THE REALITY OF RESIDENTS’ LIVELIHOODS AFTER LAND RECOVERY IN THE DANKO CITY THÁI NGUYÊN PROJECT

THE REALITY OF RESIDENTS’ LIVELIHOODS AFTER LAND RECOVERY IN THE DANKO CITY THÁI NGUYÊN PROJECT

THE REALITY OF RESIDENTS’ LIVELIHOODS AFTER LAND RECOVERY IN THE DANKO CITY THÁI NGUYÊN PROJECT

Nguyễn Khắc Thái Sơn

Nguyễn Khắc Hải

Nguyễn Văn Huy

Nguyễn Thị Lợi

Thái Nguyên University of Agriculture and Forestry

Abstract:

An assessment of the current situation regarding the allocation and use of compensation funds from land recovery and the livelihoods of residents after land recovery compared to before land recovery in the Danko City Thái Nguyên Project, using a questionnaire with a Likert scale, reveals the following:  

(i) Allocation and use of funds: Consumption expenditures account for 68.71%; production and business expenditures account for 28.94%; vocational training and job search expenditures account for 2.34%.  

(ii) Employment and income:  

– Employment: Agricultural employment decreased by 49.71%; enterprise employment increased by 69.70%; civil servant and public employee roles increased by 5.56%; small trade and services increased by 91.30%; freelance work increased by 97.67%. 74.81% of respondents rated their employment situation as “equal to” or “better than” before land recovery, remaining at level 4, indicating “high stability,” but this decreased by 16.67%.  

– Income: 91.11% of respondents rated their income as “equal to” or “higher than” before land recovery, remaining at level 4, indicating “high stability,” but this decreased by 16.18%.  

(iii) Housing:  

– Conditions: All three criteria groups improved by one level, reaching level 5, indicating “very good,” with an average increase of 26.30%.  

– Location: There was little change in location, remaining at level 4, indicating “good,” but this decreased by 3.01%.  

(iv) To ensure stable and improved livelihoods for residents after land recovery, the proposed solutions need to be implemented.  

Keywords: Danko, residents’ livelihoods, allocation and use of funds, land recovery, income, employment.

I. INTRODUCTION

The livelihoods of residents after the State recovers land for socio-economic development in the interest of the nation and the public have become a matter of significant concern. A portion of farmers in some projects, following land recovery by the State, face unstable employment, irregular income, and relocation, leading to difficulties in their lives (Phạm Hằng, 2012).

Thái Nguyên City, the central hub of the Northern mountainous and midland regions, has recently experienced rapid development with numerous investment projects. Among these, the Danko City Thái Nguyên Project, which commenced in 2019, has largely completed its first phase by 2023, recovering 34.74 hectares of land from current users. The majority of this land is located in Cao Ngạn commune, with a smaller portion in Chùa Hang ward; 88.41% of the recovered land is agricultural, while 6.39% is non-agricultural production land.  

This project involves the assets of 418 households (235 in Cao Ngạn and 183 in Chùa Hang) and 5 organizations, affecting over a thousand people, including approximately a thousand engaged in agriculture. This marks the first phase of the initial project invested in by the Danko Group in Thái Nguyên Province.

Therefore, the study on “The Reality of Residents’ Livelihoods After Land Recovery in the Danko City Thái Nguyên Project” was conducted to assess how residents allocate and use compensation funds from land recovery and how their livelihoods have changed post-recovery. The findings aim to provide recommendations to relevant authorities for improving the implementation of other projects and the second phase of this project.

II. RESEARCH METHODOLOGY

1. Method of Information and Data Collection

The research was conducted using a pre-prepared questionnaire, developed through the following 7 steps: (1) Research group drafting; (2) Seeking feedback from experts; (3) Synthesizing, discussing, and exchanging differing opinions; (4) Revising, supplementing, and completing the first version; (5) Conducting a trial survey; (6) Summarizing the trial survey forms; discussing, revising, supplementing, and completing the second version; (7) Conducting the official survey.

