FINAL DEFENSE
MAY 17, 2010
Merina Lohani Sitoula
M.Sc. Natural Resources Management
Asian Institute of Technology
August 2008
OBJECTIVES
 To
document land acquisition modalities and
procedures, database and guiding laws/policies by Literature
review
foreign companies for large scale plantations of agribusiness commodities in Thailand, Vietnam, Cambodia
KII
and Lao PDR;
 To assess the socio-economic impacts of large scale
Household
agri-business plantations on the livelihoods of the local
survey
people in Laos and Cambodia on case study basis; and
- To assess the status of capital asset; and
- To identify the direct and indirect impacts of
plantations on the livelihood of the local
people/community.
 To recommend strategies, based on the findings, which
may overcome the gaps to supplement the processes of
rural development.
SITE MAP OF LAOS
Henankouanin Company
Ltd. (Chinese)
3,780 ha for cassava
SITE MAP OF CAMBODIA
Phu Rieng Company Ltd.
(Vietnam)-4906 ha
Dong Nai Company Ltd.
(Vietnam)- 1082 ha
LAND ACQUISITION PROCEDURES IN THE FOUR GMS
COUNTRIES
Countries
Laos
Cambodia
Thailand
Vietnam
Ministries Incharge
NLMA/
MAF/
MPI
CDC/
MAFF/
MLMUPC
BOI/
Ministry of
Industry
IPB/
Ministry of
Planning &
Investment
Modalities
ELC and
ELC and contract
contract farming farming
Lease
Lease
Foreign equity
in investment
100% foreign
ownership
allowed
100% foreign
ownership
allowed
Only 49%
foreign
ownership
allowed
100% foreign
ownership
allowed
Environment
certification
Required
Required
Required
Required
Special
specifications
for foreign
investors
Min. investment
: US$ 20 million
-Labor: 90%
must be Laotian
-Min. investment
:over US$ 1
million
- Labor:
Preference for
Cambodian
nationals
Min. investment
: US$ 62500
-Labor: Only
experts/skilled
foreign
employees
allowed
Capital
investment
limited to 30%
only (foreigner)
-Labor: High
priority for
SOME KEY DIFFERENCES IN THE LAWS/POLICIES
Constraining factors
Facilitating factors
Land acquisition through concession: Cambodia and Laos
Land acquisition through lease only : Thailand and Vietnam
Concession/lease
period:
Cambodia
Laos and Vietnam -50 years; Thailand -30 years
-70
years;
100% ownership by foreigners: Not allowed in Thailand
Business License issued only after granting environment certificate
in Laos ; issued after IEE report submission in Cambodia
Non-recognition of indigenous people in Laotian Law.
Only Laos strictly directs 90% Laotian labor force recruitment.
Thailand has comparatively high rate. Working hours for labors is
comparatively less in Laos.
Laos is venturing into communal land titling while Cambodia is
giving Social Land Concessions
STATUS OF CAPITAL ASSETS
NATURAL CAPITAL
Districts
Land Holding
(ha)
0.05-0.1 ha
Landless
HHs
2
Average land
holding (ha)
1.4
Sambour
1.01-2 & 2.01-5
ha.
0
2.3
Phalanxay
2.01-5 ha.
2
3
Snoul
FOOD SUFFICIENCY
< 3mths
3-6 mths
6-9 mths
HHs having food not
sufficient for whole year
Snoul: 75.9%
Sambor: 68.4%
Phalanxay: 48.3%
>9mths
60
50
50
41.4
36.8
40
31
34.2
28.6
30
20.7
20
10
13.2
15.8
6.9
17.8
3.6
0
Snoul
Sambor
Phalanxay
FINANCIAL CAPITAL
< 500
NTFP collection
40
82.786.2
Percentage
80
Civil service
Plantation worker
39.4
Private enterprise
30
23.7 23.7 93.1
20.7
17.2 81.5
20
10.4
60
40
37.90
17.2
6.8
5.3
3.4
44.7
36.8
31.5
20.6
Snoul
Other jobs
20.7
0
0
Sambor
Study Area
24.1
17.3
7.9
6.9
41.3
34.4
Sambor
0
Snoul
3001-10000
31
10
20
2001-3000
48.3
50
Percentage
100
1001-2000
60
Occupation
Agriculture
501-1000
Annual Income 6.8
Phalanxay
20.6
0
Average annual income
Phalanxay
from NTFP collection
US$ 300
FINANCIAL CAPITAL CONTD…
Expense on food:
52.8% in Snoul; 54.9% in Sambor
and 68% in Phalanxay is spent
on food.
<500
501-1000
1001-2000
2001-3000
70
Percentage
50
41.4
34.5
40
30
27.7
23.7
20
10
58.6
57.9
60
3001-6000
6.9
10.3
6.9
10.5
10.3
5.3
2.6
0
0
Snoul
Sambor
Expenditure
Phalanxay
3.4
HUMAN CAPITAL
Health Status:
44.8% hhs in Snoul and 57.9% hhs in Sambor do not have good
health condition. Majority in Phalanxay have fair health.
Non-literate
60
Percentage
50
40
Primary education
Secondary education
Higher secondary and above
53.5
52
46.7
39.4
33.7
33.4
30
20
10
6.6
11.6
10.1
8.3
2.7
2
0
Snoul
Sambor
Study Area
Phalanxay
Trainings and Skills:
Large majority in Snoul and Sambor are untrained and unskilled.
