RP1326
VIETNAM
INDUSTRIAL POLLUTION MANAGEMENT PROJECT (P113151)
Due Diligence Review of Involuntary Resettlement at Nhon Trach 3 and Chau Duc
Industrial Zones
May-July, 2012
A.
PROJECT OBJECTIVES AND PROJECT COMPONENTS
The development objective of the Vietnam Industrial Pollution Management Project (VIPMP) is
to improve environmental compliance of industrial zones (IZs) on a pilot basis. This will be
achieved through strengthening of the institutional and regulatory environment, improved
monitoring and enforcement, improved CETP construction and operation for proper wastewater
treatment, and information disclosure and public participation in two or three provinces.
The project consists of three components: (1) Component 1: Environmental Monitoring and
Enforcement; Component 2: Pilot Performance-Based (PBF) CETP Financing; Component 3:
Implementation Support.
Screening of potential ethnic minority presence in the project area indicated that there are no
Ethnic Minorities living in and/or around project areas, therefore, the Bank Policy OP 4.10 is not
triggered.
B.
FOCUS OF REVIEW AND METHODOLOGY
Focus of the Due Diligence Review (DD)
The review focuses on involuntary resettlement in the two Industrial Zones (IZs) selected for the
first year of project implementation. The objective of the DD as per the SEMF is to ensure that
all involuntary resettlement activities in the project area were carried out in full compliance with
Government of Vietnam (GoV) regulations and norms and consistent with the Bank OP 4.12.
The methodology and approach of the Due Diligence (DD) review was based on the guidance of
the Project’s Social and Environment Management Framework (SEMF). It covered notably:
(i)
(ii)
(iii)
(iv)
Review of official documents prepared for pertinent organizations in charge of
involuntary resettlement and confirm their compliance with the Government
regulations
Review, analyze and summarize process and procedures that have been undertaken by
the governmental organizations and selected companies.
Conduct site visits for field observation in the IZs and interviews with key
governmental officials, company staff members and affected people to gather primary
information related to perceptions, descriptions, claims, and other pertinent
information.
Assess the consistency with the Bank policy objectives of activities carried out
regarding livelihood restoration.
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.
Methodology
Methods employed include: (i) desk review of secondary information (including project
documents prepared by the GoV for the proposed sites), Bank’s proposed project documents (see
Appendix 2); and (ii) interviews with relevant government officials, IZ representatives,
representatives from about 52 affected households and other key informants in the IZs
(Appendix 1); and c) field observations.

For Chau Duc IZ where the compensation was completed (for the CETP area and the area
outside of CETP), 42 PAP originally from the CETP area (including 7 cases pending) and
5 PAP from the larger area outside CETP were interviewed. Stratified sampling is in the
table below.
New
Resettlem
ent Area
(40 ha)
No of
HH
interview
ed
Hữu
Phước
New
Residenc
e Area
No of
HH
interview
ed
CETP
service
area
(excluding
Huu Phuoc
and
Resettleme
nt Plan
(120ha)
No of
HH
interview
ed
Outside
CETP
intervie
wed
HH losing
agricultural
land/structures
26
5
50
5
82
5
5
HH relocating
35
10
6
5
25
5
5
7
7
56
17
107
10
5
Including
pending HHs
TOTAL

61
15
For Nhon Trach 3 where compensation started in 1998 and was completed 2007, in
addition to interviews with IZ owners, government representatives, site visits were made
and three households who settle down near by the IZ were interviewed for how the
compensation were made and if their livelihoods are fully restored.
Review
World Bank’s Social development specialists (staff and consultant) , travelled to Dong Nai and
Ba Ria Vung Provinces on three different occasions between May and July 2012 to carry out the
DD review. They visited the two IZs sites, held meetings and interviewed key informants,
affected people, and staff and managers of two IZs proposed for the first year of project
implementation. The review confirmed that in Nhon Trach 3 IZ managed by Tin Nghia Corp,
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and Chau Duc IZ managed by Sonadezi Company, the CETPs site areas are identified, cleared,
filled and leveled (see map Appendix3). In the case of Nhon Trach 3, land compensation is fully
completed for the entire IZ. In the case of Chau Duc IZ resettlement and compensation are
substantially advanced.
Nhon Trach 3 IZ
Nhon Trach 3 IZ (Nhon Trach District, Dong Nai Province) was established in November 2006,
with a total area of 360.5 ha. Twenty nine industries are the current occupants of the IZ (20
companies fully operating, 9 initiating operation). Details on the infrastructure of the IZ are
included in the subproject’s Environmental Impact Assessment (EIA).
