Responses to compensation affected by the Son La hydropower resettlement in Northwestern Vietnam

 International Conference on the Mekong, Salween and Red Rivers: 
 Sharing Knowledge and Perspectives Across Borders
 Hosted by: The Faculty of Political Science, Chulalongkorn University
 Research paper
Responses to compensation affected by the Son La hydropower 
 resettlement in Northwestern Vietnam
 Prepared by: Pham Van Dung
 Culture Identity and Resources Use Management (CIRUM) & LandNet
 Edited by: Dr. Krisna Uk, Centre for Khmer Studies (CKS)
 12th November 2016 Introduction
The Son La hydro electricity power plant is the biggest hydropower development in Vietnam, 
and is considered a special national construction. This 2,400 MW hydro dam holds a capacity 
of 9.26 billion cubic meters, and is estimated to flood 23,333 hectares of land, including 
almost ten thousand hectares of rice paddies, gardens, and fishponds (Dao, 2011). While the 
construction of the plant was under direct supervision of the government, the Prime Minister 
and other government officials repeatedly declared they would guarantee the 20,340 
households and 93,201 people from 248 villages in the three provinces of Sơn La, Điện Biên, 
Lai Châu affected by the Son La dam that they would gain equal or better life after 
resettlement (VNPM, 2016). The hydro plant was built during 2005-2012, and it was stated 
that its completion was two years earlier than it had been set in the plan. Quick preparations 
for the resettlement and short time for calculation and disbursement of compensation were 
the main factors contributing to the earlier completion of the construction. In practice, fair 
compensation before and during displacement in addition to other suitable and sufficient 
support mechanisms after resettlement should be the key factors that contribute to the 
mentioned target achievement set by the government, however.
The building of the Son La hydro electricity dam resulted in the massive resettlement of 
households, moving people from their ancestral land to very different land and climate 
conditions. Resettled people are faced to some extent with the issue of justice deriving from 
resettlement and compensation process. They have been suffering from land shortages caused 
by their inability to access essential livelihood resources, such as land rights, forest use, and 
access to fishing. Resettled people demanded adequate and fair compensation for the loss of 
their traditional land as well as redress to stabilize and improve their life over the long term. 
Currently, those people face difficulties in meeting agreed livelihood standards, which 
includes stable income, non-toxic farming, and access to safe drinking water.
Although some research and newspaper articles have attempted to examine the real situation 
of the resettled communities, greater investigation on the issue of justice of compensation in 
such resettlement programmes is lacking. To fill this gap, the aim of this research is two 
folds: 1) to evaluate stated objectives or commitment of ‘equal or better life after 
resettlement’ and actual circumstances as perceived by resettled households. Specifically, this 
evaluation consists of: a) issue of timing, dimension and fairness of compensation for 
resettlement; b) sufficiency of compensation for loss, removal, stabilization and opportunities 
for future development; and c) opportunities to improve resettled people’s life. 2) To examine 
the degree of community involvement in planning, decision and suitability of the support 
mechanism. The results of this research aim at raising voices of the resettled people in 
response to increasing resources for development in the region. Furthermore, the gap between 
the perceptions of affected local people and those of the local authorities, hydropower 
technicians and the media can be better anticipated so as to become a useful source of 
information, which will help the relevant actors recognize and implement suitable solutions 
and approaches in the future.
