Author: Khanh Vu and Francesco Guarascio
HUNG YEN, August 11 (Reuters) – For Nguyen Thi Huong, a Vietnamese farmer, sleepless nights have become a norm ever since she was ordered by local officials to vacate her farm to pave the way for a luxurious golf resort backed by the Trump family. The measly compensation of $3,200 combined with a handful of rice provisions hardly feels fair.
This golf project is set to kick off next month and is part of a plan that targets thousands of local villagers, offering them hiked-up compensation to leave their homes, as reported by several insiders and documents reviewed by Reuters.
What’s interesting is that this project represents the Trump family’s first cooperation in Vietnam, which was accelerated due to critical trade negotiations between the two countries.
However, developers seem to be scaling back their compensation estimates significantly, dropping them from an initial figure above $500 million, according to a source who preferred to stay anonymous.
The transformed 990 hectares intended for this golf course currently flourishes with fruit farms producing bananas and longan. While the notion of development sparks excitement in some, numerous elderly farmers fret about their uncertain futures in an economy that’s rapidly evolving and primarily caters to a younger demographic.
As 50-year-old Huong says, “Our whole community is anxious about this change as it’s robbing us of our homes and plunging us into unemployment.” Her 200-square-meter piece of land near Hanoi isn’t just dirt and crops; it’s her livelihood, and the compensation is less than what most earn in a year.
The Vietnamese company Kinhbac City and its affiliates, set to construct the high-end golf club, reportedly shelled out $5 million to the Trump Organization for brand rights.
While Trump’s company will manage the operation of the club once it opens, they aren’t putting in any investment towards construction or compensating affected farmers.
Trump claims that his business assets are in a trust managed by his children, but recent disclosures show the income generated still ultimately benefits him.
No comments have come from Vietnam’s agriculture agency, local officials, or the Trump Organization regarding the current compensation rates.
Final compensation figures are expected to be released next month, determined by the area of confiscated land and location. Reports from impacted farmers indicate estimations of reimbursement rates ranging from $12 to $30 per square meter for their farmland.
Moreover, additional funds for uprooted crops along with rice provisions for several months have been proposed, aligning with details revealed in one of the documents viewed by Reuters.
The insider further confirmed that this pay range is accurate, choosing to remain unnamed since the details were yet to be made public.
Although specifics on compensation weren’t shared by a local official, they noted it typically doesn’t surpass $14 per square meter, although the rates could be higher in other regions.
In Vietnam’s state-managed system, farmers are allocated small land parcels for long terms but have scant influence when authorities decide to reclaim the territory. Protests do occur, but they’re generally unfruitful.
Even though the state offers compensation, it’s up to developers to cover the costs.
Four different farmers expressed discontent with the proposed compensation rates, claiming how such low payouts didn’t align with the sizes of their plots.
According to a separate document sourced from local authorities, thousands of villagers are poised to face displacement. Final payment details are anticipated next month.
While Huong also leases a larger plot from other villagers, she can only claim remuneration for her assigned smaller piece and the produce grown there. “What am I supposed to do after that?” she pondered.
RICE AS A COMPENSATION
During the groundbreaking ceremony for the golf resort in May, Vietnam’s Prime Minister Pham Minh Chinh assured farmers they would receive equitable compensation while addressing a gathering that included Trump’s son, Eric.
“It’s frustrating; we have no power to negotiate,” shared Do Dinh Huong, another farmer facing reward rates circa $12 per square meter. He asserted he’d have accepted the low figure if the land was earmarked for public infrastructure instead of a business venture that seems unlikely to benefit locals.
As compensation, rice has also been on the table, with offers varying from two to twelve months’ worth, based on one of the documents reviewed.
54-year-old Nguyen Thi Chuc, who currently tends a banana farm on the verge of the Trump golf club, was told she might expect roughly $30 per square meter compensation for her 200-square-meter area.
“I’m getting older and am left without any other choice but to farm,” she expressed.
On a brighter note, some local lawyers and investors claim that the upcoming golf course might end up generating more jobs and enhancing villagers’ living standards.
Le Van Tu, a local eaterer whose plot will be impacted and is set to upgrade his diner to attract wealthier patrons, basked in rising property prices since the project’s announcement—fivefold growth. He happily noted, “The pig farm nearby will be a thing of the past: we’ll breathe easy now.”
