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Article

21 Oct 2018

Author:
Radio Free Asia

Laos: Rubber company refuses to give villagers lease payment by saying land belongs to the state

"Lao Villagers Denied Payment for Land by Vietnamese Firm", 18 October 2018

Lao villagers formerly leasing land to a Vietnamese rubber company under a profit-sharing arrangement are now being refused compensation by the foreign-owned firm, which says the land belongs not to the villagers but to the state....

Eighty families...signed the agreement in 2009 with Vietnam’s Daklak Rubber Company under which villagers would provide labor and 700 hectares of land for cultivation, with profits shared at 80 percent for those owning the land.

Claiming growing losses...Daklak then renegotiated its lease to terms more favorable to the firm, with villagers and the company taking profits in a new 50-50 split. 

...[A] villager said the proposed compensation, $50 per hectare per year, was too low, and when Daklak raised its offer to $55 per hectare, villagers requested the money in a lump sum....

All payments by Daklak then ceased, with Daklak demanding proof the villagers owned the disputed land on which they have paid taxes and grown corn, bananas, and vegetables for generations.

...[T]he villagers receive no money from the Vietnamese firm at all, sources say, adding that villagers have sent a letter to government authorities requesting fair compensation.