Building a Highway:

Impacts on sustainable livelihoods

in Hanoi

Tran Quang Tuyen &Steven Lim

Economics Dept
Waikato University
Hamilton
NEW ZEALAND

RESEARCH OVERVIEW
Providing a road…

1
… can lead to (involuntary) farmland
loss

2
But with emerging urbanisation…

3
…and the growth of commerce along
the highway…

… a growth process arises…

4
… such as converting farm resources
into non-farm resources…

…including small-scale businesses

(via labour transfer)…

5
 Rising land prices generate wealth
effects…

… & other changes to peoples’ livelihood

assets and livelihood strategies.

This is the focus of our work.

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 The Conceptual Framework
Income-earning shock (land loss)

→ impact on livelihood capitals/assets

(physical, financial, human, social,…)

→ impact on livelihood strategies

(farm work, small business, wage
employment )
employment,…)

PUBLIC GOOD Local economic

(Highway) growth

LIVELIHOOD
OPPORTUNITIES

farm land
(& jobs)
lost

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PUBLIC GOOD Local economic
(Highway) growth

LIVELIHOOD
OPPORTUNITIES

farm land
physical assets
(& jobs)
(land,...)
lost human capital
(education,...)

financial assets
(credit,...)

social capital
(networks, risk
pooling, trust,...)

The Research
• Sample of 477 households in June-July
2010 across 6 communes in Hanoi
2010,

• 90 minute questionnaire, to examine

livelihood strategies in the presence of a
land loss shock (with compensation)

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Using labour time allocation, the survey finds
6 livelihood groups:
1: Mainly farm production ( cultivation and husbandry): 68
households
2. Unprotected wage work ( working for households,
individuals): 146 households
3 Nonfarm self-employment outside the village: 45
households
4. Diversified livelihoods - farm production, wage work
and nonfarm self-employment in the village: 70
households
5. Nonfarm self-employment in the village: 78
6. Protected wage work (working for state sector,
enterprises and other organizations): 70

Cluster Size

TwoStep Cluster
Number
68
1
70
2
3
4
5
6
78

146

70

45

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 How did these livelihood choices
emerge?
Need to look at asset/capital linkages…

The Capitals

Regarding to the link between capitals,

correlation
l ti analysis
l i iindicates
di t quiteit llow lilinks
k
except for social capital and human capital
(measured by membership of formal and informal
groups and the average schooling years of household
labour).

The social and human capital links could be an

encouraging result, since social capital is also
related to local economic growth.

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PUBLIC GOOD Local economic
(Highway) growth

LIVELIHOOD
OPPORTUNITIES

farm land
physical assets
(& jobs)
(land,...)
lost human capital
(education,...)

financial assets
(credit,...)

social capital
(networks, risk
pooling, trust,...)

But potential problems…

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 Low entry barriers to
labour-intensive activities

And we also must address

environmental concerns…

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 …and social concerns.

PUBLIC GOOD Local economic

(Highway) growth

LIVELIHOOD
OPPORTUNITIES natural assets
(health, HIV)

farm land
physical assets
(& jobs)
(land,...)
lost human capital
(education,...)

financial assets
(credit,...)

social capital
(networks, risk
pooling, trust,...)

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 Urbanisation REGIONAL
COOPERATION &
TRADE

PUBLIC GOOD Local economic

(Highway) growth

LIVELIHOOD
OPPORTUNITIES natural assets
(health, HIV)

farm land
physical assets
(& jobs)
(land,...)
lost human capital
(education,...)

financial assets
(credit,...)

social capital
(networks, risk
pooling, trust,...)

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