Impacts of land acquisition on local community: Cases of road projects in Vietnam ABSTRACT Sustainability is being regarded as a necessary criterion of construction projects including road projects However, while creating a huge benefit for economic development and other advantages for countries, road projects can negatively affect local communities generally and land lost communities particularly regarding environment, socio-culture, and socio-economics Despite the fact that these impacts can lead to long term social unrests which make road projects could not meet sustainability criterion, they are often insufficiently determined and analysed by decision-makers when planning and implementing road projects Therefore, this paper synthesizes impacts of land acquisition on local community in road projects with the focus on land lost community At the beginning, it introduces local communities as one of important stakeholder affecting projects, and then describes impacts of land acquisition including both positive and negative aspects At last, the situation of compensation process with consideration of negative impacts of land acquisition on community in Vietnamese road projects will be described and compared with other countries Keywords: Sustainability, road projects, community, land acquisition Introduction In the sphere of road projects generally and road projects particularly, the local community is considered as an important stakeholder who have interests affected or potentially affected by project, pertaining to their experience about project outcomes (Griffith and Dunwoody, 1997; Baxter et al., 1999; Green, 2005 as cited in TEO, 2009) The importance of community to public projects generally and land acquisition specifically is mentioned widely in scholars’ studies (Aaltonen & Kujala, 2010; Barrios, 2008; Larbi, Antwi, & Olomolaiye, 2004) This important role is expressed in the fact that community can have positive or negative impacts on projects or their land acquisition process depending on their perceptions of cost and benefits Land lost community whose land is acquired is a part of local community in the scope of road projects who are most directly affected by land acquisition processes of these projects If land acquisition process is not implemented with full awareness and consideration of impacts of this process on community, this can lead to not only conflicts between them and related parties who compulsorily acquire their lands but other long term social problems (Asif, 1999; Dore & Lebel, 2010; Larbi, et al., 2004) Impacts of land acquisition in road projects on local community 2.1 Positive impacts Building a new road often requires a large area land acquisition, so the positive impacts of roads on community can be also attributed to land acquisition Once roads are constructed in local areas, they can facilitate economic and industrial developments of those areas, this, in turn, can help to improve living standard of their local community or households specifically (Van de Walle & Cratty, 2002) Hoang (2009) shows that new roads built lead to an increase in number of small and medium enterprises, and increase in off-farm employment in the country areas This impact can create better job opportunity for local farmers to acquire more incomes for their livings In addition, investment in road projects is likely bring other benefits to community such as more chances for local products to access market, hence increase revenues of farming households (Ding, 2007) also states that road development occurred beyond the city central provide incentive for development to expand urbanisation into rural regions This expansion can help local residents have more opportunity to access modern technology and knowledge As for urban areas, road projects implemented also benefit community by the reduction in commuting time and the reduction in road accident rate (Hoang, 2009) This impact can be time, cost, and effort saving for urban community as well as its authority, and become one of the most important factors to implement road projects In Vietnam, although constructing new roads may create noise and air pollutant affecting neighbouring parcels, this is not associated with the decrease in their value as stated in a study conducted by FAO (FAO, 2008) Conversely, land surrounding roads even generate great increase in value because of the growth of the local demand This is because new business opportunities attached in that land appear such as leasing land to enterprises and offices, or doing landowners’ self-business The increase in land property due to the improvement of local utility and profitability in the region of new roads is also pointed out by Hayashi and Do (2010) 2.2 Negative impacts Besides irrefutable positive impacts on community of land acquisition for road projects mentioned in last section, the consequences of land acquisition can also be enormous including adversely environmental, social, cultural, and financial impacts with more concentration on large portion or entire land acquired households Therefore, despite the good reasons for land acquisition, the implementation frequently results into damaging consequences (Kusiluka, Kongela, Kusiluka, Karimuribo, & Kusiluka, 2011) a Environmental impacts According to Kusiluka et al (2011), environmental degradation was a serious problem in most land acquisition areas The problems associated with land acquisition included soil erosion, uncontrolled bush fires, and destruction of water resource In their survey, many respondents from local community also agreed that environmental degradation had changed the rainfall pattern in the area It is said in the study of FAO(2008) that people may