Information and data were collected from the Center for Land Fund Development of Thái Nguyên City, interviews with residents, and evaluated using the 5-level Likert scale (Hoàng Trọng and Chu Nguyễn Mộng Ngọc, 2005). The results were compiled using Excel software.

2. Method for Determining Sample Size and Selecting Samples

The sample size for residents of Cao Ngạn commune and Chùa Hang ward was determined using Slovin’s sample size formula (1960; cited by Võ Thị Thanh Lộc, 2010) as follows:

Where: “n” is the sample size needed; “N” is the number of households with acquired assets; “e” is the allowable error, with this study using an error rate of 0.1 (achieving a 90% confidence level).

According to this formula, 70 questionnaires are required for 235 households in Cao Ngạn commune, 65 questionnaires for 183 households in Chùa Hang ward (a total of 135 questionnaires for the entire project). Samples were randomly selected sequentially by taking from the beginning to the required sample size according to even order numbers in the land recovery list of each unit.

III. RESEARCH RESULTS AND DISCUSSION

1. Current Status of Fund Allocation

The compiled results show that 418 land users whose land was acquired received a total of 345,903,699 thousand VND, with an average of 827,251 thousand VND per land user from the State’s land recovery. Among this amount: 84.16% (291,095,782 thousand VND) was compensation for assets, 15.56% (53,807,325 thousand VND) was support for land recovery, and 0.29% (1,000,592 thousand VND) was an early land handover bonus. The allocation rates of these funds are shown in Table 1.

Table 1. Current Status of Land Users’ Allocation of Funds Received from State Land Recovery in the Danko City Thái Nguyên Project

Source: Compiled from survey forms.

Data from Table 1 shows that the total amount of money received from land recovery for 135 survey samples is 106,583,000 thousand VND. Of this amount: consumption expenses (building, repairing houses; purchasing goods; living expenses, etc.) account for 73,238,000 thousand VND, or 68.71%; production and business expenses (purchasing land, houses, cars, specialized equipment, etc. for lease or self-production and business) account for 30,849,000 thousand VND, or 28.94%; job training and job searching expenses account for 2,496,000 thousand VND, or 2.34%.

These results are similar to the findings of Nguyễn Khắc Thái Sơn and Nguyễn Thế Hoàn (2021) in Thái Nguyên City: consumption expenses account for 70.84%, business expenses account for 28.81%, and job training expenses account for 0.35% of the total amount. They are also similar to the findings of Nguyễn Khắc Thái Sơn and Phan Phương (2023) in Lộc Hà District, Hà Tĩnh Province: consumption expenses account for 71.54%, business expenses account for 26.03%, and job training expenses account for 2.43% of the total amount.

Thus, 68.71% of the funds are still used for consumption purposes, which do not directly create jobs and income. The proportion of funds used for business and job training is still low (31.28%). This suggests that the stability of jobs and income for people after land recovery is unlikely to be high.

2. Current Employment and Income Status

Table 2. Employment Structure of Residents with Land Recovery at Danko City Thái Nguyên Project

Source: Compiled from survey forms

Data from Table 2 shows that among the 135 surveyed samples, before the project implementation, there were 292 people aged 16 to 60 not attending school, divided into 5 employment groups: 175 in agriculture; 33 in enterprises; 18 in civil servants, officials; 23 in small trade, service work; and 43 in freelance work.

Compared to before the land recovery, the number of people in agriculture has significantly decreased, while the other 4 groups have increased. Specifically, agricultural work decreased by 49.71% (87 people); enterprise work increased by 69.70% (23 people); civil servants, officials increased by 5.56% (1 person); small trade, service work increased by 91.30% (21 people); and freelance work increased by 97.67% (42 people).

The significant increase in freelance work and small trade, service work is due to those whose agricultural land was recovered, who are older or unwilling to change to new occupations, thus not finding suitable new employment.

