in kind and in cash) on household income The estimation results show that there is positive impact of livelihood assets

on livelihood outcome (total household income) before the displacement at a 1%

significant level (wage and saving) and at a 5% significant level (farmland and residential land) After resettlement, estimating results of simultaneous equations model with three-stage least-squares estimation method inform that compensated money, compensated residential land and accessed credit volume has positively determined the total investment for livelihood rehabilitation at 1% significant level In addition, a number of resettled housing land transfer times are positive effect (significantly at a 5% level) to household's total livelihood investment Together with investment for livelihood rehabilitation, total expenditure on children education after resettlement also has positive impact with total household's income after resettlement

at a 5% significant level Proxy indicators of livelihood assets are positively and significantly related with total income after resettlement such as: education of household head (at a 5% level), a number of working member in household (at a 1% level); a number of cell phone in a household (at a 1% level); a number of meeting time per year (at a 1% level) and financial savings and livestock value before the displacement (at a 5% level)

Moreover, the study found that, most displaced households do not receive any priority in vocation trainings, credit for alternative livelihood development and tax

exemplification programs from local government and urban development project investors although displaced people are often promised by authorities and investors at the beginning ofthe project initiation

Keywords: Livelihood, industrialization, land recovery, compensation, resettlement

Contents

Acknowledgements i

Abstract iii

Contents v

List of Tables vii

List of Figures viii

Chapter 1 1

1 Introduction 1

1.1 Problem statement 1

1.2 Objectives ofthe study 3

1.3 Research questions 4

1.4 Outline of the thesis 4

Chapter II 6

2 Literature Review 6

2.1 Definitions and terminologies 6

2.1.1 Land ownership 6

2.1.2 Land allocation 6

2.1.3 Land use rights 6

2.1.4 Land price 7

2.1.5 Land recovery and resettlement 7

2.1.6 Livelihoods 8

2.2 Empirical studies of land recovery, resettlement and its impacts on displaced farm households' livelihoods 8

Chapter III 12

3 Research Methodology 12

3 1 Analytical framework of the study 12

3.2 Econometric framework ofthe study 14

3.3 Variables definition 16

3 4 Data collection and analysis 18

3.3 1 Selection of study site 18

3.3 2 Unit of analysis 19

3.3 3 Data sources and collection techniques 19

3.3.4 Data· analysis 20

Chapter IV 22

4 Description of Study Area 22

4.1 Industrialization progress ofBinh Duong province 22

4.2 Background of study site (My Phuoc downtown) 22

4.3 Regulations of Vietnam on land recovery and resettlement 24

4.4 Regulations of land recovery and resettlement of My Phuoc Industrial Park project 25

4.5 The implementation of policies of land recovery and resettlement in My Phuoc downtown 27

Chapter V 32

5 Displaced Households' Livelihoods 32

5.1 Household's livelihood patterns 32

5.1.1 Households' livelihood patterns before land recovery (Year 2000) 32

5.1.2 Patterns of household's livelihood right after resettlement 33

5.1.3 Current patterns of households' livelihood 37

5.2 Compensation and compensation using 41

5.2.1 Compensation 41

5.2.2 Compensation using 44

5.3 Livelihood Assets 51

5.3.1 Natural Capital 51

5.3.2 Physical capital 52

5.3.3 Financial Capital 54

5.3.4 Social Capital 56

5.3.5 Human capital 58

5.4 Households' expenses 61

5.5 Household's income 61

5.5.1 Income sources and income calculation method 61

5.5.2 Trends in household income 63

5.6 Results ofthe econometric analysis 67

5.6.1 Determinants of households' income before the planning 67

5.6.2 Determinants of households' income after resettlement 68

Chapter VI 73

6 Conclusions 73

6.1 Conclusion and recommendations 73

6.2 Research limitation 75

References 76

Appendices 82

Appendix A: Variables definition 82

Appendix B: Aggregated income model before the planning (Year 2000) 83

Appendix C: Aggregated Income Model after the Resettlement (Year 2008) 83

Appendix D: Questionnaires 85

List of Tables

Table 3-1 : Variable definition 17

Table 4-1: Summary of compensation following regulations 25

Table 4-2: Summary of compensation in My Phuoc Industrial Park 27

Table 4-3: Policies of compensation and resettlement 31

Table 5-l: Patterns of Livelihood before the Planning 32

Table 5-2: Patterns oflivelihood activity combination before the planning 33

Table 5-3: Patterns of household's livelihood activities after land recovery and resettlement 36

Table 5-4: Number kinds oflivelihood after displacement and resettlement 37

Table 5-5: Current patterns of households' livelihoods 39

Table 5-6: Current patterns of household livelihood activity combination 40

Table 5-7: Vary in cash compensation among households 42

Table 5-8: Classification of household's cash compensation 42

Table 5-9: Vary in household's land compensation 43

Table 5-l 0: Classification of household's land compensation by area 43

Table 5-11: Cash compensation expenses 44

Table 5-12: Detail of property investment from cash compensation 45

Table 5-13: Household's investment in education 46

Table 5-14: Using compensated/resettled residential land 47

Table 5-15: A number oftimes to transfer compensated land 47

Table 5-16: Reasons of sale compensated/resettled residentialland 48

Table 5-17: Other income sources of displaced household 48

Table 5-18: Balance of compensation expenses 49

Table 5-19: Detail of household finance deficit 49

Table 5-20: Finance sources to cover deficit 49

Table 5-21: Surplus of compensation after expenses 50

Table 5-22: Land area of observed households before the planning and at the present 51

Table 5-23: Classification of household's house types before the planning 53

Table 5-24: Public service access by households before the planning 53

Table 5-25: Price of one kilowatt of electrical power 54

Table 5-26: Types of constructed house at the present 54

Table 5-27: Area of house before the planning/at the present 54

Table 5-28: Average distance to public service systems 54

Table 5-29: Saving and livestock value of household before the planning/at the present 55

