What is 5% land? Can 5% land get a LURC in Vietnam?

What is 5% land?

According to the provisions of Article 132 of the Land Law 2013 of Vietnam, “Depending on the land fund, characteristics and demands of the locality, each commune, ward or township may establish an agricultural land fund for public purposes of the locality which does not exceed 5% of the total land area for annual crops, perennial crops and aquaculture production.

Agricultural land which is returned or to which land use rights are donated to the State by organizations, households or individuals, reclaimed land and expropriated agricultural land constitute the source for creation or supplementation of the agricultural land fund used for public purposes of the commune, ward or township.

In a locality where the area of agricultural land fund used for public purposes exceeds 5%, the excess area must be used for construction or compensation when other land is used for construction of public facilities of the locality; or be allocated to households and individuals that are directly .engaged in agriculture or aquaculture in the locality but have not been allocated or still lack production land.”

Thus, the concept of 5% land can be understood as agricultural land used for public purposes of communes, wards and townships.

Can 5% land get a LURC?

In Clause 2, Article 19 of Decree 43/2014/ND-CP, people who are managing and using agricultural land belonging to the public land fund of communes, wards and townships will not be granted a LURC, ownership of houses and other assets attached to land. In conclusion, public land will not be granted a LURC.

However, when the term of public land use expires, the locality does not recover the land; Households and individuals that still use the land stably and without dispute may apply for a LURC when meeting all the conditions to be granted a LURC under Article 1 of Land Law 2013.

Will public land be compensated when being recovered?

According to Article 76 of the Land Law 2013, when agricultural land is recovered from the public land fund of communes, wards and townships, land managers and users are not compensated for land but are compensated for investment in the remaining land when the State recovers the land.

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