Table 3. Employment and Income of Residents Compared to Before the State’s Land Recovery at Danko City Thái Nguyên Project

Source: Compiled from survey forms

Data from Table 3 shows that compared to before the land recovery, in 135 survey samples, 74.81% evaluate employment as “Equal” or “Better” and 25.19% evaluate employment as “Worse”; 91.11% evaluate income as “Equal” or “Better” and 8.89% evaluate income as “Worse”. Compared to before the land recovery, the average income is 107.11%, an increase of 7.11%, but 25.19% evaluate employment as “Worse”.

These results are similar to the findings of Nguyễn Thế Hoàn and Nguyễn Khắc Thái Sơn (2019) in Thái Nguyên City, where 71.85% of residents assessed employment after land recovery as equal to or better than before land recovery; the average income after land recovery increased by 5.02%.

Bảng 4. Kết quả đánh giá mức độ ổn định việc làm và thu nhập của người dân tại Dự án Danko City Thái Nguyên

Source: Compiled from survey forms

Note: 1.00 -> 1.80 points = Unstable; 1.81 -> 2.60 points = Slightly Stable; 2.61 -> 3.40 points = Moderately Stable; 3.41 -> 4.20 points = Very Stable; 4.21 -> 5.00 points = Extremely Stable

Data from Table 4 shows that the stability levels of employment and income are quite similar. Although both before and after the land recovery they are rated as “Very Stable” at level 4, the scores before land recovery were at the upper end, corresponding to 4.14 and 4.08 points respectively, while currently they are at the lower end, corresponding to 3.45 and 3.42 points respectively. Currently, the stability levels of employment and income have decreased by 0.69 and 0.66 points, equivalent to decreases of 16.67% and 16.18% compared to before land recovery.

Therefore, compared to before the land recovery, the stability of employment and income is lower but still falls within the “Very Stable” category. These results are similar to the findings of Nguyễn Khắc Thái Sơn and Phan Phương (2023) in Lộc Hà District, Hà Tĩnh Province: both employment and income before and after land recovery were rated as “Very Stable”; before recovery, employment scored 3.98 points and income scored 4.05 points; currently, employment scores 3.65 points and income scores 3.80 points.

3. Current Housing Status of Residents

Table 5. Evaluation of Residents’ Housing at Danko City Thái Nguyên Project

Source: Compiled from survey forms

Note: 1.00 -> 1.80 points = Very Poor; 1.81 -> 2.60 points = Poor; 2.61 -> 3.40 points = Average; 3.41 -> 4.20 points = Good; 4.21 -> 5.00 points = Very Good

Data from Table 5 shows that all 3 groups of criteria regarding resettlement housing conditions are much better compared to before the land recovery. While before the land recovery, all 3 groups of criteria were at level 4 “Good”, with an average of 3.46 points, at the resettlement site, all 3 groups of criteria are at level 5 “Very Good”, with an average of 4.37 points, an increase of 0.91 points, equivalent to an increase of 26.30%.

These results are similar to the findings of Nguyễn Thế Hoàn and Nguyễn Khắc Thái Sơn (2019): the average of all 3 groups of criteria regarding resettlement housing conditions was 0.82 points higher, an increase of 25.47% compared to before the land recovery.

The housing location did not change much, remaining at level 4 “Good”. While before the land recovery, it was 3.66 points, at the resettlement site, it is 3.55 points, a decrease of 0.11 points, equivalent to 3.01%. This is because some households in good business locations in Chùa Hang ward were resettled in Cao Ngạn commune, so even though the housing conditions are much better, the location could not match the previous one.

4. Issues, Causes, and Solutions for Improvement

– Issues and Causes:

After the State’s land recovery for the Danko City Thái Nguyên Project, four issues and challenges were identified:

(i) The proportion of funds spent on vocational training and job searching, and on business investment is low, at 2.34% and 28.94%, respectively.

(ii) The proportion of residents with unsuitable employment is high, at 25.19%.

(iii) The stability of employment and income has slightly decreased, corresponding to reductions of 16.67% and 16.18%. These three issues are interconnected, stemming from a segment of farmers accustomed to farming and a modest lifestyle. When receiving a substantial amount from land recovery, they tend to focus on building houses, repairing houses, buying cars, and goods to match societal standards, without paying attention to vocational training or business investment.