Table 5-30: Household's loan access before the planning/at the present 55

Table 5-31: Household's loan sources before the planning/at the present 55

Table 5-32: Loan using before the planning 56

Table 5-33: Loan using at the present 56

Table 5-34: Friendly level of neighbours 57

Table 5-35: Security condition level 57

Table 5-36: Social environment before the planning/at the present 57

Table 5-37: Organizations/Associations before the planning/at the present 58

Table 5-38: Member of social organizations before the planning/at the present 58

Table 5-39: Age of household head in the sample at the present 59

Table 5-40: Classification of average age of household members at the present 59

Table 5-41: Household size 59

Table 5-42: Average education of household members at the present 59

Table 5-43: Education in observed households at the present 60

Table 5-44: Composition of household at the present 60

Table 5-45: Annual expenses of households before the planning/at the present 61

Table 5-46: Detail of annual expense before the planning/at the present 61

Table 5-47: Comparison of household annual expenses 61

Table 5-48: Income sources of surveyed households 63

Table 5-49: Annual farm-based income before the planning/after displacement/at the present 64

Table 5-50: Household aggregated income 65

Table 5-51: Trends in proportion of farm-based income 65

Table 5-52: Household's non-farm income before the planning/after resettlement /at the present 66

Table 5-53: Descriptive statistics of proxy variables before the planning 68

Table 5-54: Regression results of econometric model before the planning 68

Table 5-55: Descriptive statistics ofproxier variables after resettlement 70

Table 5-56: Regression results of econometric model after resettlement 71

List of Figures Figure 3-1: Conceptual framework for the empirical study 12

Figure 4-1: Administrative map of Ben Cat district 23

Figure 4-2: Location map of My Phuoc downtown 23

Figure 4-3: Double market (Chq Doi) 28

Figure 4-4: Silent professional school in My Phuoc IP 29

Figure 5-1: Resettled house border with the cattle cage of Uncle Pham Van Hai 34

Figure 5-2: Cattle freely on non-using resettled land 34

Figure 5-3: Recruitment information pasted on the gate of a company 35

Figure 5-4: Villa of Mr Pham Van Tru with motorbike mend panel in the front 38

Figure 5-5: Internet Shop of a displaced household 38

Figure 5-6: Chain of rooms for lease of a resettled household 40

Figure 5-7: Old lady Nguyen Thi An keeping a herd ofcattle 41

Figure 5-8: Chart of compensation expenses 45

Figure 5-9: New house of the most successful displaced household 50

Figure 5-10: Average education of household members at the present 60

Figure 5-11: Trends in household income sources 64

Figure 5-12: Trends in average annual income ofhousehold 67

"Doi Moi'' reform towards a market-oriented economy As a result, Vietnam's economy has significantly improved and a lot of bright achievements Economy has grown over 7% per year in the 90s and it still continues to present The economic growth has improved living standard of people, significantly; GDP per capita rising from under 100 USD per year in the early of 1990 to over 800 USD per year in 2007 (WEO 2008)

The industrialization and urbanization process in line with economic reforms has been taken place throughout the country As a consequence, a large area of farmland is converted into non-agricultural land for expansion of urban areas, industrial zones, and infrastructure Thanh· (2007) asserts that more than 73,000 hectares of farmland was annually converted for expansion of industrial clusters and parks, urban areas and infrastructure development Particularly, in the period of 2001 - 2005 land conversion has suddenly increased, approximate 360,000 hectares of farmland were shifted into non-agricultural land in the whole country

Vietnam is a country with 75 percent of its population living in rural areas (Dower 2004:4) Their life and livelihoods are heavily relied on agriculture or at least agriculture - related activities Land is, therefore, one of the most valuable assets to farm households, particularly the poor It is not only the primary means for generating livelihoods, but also the vehicle to accumulate capital and transfer it between generations (Moore 1999:3) Therefore, land recovery by the government for industrialization and urbanization process has strongly affected the life and livelihood of farm households in planned areas Empirical evidence suggests that one hectare of farmland converted into non-agricultural land leads ten farmers to be jobless As a

consequence, millions of those whose land recovered for industrial, urban and infrastructure development have become no career since adopting economic reforms in

1986 (Nga 2007)

Binh Duong is one of leading provinces in the industrialization and urbanization process in Vietnam The first industrial park of the Southern provinces was founded in Binh Duong province in 1995 Currently, Binh Duong has 25 operating industrial clusters and parks with over 12,135 hectares (ICBD 2009) The industrialization and urbanization process has significantly stimulated local economic development Binh Duong province's GDP has annually grown over 14 percent and GDP of industry has grown over 36 percent annually, on average in a period of 1997- 2004 Moreover, the industrialization process has offered dozens of thousands of jobs to local people and migrant workers from other provinces (ICBD 2008) The fast industrialization and industrialization has caused thousands hectares of farmland converted in a period of

2001 - 2005 Of which, converted land was used for Industrial Parks (excluding resettlement areas) until September, 31st 2005 approximate 2,500 hectares (author summed areas of nine operating Industrial Parks) Consequently, thousands of farm households lost their farm land

Farmland recovery for non-agricultural purposes has led those displaced farm households have to adjust partly or even totally their livelihood activities However, many displaced households have faced serious challenges in making their livelihoods in new economic and living environment since most of them have traditionally based agriculture, rural culture and living style, have low education and lack of skillfulness in economic activities other than agriculture Binh Duong is claimed as one of the most successful localities in solving the compensation and resettlement for farm households

in planned areas; especially, land recovery and compensation for My Phuoc Industrial Park project was recognized as the most successful one in Binh Duong in terms of recovery progress, compensation and resettlement However, as empirically observed, displaced people seem to be very hard while seeking their livelihoods in the new living environment

Although, the impacts of land recovery and resettlement on displaced people's livelihoods have been widely discussed in daily rumors, newspapers, magazines, few empirical studies on this issue have not been done In addition, comprehensive studies

on displaced farm households' livelihoods are very rare up till now In order to enrich both theoretical and empirical knowledge on impacts of industrialization, urbanization, land recovery, compensation and resettlement on resettled farm households' livelihoods and recommend to policy makers strategies to resolve problems created by such policies and development process, this work will take land recovery for the development of My Phuoc Industrial Park as a case study The research aims at comparing and analyzing in detail impacts of industrialization and urbanization progress; more precisely the impacts

of land recovery and resettlement displaced farm households' livelihoods in My Phuoc planned areas by relying on Sustainable Livelihood Framework that developed by DFID (2001) Besides, I attempt to simulate an econometric model that demonstrates the relationship between livelihood assets and outcomes of households in the planned area

