SOME NEW POINTS ON VIETNAM LAND PRICES, COMPENSATION, SUPPORT, AND RESETTLEMENT 2024

SOME NEW POINTS ON VIETNAM LAND PRICES, COMPENSATION, SUPPORT, AND RESETTLEMENT 2024

SOME NEW POINTS ON LAND PRICES, COMPENSATION, SUPPORT, AND RESETTLEMENT WHEN THE STATE RECOVERS LAND

Associate Professor, Dr., Senior Lecturer Phan Trung Hien 

Dean of Law Faculty – Can Tho University

MAIN CONTENTS

1. Land recovery according to planning
2. Compensation for land and property attached to land
3. Support and resettlement
4. Land price

DECREE ON COMPENSATION, SUPPORT, AND RESETTLEMENT WHEN THE STATE RECOVERS LAND THROUGH PERIODS

05 DECREES ON COMPENSATION, SUPPORT, RESETTLEMENT AND 05 AMENDMENT AND SUPPLEMENTARY DECREES

1. Land recovery according to planning

1.1. Land acquisition for national defense and security purposes

ARTICLE 78 LAND RECOVERY FOR NATIONAL DEFENSE AND SECURITY PURPOSES

• Construction of military camps, military offices;
• Construction of military bases;
• Construction of national defense works, battlefields and special works on national defense and security;
• Building stations, ports, military and security information works;
• Construction of industrial, scientific and technological, cultural and sports works directly serving national defense and security;
• Construction of supply depots of the people’s armed forces;
• Making shooting ranges, training grounds, weapons testing grounds, weapons destruction sites;
• Vocational training and development centers, nursing, convalescence and rehabilitation facilities , medical examination and treatment facilities of the people’s armed forces;
• Building public housing for the people’s armed forces;
• Detention facilities; temporary detention facilities; compulsory education facilities; reform schools and labor, rehabilitation, vocational guidance and vocational training areas for prisoners, inmates and students managed by the Ministry of National Defense and the Ministry of Public Security

1.2. Land acquisition for socio-economic development purposes

ARTICLE 79 LAND RECOVERY FOR SOCIO-ECONOMIC DEVELOPMENT IN THE NATIONAL AND PUBLIC INTEREST

(31 cases and 01 scanning clause)

• Supplementing cases to effectively exploit land resources, including: Suburban projects traffic connection points and traffic routes with development potential; carrying out sea reclamation activities; constructing ground works to serve the operation, exploitation and use of underground works;
• Specify projects in the socialized field regardless of investment capital sources: culture, health, education, physical education, sports, science and technology… to encourage the private sector to participate in investment to serve the common interests of the community;
• Supplementing regulations on land recovery for important projects: Implementing projects approved by the National Assembly and the Prime Minister, deciding on investment policies according to the provisions of law;
• Supplementing open regulations on supplementing land recovery cases according to the simplified procedure.

1.3. Land recovery authority

ARTICLE 83 LAND RECOVERY AUTHORITY OF DISTRICT PEOPLE’S COMMITTEE

• Land recovery is for national defense and security purposes and land recovery for socio-economic development for national and public interests, regardless of land users, organizations and individuals managing and possessing the land.
• Land recovery for households, individuals, and residential communities => land recovery due to violations of land laws or land recovery due to termination of land use according to law, voluntary return of land, risk to human life, and no longer able to continue use.

1.4. Carry out compensation, support and resettlement tasks

– Specific regulations on units and organizations performing the tasks of compensation, support and resettlement when the State acquires land include one or more of the following units and organizations:

• Land development organization;
• Other units and organizations with the function of performing compensation, support and resettlement tasks;
• Compensation, Support and Resettlement Council (Clause 2, Article 86).

– The Compensation, Support and Resettlement Council is established by the Chairman of the District People’s Committee for each project, including: (Clause 2, Article 86)

• Chairman or Vice Chairman of the People’s Committee at district level as Chairman;
• Representatives of financial agencies, agencies with land management functions, People’s Committees at the commune level where the land is recovered;
• Representative of land users whose land is recovered;
• Some other members are decided by the Chairman of the District People’s Committee to suit local realities;
• Representatives of the People’s Council, the Vietnam Fatherland Front Committee at the district level and representatives of other socio-political organizations are invited to attend the meeting of the Compensation, Support and Resettlement Council for supervision.