be deprived of some enjoyment of their land even if it is not acquired This situation stems from noise and air pollutant that the road projects accompanied with land acquisition bring to local residents Traditionally such losses have not been regarded as being eligible for compensation Environmental problems derived from land acquisition not only affect residents’ space of life, but also their livelihood and safety In their study, Syagga and Olima (1996) claim that on some of the remaining land, some parcels are on steep slopes, others are susceptible to landslides, and some are seriously under the threat of erosion These issues are much likely to cause losses to land owners’ crops Syagga and Olima also mention that a further effect on partly acquired land was the case of the contractor not rehabilitating damaged land For instance, during their survey, the contractor's quarrying activities had blocked a river causeway which had caused flooding in the area The excavated quarry had also been left open, thereby posing danger to the residents b Socio-cultural impacts Land acquisition has created a serious social tension that has quickly spread from rural to urban areas Observable evidence of social and economic injustice resulting from the rural land acquisition and compensation process is documented (Ding and Knaap, 2005; Tan and Wang, 2003; Cartier, 2001; Li, 2003) Both horizontal and vertical injustices of land acquisition compensation give rise to increasing social tensions, particularly between local governments and farmers (Ding, 2004) Land acquisition resulted into relocation of local residents and this, in turn, can breakdown family cohesion and other social network (Larbi et al., 2004; Zaman, 1996; Coldham, 1995, Syagga and Olima, 1996) Field surveys by the Lin and Lin (2006) showed that 36.5% of families interviewed said their families were forced to split up and to resettle in different places Syagga and Olima (1996) assert that infrastructure construction can bring a series of effects on the lives of the members of the community For example, on the part of the wholly acquired landowners, the physical movement of the land lost people to new districts caused a cultural disintegration within families as well as the community in general, resulting from the break-up of relationship ties Family cohesion, co-operation and support have been negatively affected The extended family has lost its role as a social-support system in several cases Around the project site, there was creation of new job opportunities for people within the community, thus improving socio-economic status of local members in short term The sudden socio-economic changes in the environment caused an increase in marital problems such as family breakdowns, increased immorality and teenage pregnancies The socio-cultural impacts of land acquisition were listed in a survey of Syagga and Olima (1996) including separation from extended family/social groups and friends, family feuds, high crime rate and insecurity in new settlements, moral deterioration, and emotionally and mentally disturbed by the loss of land c Socio-economic impacts Land acquisition has posed many socioeconomic problems to land lost households Many public projects including road projects have triggered forced population displacement but fail to resettle people sustainably and instead cause their impoverishment (Cernea, 2008; Ding, 2007; Syagga & Olima, 1996; WB, 2011) Cernea (2008) also persuasively claimed that expropriation of land eradicates the main foundation upon which land lost residents’ productive systems, commercial activities, and livelihoods are constructed • Financial losses and settlement impacts There is a fact that in many developing countries, landowners often suffer from financial loss when their parcels are acquired This is because compensation practice in these countries does not fully comply with the market mechanism; therefore landowners are not compensated with the market price As a result, the amount of payment received is inadequate to enable the relocated people to set up similar settlements and maintain their normal lives This insufficiency of compensation is exacerbated by the delay which frequently occurs in compensation have put relocated household into more financial difficulties (Bui, 2009; Ding, 2007; Kusiluka, et al., 2011; Lin & Lin, 2006; Ton & Tran, 2009; WB, 2011) Besides, in projects including resettlement options for relocated households, the new areas which were earmarked for the relocated people had poor services and infrastructure compared to the original areas(Fish, 2011; Kusiluka, et al., 2011; Raghuram, Bastian, & Sundaram, 2009; WB, 2011) Many studies have emphasized that the parcels acquired results in the reduction of land lost households’ income (Barrios, 2008; Bui, 2009; Han & Vu, 2008; Kusiluka, et al., 2011; Lin & Lin, 2006; Syagga & Olima, 1996) Kusiluka et al (2011) explain that people’s relocation resulted in the disruption of economic and developmental processes In addition, the disruption of productive activities and the need to settle and establish new facilities was accompanied by a significant reduction in household income A field surveys by Syagga and Olima (1996) showed that the average income of the land lost households in their new settlements is merely 18.3% of previous earnings One possible reason is that some land parcels partly acquired were too small to profitably and economically utilize Moreover, because of the reduced site size, 12.2% of land owners were forced to rent land from others to maintain their livings In addition, resumption of farmland may sacrifice potential benefits from urbanization (Larbi et al., 2004; Zaman, 