The study has both conceptual and practical relevance:

1 It is to understand the development process of industrialization and urbanization in Binh Duong province in general and farmland conversion in particular;

2 It is to have a precise insight on the implementation process related to recovery of land, compensation, subsidy and resettlement in Binh Duong province (a case of My Phuoc downtown);

3 It is to describe, analyze, compare livelihoods, livelihood assets and outcomes

of households in planned areas before and after the recovery of land, compensation, subsidy and resettlement;

4 It is to assess impacts of the recovery of land, compensation, resettlement and subsidies policies having on livelihood assets and outcomes ofhouseholds

As these objectives are fulfilled, this work aims at achieving the two following basic objectives:

1 Major policy themes related to land recovery, compensation, resettlement and their impacts on farm households' livelihoods in planned areas will be

recommended to policy-makers to construct more effective and flexible policies and programs on the mentioned issues

2 Findings from this work will contribute to the growing discussion on the field related to land recovery, compensation, resettlement and their impacts on farm households' livelihoods in planned areas

3 What impacts do land recovery, compensation, subsidies and resettlement have

on livelihood assets and outcomes of households in planned areas?

1.4 Outline of the thesis

The thesis is divided into six chapters The introductory chapter comprises of problem statement of the study, objectives of the study and research questions

Chapter II begins with some definitions and terminologies ofVietnam's Land Law

1993 and 2003 about land ownership, land allocation, land use rights, land price, land recovery and resettlement The next section reviews empirical studies of land recovery, resettlement and their impacts on displaced farm households' livelihoods

Chapter III reviews research methodology used for the analysis throughout this work It begins with first section including analytical framework and econometric framework of the study The last section mentions about selection of study site, unit of analysis, data sources, data collection techniques and methods to analyze collected data Chapter IV, in first two sections, presents the industrialization process of Binh Duong province and the background of My Phuoc downtown Next two sections mention about regulations of Vietnam on land recovery and resettlement, and policies of land recovery and resettlement of My Phuoc Industrial Park project The last section

discovers the implementation of policies of land recovery and resettlement in My Phuoc downtown

Chapter V presents findings of the study, it includes five sections The first section describes household's livelihood patterns in planned areas through three different periods: before land recovery, right after resettlement and at the present The second section analyzes compensation implementation and the ways in which displaced households used their compensation The third section describes five livelihood assets (natural, physical, financial, social, and human) of displaced households before the planning and at the present Next two sections present about expenses and incomes of displaced household before the planning and at the present And final section shows the determinants of households' income in two periods, before the planning and after resettlement

Chapter VI summarize the findings of the study and recommends some policies implications which drawn from the research results

2.1.2 Land allocation

"The State shall allocate land to organizations, households and individuals for stable and long-term use" (Vietnam's Land Law, 1993) The 2003 Vietnam's Land Law re-confirmed: "Land allocation by the State means the grant of land use rights by the State by way of an administrative decision to an entity which has requirements for land use"

2.1.3 Land use rights

Vietnam's 1993 Land Law regulated: Certification of land use rights will be granted to those who are using land on a stable basis which is certified by the People's Committee of rural, urban communes and commune towns Household or individual, who were land owner, can exchange, transfer, inherit, or mortgage the land use right Vietnam's 2003 Land Law adjusted the land use right more detail: Land owners may exercise the right to exchange, assign, lease, sub-lease, bequeath and donate land use rights; right to mortgage, guarantee and contribute capital using land use rights; and right to be paid compensation when the State recovers land

2.1.4 Land price

Provincial authorities launched decision which regulated land price in province and this price was used to compute: transfer tax; fees of land using, land leasing; compensation price when the State recover land for goals of military, security, development, national benefit; Compensation land price for displaced households in

My Phuoc downtown based on the frame of land price of Decision no 24/1999/QD-UB (dated 06/03/1999) of People's Committee ofBinh Duong Province

2.1.5 Land recovery and resettlement

- Land recovery means "the issuance by the State of an administrative decision

to recover land use rights or to recover land which has once been allocated to economic entities such as individuals, households, economic organizations, etc." (Vietnam's 2003 Land Law) Land often is recovered for objectives of national defense and security, national interest, public interest, or economic development

- Recovered land's compensation: Decree No 2211998/ND-CP of Vietnam's Government stated a principle: people, who have recovered land, will be compensated money or house or new land Decree No 197/2004/ND-CP, an upgraded of Decree No 22/1998/ND-CP, regulates more detail: "Persons who have land recovered shall be compensated with new land having the same using purpose; if there is no land for compensation, they shall receive compensation equal to the land use right value at the time of issuance of the recovery decisions; in case of compensation with new land or houses, if there is any difference in value, such difference shall be paid in cash."

- Resettlement means policies of compensation, relocation, assistance are provided by the State (or the organization who using the recovered land) to displaced people, who have recovered land (Vietnam's Land Law 2003) The resettlement policies for displaced farmer's households after land recovery often circle these modes: cash resettlement, employment resettlement, farming resettlement, land reallocating resettlement, housing resettlement, and social insurance resettlement (ADB 2007) However, Decree No 197/2004/ND-CP of Vietnam's Government just regulates three cases of resettlement: dwelling houses resettlement, new residential land resettlement and money for acquiring new residences resettlement Beside that, it also mentions four others subsidy and compensation policies, they are: a) compensate or support whole

recovered land, b) compensate or support all assets linked to recovered land and invested cost in the land, c) support for: moving, stabilization of living, training and transfer job, d) support for stabilization of production and life of displaced people in resettled area

2.1.6 Livelihoods

Livelihood is "a mean of gaining a living" "A livelihood comprises capabilities,

and mean ofliving, including food, income and assets" (Chambers and Conway 1991) Ellis (2000) suggests a more elaborate definition, that is, "A livelihood comprises the assets (natural, physical, human, financial, and social capital), activities, and the access

to these (mediated by institutions and social capital) that together determine the living gained by an individual or households"