1.5. Establish, appraise and approve compensation , support and resettlement plans ( Article 3 of Decree 88/2024 )

• Plan compensation, support, resettlement (general plan);
• Detailed plan on compensation, support, and resettlement for each person whose land is recovered and property owner;
• Within no more than 30 days from the date of receiving a complete dossier as prescribed, the local land management authority shall be responsible for presiding over and coordinating with relevant agencies to appraise the compensation, support and resettlement plan and submit it to the People’s Committee of the same level for approval.
• Agencies, organizations and individuals with authority to establish, appraise and decide on the approval of compensation, support and resettlement plans are responsible for exercising their authority in accordance with the provisions of law, not responsible on the contents of documents and papers in the file that have been previously approved, decided or resolved by other competent agencies, organizations or individuals.

1.6. Enforcement of land recovery decisions

– Time of commencement of enforcement shall be carried out during working hours. Enforcement shall not be carried out between 10:00 p.m. the previous day and 6:00 a.m. the following day; on holidays, holidays as prescribed by law, traditional holidays of ethnic minorities; within 15 days before and after the Lunar New Year holiday and other special cases that seriously affect security, politics, order, social safety, customs and practices in the locality;

– The enforcement of the land recovery decision is carried out against land users, owners of assets attached to the land and other subjects related to the recovered land (if any).

– Before carrying out enforcement, the Chairman of the District People’s Committee decides to establish a Land Recovery Enforcement Board, including:

• The Chairman or Vice Chairman of the District People’s Committee is the head of the committee;
• Representatives of agencies with functions of inspection, justice, natural resources and environment, and construction;
• Units and organizations performing compensation, support and resettlement tasks;
• Representative of the People’s Committee leader of the commune where the land is recovered is a member;
• Other members are decided by the Chairman of the District People’s Committee.

1.7. The role of the Fatherland Front in relation to land recovery (Article 19 of the 2024 Land Law)

2. Compensation for land and property attached to land

2.1. Principles of compensation, support and resettlement

04 FORMS OF COMPENSATION (ARTICLE 91)

– Equal land for the same purpose.

– Equal land for other purposes.

– In money.

– By housing.

• For people whose land is recovered, if there is a need and the locality has conditions for land and housing funds, compensation will be considered with land with a different purpose than the type of recovered land or with housing;
• Resettlement areas must complete conditions of synchronous technical and social infrastructure; must be consistent with the cultural traditions, customs and practices of the residential community;
• Provincial People’s Committees and District People’s Committees are responsible for organizing the establishment and implementation of resettlement projects; resettlement arrangements must be completed before a decision on land recovery is made.

2.2 . Conditions for land compensation

2.3. Land compensation when there is a difference in area

Compensation for land when the area on paper is different from the actual area (Article 6 of Decree 88/2024 )

1. If the area on the land use right certificate is larger than the actual area, compensation shall be made according to the actual measured area. In case the actual measurement has been completed for land recovery but then due to natural disasters, landslides, subsidence, the area of the measured land plot is changed at the time of making the plan, the measured data shall be used to make the plan.
2. If the area on the land use right certificate is less than the actual area and there is no dispute with adjacent land users, compensation will be based on actual measurement data;
3. In case the Certificate or documents specified in Article 137 of the Land Law have incorrect locations and coordinates, compensation shall be considered according to the correct locations and coordinates when actually measured.

2.4. Land compensation when remaining area is below minimum level

Clause 7, Article 91: Compensation for remaining area below the minimum area of land division

When the State recovers land and the remaining area of the land plot after recovery is smaller than the minimum area, if the land user agrees to recover the land, the People’s Committee at the competent level shall decide to recover the land and carry out compensation, support, and management of this land area according to the provisions of law;

Compensation and support costs in case of land recovery as prescribed in this clause shall be included in the compensation, support and resettlement costs of the investment project.

(See more: Article 220 of the 2024 Land Law : It is not allowed to separate plots below the minimum area for separation, even from court judgments and decisions).