Methodology
This research involves 36 village heads, leaders and villagers from 18 villages, 7 communal 
leaders, 5 district officers in 4 districts of Son La province and one district of Dien Bien 
province, 6 provincial officers who attended and spoke at an advocacy meeting as well as 1 
director of the Son La hydro dam. Among the 55 respondents, 33 were involved in direct 
interviews and 22 participated in 3 group discussions and presented their views. The 
 1 researcher started with building relationship and trust among the informants as a foundation 
for semi-structured and in-depth interviews. The research involves representatives from 
different social status, gender and ages, while interviewing village heads and elders brought 
about history of the community and an overview movement of the village. When interacting 
with people, the researcher conducted participant observation, note taking, voice recording 
and photograph taking with the permission of the interviewed participants. The researcher 
collected data over the course of two fieldtrips trips in early 2016. The first fieldtrip focused 
on the individual interviews of 16 informants from 7 villages. The second trip opened up 
some focus group discussions where representatives from 14 different resettled villages 
affected by the Son La dam were involved. Following the two above-mentioned fieldtrips, 
additional follow-up interviews were conducted later via telephone in order to get updates 
and fuller information relevant to the topic. Secondary data was collected in the form of 
district and communal social-economic reports as well as evaluation reports from the 
resettlement agencies. The collected primary data, including collected interviews of villagers, 
village chiefs, and local officers were compared to the literature review of the publications 
and newspaper articles that related directly to the research focus. 
Literature review
The analysis of justice in resettlement compensation draws on the 'environmental injustice' 
framework suggested by Middleton et al (2015), which consists of three modes: 1) 
distributive justice, relating to fairness of accessing and sharing resources; 2) procedural 
justice, which refers to how and who is involved in consultation and decision making; and 3) 
justice as recognition, relating to inclusion and exclusion of a certain group in the 
development process, in which marginalized groups often face obstacles in accessing natural 
resources. Middleton et al show that the problems inherent in decision-making on food, 
water, energy nexus often come from unequal power relations, lack of democracy, 
transparency and public participation (2015: 628). Therefore, it is recommended that a 
bottom-up approach is used and fair decision-making and an introduction of the concept of 
environmental justice in the water-food-energy nexus be promoted (Middleton et al, 2015: 
645).
There are relevant publications relating to the Son La hydropower plant and its induced 
resettlement and compensation system. Among them, Nga Dao’s (2011) is a remarkable one. 
According to Dao, before resettlement, affected people mainly lived and produced food for 
self-sufficiency (2011: 128). Due to huge numbers of resettled people and a very short time 
for preparations, compensation and resettlement, the recruited staffs had little knowledge of 
resettlement process, which resulted in them not being capable enough to operate smoothly. 
Consequently, land allocation and compensation processes were also very slow. A large 
number of resettled people found there were still no roads, water or electricity in the resettled 
sites following their relocation. It even took a year or longer for people to get access to roads 
and electricity in some resettlement sites. In addition, many resettled people face shortage of 
water every day (2011: 124). Limited availability of farming land, especially wet-rice fields 
became a critical issue. Because wet-rice fields were not available, resettled people received 
hilly subsidiary croplands instead (Dao, 2011: 129). While land cannot be distributed to 
babies born after the resettlement date, young couples with two small children may receive 
about 5,000m2 of land that is insufficient to maintain their livelihood if they relied on land 
only. Therefore, many male labourers leave the village to find work as porters or take on 
other jobs to earn a living; otherwise their families face hunger. A number of families 
returned to their pre-resettled villages instead, located forty to fifty kilometers away from the 
 2 new village in order to seek the remaining land located above the reservoir to grow crops 
(2011: 130). Dao pointed out that the main reason for the above-mentioned resettlement 
problems consisted in the under-estimation of the costs of hydropower construction because 
the designers neglected to account for externalities. Losses of agricultural land and forest and 
the resettlement itself were calculated and compensated on the basis of prices that were below 
the market level. This resulted in the project costs being set far lower than any real costs 
(2011: 132).
Research findings
1. Results from primary data
Table 1 below gives an overview of the three main issues of land, water and compensation 
for the 18 villages affected by the Son La hydropower plant. It shows that all the visited 
villages are facing shortage of land, while representatives of 15 villages (88%) claim shortage 
of water, and people from 16 villages (94%) within the total 18 villages judge the 
compensation process was unfair.
