What are new regulations on penalties for agricultural land encroachment in Vietnam?

The Government of Vietnam has issued Decree 123/2024/ND-CP (effective from October 4, 2024) concerning administrative penalties for violations in the field of land.

What are new regulations on penalties for agricultural land encroachment in Vietnam?

According to Clauses 2 and 3, Article 13 of Decree 123/2024/ND-CP, from October 4, 2024, individuals engaging in agricultural land encroachment will face administrative penalties as follows:

- In cases of encroaching on agricultural land (excluding rice cultivation land, special-use forest land, protection forest land, production forest land), not covered under Clause 1, Article 13 of Decree 123/2024/ND-CP and within a commune's administrative boundary, the penalties are as follows:

+ Fine from 3 million VND to 5 million VND for an area of less than 0.02 hectares;

+ Fine from 5 million VND to 10 million VND for an area from 0.02 hectares to less than 0.05 hectares;

+ Fine from 10 million VND to 30 million VND for an area from 0.05 hectares to less than 0.1 hectares;

+ Fine from 30 million VND to 50 million VND for an area from 0.1 hectares to less than 0.5 hectares;

+ Fine from 50 million VND to 100 million VND for an area from 0.5 hectares to less than 1 hectare;

+ Fine from 100 million VND to 150 million VND for an area from 1 hectare to less than 2 hectares;

+ Fine from 150 million VND to 200 million VND for an area of 2 hectares or more.

- In cases of encroaching on or occupying agricultural land such as rice cultivation land, special-use forest land, protection forest land, and production forest land, not covered under Clause 1, Article 13 of Decree 123/2024/ND-CP and within a commune's administrative boundary, the penalties are as follows:

+ Fine from 5 million VND to 10 million VND for an area of less than 0.02 hectares;

+ Fine from 10 million VND to 20 million VND for an area from 0.02 hectares to less than 0.05 hectares;

+ Fine from 20 million VND to 30 million VND for an area from 0.05 hectares to less than 0.1 hectares;

+ Fine from 30 million VND to 50 million VND for an area from 0.1 hectares to less than 0.5 hectares;

+ Fine from 50 million VND to 100 million VND for an area from 0.5 hectares to less than 1 hectare;

+ Fine from 100 million VND to 200 million VND for an area of 1 hectare or more.

Simultaneously, Clause 2, Article 5 of Decree 123/2024/ND-CP stipulates that the above fines apply to individuals, while fines for organizations will be twice the amount applicable to individuals.

From the above regulations, it can be inferred that if an individual encroaches on agricultural land, the administrative penalty will range from 5 million VND to 200 million VND depending on the violation and the encroached land area.

For organizations, the penalty will range from 10 million VND to 400 million VND.

Note that for households or individuals using land before October 15, 1993, without any violation handling document from competent state authorities before August 1, 2024, they will not be penalized under the above fines. (As per Clause 4, Article 3 of Decree 123/2024/ND-CP).

What is the statute of limitations on administrative penalties for agricultural land encroachment in Vietnam?

Article 3 of Decree 123/2024/ND-CP prescribes the statute of limitations for administrative penalties in the land sector as follows:

Statute of limitations for administrative penalties

1. The statute of limitations for administrative penalties in the land sector is 2 years.

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2. The point in time for calculating the statute of limitations for administrative penalties is defined as follows:

a) For violations covered under Clause 3 of this Article which have been concluded, the point in time for calculating the statute of limitations is the end of the violation;

b) For administrative violations not covered under Clause 3 of this Article that are ongoing, the point in time for calculating the statute of limitations is when the competent authority discovers the violation.

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Thus, the statute of limitations for administrative penalties regarding agricultural land encroachment is 2 years, whereas the calculation point starts when the competent authority discovers the violation.

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