The review confirmed that the resettlement and compensation started in 1998 and was fully
completed for the entire IZ, in 2007. About 200 households affected primarily with agricultural
land, were compensated in accordance with the local government laws/regulation. According to
the information gathered affected agricultural land was poor quality and suitable only for
growing low-value crops like cashew, and cassava. According to the information gathered some
affected households in their agricultural land, resettle closer to IZ , while others, which made the
majority of households affected, moved to other distant areas that offered better soil quality for
farming activities.
The team interviewed affected households who stayed near the IZ (including not affected HHs),
to confirm the appropriateness of the compensation paid to affected households. Testimonies
confirmed that compensation payments provided them with the opportunity to acquire
improved land quality for their farming or/ and to pursue other sources of income from non-farm
activities. In other words, prices paid for compensation, improved their farming income and
offered other effective income-generation sources. For households visited, their livelihoods, as
well as those who settled near the IZ were fully restored. Most of them do retailed businesses/
services forces who come for industries in the IZ.
The whole Nhon Trach 3 IZ area is now under the operation of Tin Nghia Company who holds
the Land Use Right Certificate (LURC, known also as the “Red Book”) since 2008 for this entire
Nhon Trach 3 IZ area. The company also has a Operational Contract Agreement with the Dong
Nai People's Committee (Contract Agreement & sample of LURCs for CETP location, Appendix
4). No further land acquisition will be required for Nhon Trach 3 IZ.
In sum, the DD review for Nhon Trach 3 IZ confirmed that there are not land legacy issues of
land related to acquisition and resettlement. The compensation was made by the district
government, and in accordance with the government’s laws and regulations then. The livelihoods
of affected households were fully restored and for affected households interviewed the
compensation was an opportunity for them to diversify and improve their income sources.
Chau Duc IZ
The Chau Duc IZ (Chau Duc District, Ba Ria Vung Tau Province) was established in October
2008 following government’s approval of the Master Plan for the construction of Chau Duc IZ in
2008. The total are of land being acquired is 2,287 ha, including 1,556 ha for the industrial area,
731 ha for residential land (42ha for the resettlement site and 689 ha for new residential land
which are located inside the industrial zone. The land acquisition carried out by the District
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Resettlement Committee commenced in 2008, and compensation plan(s) were prepared for 852
ha, an area that includes the IZ, the new residential area, and the resettlement site. Within the
area of 852 ha, 1,300 households were affected, primarily with agricultural land. A total of 201
households lost thier residence and needed to relocated.
The “CETP service area”, as defined in the project’s SEMF, accounts for 202 ha (including 120
ha of industrial area, 42 ha of a resettlement site, and 40 ha of a residential area). Within the
CETP service area, land clearance affected 224 households were affected.
Compliance with GoV regulations According to the DD review of the compensation plan(s)
provided by Sonadezi Company, the resettlement policy and the definition of entitlements have
strictly followed Vietnamese regulations (Land Law 2003 and Decree 69/2009). Chau Duc
District Resettlement Committee (DRC) was in charge of the preparation and implementation of
the Chau Duc IZ, and assigned by Ba Ria Vung Tau Provincial Peoples Committee, following
GoV's regulations.
Compensation funding. Funds for resettlement compensation were provided by the Sonadezi
Company. The People’s Committee of Chau Duc district was delegated by the provincial
government to formulate the compensation/resettlement plan (in accordance with current
government’s laws/regulations). The Chau Duc Resettlement Committee made the payments to
affected people, in accordance with the resettlement plan approved by the provincial
government, with the above- mentioned funding channeled to the Chau Duc District Treasury.
Options provided to Affected Households (AHs). These were as follows: (i) for loss of
agricultural land, affected households were offered cash compensation, (ii) for affected
structures, losses were paid at replacement cost; (iii) for affected residential land, households
were offered one of two options, cash compensation or land-for-land in the resettlement site. The
households requiring relocation were provided with rental housing costs, until the finalization of
the resettlement site construction scheduled for the end of 2012.
Schedule for Compensation and Relocation. The General Compensation Plan for the IZ was
issued and approved by provincial government in 2008. The land compensation (carried out by
the District Resettlement Committee) was commenced in early 2009. For the case of the CETP
service area, 224 households were affected, of which 66 needed to relocate.
Entitlements for Affected Households (AHs): the entitlements were approved by District
Authorities since 2008. The proposed entitlements for affected households were acceptable to
affected households (AH) after several rounds of public community consultation meetings1.
Entitlements included land affected, houses/structures lost (partially or complete), and businesses
affected. Assistance and allowances to affected households as defined in GoV regulations, are
also considered as part of packages offered to affected households.
