This study analyses changes in livelihoods of resettled and host households affected by the Son La hydropower project in Vietnam. Data come from a questionnaire survey of 52 host and 56 resettled households in five villages affected by the project and refer to the situation before, immediately after and 5-years after the resettlement. Data were analyzed using descriptive statistics, decomposition analysis and linear regression. Resettled households, and to lesser extent also host households experienced a decline in rice yields, income and an increase in food insecurity. There is a discrepancy between the government resettlement plan and reality. Compensation payments alone appear inadequate to rebuild and maintain livelihoods and a more direct approach is needed to create economic opportunities in the affected communities