2.2 Empirical studies of land recovery, resettlement and its impacts on

displaced farm households' livelihoods

During the last two decades of the 20th century, about 10 millions people per year in the world were displaced and resettled due to development projects such as: industrial parks, irrigation, transportation highways, power generation, urban resident areas (Cernea 2000: 11) In China from 1993 to 2003, about 1.7 million hectares of cultivated land were converted into non-farming use purposes and this impacted to approximate 3.3 million farmers, annually

Farm households in planned areas was recovered all or partly of their farmland,

a main asset on which their livelihoods are generated Regularly, if investors or Governments take land from farmers, they must have some resettlement policies such as: cash resettlement, farming resettlement, vocational training programs to help displaced households rehabilitate their livelihoods However, resettlement policies applied by the authorities still have some limitations and negative effects For example, cash resettlement is easy to manage and often is accepted by displaced farm households But, it only suited to young people and farmers who are working out of horne and was not suitable to groups of above 45 years old or who are low skill labors, it is rather difficult for these farmers to seek job by themselves (ADB 2007) Besides, the efficient

of vocational training courses and new job introduction services to support land loss farmers still is a big problem Most of displaced households are farmers and low education, so they have a limited to perceive and compute for their future Just few

households invest in training alternative jobs after resettled Many displaced households did not use the huge compensated money in a proper way, they used such money to build new and expensive house, equip luxury electric appliances and vehicles (Quang et

al 2005, Nang 2006, Sen 2007) In the near future, these households certain faced difficult situation when the compensation money was exhausted

According to recent study of Sen, although displaced households received compensation, assistance and subsidies from investors or the government, but proportion of resettled people being jobless and having unstable jobs is still very higher, occupying over 615 respondents or 44.5 percents of sample (Sen 2007) Free time of displaced people increases sharply in Vo Que district (Bac Ninh province, Vietnam) due

to industrial zone development, it is higher 50 percents of working time fund, especially

in young labors force (average age is around 26 years old) (Tho 2006)

Land recovery caused losing household's productive assets o, such as farmland, common property resources, jobs, community articulation and the changing of culture living (Webber and Mcdonald 2004) It also created several impoverishment risks for land-loss farmers: income reduction, employment difficulty, poor long-term livelihood guarantees Cernea (1995: 251) shows that displaced people will loss some principal capitals such as: natural capital, man-made capital, social capital, human capital The farm production and income of displaced households is major impacted by land recovery and resettlement The household's income reduces significantly after the resettlement (Syagga & Olima 1996, Webber & Mcdonald 2004, ADB 2007) Many displaced households have difficulties in rebuilding livelihoods because of the lack of access to common household capital and limited farmland (Heming et al 2001 ) Especially, a proportion of displaced farm households are in a "four-no" status - no land, no job, no security, and no capital for establishing business Only a half of them can be transferred to non-farming employment (ADB 2007)

Land recovery leads to the gradually shifting of laborers to non-farming sector However, most of them just to be employed in fields which require a relative low level

of education and skills and to be laid off easily due to poor adaptability after a short period (ADB 2007, Phong 2005) The sharp reduction of cultivated land and the weakness of industrial foundation lead to the serious surplus of rural laborers Female employees in displaced areas are impacted firstly because most of them are farmers, not

well educated and just do domestic works, so they face more difficult if leave their home to find non-farming jobs (Shaoquan et al 2004)

After land recovery, people who were relocated into new farmland will face less changing in their livelihoods However, in industrial planned areas, displaced people received often compensated money, resettled residential land or new house They had

no farmland after resettlement Therefore, livelihoods of these affected households were very differing with the prior situation; they had to adopt non-farm livelihood strategies and urban living style In developed areas, some affected households used remain compensation money to build flats for renting, or run small shops, or to buy vehicle engage transportation (Sen 2007, ADB 2007) The highest second proportion of households in the study of Nang (2006) deposited remain compensated money in the bank and received the return of interest rate or withdrew a proportion of the deposit monthly for their daily spending Price of goods in planned areas often increases after land recovery due to reduce cultivation land areas Therefore, displaced households in slowly developed areas will face more difficult, livelihoods is lack and poor while they have to spend at high price for everything, from water, electricity, coal to food, farm products (such as: rice, vegetable, ) (ADB 2007) Some people had to migrate to find job after land recovery

Many empirical studies show various reasons that rural households often diversify their livelihoods, simultaneously participate in more than one income earning activities However, Adi (2007) used simultaneous equation model suggested by Smith and Blundell (1986) to estimate the probability of participating in non-farm or non-agricultural activities of households, and come to conclude that, despite of high incidence of diversification, agriculture still is highly significant to households' livelihoods in rural communities of Eastern Nigeria Schwarze (2004) also have some major results after a quantitative study in Central Sulawesi (Indonesia), non-agriculture activities play an important role in rural livelihoods but households' livelihoods principally depend on agriculture activities which generate about 70 percents of the total household income Therefore, lost whole of cultivated land and have to adopt non-agriculture livelihoods are a big leap or shock with displaced farmers The lack of efficient vocational training programs and social insurance for displaced people who are old or do not meet the demand of industrial jobs is one of the foremost causes of poverty because of land recovery and resettlement (ADB 2007)

Beside empirical studies about land recovery and resettlement, my study aims to contribute a specifically evidence of My Phuoc downtown to understand more about determinants of households' livelihoods in planned areas before and after the land recovery and resettlement, advantages and disadvantages that resettled households have faced after land recovery and resettlement

Chapter III

This chapter sets out to deal with the study's research methodology It begins with presenting the analytical framework of the study which developed by adopting sustainable Livelihood Framework (DFID 2001) as well as definitions of livelihood assets, policies and institution in the framework The following section presents econometric framewqrk of the study in two periods, before land recovery and after resettlement And the final section mentions about data collection for the study and techniques of data analysis was applied

3.1 Analytical framework of the study

Policies and Institutions Vulm;rabjl!iy

Figure 3-1: Conceptual framework for the empirical study

(Source: adopted from Sustainable Livelihood Framework ofDFID 200)

The analytical framework for this empirical work is developed by modifying the Sustainable Livelihood Framework of DFID (2001) Variables included in the framework are described as following:

• Livelihood assets: there are five types of livelihood capital (assets) as follows:

(i) Human capital [H]: "Human capital represents the skills, knowledge, ability to labor and good health that together enable people to pursue different livelihood strategies and achieve their livelihood objectives" (DFID 2001) Household human capital varies according to household size, skill levels, leadership potential, health status, etc and it changes constantly due to internal demographic reasons or a deliberate reformulation in response to unexpected events or external pressure (Vien 2007) Human capital can be improved by investment in education and training, as well as experience and skills attained during working process

(ii) Natural capital [N]: is the term used referring to natural resource stocks from which resource flows and services (such as: land, wildlife, water, forests, air quality, erosion protection, biodiversity degree and rate of change, etc.) useful for livelihoods are derived (DFID 2001 ) In rural areas, almost of household livelihoods come from all

or part of natural resource-based activities Natural resource comprises of renewable and non-renewable; the former replenish rural people, while the latter may be used indirectly for making livelihoods (Vien 2007)

(iii) Physical capital [P]: includes the basic infrastructure and producer goods needed

to support livelihoods (DFID 2001) Primarily components of physical capital are usually essential for livelihoods of households such as: transport, shelter, water, energy, communication, production equipment, and means (Vien 2007)

(iv) Financial capital [F]: is referred to as the financial resources that people use to achieve their livelihoqd objectives and it comprises the important availability of cash or equivalent that enables people to adopt different livelihood strategies (DFID 2001) Financial capital consist of two primarily sources: available stocks comprising cash, bank deposits or liquid assets such as livestock and jewelry, not having liabilities attached and usually independent on third parties; regular inflows of money comprising labor income, pensions, or other transfers from the state, and remittances, which are mostly dependent on others and need to be reliable

(v) Social capital [S]: represents the degree of social cohesion in communities It

refers to the processes between people that establish networks, norms and social trust, and facilitate coordination and cooperation for mutual benefit (HDA 2004 cited in WHO 1998) Key elements of social capital include: social resources - e.g informal

arrangements between neighbors or within a faith community; collective resources e.g self-help groups, credit unions, community safety schemes; economic resources -e.g levels of employment, access to green, open spaces; cultural resources - e.g libraries, art centres, local schools Communities where social capital is abundant are often characterized by: high levels of trust between friends and neighbours; shared norms and values; local people engaging in civic and community life

-• Policies and institutions: Carloni (2005) defined as an important set of man-made

external factors affect to livelihood options, access to livelihood assets of household Carloni also mentioned: local institutions influence directly and indirectly to household livelihood strategies, by determining legal/illegal activities, by creating incentives to pursue certain activities and choices over others, through their influence on access and control of household assets An enabling or facilitating policy and institutional environment will assist household access easier to livelihood assets In contrast, a disabling policy and institutional environment may create the discrimination and obstacle household access to their capital If the land recovery is attached with effective policies and institutions (reasonable of compensation, resettlement, training, and assistance policies), household face less shocks and difficulty in transition period of livelihood changing after land loss

3.2 Econometric framework of the study

Based on the analytical framework, the study mms to find out the role of livelihood assets playing on livelihood outcomes before and after land recovery and resettlement, I collected some proxy indicators of five livelihood assets as independent variables rely on Sustainable livelihood guidance sheets of DFID (2001) Total annual income will be selected as a proxy of livelihood outcomes of household in planned areas

Before land recovery for industrial and urban development, livelihood patterns

of households in planned areas are depended significantly on agriculture However, to understand specific determinants of household's livelihoods before the planning, I applied linear regression model with general form:

Yo= f(LAo)

Where, Y 0 represents the total income of observed household before the planning (year 2000) LAo are proxy variables of five livelihood assets in year 2000: human capital, natural capital, physical capital, financial capital, social capital

After displacement, livelihood assets of displaced households changed completely Livelihood outcome of displaced households has not only based on new livelihood assets, but also significantly depended on formerly livelihood assets and investment after displacement Beside that, investment for livelihood rehabilitation has also sharply based on compensation factors and formerly livelihood assets Therefore, to study determinants of household's livelihood after resettlement, I used simultaneous equation model with general form:

I = f (C , LA' o , LA' 8 ) Y8 = f(LA"o, LA"8, Sectu, I)

Where,

•

•

•

I is total investment for livelihood rehabilitation after displacement;

Y 8 is total income of observed household after resettlement (year 2008);

LA'o , LA"o are proxy variables of livelihood assets before displacement (year 2000);

• LA' 8 , LA" 8 are proxy variables of livelihood assets after resettlement (year 2008);

• C are proxy variables of compensation;

• Sectu is total spending for education and vocation after resettlement

The above simultaneous equation model was tested by a three-stage estimation procedure because the endogenous explanatory variables are dependent variables from other equation, therefore, the ordinary least squares estimations of individual equations

in the simultaneous equation model can lead to biased and inconsistent parameter estimators (Pindyck and Rubinfield, 1991: 228)

3.3 Variables definition

- Dependent variables: Total income of household was selected as proxies indicator of livelihood outcome Dependent variables in the study comprise of: total income of household before the planning, total income of household after resettlement, total investment for livelihood rehabilitation after resettlement

- Independent variables included in proxy variables of livelihood assets, compensations and several others factors generated after resettlement, they include:

• Proxy variables of human capital: Education of household head, number of working members, average education of working members were selected as proxies of human capital These variables have a long tradition as proxies for human capital and have often proven their correlation with household income in empirical studies (Narayan and Princhett 1997, Wolz et al2004)

• Proxy variables of natural capital: Farm size, the most valuable asset of farm households, was collected as representations of natural capital

• Proxy variables of physical capital in this study include distance to nearest market, distance to bus stop, number of using cell telephones in household, residential land size The positively linked between telephone usage and income that occur at both

in farm and non-farm income levels was demonstrated in the research of Chong et al (2005) using a quasi-natural experiment in Peru

• Proxy variables of financial capital were was selected as saving, livestock value, credit, and wage

• Proxy variables of social capital are meeting times per year of local organizations' members, neighbour trust or friendly of neighbours (who they can borrow money, rice and often visit each other)

• Proxy variables of compensation include the total of compensated money, total compensated land

Moreover, in order to analyze determinants of livelihood outcome of displaced households, I consider several factors which were generated after resettlements

independent variables, such as: total of investment for education, number times of resettled land transfer