Consultations: included four rounds of community meetings where consultations were conducted
among affected people (list of participants and sites in this document) and all compensation
plan(s) were disclosed in the communal public area. According to the records, about 570 AHs
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participated in public consultation meetings. AHs were informed about compensation policy and
relocation options for them to select. Comments, feedback and recommendations from AHs were
gathered during the consultation meetings, for DRC’s consideration in the compensation plan(s).
Grievances Redress Mechanism. A grievance system was established in the District Resettlement
Committee (DRC) to resolve all complaints raised by affected AHs regarding all land acquisition
aspects, compensation, and resettlement issues. In addition, information on how IZ staff could be
contacted along with instructions to submit complaints at district/commune levels was provided.
For land included in the CETP service area, some complaints were registered regarding
compensation payments, inaccuracy of land measurement, as well of claims on evaluation of
structures and crops losses. Resolution of claims of affected households has been addressed by
the DRC as defined by the GoV norms and in cooperation with the IZ owner although by June
2012, there were 7 cases pending to be solved, which need careful monitoring. Claims unsolved
are mainly due to inaccuracy of the land measurements.
Livelihood Restoration Plan (LRP): Affected households have been provided with support,
assistance and allowances as part of the compensation plans, according to the GoV norms and
regulations, consisting of transport allowances, living stabilization allowance, vocational training
allowance, house renting allowance, and special allowances for those who fall under the category
of poor and vulnerable affected people.
The DD review confirmed that by July 2012, 97% of the total affected houses (224 households
within the CETP service area) had been compensated. Only 7 affected households remain
pending (to be compensated) due delay in re-check of detailed measurement survey results,
or/and being in the process of resolving internal disputes within their own households regarding
allocation of compensation benefits. The Chau Duc IZ owner confirmed the 7 pending cases will
be solved by the end of September 2012.
CONCLUSIONS
Based on information provided by the local governments and the two IZ owners, team’s
interviews with different stakeholders, including affected households, IZ owner, government
representatives, field observations the concluding aspects of the DD are as follow
(i) Nhon Trach 3 IZ the resettlement and compensation was carried out in compliance with
government’s laws/regulation and consistent with Bank’s OP 4.12. Tin Nghia Company, who is
the moment the operator of the Nhon Trach 3 IZ holds the Land Use Right Certificate which
was issued by provincial government since 2008 for the whole IZ. The DD review also
confirmed that the livelihoods of the affected households are fully restored.
(ii) For Chau Duc IZ, land acquisition was carried out by the District Resettlement Committee
was commenced in early 2008 before project’s cut-off date of May 2010. The DD review
confirmed that by July 2012 the implementation of the resettlement, compensation and assistance
plans, processes are in compliance with the Government’s laws and regulations and are in
consistency with the Bank’s OP4.12 based on the review of the criteria as mentioned above
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Based on the review findings the project needs to continue to monitor the compensation
payments of the affected households, for the seven households pending (which is scheduled to be
completed by September 2012) by means of site visits and interviews with the affected
households and preparation of a detailed update report before the construction of the CETP. In
addition, monitoring during finalization and completion as per the approach defined in the
Project’s SEMF requirements, should be carried out, including monitoring until all livelihoods of
affected households, particularly those within the CETP area, are fully restored
APPENDIX 1: LIST OF THE PEOPLE MET DURING THE MISSION
1. INDUSTRIAL ZONE AUTHORITIES IN CHARGE OF RESETTLEMENT
For Tin Nghia Corp
Mr. Nguyen Thanh Binh
Deputy Director General,
Tin Nghia Corp
Mr. Truong Thanh Tung
Investment and Development Director
Tin Nghia Corp.
Mr. Vu Van Luyen
Director of An Phuoc IZ
Tin Nghia Corp.
Mrs. Le Nguyen Diem Hang
Chief of Environment Dept
Tin Nghia Corp.
For Sonadezi Chau Duc Shareholding Company
Mr. Tran Hoa Hiep
Deputy Director General
Sonadezi Chau Duc Shareholding Company.
Mr. Dinh Quang Minh
Staff
Sonadezi Chau Duc Shareholding Company.
Mr.Nguyen Tan Thau
Staff
Sonadezi Chau Duc Shareholding Company.
Mr. Pham Nguyen Nhung
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Staff
Sonadezi Chau Duc Shareholding Company.