Table 1: Issues raised by the 18 visited village representatives
 Shortage of Shortage Unfair 
 # Village Commune, district
 land of water compensation
 Na Lay, Mường Lay (Điện 
1. Na Nát Yes n/a Yes
 Biên province)
2. Củ Pe Mường Bon, Mai Sơn Yes Yes Yes
3. Hé 2 (bản Hé) Mường Chiên, Quỳnh Nhai Yes Yes Yes
 Hé 1 (Tông 
4 Mường Chiên, Quỳnh Nhai Yes n/a Yes
 Tở)
5. Húa Lấu Mường Giôn, Quỳnh Nhai Yes Yes n/a
6. Chẩu Quân Mường Giàng, Quỳnh Nhai Yes Yes Yes
7. Nha Tổng Mường Giàng, Quỳnh Nhai Yes Yes Yes
8. Phiêng Lèn 1 Mường Giàng, Quỳnh Nhai Yes Yes Yes
9. Phiêng Lèn 2 Mường Giàng, Quỳnh Nhai Yes Yes Yes
10 Phiêng Lèn 3 Mường Giàng, Quỳnh Nhai Yes Yes Yes
11. Co Chặm Chiềng Bằng, Quỳnh Nhai Yes Yes n/a
12. Mai Quỳnh Mường Bon, Mai Sơn Yes Yes Yes
13. Noong Luông Cò Nòi, Mai Sơn Yes Yes Yes
 Hoa Quỳnh 
14. (Resettlement Hát Lót, Mai Sơn Yes Yes Yes
 No. 428)
15. Chiềng Yên Chiềng Cọ, Sơn La city Yes n/a Yes
16. Pá Uân Mường Giàng, Quỳnh Nhai Yes Yes Yes
17. Ná Mường Mường Trai, Mường La Yes Yes Yes
 3 18. Nà Tân Tân Lập, Mộc Châu Yes Yes Yes
 Total ‘Yes’ 18 15 16
While the above table gives a summary of the visited villages, the following sub-sections 
help to clarify each issue in more detail with illustrated quotations and stories from the 
informants.
1.1. Calculation and coverage full cost of the losses, particularly traditional cultivation 
land
Most respondents from the studied villages were not satisfied with the received compensation 
from the Son La hydropower resettlement scheme. Some people said that they did not get 
compensated for the loss of their kitchen, animal facilities and toilets. A number of people 
expressed at the meetings and interviews that they did not get fair and timely compensation 
for the loss of their traditional forestland. The informants said that they have not been 
compensated for the loss of production forestland or rotational cultivation land, which exists 
above the height of 218m above sea level, or the submerged water level of the Son La 
reservoir. 
1.2. Compensation for different sections of resettlers
People and local officers raised the question of lower land compensation in Son La province 
in comparison to what has been done in Dien Bien or Lai Chau provinces. Because of the 
formal adjustment of the rate of compensation, people who pioneered the move by relocating 
earlier said that they received lower payment in comparison to those who delayed their 
relocation. A respondent commented on the lack of evenness in distributing resettled land 
“Allocation of residential land in this village is not equal, while some households get 320m2 
only, others get 350m2, or 380, or 400m2. Though people want to raise animals, they cannot 
practice it because of the land being so narrow”. 
1.3. Disbursement timing of compensation fund
Timeline for compensation payment and redress for the loss of resettled people are two 
important factors contributing to fairness of disbursement. A village leader asserted “The 
government allocated scattered land several times”. So, it is difficult for the villagers to have 
land available in time to cultivate and make sure they meet their food security needs in the 
new resettled sites.
1.4. Difficulties faced by resettled people
1.4.1. Shortage of land
There are two types of new resettlement: urban or non-agricultural settlement, and rural or 
agricultural one. While the urban settlers only get residential land, they face a lot of 
difficulties in coping with changing jobs, free market and having to adopt an entirely new 
way of life. For instance, urban resettled people in Mường Giàng commune, Quỳnh Nhai 
district do not have production land except approximately 400m2 of residential land. A 
village leader in Mường Giàng commune said: “there are 112 households in the village, of 
which 35 households having salaries or stable income as government staff or retired people. 
