Vietnam: What are the compensations for damage to assets upon the land expropriation by the State?
- What are the principles of compensation for damage to assets and damage incurred due to stopped production and business upon land expropriation by the State in Vietnam?
- What are the compensations for damage to assets upon the land expropriation by the State?
- What are the cases ineligible for compensation for damage to assets upon land expropriation by the State in Vietnam?
What are the principles of compensation for damage to assets and damage incurred due to stopped production and business upon land expropriation by the State in Vietnam?
The principles of compensation for damage to assets and damage incurred due to stopped production and business upon land expropriation by the State in Vietnam are specified in Article 88 of the 2013 Land Law as follows:
Principles of compensation for damage to assets and damage incurred due to stopped production and business upon land expropriation by the State
1. If land-attached assets are damaged upon land expropriation by the State, lawful owners of those assets are entitled to compensation.
2. Upon land expropriation by the State, if organizations, households, individuals, overseas Vietnamese, or foreign-invested enterprises have to stop production and business which causes them damage, they are entitled to compensation for the damage.
Accordingly, the principles of compensation for damage to assets and damage incurred due to stopped production and business upon land expropriation by the State in Vietnam are:
- If land-attached assets are damaged upon land expropriation by the State, lawful owners of those assets are entitled to compensation.
- Upon the land expropriation by the State, if organizations, households, individuals, overseas Vietnamese or foreign-invested enterprises have to stop production and business which causes them damage, they are entitled to compensation for the damage.
What are the compensations for damage to assets upon the land expropriation by the State?
According to the provisions of Article 89 of the 2013 Land Law, Article 90 of the 2013 Land Law, and Article 91 of the 2013 Land Law, the compensations for damage to assets upon the land expropriation by the State are:
(1) Compensation for damage to houses and construction facilities on land upon the land expropriation by the State
- For houses and land-attached residential construction facilities of households, individuals, or overseas Vietnamese which are wholly or partially dismantled upon land expropriation by the State while the remaining part does not meet technical standards as prescribed by law, their owners are entitled to compensation equivalent to the value of new houses and construction facilities with equivalent technical standards.
If the remaining part of the houses and construction facilities still meets the technical standards as prescribed by law, the compensation must be made based on the actual damage.
- For houses and other land-attached construction facilities not falling into the case specified in Clause 1 of this Article, which is wholly or partially dismantled upon land expropriation by the State while the remaining part does not meet technical standards as prescribed by law, their owners are entitled to compensation for the damage in accordance with the Government’s regulations.
- For land-attached technical infrastructure and social infrastructure currently in use and not falling into the cases specified in Clauses 1 and 2 of this Article, the compensation amount is equivalent to the value of new construction facilities with equivalent technical standards prescribed by specialized law.
(2) Compensation for plants and livestock
- In case the land expropriation by the State causes damage to plants, the compensation shall be made according to the following provisions:
+ For annual crops, the compensation must be equal to the output value of the harvest. The output value of the harvest is the highest yield of the harvests in the preceding 3 years of the local main crop and the average price at the time of land expropriation;
+ For perennial crops, the compensation must be equal to the current value of the planting area calculated in local prices at the time of the land expropriation, excluding the value of land use rights;
+ For plants that have not been harvested yet but can be brought to another location, the transportation cost and the actual damage due to the transportation and re-planting must be compensated;
+ For planted forests funded by the state budget and for natural forests allocated to organizations, households, and individuals for planting, management, growing or protection, the value of the actual damage must be compensated. The compensation amount must be divided among those who manage, grow, and protect the forests in accordance with the law on forest protection and development.
- In case land expropriation by the State causes damage to aquatic livestock, the compensation must be made according to the following provisions:
+ For aquatic livestock which is due to be harvested at the time of land expropriation, no compensation must be made;
+ For aquatic livestock which is not due to be harvested at the time of land expropriation, the actual damage due to the early harvest must be compensated. In case the aquatic livestock can be brought to another location, the transportation cost and the damage caused by the transportation must be compensated. The specific compensation amount must be determined by provincial-level People’s Committees.
(3) Compensation for transportation costs upon land expropriation by the State
- Upon land expropriation by the State, people whose assets need to be moved shall be compensated for the cost of dismantlement, transportation, and installation. In the case of moving machinery or production lines, the damage caused during the process of dismantlement, transportation, and installation must also be compensated.
- Provincial-level People’s Committees shall prescribe the compensation amount.
What are the cases ineligible for compensation for damage to assets upon land expropriation by the State in Vietnam?
Pursuant to Article 92 of the Land Law 2013 as follows:
Land users will not be compensated for damage to assets upon land expropriation by the State when falling under one of the following cases:
- Land-attached assets fall into any of the following cases:
+ Land is not used for the purposes for which land has been allocated, leased, or land use rights have been recognized by the State, and the land users, after having been sanctioned administratively for using land for improper purposes, still continue committing the violation;
+ Land users intentionally damage land;
+ Land that is ineligible for transfer or donation as prescribed in this Law is transfeưed or donated;
+ Land that is allocated by the State for management is encroached or occupied;
+ Land that is ineligible for transfer of land use rights as prescribed by this Law is encroached or occupied due to the irresponsibility of land users;
+ Land that is allocated or leased for implementing investment projects is not used within 12 consecutive months, or the land use schedule is 24 months late compared with the schedule stated in the project documents since the handover in the field.
In case of not putting the land into use, the land use term may be extended to 24 months and the investors shall pay a sum of money equivalent to the total land use levy or land rental for the delayed period.
If the investors still fail to put the land into use when the extended time is over, the State shall recover the land without compensation for land and land-attached assets, except due to force majeure;
+ Individual land users die without any heir;
+ Land is allocated or leased by the State for definite periods and such periods expired without extension allowed.
- Land-attached assets which are illegally created or created after the notice of land expropriation by a competent state agency takes effect.
- Technical infrastructure, social infrastructure, and other construction facilities which are no longer in use.
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