Compensation for remaining area below minimum area for land division (Clause 2, Article 11, Decree 88/2024 )

Households, individuals, and people of Vietnamese origin residing abroad who are eligible for land compensation when the State reclaims residential land shall do the following:

1. a) In case all residential land is recovered or the remaining residential land area of the land plot after recovery is smaller than the minimum area and the household or individual has no other residential land or house in the commune, ward or town where the recovered land is located, compensation will be provided.by land or by resettlement housing ;
2. b) In case all residential land is recovered or the remaining residential land area of the land plot after recovery is smaller than the minimum area where the household or individual still has other residential land or housing in the commune, ward or town where the recovered land is located, compensation will be made in cash or in residential land or in housing or in other land if the locality has conditions regarding land fund and housing fund.

2.5. Compensation for housing and construction works

Clause 1, Article 102 of the 2024 Land Law

• For houses and constructions serving the daily life attached to the land of households, individuals, and people of Vietnamese origin residing abroad that must be dismantled or demolished when the State reclaims the land, the owners of such houses and constructions shall be compensated with the new construction value of houses and constructions with equivalent technical standards;
• Owners of houses and buildings are allowed to use the remaining materials of the houses and buildings;

[OLD RULES: When the State reclaims land and must dismantle all or part of it, while the remaining part does not meet technical standards , the owner of the house or construction is compensated with the new construction value (Article 89 of the 2013 Land Law)].

2.6. Compensation for crops and livestock

Clause 2, 4, 5 Article 103 Land Law 2024

• Supplementing regulations for perennial trees, the compensation level is calculated based on the actual value of the garden. For perennial trees that are harvested multiple times and are in the harvest period, the compensation level is calculated based on the unharvested garden output corresponding to the number of years remaining in the harvest cycle and the compensation unit price;
• Supplementing regulations on compensation for damage to other livestocks that cannot be relocatedbesides livestock is aquatic;
• Owners of crops and livestock are allowed to reclaim crops and livestock before handing over the land to the State.
• Provincial People’s Committees issue unit prices for compensation for damage to crops and livestock according to the production process set by the Ministry of Agriculture and Rural Development.or issued by the locality according to the provisions of law; the unit price for compensation for damage to crops and livestock must be consistent with market prices and must be considered for adjustment when there are fluctuations.

2.7. Compensation and support when moving graves

Compensation and support when moving graves (Article 15 of Decree 88/2024 )

• Provincial and district People’s Committees are responsible for arranging land funds in cemeteries according to planning to relocate graves when land is recovered;
• In case the district where the land is recovered has no more land in the cemeteries, the provincial People’s Committee is responsible for reviewing the land fund in other district-level administrative units to arrange for the relocation of graves, and prescribe support policies to encourage cremation, ash storage, etc.;
• In case graves within the recovered land area must be relocated without relatives to carry out the relocation, the unit or organization performing the compensation, support and resettlement tasks shall coordinate with the People’s Committee of the commune where the graves to be relocated are located to carry out the procedures for relocating graves according to local customs and practices; the relocation costs are included in the compensation, support and resettlement costs when the land is recovered.

2.8. Cases where property compensation is not granted

3. Support and resettlement

SUPPORT

Support when the State reclaims land includes:

1. a) Support for stabilizing life;
2. b) Support stable production and business;
3. c) Support for livestock relocation;
4. d) Support for training, career conversion and job search;
5. d) Resettlement support for cases specified in Clause 8, Article 111 of the Land Law;
6. e) Support for dismantling, demolition, and relocation as prescribed in Clause 3, Article 105 of the Land Law.

3.1. Support for vocational training and job search (Article 22 of Decree 88/2024)

Individuals directly involved in agricultural production who are supported in training, career conversion and job search are individuals who are using agricultural land and at the time of approval of the compensation, support and resettlement plan have income from agricultural production on that land and do not fall into the following cases:

1. a) Cadres, civil servants, public employees, active-duty officers, professional soldiers, defense civil servants, defense workers and officials, officers, non-commissioned officers, police workers, people working in cryptography and people working in other cryptography organizations receiving salaries from the state budget;
2. b) Pensioners;
3. c) People who have lost their ability to work or quit their jobs are entitled to monthly social insurance benefits;
4. d) Employees with indefinite-term labor contracts.

[Old rules: Labor contract: drivers and janitors are not cadres, civil servants or public employees (Consolidated document 04/NĐHN-BNV dated May 21, 2019)].

