Cases in which compensation for land is not made upon land expropriation by the State in Vietnam

Hello, Lawnet would like to answer the following:

1. When shall the State decide on land expropriation in Vietnam?

Land expropriationy means a matter in which the State decides to recover the land use rights of the person to whom the State grants the land use right or to recover the land of the land user who violates the land law.

According to the provisions of Clause 1, Article 16 of the Land Law 2013, the State shall decide to expropriate land in the following cases:

- For the purpose of national defense or security; socio-economic development for the national or public interest;

- Land expropriation due to violations of the land law;

- Land expropriation due to termination of land use in accordance with law, voluntary return of land, or the risk of threatening human life.

2. Cases in which compensation for land is not made upon land expropriation by the State in Vietnam

According to the provisions of Article 82 of the Land Law 2013, the State recovers but does not compensate for land in the following cases:

Article 82. Cases in which compensation for land is not made upon land expropriation by the State

The State shall recover land without compensation for land in the following cases:

The cases specified in Clause 1, Article 76 of this Law;

Land which is allocated by the State for management;

Land which is expropriated as prescribed in Article 64 and at Points a, b, c and d, Clause 1, Article 65 of this Law;

Cases that are not eligible for a certificate of land use rights and ownership of houses and other land-attached assets in accordance with this Law, except the cases prescribed in Clause 2, Article 77 of this Law.

Thus, there are 5 cases where the State recovers but does not compensate for land:

First, according to Land Law 2013, cases that are not eligible for compensation for land but are eligible for compensation for the remaining investment costs on land when the State recovers the land include:

- Land which is allocated by the State without land use levy, except the cases in which agricultural land is allocated to households and individuals as prescribed in Clause 1, Article 54 of this Law;

- Land which is allocated with land use levy by the State to organizations but those organizations are exempted from land use levy;

- Land which is leased by the State with annual rental payment or leased land with full one- off rental payment for the entire lease period but the land rental is exempted, for cases in which households and individuals use land under the policies for people with meritorious services to the revolution;

- Agricultural land belonging to the public land fund of the communes, wards or townships;

- Contracted land for agriculture, forestry, aquaculture or salt production.

Second, the case of land which is allocated by the State for management.

Third, the cases of land expropriation due to violations of the land law include:

- 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 was allocated or leased to wrong subjects or ultra vires;

- 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 users who fail to fulfill obligations to the State and have been administratively sanctioned for such violation but do not comply;

- Land for annual crops that is not used for 12 consecutive months; land for perennial plants that is not used for 18 consecutive months; land for afforestation that is not used for 24 consecutive months;

- 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 hand-over in the field.

In case of not putting the land into use, the land use term may be extended 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.

Fourth, cases of land expropriation due to termination of land use in accordance with law, voluntary return of land or risks threatening human life include:

- Organizations to which land is allocated by the State without land use levy, or organizations to which land is allocated with land use levy and the land use levy is originated from the state budget, are dissolved, go bankrupt, move to another place, or have lower or no land use demand; land users which lease land with annual rental payment are dissolved, go bankrupt, move to another place, or have lower or no land use demand;

- Individual land users die without any heir;

- Land users return the land voluntarily;

- Land is allocated or leased by the State for definite periods and such periods expired without extension allowed;

Fifth, the cases that are not eligible for a certificate of land use rights

Best regards!

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