1996; Coldham, 1995) This loss of opportunity cost in terms of foregone benefits may far exceed whatever compensation may be in long run, and can be considered as a type of financial loss of land lost residents In this case, land acquisition indirectly produces substantial income redistribution effects between farmers with and without land acquired This is based on presumption that farmers can enter land markets and commit land development if their land is not acquired compulsorily (Ding, 2007) • Livelihood impacts Land acquisition can make the lives of relocated occupants in a state of turbulence and put them in financial difficulties Especially, regarding farmers whose land is their mean of living, it poses not only financial problems but also livelihood difficulties in long term Ding (2007) claims that the lives of farmers are multifaceted, and monetary payment for lost income represents only one of many elements for which peasants should be compensated In the absence of equitable land compensation policies, it is hard for unemployed farmers with no land to spend their times in meaningful ways As a result, many peasants end up living under worse conditions several years after their land was taken than they did before This situation is not difficult to imagine Farming does not make peasants rich, but it generates sufficient income to support a minimum level of livelihood and security Without appropriate training and skills in managing their lump sum payment and without appropriate investment channels (if their compensation is sufficient to make any investment at all), it is common for peasants to end up with no land to farm, no income stream to support themselves, and no job skills to compete in the tight urban job markets There are, therefore, costs associated with the use of compulsory purchase powers in that it may lead to loss of livelihoods (Larbi, Antwi, & Olomolaiye, as cited in Lin & Lin, 2006) Bariios (2008) also asserts that income reduction, loss of means (land) of living support, are the most identifiable adverse effects on land lost households In Kusiluka’s survey (2011), 724 indigenous occupants who depended on the land did not have any reliable means of earning income or producing food It was noted during the focus group discussions that lack of land for food production and income generation had adversely affected indigenous people’s livelihoods and capacity to pay for essential services Therefore, land acquisition has resulted in more impoverishment of indigenous farmers As mentioned in a study of World Bank that the biggest problem stemmed from land acquisition in Vietnam relates to opportunities for affected land-users to change their job and restore their livelihood Affected farmers may not be qualified for a job in the non-agricultural sector and local government may not be proactive in looking for practical solutions to this issue (WB, 2011) Consideration and compensation to land lost community in Vietnam 3.1 Land compensation price There is a fact that the compensation price of land acquired for public projects including road projects in Vietnam does not follow market mechanism Although the 2003 Land Law stipulates that the land price applied by provincial people’s committees to determine land compensation has to correspond with the market land price, such regulations are only in principle and not supported by the majority of provincial people’s committees Instead, the land compensation price is still based on government imposed land-price framework in which land price is much lower than market price (Bui, 2009; Thien Thu & Perera, 2011; WB, 2011) For example, the land price in Hanoi was set at 50 - 70 percent of the market price for land (WB, 2011) Also, in Ho Chi Minh City, while the city regulates compensation for agricultural land to be 200 thousand VND per square meter, it is transacted at 2-3 million per square meter in the market (Phuc as cited in Bui, 2009) As a result, this inadequate land price compensation makes relocated residents unable to purchase a comparable land to resettle (Bui, 2009) Consequently, without a proper mechanism for land valuation, and a "just" compensation principle, problems with site clearance becomes complex and difficult to resolve (Bui, 2009) Besides, compensation levels are also deemed unfair by land users due to the inconsistency across projects, administrative boundaries and across different time Different compensation rates may apply for adjacent plots lying within different administrative jurisdictions Even when projects are located in the same locality, publicly funded projects tend to offer lower compensation than commercial projects (Bui, 2009; Thien Thu & Perera, 2011) In this case, the resistance of land lost residents in public project has strongly increased because they have the chance to compare the receivable compensation Consequently, many public projects which use the land-price framework for compensation have not been able to acquire land for implementation (Thien Thu & Perera, 2011) 3.2 Resettlement and livelihood of land lost community A general principle of the current resettlement legislation is to ensure sufficient support for land-users whose land is recovered so that they can restore their livelihood and lost income However, these regulations in principle are often not fully followed in practice This situation leads to the fact that the compensation which relocated households receive can make up only a part of their full losses, especially when compensation for the loss of non-monetary benefits and long term benefits is not fully and reasonably considered (WB, 2011) There are numerous articles establish the link between rising land acquisition disputes