SUPPORT: Support for vocational conversion training (Article 22 of Decree 88/2024)

• Is a household using agricultural land with at least one member having income from agricultural production on that land (including members arising after the time of using agricultural land) at the time of approval of the compensation, support and resettlement plan and not falling into the above-mentioned exclusion cases;
• The support level is determined by the Provincial People’s Committee based on the actual situation in the locality but not exceeding 05 times the price of agricultural land of the same type in the local land price list for the entire area of recovered agricultural land but not exceeding the local agricultural land allocation limit;
• For households and individuals using land through land allocation, households and individuals receiving land allocation for garden use for new planting, garden care, and harvesting, and are eligible for support in training, career conversion, and job search, there must be a land allocation contract.

3.2. Conditions of resettlement area

Article 110: Supplementing specific regulations on resettlement areas to ensure:

• Conditions on technical infrastructure and social infrastructure (for rural areas : meeting new rural standards, for urban areas: meeting urban standards);
• In accordance with the cultural traditions and customs of the community where the land is recovered;
• Resettlement location: at commune-level administrative areas, district-level areas , and other areas with equivalent conditions;
• Priority is given to selecting land with favorable locations to form resettlement areas, with priority given to on-site resettlement.

3.3. Resettlement land price

Article 111

• Regulations on cases where people whose residential land is recovered have no other place to live, during the time waiting for resettlement arrangement, they will be arranged to live in temporary housing or supported with housing rental while waiting for resettlement arrangement in place;
• Land price for paying land use fee for resettlement is determined according to land price list;
• Supplementing regulations assigning responsibilities to the provincial People’s Committee based on the land fund, resettlement housing and local reality to specify in detail the reward mechanism for people whose land is recovered to hand over the site before the deadline and the minimum resettlement quota.

3.4. On-site resettlement

Moving residential land position (Clause 3, Article 24, Decree 88/2024)

In case of implementing projects for national defense, security, transportation, irrigation, technical infrastructure, social infrastructure purposes, it is necessary to recover residential land in a plot of land with houses, and the person whose land is recovered needs to resettle on the spot through exchanging the location of residential land to the back in the remaining agricultural land area of the plot of land after recovery, the resettlement arrangement in this case is carried out as follows:

1. a) Arrange on-site resettlement by allowing the conversion of land use purpose for the agricultural land area to residential land within the residential land allocation limit;
2. b) Exemption from land use fees when changing land use purpose from agricultural land to residential land when arranging resettlement with recovered residential land area in case the person whose land is recovered agrees to the compensation plan for agricultural land for the recovered land area.

3.5. Payment of compensation, support and resettlement

Article 94 of the 2024 Land Law : Payment of compensation, support and resettlement

Payment of compensation, support and resettlement is carried out as follows:

1. a) Within 30 days from the effective date of the decision approving the compensation, support and resettlement plan, the agency, unit or organization implementing the compensation must pay compensation and support to the person whose land is recovered and the property owner;
2. b) In case the agency, unit or organization that makes compensation is late in paying, it must pay an additional amount equal to the late payment amount according to the Law on Tax Administration calculated on the amount of late payment and the time of late payment.

Funds for late compensation payments are allocated from the budget of the authority approving the compensation, support and resettlement plan;

• In case the person whose land is recovered or the property owner does not receive compensation or support, or in case the recovered land or property is in dispute, the compensation or support will be deposited into a deposit account opened at a commercial bank in which the State holds controlling shares at a non-term interest rate;
• Interest from compensation and support is paid to land users and owners of compensated and supported assets.

3.6. Land prices in compensation, support and resettlement

• Compensation in cash: Specific land price (Clause 2, Article 91 of the Land Law)
• Compensation by land with different use purposes:
  • Land price list (households, individuals, Vietnamese people residing abroad); Specific land price (in case of compensation by land lease with one-time land rent payment);
  • Specific land prices (land use fees, land rent for economic organizations);
• Resettlement: Land price list (Land use fee payment price);
• Support for training, career change and job search: Land price list multiplied by adjustment coefficient (regulated by the Provincial People’s Committee).