This leads to the low proportion of funds spent on vocational training and job searching, and on business investment. Furthermore, a segment of middle-aged residents finds it difficult to acquire new vocational skills, with few enterprises hiring them, forcing them to take on freelance, small trade, and service jobs. This results in the high proportion of residents with unsuitable employment, contributing to the decreased stability of employment and income.

(iv) The current housing location has decreased by 3.01% due to limitations in current land law policies, lacking provisions for compensating “intangible losses.” These losses are hard to quantify and include losing good business locations, losing production water sources, crop failure due to environmental changes, and unfavorable feng shui positioning of the land.

– Solutions for Improvement:

To address the above issues, the following solutions should be implemented:

(i) Develop and carefully consider livelihood transition and relocation plans for residents towards better and more sustainable stability.

(ii) Raise awareness about vocational change and business investment, guiding residents to leverage family and local advantages; establish and promote ways to use money to generate stable income.

(iii) Implement policies to create preferential capital sources for those needing vocational change, providing additional support for those who have completed vocational training (with certificates) when they start businesses.

(iv) Authorities should supplement regulations on compensating “intangible losses” when recovering land.

IV. CONCLUSION

Compared to before the land recovery, the life of residents at the Danko City Thái Nguyên Project is as follows:

Fund Allocation:

– Consumption expenses account for 68.71%.

– Production and business expenses account for 28.94%.

– Vocational training and job searching expenses account for 2.34%.

Employment and Income:

– Employment: Agricultural work decreased by 49.71%, enterprise work increased by 69.70%, civil servants and officials increased by 5.56%, small trade and service work increased by 91.30%, and freelance work increased by 97.67%. 74.81% of residents evaluate employment as “equal” or “better” compared to before land recovery, scoring 3.45/5 points, still at level 4 “very stable”, but decreased by 16.67%.

– Income: 91.11% of residents evaluate income as “equal” or “better”, with an average increase of 7.11%, scoring 3.42/5 points, still at level 4 “very stable”, but decreased by 16.18%.

Housing:

– Conditions: All 3 groups of criteria have improved by one level, rated as level 5 “very good”, with an average score of 4.37/5 points, an increase of 26.30%.

– Location: The location has not changed much, rated as level 4 “good”, with a score of 3.55/5 points, but decreased by 3.01%.

To ensure that the life of residents after the land recovery is stable and better, the proposed solutions should be implemented.

References

1. Phạm Hằng (2012), Land recovery and the problem of solving employment for farmers, Retrieved from https://dangcongsan.vn/tieu-diem/thu-hoi-dat-va-bai-toan-giai-quyet-viec-lam-cho-nong-dan-154029.html.
2. Nguyễn Thế Hoàn, Nguyễn Khắc Thái Sơn (2019), The living conditions of residents after land recovery in the central area of Thai Nguyen City, Thai Nguyen Province, Journal of Soil Science, No. 57/2019, pp. 121 – 125.
3. Võ Thanh Lộc (2010), Textbook on research methodology and writing research proposals, Can Tho University Publishing House, Can Tho City.
4. Nguyễn Khắc Thái Sơn, Nguyễn Thế Hoàn (2021), Research on the use of compensation and support funds by residents when the State recovers land in Thai Nguyen City, Thai Nguyen Province, Journal of Soil Science, No. 62/2021, pp. 103 – 108.
5. Nguyễn Khắc Thái Sơn, Phan Phương (2023), Evaluation of the implementation results of the Project for Upgrading and Expanding the Xuân Hội – Vũng Áng Coastal Road, section through Lộc Hà District, Hà Tĩnh Province, Journal of Soil Science, No. 72/2023, pp. 125 – 130.
6. Hoàng Trọng and Chu Nguyễn Mộng Ngọc (2005), Data Analysis with SPSS, Statistical Publishing House, Hanoi.

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