to the inadequacy of resettlement options Resettlement zones are rarely completed by the time the site clearance process takes place As a result, many affected households are held in temporary shelters for an extended period or have to resort to their own means to find replacement housing (Bui, 2009) Moreover, the resettlement sites are often of poor quality and in remote areas where the land price is low Cultural, spiritual values and beliefs are not considered during the planning of resettlement sites (Bui, 2009; WB, 2011) This inconvenience creates many difficulties for land lost residents to restore their livelihood Bui (2009) claims that farmers tend to have issues with living in resettled apartments that are much smaller than their previous houses and lack open space to continue agricultural work or construct their own houses In addition, households dislike being relocated to a completely unfamiliar area far away from their old socio-economic setting As a result, many relocated households end up living under worse conditions several years after their land was recovered by the state than they did before Without appropriate job training, job replacement and experience in managing their lump sum payment and appropriate investment channels (if their compensation is sufficient to make any investment at all), it is common for peasants to end up with no land to farm, no income stream to support themselves, and no job skills to compete in the tight urban job markets (Bui, 2009; Han & Vu, 2008) 3.3 Community voice and participation There is the serious imbalance in the voice between authorities and residents in land acquisition procedures While many administrative agencies participate in making decisions and promoting land conversion process, the participation of community and residents whose land is acquired is still very restricted For example, The World Bank (2011) states that most of the current compulsory land acquisitions are dealt with by the Board for compensation, support and resettlement (BCSR) established by the District People’s Committees which is responsible for all aspects of land recovery, compensation, and resettlement Their activities are based on administrative procedures and participation by communities, social associations, and affected people is still poor Throughout the country, the procedures are similar and largely administrative The lack of participation may also lead to higher than necessary compensation costs as it precludes negotiation with communities on innovative solutions that may be mutually advantageous 3.4 Compensation to land lost community in Vietnam in comparison with other countries With the principles of compensation to land lost community extracted from literature as listed in the table 1, compensation practice in Vietnam is compared to some countries including United States, United Kingdom, Singapore, and China Particularly, the differences in compensation practice between developed and developing countries are also indicated to be aware of the gap between them As can be seen in the table below, compensation practice in road projects in Vietnam does not meet requirements of equitable and sustainable principles listed If decision-makers continue to compensate land lost community with low price compared to market price, and to acquire land without caring about livelihood and changes in environmental and cultural system, the protests, conflicts, and social unrests will remain in long terms Principles Developed countries NA Equity as a principal United States Y (Chan, 2003) United Kingdom Y(Chan, 2003) Australia Singapore China Vietnam Y(Chan, 2008) NA NA Y(Chan, 2003) Y(Chan, 2003) Y(Chan, 2008) Y(Chan, 2008) NA NA Y-since 2007 (Chew, Hoong, Tay, & Vellasamy, 2010) N(Ding, 2007) N(Han & Vu, 2008; Kim, 2011) N (Han & Vu, 2008) N(Bui, 2009; Han & Vu, 2008; Nguyen, Nguyen, Tran, Prickett, & Phan, 2010; Vietnam Infrastructure Report - Q4 2012, 2012) N(WB, 2012) Value to the owner principle Land is compensated at market price NA Compensate other expense outside raw value of land (e.g special value, injurious affection, and solatium)Indirect compensation Y(Ding, 2007) NA Y(Chan, 2003) Provide good conditions in resettlement areas NA NA NA Sufficient care for livelihood of resettlement residents NA NA NA N (Kotaka and Callies, 2002) Y(Chan, 2008), (Beach, Keast, & Pickernell, 2011) Y(Beach, et al., 2011) NA Care for restoring environmental and cultural systems Analyse the impacts of projects on displacement residents Community participation NA Y(Ding, 2007) NA NA NA NA NA NA NA NA NA Y(Beach, et al., 2011) Provide sufficient information to land users in land acquisition Positive action in resolving complaints NA NA NA NA NA NA Y(Chan, 2003), (Ding, 2007) Y= Yes Y(Chan , 2003) N=No y(Beach, et al., 2011) *Y(Graeme , Nelson, & Evan, 2011) P= Poor Y(Chew, et al., 2010) NA NA NA Y(Chew, et al., 2010) NA Developing countries NA NA N(Chan, 2003),(Ding 2007) N(Ding, 2007) N (Bui, 2009) N(Hui, Bao, & Zhang, 2013) N(Hui, et al., 2013) NA N(Nguyen, 2012) N (Ding, 2007) N(Hoàng, 2011) NA P(Kim, 2011) NA NA P(WB, 2011) NA NA NA Y(Chew, et al., 2010) NA N(Ton & Tran, 2009) N((Kim, 2011) NA=Not applicable Table 1: Compensation for land lost community in Vietnam in comparison with other countries NA NA Conclusion Road projects are implemented for the development of countries in general and local areas in particular However, the sustainable development purpose could not be achieved without thoroughly considering and overcoming the problems arising from potentially negative impacts of road project implementation on local community With considerable negative impacts 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