3.7. Dispute settlement (Clause 4, 5, Article 25, Decree 88/2024)

• The division of compensation and support for people sharing land use rights and assets attached to land when the State reclaims land shall be carried out according to the agreement of people sharing land use rights and assets attached to land in accordance with the provisions of civil law;
• In case of land acquisition or disputed property that has not been resolved, compensation and support money will be deposited into the deposit account of the unit or organization performing the compensation, support and resettlement tasks opened at a commercial bank in which the State holds controlling shares at a non-term interest rate. After the competent state agency has completed the settlement, it will be paid to the land user or property owner;

[Clause 30, Article 3, Decree 47/2014/ND-CP: “compensation and support for the disputed area shall be transferred to the Treasury ”]

4. DECREES AND CIRCULARS ON LAND PRICES THROUGH PERIODS

4.1. Principles of land valuation

• Land valuation method based on market principles;
• Comply with correct valuation methods, procedures and processes;
• Ensure honesty, objectivity, openness and transparency;
• Ensure independence between land price determination consultancy organizations, Land Price List Appraisal Council, Specific Land Price Appraisal Council and competent agencies or persons deciding on land prices;
• Ensuring harmony of interests between the State, land users and investors.

4.2. Land valuation method

• Comparative method
• Surplus method
• Income method
• Land price adjustment coefficient method

4.3. Cases and conditions for applying land valuation methods

4.4. Regulations on land price list

4.4. Regulations on land price list

LAND PRICE LIST (Thing 159)

11 cases of applying the Land Price List mainly to households, individuals and annually rented land

1) Calculating land use fees when the State recognizes the land use rights of households and individuals; changes the land use purpose of households and individuals;

2) Calculate land rent when the State leases land and collects annual land rent;

3) Calculation of land use tax;

4) Calculating income tax from land use rights transfer for households and individuals;

……

4.5. Specific land price regulations

SPECIFIC LAND PRICE (Article 160)

06 cases of applying specific land prices, mainly for organizations and calculating compensation

1) Calculating the value of land use rights when equitizing state-owned enterprises according to the provisions of law on equitization;

2) Determine the starting price for auctioning land use rights when the State allocates or leases land, except for the case specified in Point i, Clause 1, Article 159 of this Law;

3) Calculating land use fees and land rent when extending land use, adjusting land use duration, adjusting detailed construction planning; allowing change of land use form;

4) Calculating compensation when the State reclaims land;

5) ….

4.5. Specific land price regulations

SPECIFIC LAND PRICE (Article 160)

Authority to decide specific land prices

1) The Chairman of the Provincial People’s Committee decides on specific land prices for cases of land allocation, land lease, permission to change land use purposes, land recovery… under the authority of the Provincial People’s Committee;

2) The Chairman of the District People’s Committee decides on specific land prices for cases of land allocation, land lease, permission to change land use purposes, land recovery… under the authority of the District People’s Committee;

3) The agency with the function of land management is responsible for assisting the Chairman of the People’s Committee at the same level in organizing the determination of specific land prices. During the implementation process, the agency with the function of land management is allowed to hire a land price consultancy organization to determine specific land prices.

4.6. Transition on compensation, support and resettlement

Transitional provisions (Article 31 of Decree 88/2024)

• In cases where there has been a decision to reclaim land before the effective date of this Decree but there has not been a decision approving the compensation, support and resettlement plan by a competent state agency, compensation, support and resettlement shall continue to be implemented according to the provisions of this Decree (NEW).
• In cases where there has been a decision on land recovery and a decision approving the compensation, support and resettlement plan in accordance with the provisions of the law on land before the effective date of this Decree but has not been implemented, the approved compensation, support and resettlement plan shall continue to be implemented; the handling of late compensation payments shall be carried out in accordance with the provisions of law at the time the State issued the land recovery decision (OLD).

4.7. Transition on resettlement land prices

Transition on land acquisition; compensation, support, resettlement when the State acquires land (Article 254)

In case there is a decision to recover land and a decision to approve the compensation, support and resettlement plan before the effective date of the 2024 Land Law , but the decision to allocate land for resettlement is made after the effective date:

• Land price for calculating land use fees at resettlement sites is determined at the time of approval of compensation, support and resettlement plans.
• At the time of the decision on land allocation for resettlement, if the land price for resettlement is lower than the land price in the compensation, support and resettlement plan, the land price at the time of issuance of the decision on land allocation for resettlement (PROFITABLE) shall be applied .

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“The article’s content refers to the regulations that were applicable at the time of its creation and is intended solely for reference purposes. To obtain accurate information, it is advisable to seek the guidance of a consulting lawyer.”

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