The other 77 households are typically the same poor. As farmers for generation, today we 
have no land, no money. We do not know what to do, how to live; it is very difficult for us. 
We are eating today but we do not know what we will have for food tomorrow. Villagers 
have to sell their labour force, they are worried about their day-by-day earning. We expect 
 4 the government to have policies helping us to have basic production tools to produce and to 
live”. Another village leader of the same commune commented: “Without production land, 
almost every household in the village lives a challenging life. Some of us rely on catching 
fish in the river. In order to get food, we sell our labour force as builder, carpenter, and we 
provide transportation services at the reservoir. We have no production land, we cannot do 
anything, we cannot even do livestock raising. We have to work as builders, or vendors in 
small business such as vegetable sellers. We have now moved here for 7 to 8 years but we 
have not been given any support to take on non-agriculture jobs”. In a meeting, 
representatives from three other villages in Muong Giang commune of Quỳnh Nhai district 
described very similar situation with land shortages, labour redundancy, low income as 
mentioned by the previous villages. 
In agricultural or rural resettlement areas, shortage of cultivable land is even more serious 
than in non-agricultural resettled areas. Land, or basic production tools to ensure stable 
livelihood is always a precarious issue everywhere in the displaced areas. This statement is 
clearly expressed by a Noong Luong village elder: “We are facing a lot of difficulties if you 
look and understand what is inside the community. Though the outside appearance, e.g.: road, 
employment as laborers, school, etc. looks good, a critical issue is that we really lack land for 
cultivation. Land in the old village is now submerged; we cannot grow maize there. We 
would like to raise goats but there is no land available to do so”. Another aspect of the 
shortage of cultivable land is the quality of the land that allows resettled people to continue 
the production of what they used to grow in the former village. A villager from Hé 2 village 
of Mường Chiên commune, Quynh Nhai district said: “we are not happy at all with our living 
conditions in this new relocation area. We see that our life is harder. Today we only have one 
crop of rice with an unproductive yield, instead of two crops per year before resettlement”. 
Moreover, it is not easy for resettled people to find jobs and alternative income sources in 
order to compensate for the land shortage. A Hoa Quỳnh villager in Hat Lot commune, Mai 
Son district stated: “We only have 8,000 to 9,000 m2 of land allocated to a household of 4 
people. We mainly grow maize. Being landless, we have to work as hired laborers in order to 
get VND 120,000-130,000 (USD 5.4 to USD 5.8) per day. However, jobs are only available 
at certain times, depending the owner’s call. We have a little piece of land, it is not enough 
for our living”. 
1.4.2. Training on new skills and job created for resettlers 
Because of land shortage for cultivation, it is necessary to provide suitable training to 
improve skills and create jobs for resettled people. However, this activity is not recognized by 
the affected people as a suitable and helpful type of support. A village leader said: “We have 
to run different small business at the market. The district officials offered us training on 
growing mushrooms but after the training we found it difficult to practice it because of 
investment fund shortages. Only 4 households were able to do this job because they 
themselves contributed a small capital in their business and received funding support to 
maintain their job”. People from other localities in Dien Bien province shared similar 
concerns about urban or non-agricultural resettlement. A villager of Na Lay commune, 
Muong Lay town said: “We do not have stable jobs to do. We have to run different small 
businesses in town but we do not earn enough for our daily life. Many of our villagers have a 
lot of debt due to daily food (rice). For our house, we are allocated 300 m2 per household. 
Everyday we have to go to the river for fishing to earn a living. People do not own a boat for 
fishing; it means that not everyone can do fishing. Six among 53 households in our village 
can go fishing. They earn from VND 30,000 (USD 1.35) to VND 150,000 (USD 6.7) per day 
depending on their luck. Other people work as laborers for companies or landlords. 30% 
among us have to venture in different small businesses such as vegetables and rice or cake 
 5 selling, or making furniture and repairing motorbikes, bicycles, or construction work. About 
70% of the villagers wish to have land for rice cultivation instead. We are trained for taking 
up some kind of jobs but we have not found any suitable jobs to do. We have not yet invested 
in livestock raising to create an income”.