2. INTERVIEW OF 52 AFFECTED HOUSEHOLDS
For Nhon Trach 3 IZ, (totally 3 households interviewed)
Le Huu Phuoc,
Village 5, Hiep Phuoc Commune
Nhon Trach District, Dong Nai Province
Tran Tan Duc,
Village 1, Long Tho Commune
Nhon Trach District, Dong Nai Province
Truong Dinh Huu,
Village 3, Long Tho Commune
Nhon Trach District, Dong Nai Province
For Chau Duc IZ, (totally 49 households interviewed, who is now living in Suoi Nghe
Commune, Chau Duc District, Ba Ria Vung Tau Province)
CETP Service Area (17 Households)
Agricultural Land Impacted Households
Vo Tanh
Pham Quang Thai
Tran Van Binh
Vo Quang Hai
Vo Tuan
Nguyen Minh Khanh
Nguyen Tho
Le Thi Tuan
Le Mung
Le Muon
Le Lon
Le Mien
Duong Thi Thu Nguyet
Nguyen Linh
Relocated Households
Duong De,
Le Phuoc,
Nguyen Hoang
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Huu Phuoc Urban Residential Area (17 Households)
Agricultural Land Impacted Households
Doan Ngoc Lam
Doan Van Den
Dang Tuyen
Nguyen Van Lai
Tran Bon
Nguyen Van Phuc
Bui Ngoc Son
Bui Thi Mai
Nguyen Minh Khanh
Ngo Tan Duc
Relocated Households
Vo Thi Le
Do Thi Nham
Pending Cases2
Nguyen Huu Dau, with agricultural land affected
Phan Thi Thanh Tam, with affected with agricultural land
Dang Minh Phuong, with residential land affected,
Nguyen Thi Hong , with agricultural land affected.
Resettlement Site Area (15 Households)
Agricultural Land Impacted Households
Ma Van Chut
Nguyen Thi Co
Nguyen Van Dung
Nguyen Dinh Hung
Hoang Huu Tri
Ta Van Hoang
Relocated Households
Truong Thi Ai
Mai Thi Can
Mai Thi Hanh
Nguyen Duong
Nguyen The
Nguyen Huu De
Nguyen Cu
Nguyen An
Le Thi Tien
2
There was 03 remaining pending cases invited for interview, but they did not come
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APPENDIX 2: LIST OF THE DOCUMENTS REVIEWED DURING THE MISSION
For Nhon Trach 3 IZ
1. Report on Implementation Progress for Nhon Trach 3 IZ
2. Brochure of the Tin Nghia Corp.
3. Contract between Dong Nai Provincial People's Committee and Tin Ngia Corp on Land
Renting Agreement;
4. Sample of LURCs3
For Chau Duc IZ
1. Document No 919/TTg-CN issued by PM dated November 7, 2007 on approval of Chau Duc
IZ and Urban Quarter Investment in Chau Duc District, Ba Ria Vung Tau Province
2. Document No 2657/UBND-XD issued by Ba Ria Vung Tau Province People's Committee
dated August 5, 2007 on project location agreement for master plan survey 1/2000.
3. Decision 2915/QD-UBND issued by Ba Ria Vung Tau Province People's Committee dated
August 28, 2008 on approval of 1/2000 master plan.
4. Document 164/TB-UBND issued by Chau Duc District People's Committee dated September
18, 2007 on announcement of land acquisition process for investment of Chau Duc IZ and Urban
Quarter.
5. Minutes of Community Consultation Meeting held on June 25, 2008 in Nghia Thanh
Commune and on June 26, 2009 in Suoi Nghe Commune for land acquisition and compensation
purpose.
6. Decision 1947/QD-UBND issued by Ba Ria Vung Tau Province People's Committee dated
December 6, 2000 on approval of general compensation plan.
7. Decision 3600/QD-UBND issued by Ba Ria Vung Tau Province People's Committee dated
September 16, 2008 on establishment of Chau Duc IZ
8. Other Decision(s) on approval of supplementary compensation plans, inclusive of project
impacts and entitlements for compensation and resettlement.
3
The Tin Nghia Corp. has been issued 37 LURCs for the whole IZs area.
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APPENDIX 3: LOCATION MAP OF PROPOSED CETPS,
CETP
Figure 1: Location Map of proposed CETP in
Nhon Trach 3 Industrial Zone.
Figure 2: The Existing CETP in Nhon Trach
3 Industrial Zone.
Figure 3: Location Map for Proposed Module 2
(under VIPMP) in Nhon Trach 3 Industrial Zone.
Figure 4: Proposed Site for Module 2 in
Nhon Trach 3 Industrial Zone.
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Phase 1 –
Industrial area
120ha
Residential area
40ha
CETP2
Module 1
Resettlement area
42ha
Figure.1 Location of CETP 2 in Chau Duc IZ and its service areas
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APPENDIX 4: SAMPLE OF AGREEMENT CONTRACT AND LURCS
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