Table 3-1: Variable definition

Dependent variables

inc_bp Total income ofhousehold before the planning (year 2000)

inc_p Total income of household after resettlement (year 2008)

investment Total investment for livelihood rehabilitation

Independent varia hies

edu hhh Education of household head

workingmbr _p Number of working members in household after resettlement

working_ edu Average education of working members

frmland_bp Total areas offarm land before the planning

resland_bp Total residential land before the planning

dis_ bstop _p Distance to bus stop after resettlement

dis_ mrket_ bp Distance to market before the planning

nmb_phone_p Total mobile phone in household after resettlement

savlivstk_bp Total value oflivestock plus saving before the planning

saving_bp Total saving before the planning

savmg_p Total saving after resettlement

wage_bp Total wage before the planning

credit_p Tot<;tl credit after resettlement

credit_bp Total credit before the planning

frdly _ bp Friendly level of neighbors before the planning

frdly _p Friendly level of neighbors after resettlement

meeting_p Total meeting of household (member oflocal organizations) in a

year after resettlement

compensation Total cash compensation

comp_land Total compensated land

rstland trfr Number time of resettled land transfer

acqrd _ fmland Total recovered farmland

spend_ edu Total spending for education after resettlement

3.4 Data collection and analysis

3.3.1 Selection of study site

Binh Duong province is one of the earliest provinces starting industrialization and urbanization programs after the Economic Doi Moi reform launched in 1986 Many

projects of industrial zone and new urban areas have been developed over last two decades which shift Binh Duong's economy from agriculture base to industrial and service base Together with urbanization and industrialization, a large area of farm land was converted into non - agricultural land and thus this process has significantly affected displaced people's livelihoods, both positively and negatively

Ben Cat is recently one of the fastest industrialization and urbanization districts

of Binh Duong province Thus, prior to 2001, Ben Cat district - a northern district of Binh Duong province- was still a poor place with GDP dominated by agriculture Since

2007, economic growth was over 20 percents and economic structure of Ben Cat district has been significantly shifted towards industry (77.66%) - agriculture (12.86%) and services (9.48%) Land for industrial zone in Ben Cat district is largest as compared with other districts of Binh Duong province

My Phuoc downtown, the center of Ben Cat district, was the initial place of industrialization and urbanization process of Ben Cat district Development of My Phuoc I, My Phuoc II industrial parks has converted nearly a half of total area of My Phuoc downtown, approximately 1,000 hectares This industrial park is considered as the largest one in Binh Duong province

The process of land recovery, resettlement and compensation project for this industrial park is recognized the most successful one that was completed within the time

of less two years However, it does not mean that this project has often brought the better life to all displaced people In order to understand what effects that land recovery and resettlement have on displaced people's livelihoods and to a larger extent of Binh Duong's land recovery projects for the development process, I decided to choose My Phuoc industrial park development as the study site for empirical investigation

3.3.2 Unit of analysis

Individual household is basically impacted by land recovery and resettlement; therefore, selecting household as a unit of analysis help us deeply understand about the influence of land recovery for industrialization and urbanization progress

3.3.3 Data sources and collection techniques

This study was carried out in My Phuoc downtown, Ben Cat district, Binh Duong province Data for empirical analysis will be relied on two major sources as followings:

resettled zone of My Phuoc downtown by author This is the main source of primary data 86 displaced households in My Phuoc downtown were selected for the deep survey with help of both structured and semi -structured questionnaires Variables were surveyed are described as following:

• Household general information (age, a number of members, education, health );

• Livelihood patterns, livelihood assets and outcomes before and after land recovery and resettlement;

• Access to livelihood assets of resettled households before and after the resettlement;

• Area of land recovery; compensation; subsidies; training programs;

• Displaced people's assessments about the impacts of land recovery, resettlement, compensation, and subsidy policies on themselves

• The implementation of policies of land recovery, compensation, subsidy and resettlement; opinion of respondents

Face-to-face interview method was applied with assistance of structured and semi-structured interview, open-ended questionnaire Quantitative data was also collected from structured interview by well-designed questionnaire Semi-structured and open-ended interview were yielded more qualitative data and respondents often

comfortable to express themselves with open-ended discussion (Vien 2007) In addition, direct observations at the first visit times as well as during the survey period also were employed to collected complementary data for the study

(ii) Secondary data: Some secondary data was collected through documentary research and cited from projects documents, reports of people's committee of My Phuoc downtown, Ben Cat district, Binh Duong province, and other reference documents Data includes:

• Documents relate to development progress of Binh Duong province on the way toward industrialization and urbanization;

• General data of industrial and urban projects in survey areas;

• Regulations of the government on land recovery, resettlement, compensation and subsidy;

• Applied policies of My Phuoc downtown (policies of land recovery, compensation, subsidy and resettlement), etc

3.3.4 Data analysis

A combination of qualitative and quantitative method was employed through the study, from data collection to data analysis, to assess the impacts of the industrialization and urbanization progress, more specifically that affections of the recovery of land, compensation and resettlement on livelihood assets and outcomes (base on analytical framework) of households in planned areas, to understand the coping strategies of these households, to analyze the living of households, and answer research questions above

- Regarding data analysis, descriptive statistics, analysis and explanation of impacts of the industrial and urban planning on the changing of the livelihood assets and outcomes of resettled households in planned areas were adopted Some tools such as: explanatory; combining text discussion with tables summarizing the observation; case study profile to describe, explain with evidences related to a specific case, etc

- Moreover, to quantify and measure information from households that concentrate on livelihood assets and outcomes such as: income, saving, land s1ze, compensation, subsidy, education, age of household's member, both simple statistics

and econometric were employed STAT A software version 9.1 was used to analyze quantitative data, econometrics models were tested to shows the affections of livelihood assets, policies and institutions on livelihood outcome of households in planned area before the planning (year 2000) and at the present (year 2008)

Chapter IV

4 Description of Study Area

This chapter summarizes industrialization progress of Binh Duong province, particularly in My Phuoc downtown, leading to land recovery and resettlement of households in planned areas The chapter also mentions about regulations of Vietnam

on land recovery and resettlement, policies of land recovery and resettlement of My Phuoc Industrial Park project and its implementation