1.4.3. Other social issues
While dealing with land shortage for cultivation and insufficient skills to get a new 
sustainable job, resettled people face difficulties to raise from poverty. A representative from 
He 1 village stated that: “There is no rice field in the new resettled village. Since we moved 
to live here, we have faced a lot of difficulties, and we want to move to another place, but 
where will we be going now? Who is responsible for us? We find it very difficult to stay 
here, as we only have 200 to 300m2 of cultivation land per person. This is far to be enough 
for production to assure daily food”. Stagnation is not merely observed among the middle-
aged and old people, but also an issue of concern faced by young resettlers. A villager of 
Noong Luông village commented: “Our living conditions are difficult to improve. We have 
little land, while our children have no jobs after studying. There are more than 10 youths in 
the village who graduated from colleges but have not been employed yet. They have no land 
for farming. Some of them can work for temporary wages because some factories near here 
are not so economically stable. Getting jobs depends on the situation of the factory owners”.
1.4.4. Building infrastructure and participation of affected people
The resettlement project has created roads, schools, healthcare centers, water system, etc. 
Resettled people are entitled to access those facilities, however the quality and sustainability 
of the above mentioned infrastructure is an issue. A villager from Hoa Quynh village said 
that: “Water (pipe) system was designed to get through a host village, and it was soon broken. 
Builders and designers did not listen to us when we told them to get the water source from 
another place, which is closer to our village. Then we had to contribute VND 8 million (USD 
358) to rebuild the water system to be connected to another water source. Some households 
had to drill 80m-depth wells to get water, and pay VND 600,000 (USD 26.9) per month for 
pumping”. This story does not only reflect the lack of quality and sustainability of the 
compensated constructions, but also the rights of affected people in being consulted and 
being active decision makers in a resettlement project.
2. Results from secondary data
Table 2 below reflects the main issues identified in 19 villages, which appeared in 
publications and the media via search engine. Because the retrieved articles focus mainly on 
land issues, problems related to water or compensation fairness may not have been included 
although they are issues of great concern in reality. Among the 19 resettled villages found in 
publications, people in 17 villages (or 89.4%) are facing land shortage. Water shortage is 
described by 3 villages (15.8%), and unfair compensation is claimed by people in 7 villages 
(36.8%).
Table 2: Issues of the 19 villages appearing on publications and the media
# Shortage of Shortage of Unfair 
 Village Commune, district
 land water compensation
1 Na Lay commune, Mường 
 Na Nát yes n/a n/a
 Lay district
 6 2 Mường Bon commune, Mai 
 Củ Pe yes n/a n/a
 Sơn district 
3 Pác Ma - Pha Khinh 
 Hé commune, Quỳnh Nhai yes n/a n/a
 district
4 Tân Lập commune, Mộc 
 Hoa 2 n/a n/a yes
 Châu district
5 Cò Nòi commune, Mai Sơn 
 Hua Tát yes yes yes
 district
6 Residential Na Lay ward, Muong Lay 
 yes n/a yes
 area No. 7 town
7 Huoi Luc 1 Muong Bang, Tua Chua yes n/a n/a
8 Chiềng Sung commune, 
 Quỳnh Lỷ yes n/a yes
 Mai Sơn district
9 Chiềng Bằng commune, 
 Lóng yes yes n/a
 Quỳnh Nhai district 
10 Nam Pi commune, Nam 
 Nam Voi yes n/a yes
 Nhun district, Lai Chau
11 Na Lay ward, Muong Lay 
 Bó yes yes yes
 town 
12 Na Lay ward, Muong Lay 
 Hốc yes n/a n/a
 town 
13 Tân Lập commune, Moc 
 Nặm Khao yes n/a yes
 Chau district 
14 Tân Lập commune, Moc 
 Dọi 2 yes n/a n/a
 Chau district 
15 Phong Thổ town of Lai 
 Pa So yes n/a n/a
 Chau province
16 Phong Thổ town of Lai 
 Hữu Nghị yes n/a n/a
 Chau province
17 Quan Mường Lay town of Điện 
 yes n/a n/a
 Chiêng Biên province 
18 Chiềng Ơn commune, 
 Lốm Lầu n/a n/a n/a
 Quỳnh Nhai district
19 Co Đớ Mường Lay town yes n/a n/a
 Total 
 17 3 7
 confirmed
