Broadening stakeholder participation to improve outcomes for dam-forced resettlement in Vietnam

Forced resettlement due to hydropower dam construction in Vietnam continues to result in poor outcomes, in part due to the poor productivity of replacement agricultural land, poor local governance, and constrained access by displaced farmers to forest land and fisheries. This paper critically examines three recent initiatives in Vietnam that promise to promote more stable livelihoods for displaced populations and to strengthen participation in development for residents as well as civil society. The first is a payment for environmental services (PES) scheme for hydroelectric revenue sharing to fund forest maintenance and monitoring by displaced households, while the second focus is an international financial institution (IFI)-initiated project that prioritizes gender empowerment and participation. The PES scheme promises a sustainable income stream for displaced households and has institutionalized legal and government backing, but it entails high transaction costs and a lengthy planning phase. The IFI project offers residents generous compensation and the rights embodied in IFI involuntary safeguards, but a lack of effective livelihood support and poor communication provide cautionary notes. A third, rights-based approach by Vietnamese civil society organizations (CSOs) involves advocacy to achieve effective reallocation of state-managed forest land to displaced villagers. The authors examine the potential for benefit-sharing mechanisms, IFIs, and CSOs, backed by new legislation and expanding space for civil society in Vietnam, to address the problems posed by inadequate local governance. They conclude that these approaches show merit for nationwide replication, and there is a need for including these external stakeholders in local resettlement management bodies.