Binh Duong province is located in southeastern of Vietnam It belongs to important economic zone in the South, the most dynamic area in economic development

of the country Binh Duong borders with provinces and cities: Binh Phuoc, Tay Ninh, Dong Nai and Ho Chi Minh City

In 1993, before the regulation of industrial park was launched, Binh Duong started to build the first industrial park (about 24 hectares), Binh Duong (Binh Duemg) Industrial Park In periods of 1996 - 2001, Binh Duong developed 7 industrial parks with 1,437 hectares, and the total area of these industrial parks was leased approximate

80 percents (average of country is 46 percents) Binh Duong authority perceived the potential of the province in develop industrial park, in 2001 they started to develop silent districts in the north of province, where just depended on agriculture, become the noisy and dynamic industrial- service- residential zones with total areas over 15,000 hectares It includes modern industrial parks such as: My Phuoc IPs, Bau Bang IP, Tan Uyen IP, and a new capital of Binh Duong City However, the place owned highest industrial development speed until now is My Phuoc downtown, an initial place in the north where the authority chose to start the industrial development of this zone

My Phuoc downtown is the center of Ben Cat district, a northern district of Binh Duong province It is 20 km away from Thu Dau Mot city and 42 km from Ho Chi Minh City It takes just about one hour to travel from the center of Ho Chi Minh City to

My Phuoc Industrial Park

Total area of My Phuoc downtown is about 2,150 hectares In 2001, population

of My Phuoc downtown approximated 10,000 people divided into 2,365 households Farm households' livelihoods relied on subsistent agriculture, mainly paddy, vegetables and some rubber tree

In June, 1 ih 2002, My Phuoc Industrial Park was founded As a consequence, 1,159 hectares of cultivated land of My Phuoc downtown were recovered and 83 8 farm households were forced to be resettled

Figure 4-1: Administrative map of Ben

Cat district

(Source: Binh Duong's website)

Figure 4-2: Location map of My Phuoc downtown

(Source: Scanned from My Phuoc project document)

Nowadays, My Phuoc becomes a noisy downtown Its population is over 26,000 people, occupying one - sixth of total Ben Cat district's populations Over a half of population is migrant people My Phuoc' s economy has shifted from subsistent agriculture toward to industrial - services and commercial based in which the share of industrial, service and commercial, and agricultural sectors is 65%, 25%, 10%, respectively There are about 135 companies having registered with over 15,000 labors employed in My Phuoc Industrial Park The process of industrialization and urbanization has turned over households' traditional life and livelihoods Those resettled

farm households are no longer practicing agriculture while non-agriculture based activities have become their means of living; even a number of them are jobless and rely

on their compensation

Because My Phuoc Industrial Park started before 2003 until present, therefore, I mentioned decrees, regulations of both Land Law 1993 and 2003 It aims to compare with policies of land recovery and resettlement applied for My Phuoc Industrial Park projects, I only revised some main points of regulations about land recovery, compensation and resettlement of Vietnam which respond to applied policies in My Phuoc

Households or individuals, who are legal owners of recovered land, were compensated and subsidized as following these scales:

- Compensation for those who lost all their land due to land recovery: Principle of compensation for land loss was in several ways such as money, house and residential land for resettlement Recovered residential land per household was compensated counted from 100 square meters (Decree No 22, 1998), to 400 square meters (Land Law 1993) Recovered farmland was compensated relying on land price defined by Decree No 87 (1994) of the government, for example the first farmland category was compensated from 1, 1 00 VND to 19,3 00 VND per a square meter; and the price frame

of residential land in the rural area for the first residential land category was from 2,200 VND to 38,600 VND per a square meter Decree No 17 (1998) allowed to adjust the price frame approaching to market price of land, but was not higher than 50 percents of maximum price or lower than 50 percents of minimum price

- Compensation for loss of assets attached to recovered land Principle of compensation for assets loss: whole assets, which linked on recovered land at the time

of recovery, such as: house, architectures, trees, animals will be compensated;

- Subsidies for living and business if had to displace house and business to new location Subsidies to stabilize living and production of displaced people was calculated

in a six month period of time, an amount of monthly subsidy per person was equal to 30 kilograms ofrice on average price at compensation time (Decree No 22, 1998);

- Payment for costs that service for the displacement such as: costs of of moving, costs of smoothing the surface of land Compensation for moving dwelling in a province scale is from 1,000,000 VND to 3,000,000 VND (Decree No 22, 1998)

- Vocational training subsidy for farm labors who had to change their career due

Table 4-1: Summary of compensation following regulations

Resettled residential

land's area

Farmland price

Residential land price

Displacement fees per

Kg

100 400 Decree No 22, 1998

550 28,950 Decree No 17, 1998 1,100 57,900 Decree No 17, 1998 1,000,000 3,000,000 Decree No 22, 1998

In 2001 and 2003, Binh Duong authority launched Decision No 139/2001, Decision No 17112001 and Decision No 219/2003 regulated detail policy of compensation land and assets on land for My Phuoc Industrial Park I, II Decisions included policy of compensation land and assets on land, policy of resettlement, subsidy policies

Land compensation and resettlement policies: Most of households in rural areas did not own residential land, their house were built on farmland However, My Phuoc Industrial Park project's policy also accepted residential land in rural equal total areas of house and necessary sub-infrastructure of house, but do not higher 300 square meters Every square meter of residential land in My Phuoc IP I was compensated 70,000 VND and from 70,000 VND to 174,000 VND in My Phuoc IP II Beside that, household had house and land in legal was compensated 300 square meters of residential land in resettlement zone Farmland and trees on it were compensated from 20 to 140 million VND per hectare according to types of trees on farmland, the minimum price is farmland without trees was exploited the surface and the maximize price is farmland had pepper trees, which was more than five years lod, on it Beside that, My Phuoc IP I also subsidized residential land based on total areas of recovered farmland: 1) 1,000 to 4,000 square meters farmland exchanged 100 (5x20) square meters residential land; 2) 4,000 to 8,000 square meters farmland exchanged 200 (1 Ox20) square meters residential land; 3) 8,000 to 10,000 square meters farmland exchanged 300 (10x30) square meters residential land; 4) if household had larger 10,000 square meters farmland, every 5,000 square meters added farmland would exchanged 150 (5x30) square meters residential land However, My Phuoc IP II subsidized residential land based on the total area of recovered farmland with higher and fairer ratio: 1) 10,000 square meters farmland exchanged 600 (20x30) square meters residential land; 2) if recovered farmland larger

or smaller 10,000 square meters, residential land was exchanged corresponding to above ratio If household did not exchange residential land, they were compensated 150 millions VND per 300 square meters of residential land (both My Phuoc IP I and II)