The selected published articles reflect each case separately, and there is not much comments 
or critiques on the issue of fairness of compensation. Among them an outstanding article 
released by the Central Institute for Economic Management (CIEM, 2014) challenges the 
principle of ‘better life in the new resettled sites’. It estimates that tens of thousands of people 
have been facing difficulties after resettlement; thousands of households have not received 
 7 enough compensation and support. The article concludes that the resettlement has been 
conducted in a non-transparent and confused way.
Discussion and conclusion
The research findings show evidences in land shortage, job creation, income condition and 
infrastructure facilities that undermine the ‘equal or better life after resettlement’ statement 
made by the government. In reality, all the villagers expressed their strong concern about land 
availability for current and future generations. Another issue is the change of production, 
lifestyle and people’s ability to adapt in the new area. Relocated people used to practice self-
sufficiency when rice field, cultivated lands, streams in the pre-resettled, original land used to 
provide them with almost enough food for them to meet their basic necessities. Though it 
may seem easy to get an income from hired labour in the new market-oriented resettled areas, 
people may have to pay a lot more for seeds, fertilizer, rice, foodstuff, and even electricity for 
pumping drinking water in post-resettled sites in comparison to the former villages. 
Thereafter it is not possible to conclude that people have better consumption capacity and 
savings after resettlement. Moreover, as described by some informants, resettled people also 
face potential debts trying to compensate for other shortages 
The primary and secondary data shown in the above two tables are almost correlated in terms 
of land shortage faced by resettled people. They reflect the critical issues found almost 
everywhere in the resettled communities. Although the issue of water shortage and 
compensation fairness was less identified in the secondary data, it does not mean that these 
issues do not exist. The reason is more likely that published articles concentrated on issues of 
greatest concerns (i.e. land) while other issues were relatively neglected.
Drawing on found evidences and supported facts, it is reasonable to conclude that the 
compensation scheme of the Son La hydropower resettlement has not been fully calculated 
and anticipated according to the affected people. In addition, resettled people are facing a 
number of difficulties, especially shortage of production land, water, unemployment, 
degradation of road and other infrastructure, lifestyle change and the rights of people to be 
consulted and take an active part in development projects. The principle of ‘better life after 
resettlement’ remains uncertain, which requires the government and the relevant hydropower 
operator to address proactively. Therefore, the stabilization and improvement of the resettled 
people’s life is a long journey, which needs sufficient energy, expertise, consultation and 
further financial resources.
The case of the Son La hydropower plant is a useful case study for future hydropower 
schemes in the Mekong region and elsewhere not to replicate. In order to avoid discrepancies 
in compensation and the poor performance of resettlement projects, it is highly recommended 
that full cost is calculated that will cover all losses as well as the cost of resettlement, 
stabilization and improvement of resettled people. Better social and environmental impact 
assessment should also be conducted before approval is given to a hydropower project. This 
process can only be completed well whenever the norm of FPIC (Free, Prior Information 
Consent) and participatory consultation of the affected people are ensured. To stabilize and 
improve the livelihood of resettled people in an effective manner and to secure suitable 
design, planning and implementation of the supporting project, people’s participation in 
decision-making remains a priority.
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