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Changes in personal income after land expropriation for industrial parks: Influential factors and policy recommendations

As more and more industrial parks are being constructed, compulsory purchase of land for this purpose has been carried out all over Vietnam, especially in rural areas. Those households whose land was expropriated are now facing changes in their resources of livelihood. For a sustainable development of industrial parks and for industrialization’s sake, proper care should be given to the living standards and income of expropriated residents. | RESEARCHES & DISCUSSIONS CHANGES IN PERSONAL INCOME AFTER LAND EXPROPRIATION FOR INDUSTRIAL PARKS: INFLUENTIAL FACTORS AND POLICY RECOMMENDATIONS by Assoc. Prof., Dr. ÑINH PHI HOÅ* & MEcon. NGUYEÃN HUYØNH SÔN VUÕ** As more and more industrial parks are being constructed, compulsory purchase of land for this purpose has been carried out all over Vietnam, especially in rural areas. Those households whose land was expropriated are now facing changes in their resources of livelihood. For a sustainable development of industrial parks and for industrialization’s sake, proper care should be given to the living standards and income of expropriated residents. One primary principle of land expropriation is to guarantee that the expropriated people‘s life and income will be improved, or at least as good as they were. Finding out about changes in their income and influential factors to it is a challenge which scientists and policy-makers must overcome as it provides scientific grounds for compensation policies for expropriated people. The authors built a model of Binary Logistic Regression out of the theoretical framework on sustainable livelihood and reality in Vietnam with a view to quantifying the influential factors to the expropriated households’ income. To apply and test the model in practice, a survey was conducted directly on 94 households whose land was zoned for Taân Phuù Trung Industrial Park located in Cuû Chi District of HCMC. The result shows that there are six elements affecting a household’s income: (1) the householder’s educational background, (2) the number of laborers per household, (3) use of compensation payments, (4) new jobs from industrial park, (5) the dependency ratio, (6) the area of expropriated land. Keywords: industrial park, land expropriation, Binary logistic regression. 1. Introduction The building and expansion of industrial parks (IP) have brought with them a modern infrastructure, helped tap various sources of capital and played an .