Subsidy policies consisted of: 1) Subsidy for stabilizing the living: one million VND per individual who officially lived in displaced house; 2) Subsidy for policy households (certified by local authority) such as: mother of Vietnam Hero, wounded soldier : one to five millions VND per household; 3) Subsidy for displacement costs: two millions VND per household;

Others support policies: Investors offered vocational trainings to farmers, who lived in planned areas, to help them to find new job and set priority for them when recruiting and training labors for project manager unit and factories in My Phuoc IP

Table 4-2: Summary of compensation in My Phuoc Industrial Park

Farmland price

Exchange 1 ha farmland with

residential land

Residential land price

Displacement fees per household

Subsidy for policy household

Subsidy per a farmer

VND/ha m2

VND/m2 VND VND VND

(Source: Cited from My Phuoc IP project documents)

150,000,000 150,000,000

70,000 70,000 - 174,000 2,000,000 2,000,000 1,000,000 5,000,000 1,000,000 1,000,000

My Phuoc downtown

In the compensation list of households, they received 70,000 VND per square meter of residential land in My Phuoc IP I (or from 70,000 VND to 174,000 VND per square meter of residential land in My Phuoc IP II), plus 300 square meters of residential land in resettlement zone or 150 millions VND per 300 square meters However, they had to re-pay 21 million VND to investors, which were called invested fees to build new infrastructure in resettlement zone (this money also equaled compensation price of 300 square meters of residential land) Some household selected resettlement location near market or bus station (just saw on the detail plan map), had to pay more invested fees for new infrastructure construction, from 25 to 30 millions VND But in reality, investors adjusted the detail plan map, bus station converted to residential land, and investor did not re-pay any money for households Markets on the land map just were simple steel frames which were built hurry on first phase of project but did not operate until now (Figure 4.3)

Households were granted priority when select resettlement locations m resettlement zone But most of them lost that priority because:

Firstly, most of members of displaced households were low education, they could not read the detail plan map; therefore, they did not know where main streets and center areas were They selected resettled locations near old house or their neighbours, they would like to live on their ancient land

Figure 4-3: Double market (Chq Doi)

Secondly, compensation staffs threatened resettled households, who selected resettlement location in main streets, would be forced to build multistoried house in two years (did not have any regulation issued by local authority about that) If did not build, investor had right to acquire the resettled residential land and arranged in other location with investor's selection right Therefore, most of household only selected resettled location in areas where were planned for house with no upstairs, along small streets However, these households have seen there losses when some resettlement locations in main streets still were intact but investor have done nothing Because only several displaced households afforded to resettle along main streets, therefore, fund resettled land along main streets were surpluses Compensation staffs resettled for their relatives

or became intermediate to sell out, they received huge commission from that deals

Thirdly, several illiterate household heads asked compensations staffs allocated the resettled land where near intersections or main streets The staff answered yes, but these households were just resettled distance several hundreds meters from main streets

or intersection streets Displaced households have perceived the real picture after resettlement, therefore, they were very disappointedly and angry with investor, especially local authority staffs who stayed same situation before displacement, due to displaced households' losses has become benefit of them

Most of resettled households of My Phuoc IP I were not satisfied with exchange rate between farmland and resettled residential land They just wanted to exchange

following the corresponding rate, did not like to receive money due to needed large residential land for their children

Several displaced households have ever heard the training policies for young labors But only one observed household registered three month training program for his daughter, a second year student of provincial teaching college, after authority campaigned and promised to subsidy whole of training costs, living costs during the training time and recruiting after completed their training However, only training program costs were was exempted, household had to spend living costs After completing the training program, investor did not recruit but local authority did not certify her biography paper to apply for new job by herself She waited over one year and local authority just certified the biography paper after household head argued with leader of local authority about that She has become worker until now However, household head and his daughter regretted due to bad planning and wished that did not register training program, but studied at provincial teaching college Other observation households did not concern training program because they just received huge money from compensation A big professional school was built in the early stage of My Phuoc

IP, however, it have not operated until now

Figure 4-4: Silent professional school in My Phuoc IP

Some other subsidy policies were implemented very slight In My Phuoc IP 1, chairman of local authority informed some subsidy policies to household head, such as:

freeing tax of rooms for lease in three years; ready supplying credit if displaced households need; everyone from 18 to 60 years old would be recruited; subsidy materials to build rooms for lease But this was not happened in reality, households have had to pay enough tax from second year although the room was rent or not, tax staff has just counted rooms to compute tax Households requested tax staff to implement following the agreement of chairman of local authority but could not submit any official agreement paper of Mr Chairman, he just promised by mouth Tax staff answered that he just was an implemented man In My Phuoc IP 2, households who have less than 6 rooms for lease were freed of tax and did not need license However, if household head borrowed money from bank, he had to have license of room for lease to prove the purpose of using loan Tax staff collected full tax from households who have had license of room for lease or higher 6 rooms although surplus rooms were not built complete and did not for lease

Although announced in the resettled policy that people in planned areas had priority in recruitment, government always was ready to support people in credit accession if people need capital to rehabilitate livelihoods But in reality, displaced households have not received any priority when borrowing money to build rooms for lease or re-built resettled house All displaced households had to prove the purpose of using loan as same as the other normal borrowers Only one person of my observation households was recruited to work for investor after displacement Members in the other households had to apply for jobs by themselves without support from investor or local authority

Investor stated on newspaper about their material subsidies for displaced household to build rooms for lease However, in reality, few of them received material subsidies (15 cement bags) to build rooms for lease, households had to follow regulation of investor about size of room Because perceived the inefficiency of the regulated size, therefore, none of our observations received material subsidies A household head told that several households, who he has known, also did re-build rooms after following the regulated size to receive 15 cement bags

About training cost subsidy policy, several households have ever heard from the chief of hamlets about training cost subsidy per labor, about one million VND However, none of my observed households have received that money until now Some