Land Loss with Compensation: What Are the Determinants of Income Among Households in Central Vietnam?

Abstract

The purpose of this study is to investigate the determinants of household income following the loss of land owing to urban expansion in central Vietnam. Using data mainly from household surveys in the peri-urban areas of Hue city, the regression model indicates that demographic factors and livelihood strategy choices have important impacts on household income; financial compensation and support packages do not appear to be strong determinants of household income after the loss of land. This implies a failure of the current compensation programmes in the process of compulsory land acquisition, because the government believes that compensation packages make important contributions to livelihood reconstruction. This study suggests that investing in education and skill training for household members affected by land loss as well as assistance in converting compensation money into an adequate livelihood should be taken into consideration.