Phalanxay has 44.8% hhs with trained members in various
community development fields.
HUMAN CAPITAL CONTD…
<14
Percentage
50
40
30
20
15-29
38.2
30-44
34.8
29
45-59
41.7
31.6
25
19.8
19.7
11.8
10
>60
18.6
10.9
10.1
3.7
1.3
3.8
0
Snoul
Sambor
Study Area
Phalanxay
PHYSICAL CAPITAL
District
Access to
credit (%
hhs)
Loan
taken
from
(% hhs)
Livestock
ownership
(% hhs)
Access to
infrastructure
and facilities
Snoul
48.3%
Micro-credit
institutions
89.7
Motorable road,
primary
school&district
hospital
Sambour
78.9%
Friends/
relatives
86.8%
Motorable road,
primary
school&district
hospital
Phalanxay
58.6%
Bank
76%
Electricity and
wells in addition.
IMPACTS ON LIVELIHOOD
 Land grabbing: 3 hhs each in Snoul and Sambor and 6 hhs in
Phalanxay claimed their land ( 0.5-5 ha)taken by the Companies. Of
these only 1 hh in Snoul and 1hh in Phalanxay were compensated.
 Private enterprises like making coal, wood trade based on the
forest resources at risk due to loss of forest.
 22% in Sambor and 3% in Phalanxay even faced decrease in
income.
 Livestock rearing suffering due to loss of grazing land.
 Risk in rearing livestock due to fear of compensation if cattle enter
plantation area and destroy crops.
IMPACTS ON LIVELIHOOD Contd….
 Fear of losing cattle, which are hurt/killed by company guards.
 Lack of trust was observed among the laborers and the Company
and there is no feeling of ownership among the workers as they
feel exploited. People doubt the Company’s intention in Phalanxay.
 Local employment not promising and existing recruitment of
Cambodians decreasing with increase in Vietnamese labor import.
 Loss of local forest and biodiversity.
IMPACT ON NTFP COLLECTION
PERCEPTIONS ON BENEFITS AND SATISFACTION
Perceptions
In Snoul, 55.2% feel
plantations are somewhat
beneficial and 24% very
harmful.
In Sambor, 36.8% feel
somewhat beneficial, 21.1%
no effect and 28.9% not
beneficial.
In Phalanxay, 70.8% feel its
very harmful and 20.8%
say no effect.
Satisfaction
In Snoul, satisfaction level was
neutral. Some still feel, money
given compared to hrs. worked
is less.
In Sambor, laborers are not
satisfied with the wage and
complained of bias in
payment (with the villagers).
In Phalanxay also it is a mixed
opinion between satisfied and
dissatisfied.
CAPITAL INDICES
District
Social
capital
Human
capital
Natural
capital
Physical
capital
Financial
capital
Snoul
0.385
0.151
0.659
0.551
0.232
Sambour
0.258
0.161
0.565
0.769
0.294
Phalanxay
0.681
0.321
0.681
0.676
0.209
POLICY INTO ACTION: IMPLEMENTATION GAPS
AND IMPACTS
 Overlapping policy and lack of coordination between horizontal
and vertical levels of line agencies.
 Lack of transparency.
 Inadequate monitoring and supervision.
 Lack of strict enforcement of rules and regulations.
 Inadequate information dissemination and public consultation.
 Violation
of traditional
community livelihood.
rights
and
non-consideration
for
CONCLUSION
 Weak implementation and enforcement of existing laws/regulations.
 Transparency of database and information are lacking.
 Only sporadic employment generation at local level as most of the laborers are
imported from other villages/provinces.
 Measurable negative impacts like land acquisition without compensation to the
farmers, loss of biodiversity and NTFPs, impacts on livestock rearing.
 Depleting quality and quantity of NTFPs have direct negative impact both on
financial capital and food security.
 Need to learn lessons from the history of Thai forestry regarding the
involvement of community. Laos has been promoting contract farming.
 No evidences of programs focused towards human resource development in
Cambodia.
 Status of concession and its impacts are more or less similar in Cambodia and
Laos in many respects, in Laos however things seems to be getting somewhat
better in terms of institutional arrangements, laws/policies and governance.
RECOMMENDATIONS
For Public Authorities:
 Establish process monitoring system
 Need of a single governing body for ELCs for Cambodia.
 Strict prescription of labor % age by Cambodian law.
 Credit facilitation and capacity building programs for alternative
livelihood options.
 Peoples’ participation in all stages of planning, implementing and
decision-making.
 Dissemination of clear and updated information to the community.
 Good health and education facilities for nurturing capable human
resources.
 Integration of rural development with natural resources
management.
SCOPE FOR FURTHER RESEARCH
 A study based on surveys of the plantation workers may be
undertaken to assess the actual benefits of the plantation versus
the objectives of the governments.
 SWOT analysis of the laws/policies across the GMS countries.
 Plantations induced land use change and impacts on the
environment, soil and water.
!!! KHAWP JAI !!!
!!! AW KUNH!!!
!!! THANK YOU !!!
!!! KHOB-KHUN!!!
!!! CÁM ƠN !!!